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Tasks and tools for a systematic development of international activities


Alexander Frevel, Hanse Parlament, “Tasks and tools for a systematic development of international activities“

Alexander Frevel, Hanse Parlament, “Tasks and tools for a systematic development of international activities“

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  • 1. 12.03.2012 Sveiki! Step by Step to International Markets Tasks and Instruments for a Systematic Development and Expansion of Foreign Activities Vilnius, 2012-03-15 Moderation Alexander Frevel Part-financed by the European Union (European Regional Development Fund and European Neighbourhood and Partnership Instrument) Opening speech Ms. Lina Vaitkeviciene Deputy Managing Director, Enterprise LithuaniaSME 1
  • 2. 12.03.2012 BalticSupply … supports SME networking in the Baltic Sea Area that can create new business opportunities. • The BalticSupply project strives to foster innovation in the Baltic Sea Region in order to make the region a prosperous place to live, work and do business. In order to do this the project will implement the Small Business Act, which means promotion of entrepreneurship and strengthened SME structure. • Basically, it should be easier for small and medium sized enterprises to do business cross nationally in the Baltic Sea Region. • Specifically, the BalticSupply project will create a network mechanism between Baltic Sea Region small and medium sized enterprises (SMEs) as well as a networking mechanism between SMEs and original equipment manufacturer (OEMs), which is larger public or private units doing larger procurements and, thereby, searching for service or product solutions from SMEs. • By bringing Baltic Sea Region SMEs and OEMs together in the innovative cluster concept the project facilitates exploration of new markets from both the supply and demand side. Seminar Schedule 09:30 Opening speech: Ms. Lina Vaitkeviciene, Deputy Managing Director, Enterprise Lithuania Welcoming address; course schedule and contents, objectives of the seminar: Mr. Alexander Frevel, Hanseatic Parliament 09:45 Future trends in the Baltic Sea Region: Ms. Elina Priedulena, Hanseatic Parliament 10:15 Business on international markets – Good Practice of enterprises 11:15 Coffee break 11:30 Tasks and Tools for a systematic development of international activities: Alexander Frevel 13:00 Lunch break 14:00 Tasks and Tools … (continuation) 15:30 Coffee break 15:45 Information Management / Exchange of Experiences on successful activities: Alexander Frevel, Elina Priedulena International Business Support Services for SMEs: Gediminas Rickevičius, Enterprise Lithuania Eubizz.net – Baltic Supply Road Show “Get on board!” (Video)SME 2
  • 3. 12.03.2012 Taking position • I have much experience with business activities abroad • I know possible target countries for my export activities • I know that my products and services are internationally marketable • I already have (I plan) a drawing up of an export strategy • Our internal processes are aligned to international cooperation - + Introduction of Participants • Name, sector, business (personnel, qualifications), range of service (products and services) • Experience with activities in international space / interests in export • Assessment of own development needs • Own goals and expectations concerning the seminarSME 3
  • 4. 12.03.2012 Objectives of the Operational Seminar Export • Ability to recognise and classify various forms of international cooperation in foreign trade in their importance for your own business. • Ability to recognise and describe contributions in kind and services of ones own business suitable for export. • Ability to recognise and develop the export potential of the business, management and staff. • Getting to know the elements of a business plan. • Knowledge of success factors for the business / foreign trade activities. Future Trends in the Baltic Sea Region- Potential for SMEs Elina Priedulena Hanseatic Parliament Hamburg/GermanySME 4
  • 5. 12.03.2012 Business on international markets Examples from German Companies Securing Jobs through Internationalisation Carpentry/joinery and construction business Established in 1919 55 employees including 5 trainees Everything from a single source: – Office for structural engineering and building construction – Wooden frame manufacturing with the use of the most modern machine park in heated buildings with RAL Quality Label – Turnkey implementation of construction projects – Creation of a youth camp for EXPO 2000 • Cooperation with partner companies for heating, electrical engineering, tilers, painters • International activities in Switzerland Hotel Palafitte, NeuchatelSME 5
  • 6. 12.03.2012 Development of International Market Niches Electrical engineering Established in 1991 50 employees, 1 trainee Consultations, planning and project implementation for – Burglary and fire alarm systems, smoke detection systems – Video surveillance systems – Electrical installations – Intelligent building management – Airport engineering, airfield lighting • Ongoing training of all employees; exchange of trainees with Northern Ireland • Targeted increase of awareness level – Visiting trade fairs in Slovakia, Slovenia, Bosnia and Herzegovina, Czech Republic, Poland, Ireland, Russia… • Joint venture with companies in Bosnia and Herzegovina, Ukraine, Slovakia and Poland • Establishment of an international pool of companies to improve economic relations in Asia and Africa Measuring the Environment Our demand to make your application successful Environmental measuring technology and meteorology 10 employees including 3 trainees Meteorological and environmental measurement technology: sensors, systems and measurement networks (especially atmospheric deposition collection and analysis) – Development, manufacturing, distribution and engineering – Precision mechanics small-scale production (medical technology and aerospace) – Development and manufacture of handling equipment – Individual production for applications in science research, and industry – Distribution and consulting of ground water data loggers from the Netherlands to Germany • Qualified team of experienced employees capable of working in a team • Strong international focus: approximately 70% of export • From the development of series production to sales and after-sales service: everything in close consultations with partners • Close cooperation with global partnersSME 6
  • 7. 12.03.2012 Complete Solutions for Individual Living Spaces of Demanding Customers Carpentry 14 employees including 2 trainees – Production of small series – Manufacture of complete equipment, supply of complementary systems in order to make a room complete – Manufacture / delivery of high quality facilities and furnishings for private yachts, private jets, villas, reception areas and boutiques – Exclusive interior design • Know-how and high quality at reasonable prices • Opening up markets abroad through medium-sized projects • Responding to individual customer needs • Complete solutions from a single source: customers do not need to worry about anything • Partnership cooperation with suppliers and general designers • Varied range of offered services which is continuously expanded Custom-Built Security Made in Germany 18 employees, including 3 under further training measures Development, manufacture and installation of – Security windows, doors and facades for high security areas – Access control and monitoring systems – Planning and implementation of complete system solutions for high security areas • Consistent customer orientation – which products and services are required in which quality • Intensive country-specific market research • Own developments with production in Germany • Offer of complete solutions from planning, manufacture, installation, commissioning to training • Products and solutions with unique selling features • Cooperation with distribution partners in the respective countries • Training cooperation partners in GermanySME 7
  • 8. 12.03.2012 Module: Export capability Challenges • Globalisation / Internationalisation ! • Pace of technological change • Socio-demographic transition • Rules and standards Opportunity Threat • Changed customer expectationsSME 8
  • 9. 12.03.2012 The House of Export Capability Foundations of export potential Framework conditions Commercial, tax law Partnership Language, culture Corporate Management governance Values Attitude Behaviour Motivation Education Knowledge, skills Competences Expertise / abilities Efficiency Product Process Productivity Innovation power © Alexander Frevel Individual Export Capability Personally available knowledge – Language skills – Legal regulations – … Individually acquired skills and experience – Communication and cooperation skills – Self-observation and self-management skills – Social and methodological skills – ... Personal attitudes / behaviour – Openness to third parties – …SME 9
  • 10. 12.03.2012 Business Export Capability Knowledge available within the enterprise – Commercial, fiscal law … – Labour, environmental regulations, … – Business and corporate governance/ culture (e.g. employer-employee relationship, customer needs, …) Skills gained in the company and gathered experience – Integration of foreign employees / cooperation with foreign partners – Self-observation and self-management skills Entrepreneurial attitudes / behaviour – Partnership relationships rather than purely commercial interests Environment and Individual Attitude, Behaviour Export Increasing the Management environment export capacity organisation Professional competence © Alexander FrevelSME 10
  • 11. 12.03.2012 Stages on the Way to Foreign Involvement Tasks and Tools Market Market Market Preparation expansion selection entry Analysis of own business model Building infrastructure Expansion Country observation Target positioning Implementation strategy Tasks Market processing Implementation of core abroad Market attractivity Market entry strategy processes Internationalisation profile Project management Instruments Marketing Environmental analysis SWOT Analysis Process optimisation (e.g. balanced scorecard) Vision and objectives Service engineering Development and qualification of options Business plan Development Objectives • Ability to estimate the marketability of products/services in the "receiving country." • Researching the most important framework conditions of the receiving country or knowing where and how to obtain the necessary information. • Ability to (want to) meet the requirements for "export" and knowing how to find suitable cooperation partners. • Knowledge of the essential requirements concerning the "export- concept including a business plan“ and ability to create such a concept on your own. • Ability to explore and perceive funding opportunities (fairs, cooperation exchanges, financial support...). • Knowing the regional, national and international support and advisory institutions or at least knowing how to find them out.SME 11
  • 12. 12.03.2012 Aspects in the Selection of the Target Country Spatial distance, Culture, framework conditions mentality Target country Opportunities & Local contacts, threats of the market, knowledge of the market potential, country, information gathering language skills Source: Sölter 2009 Forms and Types of Foreign Trade • Pure export – Product delivery – Provision of services – Delivery of products plus services • Cooperation / strategic alliance with other domestic companies (e.g. marketing, sales) • Cooperation / strategic alliance with foreign enterprises (e.g. sales, assembly) • Own branch • Joint venture / franchise etc.SME 12
  • 13. 12.03.2012 Work Task Please discuss in small groups: What are the advantages/disadvantages of each different form of foreign trade activities? Discuss in small groups and be prepared to present the results afterwards. Time: approx. 10 min. Activities within Export Experience of the Phase Strategy type Implementation form of Subject of performance Measure provider international strategy No international experience Experience < 3 years Experience > 3 years Market selection Market preparation Market entrance Market expansion country - only delivery Production within the /assembly abroad Domestic production - sales Production abroad Pure export Domestic cooperation Cooperation abroad Own branch Joint venture / franchise etc. Manufacturing of parts Product(s) System performance … … … … …SME 13
  • 14. 12.03.2012 Work Task Answer for your own company and fill in the list of activities: Which form of international cooperation suits my enterprise and my service scope best? Work Task What do you think you need to develop an export- concept? Discuss in small groups and be prepared to present the Results afterwards. Time: approx. 20 min.SME 14
  • 15. 12.03.2012 Development of an Export Concept • Market analysis and marketing competition analysis, target group analysis (AIDA method) • Information and communication Information management, knowledge management (gathering, storage and dissemination of information) • Uniqueness Market Analysis You want to predict / estimate, • how your customers will behave in relation to your product/service (= buy / not buy), • who exactly these customers are / can be • for what reasons these customers will buy your services and not the services of your competitors. The central question is: • Which of my (contributions in kind) and services are also of interest for the foreign market and thus exportable?SME 15
  • 16. 12.03.2012 Market Analysis - Product on the Market • How does your product / service stand out on the market? • Why exactly will your product / service find buyers? • Can your product adapt fast enough to the changing market conditions? • How is the situation on the commodity market, who are the relevant suppliers, what’s about the employees? Is it possible to ensure high-quality and cost-effective production which can also respond to rapid changes on the market? Market Analysis - Competition • Who is "the competition?" • Do you know the current and future offer of the competitors? - What products / services are in the assortment? - What products ... are in the pipeline? - What purchase conditions can be implemented? - Are there any advantages of location? - How high are the production and sales prices? • What market share do you aspire to and how long can you maintain your competitive advantage?SME 16
  • 17. 12.03.2012 Market Analysis - Customers / Target Group Core of the market analysis • Who purchases the product / service? • Where does the customer purchase the product? • How does the customer purchase the product? • Why does the customer purchase the product? – Ideal situation: You know your customers by the name and explore their preferences during the preparation for the purchase and the actual purchase action – or: You could have already sell your product or your service successfully among friends. Marketing Possible distribution channels and the sales situation • In which places (location, logistics), • at what times and • in what situations can you sell most successfully? • Can you implement the AIDA sales formula successfully? Attention the first attention can be awakened in the customer Interest the customer shows interest Desire the customer acknowledges the "feeling of hunger" - he/she wants to buy the product Action the purchase takes placeSME 17
  • 18. 12.03.2012 Which Information is Important in Marketing? • Assessment of the market and customer: – what my customers want / need – what I can / want to provide – how the customers want / can be addressed • Own work quality and prices in relation to competition • Convenient shopping facilities • Cooperation partners, e.g. for larger projects • Work planning process – Application possibilities of employees – Logistics of operating resources • ... Work Task Please discuss in small groups: What are the key factors for a successful export offensive? Discuss in small groups and be prepared to present the results afterwards. Time: approx. 15 min.SME 18
  • 19. 12.03.2012 Information as a production factor Processing information Knowledge Data Success Factor of Information and Communication An active information and communication policy of business both internally and externally is • the prerequisite • the subject (means and topic) • and the result of the continuous improvement process (CIP) on the way to uniqueness.SME 19
  • 20. 12.03.2012 Success Factor in Information Technology • IT for data processing – Calculation – Accounting – Controlling • Internet – Procurement (information, goods, services) – Marketing and public relations – Distribution / participation in tendering procedures Success Factor of Cooperation • Exchange of experience with other • Benchmarking = learn from the good: companies improve strengths, reduce weaknesses – also with competitors • Strategic cooperation • Cooperation in the value chain • Customers • Indicators of own quality • Universities and research • Product and process innovation institutions • Chambers, associations • Gathering of information, further training, consultingSME 20
  • 21. 12.03.2012 Success Factor of Employees • The best explorers and ambassadors of a company are its employees. • Their knowledge and abilities, their motivation and flexibility decide on Express the marketability and future viability of appreciation the enterprise. Find treasures … Importance of Corporate Culture, Organisational Development and Personnel for International Activity Workshop / group work What is to be observed in international activities in the structure and process organisation? How does and can the personnel be prepared for international requirements? • 60 minutes for group workSME 21
  • 22. 12.03.2012 Success Criteria for Strategic Cooperation in Foreign Trade Workshop / Group work How can I establish contacts abroad? What are the successful ways to develop - relationships from contacts - co-operations from relationships? • 60 minutes for group work Why we need information • to have up-to-date knowledge • to be able to take decisions • to be able to become betterSME 22
  • 23. 12.03.2012 Information • enables reducing uncertainty • leads to greater knowledge • is transferable (data, signals, ... language) • brings about change in the receiving system • can be shared without loss Information Management • … is the activity management at the strategic, administrative and operational level, which deals with the procurement, distribution and exchange of information and communication. Planning, management, operation and monitoring of internal and external information resources: Capturing the information needs Planning of the information offer Provision of the required information Organisation of information provisionSME 23
  • 24. 12.03.2012 How Do We Gather Information? • reading professional journals, books, ... • attending lectures, seminars, ... • watching fairs • speaking exchange of experience This way we obtain information! targeted: information planning for procurement, distribution, use systematically: Internet research, responsibility Working Task for Further Preparation Please create an information planning for your concept of foreign trade activities. • What do you want to do (short description of the idea)? • Which information do you need for this purpose? • Where and how do you obtain information? • Describe your approach.SME 24
  • 25. 12.03.2012 Key Questions to the Concept of Export • The enterprise concept / business plan: Economic efficiency evaluation • Project management using the PDCA Cycle • Success factors and termination criteria My business is unique! - Guidelines for international unique selling points Each enterprise is a place where the future is always created anew. Uniqueness of businesses is a constant challenge: • In terms of customers – to be different than any competitor – and similar to the best ones.SME 25
  • 26. 12.03.2012 My business is unique! - Guidelines for international unique selling points • Being different makes us strategy-capable and enables effectiveness = doing the right things • Being similar to the best represents a permanent requirement for efficiency = doing the right things right. • Necessary: continuous renewal • Helpful: corporate solidarity Mutability = desire for the future = innovation Sustainability ... is adaptability, and thus a targeted balance of expected changes and the desired future and the prevailing or future change potential. Successful are those who are adapting actively!SME 26
  • 27. 12.03.2012 Success Factors for Sustainability • Market analysis • Competition analysis • Marketing • Information technology • Cooperation • Information and communication • Employees • Work and process organisation • Logistics • Further education • ... Work Task Please discuss in by your own or – if you like – in small groups: My treasure-box: … What distinguishes my company? Time: approx. 10 min.SME 27
  • 28. 12.03.2012 Business Plan - Definition • written entrepreneurial idea (vision) on the basis of business data • includes assumptions about future events and developments on the market and about the development of the company • should be created at the foundation of the enterprise • but it also helps with building a new business field, e.g. the export of goods or services, or participation in another (e.g. European) enterprise or the establishment of a branch Business Plan - Tasks • Ongoing review of own information • Control mechanism • Presentation of all potential opportunities and threats • Design of an action strategy ensures regular performance monitoringSME 28
  • 29. 12.03.2012 Business Plan - Objectives A business plan is drawn up in order to • recognise the need of financial resources and thus provide support in the acquisition and argumentation (customers, financial institution), • decide in a sound way whether the project should be continued or cancelled, • optimise the entire business concept, • increase the probability of success, • stay on course. Example of Bar Chart responsible May 12 Jun 12 ... Nov 12 ... Information Country information B.K. Trade regulations D.L. Market analysis B.A. ... Ready enterprise concept B.A.SME 29
  • 30. 12.03.2012 Business Plan Outline 1. Summary 2. Company presentation/background 3. Description of the export idea; setting the objective 4. Market analysis 5. Market strategy 6. Implementation concept 7. Financial planning 8. Threats, problems and assumptions 9. Conclusion: benefits of the export service innovation for the operation Formulating Objectives with SMART Specific Measurable Attractive Realistic Time-boundSME 30
  • 31. 12.03.2012 Formulating Objectives - Example Starting today, we will reduce the complaint rate (the sum of all complaints received) by the end of 2012 by 5 %. We will explain each customer in detail the functionalities of their new facility. Each technician will receive a checklist for this purpose. The person responsible for controlling this measure shall be Mr. Müller. Source: Thimm, Svenja: The future is service. Methods and materials for consultations, Düsseldorf 2004 Working Task • Description of the strengths and the weaknesses (enterprise analysis). • Description of the existing opportunities as well as the threats to foreign trade activities (environmental analysis).SME 31
  • 32. 12.03.2012 Working Task • Please create in a working group a list of termination criteria, i.e. possibly measurable aspects from which you can conclude whether the export project should be continued or aborted. – 2 Each group formulates the most important two ( ) criteria Writer: please write down clearly the discussion results – Working in small groups – Time: 10 minutes – Presentation of the results - put on the wallpaper – Each group decides the presenting person International Business Support Services for SMEs Gediminas Rickevičius Enterprise LithuaniaSME 32
  • 33. 12.03.2012 Sėkmės! Good luckSME 33