Memo - Key Insights Regarding Italy’s Brand

INTRODUCTION
The aim of this memo is to provide key insights regarding Italy’s brand. These insights will
include an interview with an Italian business leader and my own experience. This research
will then be used to offer a recommendation on whether or not it would be advisable for Hult
to open a campus in Italy.
PESTLE
Political:
In 2017, The Economist Intelligence Unit rated Italy as a "flawed democracy". Italian politics
contains a large amount of decentralisation and uncertainty which has historically led to short-
term coalitions. (https://en.wikipedia.org/wiki/Politics_of_Italy) Since the end of World War II, Italy
has had 61 governments. (https://en.wikipedia.org/wiki/Politics_of_Italy)
This factor includes rules and policies of the country and this factor will help in analysing the
political scenario of the Italy. Political factor includes trade policies, taxation, rules and
regulations, restrictions and many other factors. This factor will lead to have major impact on
growth of Italy nation. This country has strong democratic republication, parliamentary and
multiparty system
The political framework in Italy is based on multi-party system, democratic republic and
parliamentary, whereas, the system of Italian renders Roman Laws. The government of Italy
imposes relatively less tariff on special sectors which includes agricultural sectors and
educational sectors. According to Shatskaya, Samarina & Nekhorosheva, (2016), eductaion
in Italy is highly esteemed for which the goivernment support by constructing excellent
accademic institutions. The main focus of the government associated with educational sector
is to overcome the issues and challenges faced by the local public towards their education
perspectives. It has been evaluated that due to this aspects governemnt is countinuously
approaching for promotoing nation branding concept and approaches.
Currently, the government is mainly focusing on gathering support for its populist policies which
centre around migrants and Roma community, meaning policies to reduce public debt are taking
a back seat. This has a stronger effect on people from the south compared to the north.
(http://www.lteconomy.it/blog/2019/04/14/analysis-of-the-italian-system-weakness-and-strength-
points/)
Economical:
There are class differences in Italy between the north and the south, with the north containing
more middle/upper class citizens, and this gap has become large enough to be a problem

internally, particularly the high public debt that does not enable the government to reduce tax
burdens and raise investment.
(http://www.lteconomy.it/blog/2019/04/14/analysis-of-the-italian-system-weakness-and-strength-
points/)
The economy is divided in much the same way; the north is more industrial and developed than
the south, which receives many more subsidies and is reliant on agriculture. Private companies
are more prevalent in the north and unemployment is lower there also.
As depoicted by Santeramo, Seccia, & Nardone, (2017), the contribution of trourism industry
over the gross domestic product in Italy is amounted to 223.2 billion euros. In the context
Petrella et al., (2018), travel and tourism industry is consideerted as one of the leading
industry taht plays a significant role for country’s economy development . As per the survey
report it is expected that due to the increasing popularity of tourism industry in Italy, the
economy rate of GDP is expected to be increased in comming years.
Figure 1: Tourism contribution to Italy’s GDP rate
(Source: Statista, 2020)
Hence, it can be evelauted that the concept of nation branding would help the country to set a
national brand image not from a particular brand, but from the overall operation managment of
industrires that are operating in Italy.
Social:
The way business is conducted and cultural norms differ greatly from the north and south of Italy.
The north can be regarded as more “European” in respect of working culture and practice.
(Maaraportti Italia [Country report Italy] 2010, 31.). There is also a gender difference, with only a
third of women in employment in the south. (The Global Competitiveness Report 2016-2017,
212).
As opined by Nicolai, (2018), the Italian society ecompassess strong culture in which the
local people are very much found of family and religious centric. The population of Italy is
approx 60 million with the total growth rate 34%. Besides, it has been evelauted that the

country is mostly polulated with the people aged between 25-54 years. Due to this rate of
ppopulation , unemployament has become a major factor to be worried about in Italy.
However, this issues and challeng can eventually solved by integrating nation branding
approach, as by this the country would be able to collaborate with the other nations in the
perspective to carry busienss and expand while creating more of employament oppotunity for
the youths in Italy.
According to Ramírez et al. (2019), it has been witnessed that when ordinary citizens, except
from the categories of politicians, media stars or diplomates, of the country becomes
passionate ambassador for their respective home country they can successfully bring
positive changes that would impact the country and its associated society as a whole, in every
political, technological or economical aspects. No doubt, it has been stated that human capital
in every nation of the country are considered as a main sources for intangible values
associated with abilities, behavious, emotions, skills and values. Thus, the nation branding
perspective encourages these abilities within the local public while encouraging them towards
the beterment of the country’s economical conditions.
Technological:
The government in Italy has initiated policies whose function is to increase the number of online
services to citizens and provide a suitable environment for innovators and start-ups. The main
barriers to growth are lack of investors in these types of enterprises, as well as the general
political and business climate. (Global Information Technology Report 2016).
However, Italy is making progress in most aspects of technology, with best performance in the
individual use (37th). Business and government usage are ranked at (52nd) and (62nd)
respectively..
It has been rendered that Italy is not that advanced with the implication of advanced technologies
by is developing itself so that it can flexibily collaborate with the changing technological aspects.
The busienss leaders in Italy focusing hard to incorporate latest versions of operation
managment with the rapid evolution, while achieving maximum efficiency so that they can
successfully upgrade their service level.
It can be detremied that with the nation branding approach, busienss leaders would be able to
recruit candidates outside the nation while maintaining diversity in the company. This would help
the coampny to explore more innovative and creative ideas to solve its bsuienss contemporary
issues.
Environmental:
The main environmental concern for Italy is air pollution, particularly in the northern region which
is much more industrialised. Another issue lies with policies which do not sufficiently protect
areas from deforestation and illegal land obtainment. However, Italy does provide incentives for
solar energy use which take advantage of its climate, particularly in the south.
(https://freepestelanalysis.com/pestel-analysis-of-italy/)
This factor includes all those aspects that are related to ecology, weather, climate condition,
atmosphere and so on. Italy nation is majorly covered with landscapes, lakes, snow mountains
as well as perfect weather with agriculture. This country is supporting eco friendly environmental

as well as promoting green environment. Italy is a very beautiful nation that is very helpful in
attracting more and more tourism towards this nation. Environmental factor of Italy is very
supportive in enhancing tourism activities with in this nation.
It has been detremined that environemntal and ecological aspects in Italy is spectacular as due
to the amazing atmostphere and climatic condition rendered by the country enables the tourism
sectors to attrat the attentions of their potential tourist. Hence, it can be detremied that due to thsi
climatic condition Italy sustain adequate agricultural and tourism sectors which majorly
contributes to the nations GDP rate.
Legal:
Italian law is based on Roman law, especially civil law, and on French Napoleonic law. The legal
system in Italy is said to be excessively complex which leads to confusion, even amongst
lawyers and judges. The introduction of EU directives has complicated things further.
(https://www.justlanded.com/english/Italy/Articles/Visas-Permits/Legal-System)
My Own Experience:
In the traditional school system, children start learning English late (at the age of 11), which is
also the last year of elementary school in Italy, the equivalent being year 6 of primary school in
the U.K. Historically, pupils’ competency in English is poor due to many factors; lack of properly
trained teachers, only 1-2 hours of classes per week and almost no speaking practice. When I
came to London to study English, my classes always contained many Italians. The country has
realised that this is a problem and is trying to address the aforementioned problems. One way
this is being done is by universities also running most courses in English simultaneously with
those in the native language.
There are, however, barriers to entry when it comes to the most prestigious business
universities, the most obvious being monetary since they are the most expensive. There are
sadly more malevolent actions taking place, such as personal connections and money being able
to facilitate an individual's chances of obtaining a place. The top-level business universities are
mostly located in the north, reflecting the general economic and industrial divide between the
north and the south, with the south generally being poorer and more agricultural. Another aspect
of this divide worth mentioning is family. People in the north are geographically, and in their
perspectives, closer to the rest of Europe, meaning families are more likely to push their children
to attend an economy based university.
Milan contains two out of the top three business universities in Italy, Bocconi and Cattolica. It has
also overtaken Rome as the business and finance capital to add to its already number one status

in fashion and design, meaning business people and companies are increasingly looking to Milan
for business and investment opportunities.
An Italian business leader from the design and manufacturing sector was interviewed. Here are
his main insights.
● It was firmly suggested that the only place to do big business was in the north,
particularly Milan, “anybody who is anybody does business in the north”. Stating that the
most prominent companies are located in the north, and that there is a lot less red-tape
compared to the south, these were cited as the most important factors in choosing where
to do business in Italy. “People in the south have a different mentality, especially when
doing business”.
● As a Milanese, he could be forgiven for having a “soft spot” for the city, but he was
steadfast in his view of Milan as a powerhouse of tourism and culture, attracting not only
tourists but business opportunities and investment.
● Having studied at Bocconi himself, when asked if he would have liked to have studies at
an International Business School, his response was: “I would’ve loved to have had the
opportunity, because I see kids nowadays making very important contacts at uni. I
would’ve had a more international network and this would’ve undoubtedly helped when I
started out in business”.
● Tourism sector is considered as most visible aspects for the approach of nation branding.
As opined by Manrai, L. A., Manrai, A. K., & DeLuca, J. (2017), the tourist’s idea
associated with the nation branding exhibits a visual image of the country which leads
to influence many other countries working as nation’s performance. It encourages the
foriegn investors and torists to oversea the nation while generating some experience
by working with that particular nation.
● Most of the economist were found to be suffered while adapting nation branding
approaches in their earlier political era. However, this was reciprocaled rendering
aspiration towards cultural, social and political aspects. For instance, Slovenia is a state
that has successfully admired in recasting its perceptions through successfully
promoting the branded exports, well funded and established tourism campaign along with
comprehensive business.
5 insights
Tourism & Culture:
Tourism is the fourth biggest industry of export around the globe (Kemp, Childers, &
Williams, 2012). Milan is one of the most popular tourist destinations in Italy, and this is why

many foreign students choose to study there. Culturally, people in Milan understand the
importance of education. Prestigious universities in Milan such as Bocconi are used as a key
marketing tool making Italy a popular choice with foreign students looking for high-quality
education. For example, 40% of the students attending Bocconi are classified as non-
residents.
It can be evaluated that tourism sectors are considered as most competent marketing forces
when its comes on country’s branding. Nation branding approach allows the tourist sectors to
explore ideas that would help the country to creates a virtual image which would exhibit
nation’s performance. For instance, industries associated with the country would be gaining
opportunities to connect with the foreign visitors which would ultimately lead to improve
countries rate of GDP.
https://www.unibocconi.it/wps/wcm/connect/Bocconi/SitoPubblico_IT/
Albero+di+navigazione/Home/Entrare+in+Bocconi/Studenti+Scuola+media+superiore/
Perche+un+corso+di+laurea+in+Bocconi/Una+comunita+internazionale/
Government Policies & Investment
The financial dimensions of school in Milano are worried regarding the benefits that each
nation receives from the external investors. For this, they required to be more attractive and
offer the best quality in services and products.
The educational leaders within the Milano send and give an image to the external world
through the unparalleled level of education. Values are judged around the globe and task of
the politicians and diplomats is to take the responsibility of education at higher level in
Milano. The prior success and characteristics are relied on the attempt to measure and rank
the Milano reputation as a whole and not focusing on the particular dimension of education
Economic factors which affects the school in Milano are interest rates, cost of providing
sources like workers (support & teaching), basics (paper/books), and technology keys laptops
(Urde, Baumgarth, & Merrilees, 2013).
https://www.regione.lombardia.it/wps/portal/istituzionale/HP/DettaglioServizio/servizi-e-
informazioni/Cittadini/scuola-universita-e-ricerca/Universita-e-formazione-accademica/
diritto-allo-studio-universitario/diritto-studio-universitario

After analysing the country brand and key insights, a recommendation can be made for Hult
to open a campus in Milan. This city was chosen since it can be said that there are many
correlations between the brand of Hult and Milan.
Along with the interview with a business leader conducted in this research, more leaders and
students should be surveyed in order for Hult to refine its brand message and differentiate
itself from competitors in Milan. These surveys represent an efficient way to collect opinions
and supply the data for meta-analysis in order to facilitate the improvement of Hult’s
reputation. This research will be used to offer the best academic offerings and experience as a
priority. Another way for Hult to place itself alongside other prestigious universities in Milan
is to explore the idea of offering teaching positions to well-respected professors from
established universities such as Bocconi and Cattolica.
As seen from the secondary research conducted into higher-level institutions, Milan is
already a very popular destination for foreign students. This fact is very important since one
of Hult’s main selling points is the fact that it offers students to go on rotation and undertake
courses at a variety of destinations around the globe. The primary research shows that there is
a demand for universities to run courses in English, and this is an area where Hult can
distinguish itself from local competitors since it is already a well-established English
speaking institution.
Hence, it can be stated that if Hult integrates with nation branding approches, it would be able
to enhance its human capital by developing their capabilities, skill and values for supporting
the nation. In addition, it can be evlauated that if Hult can effectively coillaborate with nation
barnding concept, it would be able to maintain a diplomatic and political relation with other
nations that are currenty stablelized in the matter of both political and economical aspects.
Besides, Hult would be able to attract high percentage of heritage tourism, which would help
the country increase it’s economy rate of GDP. Nation branding able the country to sustin
foriegn investment offering taht would help the country improve its infrastructural facilities,
which includes improving educational aspects. According to Petrella et al., (2019), nation
branding virtually influences the international engagemnet of the country, while playing a
crucial role in the social, political, cultural progress and economics.
For inatsnce, many of the countries like New Zealand, South Korea, South Africa, Chile and
Solvenia are some of the examples that has proved to regain their international reputation
with an effective integration of nation branding. Hence, it has been evaluated that nation
branding has provided a future aspiration and clartity to the countries and to all it variables.
Besides, nation branding dominates the capitalist system making it easy for the country to
sustain real competitive advantages in the aspects of military, political as well as economical
strength.

This organization should bring new academic subjects and accommodate nontraditional
students and the older population of the student (Buil, Martínez, & De Chernatony, 2013).
Successful management of positioning and reputation will help the Hult to manage the
changes in Milano Government partially subsidizes the education cost for end students. The
public funding amount is designated to education as the point of contention. Government is
gradually cutting the budget of education which can lead to a critical problem for the Schools
in the future.
Through the launch of an effective program, institutions get more support to increase the
mobility within the higher education system with divergent degree structures and different
academic traditions (Ertimur, & Coskuner-Balli, 2015).
Institution by keeping the curricula updated will get enough support within the changing
dynamics and marketplace within the higher education. This is important to consider the
growing impact of globalization.
Each year diverse, forward-thinking, and driven graduate-level students pick Hult as the
school of choice. Students come to Hult with very big dreams around the entire corner of the
globe. The committee of admission selects the individual with the strong Hult DNA to join
master programs. The individual that considers a business degree is required to have a good
deal regarding the thought of professional and personal benefits that gained from the
program. This is accepted within the competitive course and requires to be conveying about
the benefits that bring within the classroom. It creates a positive impact beyond the classroom
and fit within the chosen program (Gensler, et al., 2013).
Hult to get success in Milano is required to demonstrate itself to the student to meet
requirement of entry in program with the accurate course. The general requirement of
admission varies and applicant with the graduation level is needed to have a bachelor's degree
and relevant experience (Gatti, Caruana, & Snehota, 2012). The organization should
introduce mutual recognition regarding the qualifications.
In Milano, it should implement the system regarding quality assurance and strengthen the
relevant and quality learning of teaching and learning. The organization should reform the
policies of higher education to overcome from the obstacles to make a higher education area.
Reform will be the key for the organization to build the necessary trust for effective learning
mobility, cooperation and mutual regarding study periods, and cross-border academic
cooperation. Increasing the teaching and learning quality with the relevance should be the
main mission for the Hult. The organization through the launch of an effective program will
get more support to grow the mobility within the higher education system with the divergent
degree structure and different academic traditions (Ertimur, & Coskuner-Balli, 2015). Hult by
reforming the higher education system will become more capable to outline the requirement
for better support and enable the vulnerable and underrepresented groups to access higher
education.
The research will be the crucial and important thing for the Hult to improve reputation. Hult
with the prospective will become more capable to strengthen the insights. It will become

more capable through refining the brand message and differentiate itself from competitors.
This will become a more reputable institution in every field through the effective educational
channel with unique qualities and extensive research by the use of key data. Hult should
focus more on the student to get the opinion to improve the quality of education. The survey
will help to get the attribute for the Meta-analysis and represent the easy and effective way to
collect the opinion of the student and facilitate the improvement of institution reputation. It is
important to priorities the academic offerings and experience. Institution by keeping the
curricula updated will get enough support within the changing dynamics and marketplace
within the higher education. This is important to consider the growing impact of
globalization.
This organization should bring new academic subjects and accommodate nontraditional
students and the older population of the student (Buil, Martínez, & De Chernatony, 2013).
Successful management of positioning and reputation will help the Hult to manage the
changes in Milano Government partially subsidizes the education cost for end students. The
public funding amount is designated to education as the point of contention. Government is
gradually cutting the budget of education which can lead to a critical problem for the Schools
in the future.
The government has taken the initiative to privatized schools.
It creates the risk for school in Milano to deliver policies or moved away from the local
priorities. It changes the skills that needed to become a teacher.
It has changed curriculum for opening the school in Milano through the short lead times that
require self-managing and financing. Funding decisions of local and central government may
influence the school finances closure and plans of fund raising. It affects the parents’
capabilities to raise the amount regarding optional activities.

(Kemp, Childers, & Williams, 2012) Place branding: creating self‐brand connections and
brand advocacy. Journal of Product & Brand Management. 28(01), 14-25.
every Italian region gives the possibility based on income and merit of having a scholarship
for example, the Lombardy region offers grants of between EUR 1000 and 5000 based on
income
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