The Islamic Republic of Iran Course: Management in the New Millennium Team members: Artemiy Kotov Irina Ioffe Olga Kharlamova Peter Erban
The Islamic Republic of Iran. Geography Location: Middle East, bordering the Gulf of Oman, the Persian Gulf, and the Caspian Sea, between Iraq and Pakistan Area: total: 1, 648, 195 sq km country comparison to the world: 18 Climate: mostly arid or semiarid, subtropical along Caspian coast Terrain: rugged, mountainous rim; high, central basin with deserts, mountains; small, discontinuous plains along both coasts Natural resources: petroleum, natural gas, coal, chromium, copper, iron ore, lead, manganese, zinc, sulfur
The Islamic Republic of Iran. People and Society Ethnic groups: Persian 61%, Azeri 16%, Kurd 10%, Lur 6%, Baloch 2%, Arab 2%, Turkmen and Turkic tribes 2%, other 1% Languages Persian (official) 53%, Azeri Turkic and Turkic dialects 18%, Kurdish 10%, Gilaki and Mazandarani 7%, Luri 6%, Balochi 2%, Arabic 2%, other 2% Religions Muslim (official) 98% (Shia 89%, Sunni 9%), other (includes Zoroastrian, Jewish, Christian, and Baha'i) 2% Population 79, 853, 900 (July 2013 est. ) country comparison to the world: 19
The Islamic Republic of Iran Government and Economy GDP (purchasing power parity): $1. 016 trillion (2012 est. ) country comparison to the world: 18 GDP - per capita (PPP): $13, 300 (2012 est. ) country comparison to the world: 100 Labor force - by occupation: agriculture: 25% industry: 31% services: 45% (June 2007) Unemployment rate 15. 5% (2012 est. ) country comparison to the world: 147 Capital: Tehran Government type: theocratic republic Legal system: religious legal system based on sharia law Executive branch: chief of state: Supreme Leader Ali Hoseini-KHAMENEI (since 4 June 1989) head of government: President Hasan Fereidun RUHANI (since 3 August 2013)
The Islamic Republic of Iran Political Technological PEST Analysis Social Economical
The Islamic Republic of Iran High Risk Political Theocracy, guided by Islamic ideology Mixes elements with modern Democracy 4 main offices (elected or appointed) Supreme Leader, President, Chief Justice, Chairman of the Parliament Revolution in early 80’s resulted in economic sanctions & mass emigration No functioning political party between 1987 and 1994 Laws are adapted to sharia rules Businesses must follow Islamic regulations Outdated principles – Commercial Code had only one revision (1968) since 1932
The Political System of Iran
The Islamic Republic of Iran High Risk Centrally planned economy 80% of Iran’s income is from oil Price control and slow speed of reducing subsidies limit private sector growth International economic sanctions and inflation = negative growth Rank 17 in the world by GDP 44% tax on profit (3 times higher than United Arab Emirates) ~20% interest rates on loans Significant rate of tax evasion (informal economy around 18% of GNP) Economical
The Islamic Republic of Iran Moderate Risk 89% of the population is below 54 y. o. Median age less than 28 Lack of skilled labor Nearly 19% below poverty line Deeply religious society Non-compliant products are banned High sense of cultural inheritance 4. 7% of GDP spent on education 23% unemployment rate among people less than 24 y. o. Social
The Islamic Republic of Iran Low Risk Aim to be independent of superpowers Significant investment in high-tech industries Low efficiency because owned by state Technological World’s 12 th largest automobile manufacturer Exporting military hardware Uneven development of communications Rank 40 by cellular phone usage Rank 126 by internet usage
The Islamic Republic of Iran SUMMARY: Opportunities: Workforce is young and educated (78. 5% of total) High level of urbanization (66. 5% of total, and increasing) Available resources Technological level is significant Problems: Relative political instability and international sanctions Government & religious interference in commerce Weak financial incentives for businesses to enter
Bibliography 1) https: //www. cia. gov/library/publications/the-world -factbook/geos/ir. html 2) http: //en. wikipedia. org/wiki/Iran 3)http: //www. nytimes. com/2013/12/06/world/middlee ast/new-emotion-hope-sweeps-across-iran-in-aftermathof-temporary-nuclear-pact. html? _r=1&
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