KEY FINDINGS OF QUALITATIVE RESEARCH ABOUT HEDA

1. KEY FINDINGS OF QUALITATIVE RESEARCH ABOUT HEDA Prepared by MRB February 2014

2. TABLE OF CONTENTS 1. INTRODUCTION 1.1 THE RESEARCH OBJECTIVES 1.2THE RESEARCH METHODOLOGY 1.3 TIME PLAN 2. SYNTHESIS OF FINDINGS 2.1THE BUSINESS ENVIRONMENT OF CRETE 2.2 STANCE TOWARDS NATIONAL & BILATERAL CHAMBERS 2.3 EVALUATION OF THE DUTCH MARKET 2.4 INTRODUCTION & EVALUATION OF HEDA 3. CONCLUSIONS & RECOMMENDED ACTIONS

3. 1. INTRODUCTION

4. 1.1 THE RESEARCH OBJECTIVES To evaluate the business environment of Cretan island To examine the stance of business owners towards cooperatives associations, national and bilateral chambers To evaluate the participation of business to associations and chambers, to identify the advantages and disadvantages and also the expectations rising by those memberships To examine the levels of knowledge and the stance towards the Dutch Market To introduce HEDA and to examine if there is any possibility and under which condition HEDA could acquire new members from the business environment of Crete

5. 1.2 THE RESEARCH METHODOLOGY QualitativeResearch 11 in depth interviews with the Decision makers of medium and large companies of Crete The selection criterion was among the main economic sectors of the island Tourism Agriculture Manufacturing (Processing Industry) Commerce

6. 1.3 THE TIME PLAN The research field was held among January 13th to January 31 /2014

7. 2. SYNTHESIS OF FINDINGS

8. 2.1 THE BUSINESS ENVIRONMENT OF CRETE The main economic sectors of the island are depicted hierarchically as following : Tourism Primary Sector (exports mainly) Manufacturing / (Processing Industry) Commerce Shipping

9. 2.1 THE BUSINESS ENVIRONMENT OF CRETE The economic situation seems to affect the business activity of the island, since it was difficult to identify industrial sectors that are booming nowadays Furthermore, an additional difficulty exists concerning transportation and labor costs (being higher) compared with the rest of Greece and as a result many companies have second thoughts about the stay of the company’s headquarters to the island (example Manufacturing / Processing Industry)

10. 2.1 THE BUSINESS ENVIRONMENT OF CRETE As far as it concerns tourism, the situation is a bit different (better) but all inclusive packages -which seem to be a recent trend -do not bring profitability to the island as a whole ( tourists does not leave profit to the local market) Concerning the primary sector (mainly agriculture, olive oil, vineyards) only export activities can bring profit to the producers Furthermore the Cretans believe that they should promote the philosophy and the advantages of the Cretan diet abroad in order to expand the entrepreneurship of the island -> need for expansion abroad <-> “ArisingOpportunity”

11. 2.2 STANCE TOWARDS NATIONAL & BILATERAL CHAMBERS

12. 2.2 STANCE TOWARDS NATIONAL & BILATERAL CHAMBERS In an effort to recognize the ways that the respondents are associated with the concept “member of a chamber” the following behavioral “poles” emerged: Typologies Map • Obligatory membership vs Beyond obligatory membership • Show trust vs Question Obligatory Membership The Distant Trust Doubt The detached The Supporters Beyond obligatory membership

13. 2.2 STANCE TOWARDS NATIONAL & BILATERAL CHAMBERS The Supporters • Usually large companies with export activities • Mainly from the food industry (olive oil, wine, honey) dealing with production – packaging - distribution- exports • Aim to expand their business activities -> Seek for opportunities • They are young, “experts” with technology, “the model of dynamic businessman” • They are active members of Local unions, Commercial chambers and Bilateral chambers • Easy to reach but they need proof in order to be persuaded

14. 2.2 STANCE TOWARDS NATIONAL & BILATERAL CHAMBERS The Supporters Perceived Benefits of Membership Local Unions • Collectivity • Defending local interests • Emphasis to Cretan entrepreneurship • Bilateral chambers • They bring into contact with embassies • They organize exhibitions with Greek and foreign partners • They provide statistics about sales and profit of specific products in certain regions • They provide information about the market in order companies who want to export their product can be competitive • They inform about new market openings • They build up the image of Cretan Market • National chambers • Credentials for the company • Continuous information reports about the sector in general • Information about events • Results of researches about the latest trends in commerce, sales etc • Contributes to the promotion of Cretan philosophy abroad

15. 2.2 STANCE TOWARDS NATIONAL & BILATERAL CHAMBERS The Supporters Perceived Benefits of Membership Local Unions • Collectivity • Defending local interests • Emphasis to Cretan entrepreneurship • Bilateral chambers • They bring into contact with embassies • They organize exhibitions with Greek and foreign partners • They provide statisticsabout sales and profit of specific products in certain regions • They provide information about the market in order companies who want to export their product can be competitive • They inform about new market openings • They build up the imageof Cretan Market • National chambers • Credentials for the company • Continuous information reports about the sector in general • Information about events • Results of researches about the latest trends in commerce, sales etc • Contributes to the promotion of Cretan philosophy abroad

16. 2.2 STANCE TOWARDS NATIONAL & BILATERAL CHAMBERS The Supporters Further Expectations from the Membership of a bilateral chamber • Networkingwith foreign partners in an organized and systematic way in order to acquire information about the specific market and to exchange expertise and know-how • Guidanceon bureaucracy and legal issues of the country that they want to export their products • Planning of Eventsto reinforce public relations among countries • Wellorganized exhibitions • Finding potential Customers “Interaction” “Better” “Deeper”

17. 2.2 STANCE TOWARDS NATIONAL & BILATERAL CHAMBERS The Distant • Usually large and medium companies with low or without export activities • Mainly producers ( primary sector) and from the tourist sector (hotel owners) • Wish to expand their business activities -> “Wait to be discovered” • They are usually of middle age, familiar with technology, “the model of traditional businessman” • They are members of Local unions and Commercial chambers ( they are negative) • Suspicious, Demanding, it is difficult to persuade them

18. 2.2 STANCE TOWARDS NATIONAL & BILATERAL CHAMBERS The Distant Perceived Benefits of Membership Local Unions • Politics - Unionism • They mishandle subventions • Ignorance about marketing, events, promotion • Bilateral chambers • They feel that they promote interest of each country • They organize events and excursions • They provide public relations among countries • National chambers • They organize events without any important effect (producers and merchants together) • They could consist the mean to promote the Cretan products but in reality they are ineffective • They are public servants The specific audience is particularly negative towards unions and chambers, as a result they found difficulties to recognize any benefits

19. 2.2 STANCE TOWARDS NATIONAL & BILATERAL CHAMBERS The Distant More Expectations from the Membership of a bilateral chamber • Finding potential Customers • Acquaintance with Top Businessman of European countries • Organization of Exhibitions “Sales, Sales, Sales”

20. 2.2 STANCE TOWARDS NATIONAL & BILATERAL CHAMBERS The Detached • Large companies with export activities • Mainly from the food industry and production (olive oil, honey, cold cuts) dealing with production – packaging - distribution- exports • Aim to expand their business activities -> They have strategic plan • They are of middle age , experienced, familiar with technology, “the model of successful businessman” • They are members of Local unions, Commercial chambers and Bilateral chambers (they are disappointed) • Difficult to gain trust • “I can manage even without you”

21. 2.2 STANCE TOWARDS NATIONAL & BILATERAL CHAMBERS The Detached Perceived Benefits of Membership Local Unions • Promote local interests • It is a mean of positioning in certain issues & express problems and worries • Participation at events • But usually without any effect • Bilateral chambers • The intermediate link between two countries • They organize events and exhibitions • They provide information about foreign markets • BUT • They usually do not give solutions but they send you to other services -> lack of interest • They emphasize to the relations between member states without providing substantial help -> companies should ask for consulting from specific firms • National chambers • They provide information about the market, new equipments etc. • They organize events exhibitions • An official organization • BUT • They could eliminate the bureaucracy of public administration

22. 2.2 STANCE TOWARDS NATIONAL & BILATERAL CHAMBERS The Detached More Expectations from the Membership of a bilateral chamber • Guidance about the Legislativeframework • Market research about the product the company wants to export at the specific country -> to identify the need • Openingof new markets • Finding potential Customers • Networkingwith relevant business in order to exchange opinions, experience and knowledge Real “…Beyond…”

23. 2.2 STANCE TOWARDS NATIONAL & BILATERAL CHAMBERS Overall all respondents seemed to have a better opinion about Bilateral chambers in relation to national ones, fact that increases expectations but also “leaves room” for further approach It was common in all respondents that, the “role” a bilateral chamber has to play in order to fulfill its “mission”, is mainly Consultative The most important selection criterion seems to be its capability to provide new Market Opportunities and Potential Customers

24. 2.3 EVALUATION OF THE DUTCH MARKET

25. 2.3 EVALUATION OF THE DUTCH MARKET The majority of respondents seemed to consider interesting all European markets as well as Scandinavian countries, Russia, Canada and China Due to climatic conditions they have, European and Scandinavian countries are open markets to export wine, honey and olive oil Canada and Russia are particularly interested about wine and China seems to be a great opportunity for olive oil due to lack of it there On the contrary Markets of Latin America, Africa and India do not show any particular interest since they are considered non-developing markets

26. 2.3 EVALUATION OF THE DUTCH MARKET “A Dynamic Market” With few exceptions, most businesses do not know many details about the Dutch market-> low levels of awareness Spontaneous Associations “Strong economy” “A well organized country” “A node due to geographical place”

27. 2.3 EVALUATION OF THE DUTCH MARKET After the exposure to the information about the Dutch market, seemed that the positive image they had about the Dutch Market is confirmed, indicating the following elements that are evaluated positively: The 5th largest economy in the Euro zone -> Safety / strengthens the impression of strong economy Agriculture and food -> Open market for Crete/ Opportunity Imports $490.1 billion (2012 est.) -> Important factor that motivates interest for furthermore examination Import partners: Germany 14.5%, China 11.8%, Belgium 8.6%, UK 6.1%, Russia 6%, US 5.9%, France 4% (2011) -> Reassurance / impression of an open market/ A potential cooperation

28. 2.3 EVALUATION OF THE DUTCH MARKET It seems that after the presentation of the Dutch Market the respondents expressed high interest Especially for the food sector, wine, olive oil, cold cuts and honey the Dutch market is depicted as a new opening and a potential future cooperation The fact that the Dutch Market has a high import activity raises positive connotations and gives the impression that there is a “fertile ground” to expand

29. 2.4 INTRODUCTION & EVALUATION OF HEDA

30. 2.4 INTRODUCTION & EVALUATION OF HEDA Preliminary Remark On a first spontaneous level, the majority of respondents were not aware of HEDA (only two mentions without knowing any specific details) In order to examine prompted reactions, the respondents were exposed to informational material about HEDA that included the history, objectives and values, its mission and vision, as well as services provided and list of members

31. 2.4 INTRODUCTION & EVALUATION OF HEDA • Many years of existence are interpreted twofold: • Experience / know – how • Absence of visibility raises suspicion -> unknown therefore inefficient? • The objectives considered prerequisites and expected -> lack of differentiation / “missal” • Values are “tempting” and generate interest as long as they are applicable • However words like “Passion”, “daring” and integrity predispose positively

32. 2.4 INTRODUCTION & EVALUATION OF HEDA • The term Networking Organization raises positive connotations and meets the expectations they have already mention • Business to Business contacts is evaluated positively since it gives the impression that HEDA brings together business in order to exchange opinions and knowledge • The number of 180 members seems quite satisfactory for an unknown chamber-> “hidden force” • The term strong liaison seems to respond to their current need All the above compose the puzzle of acceptance of HEDA

33. 2.4 INTRODUCTION & EVALUATION OF HEDA Evaluation of services Customized services: Quarterly newsletter Monthly e-News Bulletin Credit information Exhibitions Training Organizing activities Cooperation with other chambers Website Business directory Networking • Lack of differentiation from other chambers • “ The basics offered by everyone” • Lack of excitement • Lost of interest Need of differentiation/ enrichment

34. 2.4 INTRODUCTION & EVALUATION OF HEDA Getting acquainted with the Dutch Market (profile, developed sectors, products/ services, consumer habits) When respondents were exposed to a more detailed description about specific actions of HEDA their initial reaction about services seemed to be altered Providing detailed information for the Dutch Market will make easy and clear if there is an open market/ opportunity for each sector that shows interest to develop business or exporting activity !!!

35. 2.4 INTRODUCTION & EVALUATION OF HEDA Networking with other companies If it is well organized and it is not just promises, it is great opportunity in order to “exploit” (make the best) other partner’s experience, technical mastery and superior skills -> Fact that attributes added value to HEDA !!!

36. 2.4 INTRODUCTION & EVALUATION OF HEDA Join ventures with Dutch companies Came out as a great opportunity for specific companies (ex. Cold cuts) they could combine the production of Dutch primary sector in order to develop new business activities or to create alliances with other companies in order to supply materials from each other -> An ideal action from a chamber that provides the maximum to its members !!!

37. 2.4 INTRODUCTION & EVALUATION OF HEDA Lists of potential customers/ collaborations The greatest difficulty for a company that wants to expand their activities abroad, a chamber that would provide this service to its members is more than an organization, it is a commission that shows social responsibility towards its members -> It is the most important argument that HEDA can use in order to gain members !!!

38. 2.4 INTRODUCTION & EVALUATION OF HEDA Public Relations/Political Lobbying A service that companies may afford in order to acquire power. The specific service is evaluated positively and transforms HEDA to a powerful institution -> “They have the means” !!!

39. 2.4 INTRODUCTION & EVALUATION OF HEDA Mentoring: A platform of information that will guide all members through necessary actions in order to carry the entrepreneurial activity abroad • Guidance • Elimination of bureaucracy • Elimination of the cost of consulting companies • Convenience “Not just a chamber, a precious consultant” !!!

40. 2.4 INTRODUCTION & EVALUATION OF HEDA Events that will attract Dutch Companies or tourists (gastronomic events) • Necessary • It will “boost” island’s economy • It will promote Cretan nutrition abroad • It will create needs for Cretan products “A significant help” !!!

41. 2.4 INTRODUCTION & EVALUATION OF HEDA The specific actions after evaluating were placed in the following hierarchy: Mentoring: A platform of information that will guide all members through necessary actions in order to carry the entrepreneurial activity abroad Join ventures with Dutch companies Lists of potential customers/ collaborations Networking with other companies Public Relations/Political Lobbying Events that will attract Dutch Companies or tourists (gastronomic events) Getting acquainted with the Dutch Market (profile, developed sectors, products/ services, consumer habits)

42. 2.2 STANCE TOWARDS NATIONAL & BILATERAL CHAMBERS The following diagram depicts the willing of each type of audience to be a member of HEDA and which subscription they would like to pay: Member (+) The detached The Supporters The Distant Simple subscription (75€) Right to vote (220€) Member (-)

43. 2.2 STANCE TOWARDS NATIONAL & BILATERAL CHAMBERS The following diagram depicts the willing of each type of audience to be a member of HEDA and which subscription they would like to pay: • If HEDA can prove those which claims even “the Distant” audience seems to be attracted • “The supporters” felt so excited about the services that HEDA provides, that they would like to be more engaged than the other audiences • “The detached” seemed to be more skeptical about all the services that HEDA claims to provide but they are willing to give an opportunity to the Hellenic-Dutch chamber Member (+) The detached The Supporters The Distant Simple subscription (75€) Right to vote (220€) Member (-)

44. 3. CONCLUSIONS & RECOMMENDED ACTIONS

45. 3. CONCLUSIONS & RECOMMENDED ACTIONS The Cretan Market seems to be quite active as far as it concerns exporting activities and wishes to make further openings to new Markets So far the participation in chambers and associations was almost disappointing, except from the audience of “the supporters” who have rather a positive experience For the rest audiences the role of the Chambers and unions is not very active and does not provide neither an advisory status nor effective solutions

46. 3. CONCLUSIONS & RECOMMENDED ACTIONS Bilateral chambers do not seem to particularly differentiate with an exception the audience of “the supporters” who still have greater expectations The competencies that required by a Bilateral chamber are the following Networking with foreign partners Guidance on bureaucracy and legal issues Reinforcement of public relations among countries Well organized exhibitions Finding potential customers

47. 3. CONCLUSIONS & RECOMMENDED ACTIONS As far as it concerns the Dutch Market seems quite interesting, especially for the food sector (production, packaging, Distribution) Although the majority of respondents had a good opinion about the Netherlands and they consider them a strong economy, still it is an unknown market After exposing the audience to informative material about the Dutch Market / economy, the levels of interest increased A new and interesting opening

48. 3. CONCLUSIONS & RECOMMENDED ACTIONS HEDA does not have high levels of awareness among respondents, even those business that were aware about the existence of the Hellenic- Dutch chamber could not recall any further information about its actions After exposing respondents to the informational material about HEDA their reactions were quite satisfactory, yet there is still the concern / suspicion about the actual realization of the activities and services HEDA is claiming -> Need to prove its values and intentions

49. 3. CONCLUSIONS & RECOMMENDED ACTIONS In order HEDA to acquire “Recognition” and acceptance should promote/ communicate its “history”, actions and “concrete” partnerships -> Communication of a success story HEDA should reach Cretan businesses through informative news letters by emphasizing to all its “strong weapons” that will give companies motives to subscribe To indicate its values and vision

50. 3. CONCLUSIONS & RECOMMENDED ACTIONS “Not just a chamber … a Precious Consultant” But “PROVE IT !!!”