Switzerland
By Corina Zellweger and Marcel Trachsel
int/ext Communications AG and Partner
Public Relations Organisation International, Inc.
Basel (Switzerland)
Background
Switzerland is at the heart of Europe, at the center of the great technological
area that stretches from South Germany to North Italy and Lyons in France; and
at the intersection of the two major European economic axes that run between
London and Milan, and Barcelona and Munich. Two mountain ranges, the Jura and
the Alps, give Switzerland its specific character and unique landscape.
The total area of the country comes up to some 41,000 square kilometers. With
7,2 million inhabitants, Switzerland is densely populated. Excellent road, rail
and air links to the whole of Europe make Switzerland an important center for
international business contacts. None of the most important European cities
is more than two hours away by air.
A railway journey or car ride across Switzerland takes less than three hours
– distance east-west is 350 km, north-south 250 km. The variety in landscapes
is impressive. Lakes and highest mountains, fruitful river valleys and sparse
rock landscapes are coining Switzerland’s geography.
Switzerland borders on Germany in its north, in the west on France, in the
south on Italy and in the east on Austria.
Three main languages are spoken in Switzerland: German (65%), French (20%)
and Italian (8%). A large proportion of the population can communicate also
in English, which is often used in business.
Compared to other European countries, Switzerland has a high proportion of
foreign residents: almost 20%.
Switzerland’s political structure
Switzerland in its modern form came into being in 1848. At that time, the loose
alliance of autonomous cantons (states) became a Confederation with a modern
constitution and a direct democracy.
Each of the 26 cantons has its own constitution, government, parliament, courts
and laws, though they must all, of course, be compatible with those of the Confederation.
The cantons enjoy a great deal of administrative autonomy and freedom of decision-making.
They have independent control over their education systems and social services,
and each has its own police force. Each canton also sets its own level of taxation.
The Federal Council, Switzerland's government, has 7 members. Each year, a
different member becomes Federal President. The post confers no special powers
or privileges, and the president continues to administer his or her own department.
The Federal Assembly is made up of two chambers, the National Council representing
the people, and the Council of States, representing the cantons. The 200 seats
in the National Council are distributed between the cantons in proportion to
their size, while the Council of States has two members for each canton. However,
the two chambers are of equal weight. The role of the two chambers includes
approving every federal law and supervising the government. Any member can also
propose a new law or decree. The National Council is dominated by the four parties
which make up the government. Elections to the Council take place every four
years.
The country’s business centers
Zurich, Bern, Basel and Geneva are the most important cities for the Swiss economy.
Geneva is named the ‘international capital’ of Switzerland. 200
international organizations are located there, i.e. the ‘International
Comity of Red Cross’ and the European headquarter of the UN.
Bern, the federal capital and center of political power, lies midway between
French-speaking Geneva and the economic center of Zurich to the east.
Although lacking the political and diplomatic clout of Bern, Zurich is perhaps
the country’s most important metropolis, certainly as far as the economy
is concerned. Zurich is known primarily as a bankers’ and stockbrokers’
city.
Switzerland is among the world's leading producers of chemicals and pharmaceuticals.
Basel, located in the triangle of Switzerland, France and Germany, hosts some
of the most important multinational companies: Novartis, Roche, Ciba Specialty
Chemicals and Clariant to name only a few.
Economic powerhouse
Switzerland’s 1999 gross domestic product (GDP) is CHF 395 billion ( i.e.
EUR 241 billion or USD 272 billion) generating an income per capita of CHF 51,164
(EUR 31,977 or USD 35,303), placing Switzerland at the top of the developed
economies. Unemployment rate is very low (around 2%).
Most businesses are small or medium-sized. In 1998, 99.7% of enterprises had
fewer than 250 full-time workers, employing nearly 70% of the total work force.
The largest Swiss company is Nestlé, one of the major food companies
in the world. In 1999, it employed a total of 231,000 persons, more than 97%
of them outside Switzerland.
In the Financial Times "Global 500" table for 2001, Switzerland came
sixth. The table ranks the world's most important companies according to the
value placed on them by stock markets. Switzerland had 11 companies on the list,
valued at a total of USD 584 billion.
In addition to a well-developed tertiary sector (banks, insurance companies,
international holding companies, tourism), Switzerland has a dynamic industrial
sector (chemicals/pharmaceuticals, biotechnology, machines, micro-engineering,
watches and clocks, food) which provides close to 30% of all jobs. The high
technological standard of the Swiss economy is reflected in the 2.7% of gross
domestic product (GDP) applied to research and development, a figure that is
comparable with that of the United States.
Switzerland has one of the lowest tax rates and social security contributions
of all the industrialized countries - companies based in Switzerland are the
first to gain. These charges represent just 33.75% of the GDP.
An open economy
Every second Swiss franc is earned abroad. Due to its small internal market,
Switzerland is one of the major export nations. The best known export articles
are watches, chocolate and cheese. But far more important are machinery, electronics
and chemicals and pharmaceuticals.
Despite its economic presence worldwide, Switzerland, with its long tradition
of neutrality, has stayed out of the EU. Switzerland is an important commercial
partner within Europe; it is the third-largest supplier for the European Union,
behind the United States and Japan, and the EU’s number 2 customer after
the USA. The biggest partner is Germany, followed by France, Italy and the United
Kingdom. In 2000, 60% of exports went to EU countries, and 78% of the imports
came from EU states.
Financial Services
Banks in Switzerland offer investors a broad range of financial products and
services. No authorisation is required to import or export foreign currencies.
Switzerland is a center for professional portfolio management for private customers
and institutional investors. With a market share of 35%, Switzerland is a world
leader in trans-frontier portfolio management.
Education and Training
Switzerland’s vocational training system is geared to the needs of trade
and industry. A significant majority of young people (64%) complete an apprenticeship;
in addition, Switzerland offers a broad network of excellent advanced colleges
and universities. In proportion to its population Swiss nationals have received
the highest share of Nobel prizes. Unsurprisingly, Switzerland also holds a
top position internationally with regard to public spending on education and
training.
Switzerland’s media scene
The range of Swiss media, large and diversified, amount to 150 newspapers and
about 60 dailies. Most influential dailies are the Neue Zürcher Zeitung
and Tagesanzeiger in the German speaking part, 24 heures and Tribune
de Genève in the French speaking part and Corriere del Ticino
in the Italian speaking part. The electronic media (Radio and TV) is a two tiered
system where a public and private intervention co-exist and prosper.
The media are confronted with a major audience segmentation and the creation
of a multitude of special interest media (healthcare, economics, lifestyle etc.)
The Internet is also growing in importance as an information medium - many
of Switzerland’s major media have sites devoted to the latest news.
The multitude of languages and special interests imposes certain constraints
and conditions that must be taken into account when communicating with various
media in Switzerland. When developing media relations strategies this must be
taken into consideration - approaching media relations the exact same way as
in the initial home country would represent a costly mistake. Obtaining strategic
advice from well-reputed communications advisors could constitute a very sound
investment before embarking on a media relations strategy.
How to find the right communications consultancy in
Switzerland
In Switzerland, the Association of Swiss PR Consultancies (BPRA) represents
the major PR agencies in the Swiss market. Member agencies fulfil rigorous quality
standards. BPRA provides a skills index of all member agencies.
A partnership in an international network – PROI in particular –
is an additional indicator for professionalism and high quality. PROI offers
a broad range of highly qualified consultancies on an international basis, one
per country in Europe. The PROI partners safeguard your communications interests
in the local market and also in an international context. int/ext Communcations
is PROI’s Swiss partner agency.
After obtaining an overview on the Swiss PR-market there are three ways of
choosing a PR agency:
An agency can be approached upon receiving a recommendation.
You invite different consultancies for an agency presentation of credentials
that is free of charge.
You invite different consultancies for a pitch (costs come up to USD 6,000
to 10,000 depending on the complexity of the assignment).
For assistance in finding a PR agency in Switzerland contact: