Economic Analysis:

We begin our economic analysis by stating that in comparison to the world, Italy stands 12th economically with a gross domestic product of 2065.9 Billions. We can rest assured that Italy has sufficient economic power for a new company to expand into it. Yet, there is a different between an economically powerful country and an economically stable country. A study between these two can show us whether the expansion is favorable or unfavorable for PackIT. Italy is categorized as “Moderately Free” with a ranking of 61.7 (.08 percent higher) Yet it is important to note that to the take down of corrupt Italian Leader: Silvio Berlusconi, helps to visualize a more stable Italy since Corruption goes hand in hand with Economic Freedom. Transparency International ranks Italy with a score of 43 at 69 in comparison to the world. With these three overall rankings we can securely understand that Italy is a stable enough country for the expansion of PackIT.
For PackIT, our social goal is to reduce Obesity in Italy where 36 percent of the child population suffers from Obesity. At an economical standpoint, another important analysis we must study is Poverty in Italy. It is well known that poverty can bring families limited food budgets and choices ending in cheaper unhealthier food, and food that can’t last long or be kept healthy to eat. Poverty also restricts regular physical activity due to time constraints. According to the Italy National Statistical Institute, around 13 in 100 Italians are living below the poverty line. In 2013 ISTAT declares an absolute poverty incidence of 7.9% across the entire country. To understand what areas PackIT should face and strategically position them for more efficiency through targeting, we study the analysis of the areas inside of Italy. By studying the Poverty Chart we can analyze what areas and who is subject to obesity. With a glance at the analysis of Italy’s poverty and household incomes, we can see that Southern Italy has areas with poverty twice and thrice as the northern and central areas. These areas are specifically, the areas of Palermo, Naples, Mesina, Sicily, Salerno and even Sardinia. Since our mission is to reduce child obesity, we study the compositions of the families with lower incomes to economically pinpoint where our strategies must take place. We analyze that families with a couple and 3 or more children quantify the majority of poverty at about 40%. Families with a breadth of 5 or more also are much more likely to be poorer and subject to malnutrition and obesity. The central area’s poverty is composed more of families with elderly members (65 year or older), and the northern area’s family compositions vary to radically and are categorized as “other types”. By understanding all this data, in a social perspective, PackIT’s target areas are Italy’s southern areas where there are more families with 3 kids or more. By doing so, we may aid the poverty indexes and supply them with easier ways to store food which can help fight obesity.
A situation that we will face is the higher corruption indices in the lower countries, which could hinder our development and expansion. It is a known fact that corruption, causing the misdistribution of wealth, causes poverty. Because of this, Italy is 49th in competitiveness with regards to the global competitiveness report. In the report it states that Italy has the 10th largest market size in the world, yet we will be faced with the problem that the financial market is not sufficiently developed to provide finance for business development (ranking at 124). Corruption, organized crime, and a lack of independence in the judicial system can increase business costs and affect any investor’s confidence. In retrospect, Italy has a lot of potential and is economically stable enough to consider expansion but this doesn’t mean it is actually stable. PackIT will have to carefully execute every economical move to survive the corrupt instability of Italy’s finance.

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