Doing International Business is no Holiday!           David Jenkins; i2i-management.com          St John’s Innovation Cent...
An outline of today’s workshop• In today’s business world, doing business internationally  is essential. This training ses...
This is how the workshop will                                                   proceed• Setting the scene     – Options f...
And what right have I to be here                                             today?• Been there ... done  that ... got the...
And forgive me ...• My background is B2B with a focus on products• This workshop should not be so limited and  should embr...
The topic is doing business so                                      let’s explore what’s possible  discover               ...
Where does marketing fit into                                                      this scheme?  discover      develop    ...
Your can do just about                                     everything internationally                     • Links to unive...
But the focus today is on the                           sell, supply and service end• David Frost, director general of the...
So should we export: isn’t it                                             rather difficult?• It’s never been easier     – ...
But because it’s easy/possible                              isn’t sufficient reason to do it• Why should you export?     –...
Making the key decisions                     (Kipling’s honest serving men)          why   • This is the big strategic que...
Hard issues are easy to define• The business climate     – Market size and requirements     – Competition• Marketing: the ...
Keep it simple: stay with the 4Ps   Place and       Promotion or             Pricing and                                  ...
Soft issues: they may be soft but                         that doesn’t mean they’re easy• What are the soft issues which w...
Fact is that there are different                                cultures and they pervade• Geert Hofstede is one of the gu...
Let’s take a look at some of our                           near neighbours: France                                 • Very ...
Let’s take a look at some of our                        near neighbours: Germany                                 • Surpris...
Let’s take a look at some of our                    near neighbours: Netherlands                                 • Surpris...
The US is similar ... as                                                expected?                                 • As exp...
Whereas China is very different                                 • Quite different as                                   exp...
7 cultures of capitalism• Hampden-Turner and  Trompenaars looked  at 7 ‘dilemmas’  (dimensions) which  largely overlapped ...
Neutral vs affective;                                               Analytic vs integrative         Approval        Esteem...
Practical matters: organisation,                      management and resources• What’s your new organisation going to look...
Practical matters: organisation,                                 management and resources• What’s your new organisation go...
There’s plenty of help around• UKTI: www.ukti.gov.uk• The Institute of Export: www.export.org.uk• Business Link: http://bi...
and finally .. .if you want to know                            more about sales channels            Come along to ‘sometim...
David Jenkins                     i2i@davidjenkins.org.uk                    www.i2i-management.com               +44 1223...
Upcoming SlideShare
Loading in …5
×

Doing international business is no holiday!

1,297 views

Published on

Slides from St John's Innovation Centre workshop

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,297
On SlideShare
0
From Embeds
0
Number of Embeds
52
Actions
Shares
0
Downloads
11
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Doing international business is no holiday!

  1. 1. Doing International Business is no Holiday! David Jenkins; i2i-management.com St John’s Innovation Centre; 25 Feb 11February 2011 doing business internationally 1
  2. 2. An outline of today’s workshop• In today’s business world, doing business internationally is essential. This training session will give you an understanding of the basic principles of being successful internationally. On this profitable international journey the emphasis is on action and not just on theory. – Key questions include: • Why do you wish to export? • Is the company fit for this? • What are the big issues you need to address and what little things can trip you up on the way? • Where do you go for help?February 2011 doing business internationally 2
  3. 3. This is how the workshop will proceed• Setting the scene – Options for doing business internationally – Why might we want to export?• Hard issues – How should we use marketing to facilitate exporting• Soft issues – How might we avoid cultural clashes?• Practical matters – What extra functional skills will we need?• Getting helpFebruary 2011 doing business internationally 3
  4. 4. And what right have I to be here today?• Been there ... done that ... got the gold cards• Lived in a few places• Worked for a couple of companies• Run some international businessesFebruary 2011 doing business internationally 4
  5. 5. And forgive me ...• My background is B2B with a focus on products• This workshop should not be so limited and should embrace BtoC (and in fact CtoC) and services as well.• My language is going to be tilted towards BtoB and products but that will not be to exclude the rest.• Please challenge me if you think that I’m not getting the balance right.February 2011 doing business internationally 5
  6. 6. The topic is doing business so let’s explore what’s possible discover develop deliver market sell supply service or design• This is the value chain which I’ve just rediscovered• Just about every business can be represented this way. Just change the sizes of the boxes• So if this is what a business does what business can be done internationally ... discuss!February 2011 doing business internationally 6
  7. 7. Where does marketing fit into this scheme? discover develop deliver market sell supply service inbound strategic Internal tactical operational relationship marketing marketing marketing marketing marketing marketing• Marketing people will hate me for this but marketing is a resource function like HR and finance.• It takes place where ever the marketing resources need to be managedFebruary 2011 doing business internationally 7
  8. 8. Your can do just about everything internationally • Links to universities;Discover or design • In-licence of technology • Using foreign design partners Develop • Putting your badge on a foreign product • Out sourced manufacturing Deliver • Distributing a foreign product Sell • Selling into foreign markets Supply • Maintaining foreign stock positions Service • Employing local service peopleFebruary 2011 doing business internationally 8
  9. 9. But the focus today is on the sell, supply and service end• David Frost, director general of the BCC, recently said: "Our survey reveals some uncomfortable truths for British business and for the Government about our ability to export. Too many of our companies lack an exporting culture, even though they produce high-quality goods and services. We cannot rebalance Britains economy when so many companies say theyre simply not ready or able to take their products overseas."• http://on-msn.com/eYTrgqFebruary 2011 doing business internationally 9
  10. 10. So should we export: isn’t it rather difficult?• It’s never been easier – The internet enables all companies, and in fact private individuals to offer their products for sale world-wide; – Globalisation: the media, education and travel result in markets becoming increasingly standardised; and – The oft maligned EU and the Euro: barriers to doing business across Europe are almost non-existent• But should we export?• Why would we want to ... discuss!February 2011 doing business internationally 10
  11. 11. But because it’s easy/possible isn’t sufficient reason to do it• Why should you export? – To increase sales – To respond to a competitive threat – To be able to supply an international customer – To get access to better market information – To develop partnerships with eg key OEMs• But most important: – Because we’ve thought about it and it’s an important part of our strategyFebruary 2011 doing business internationally 11
  12. 12. Making the key decisions (Kipling’s honest serving men) why • This is the big strategic question and you should have just addressed it • Decide where you’re going to go? where • Immediately global, programmed entry into Europe, specific countries? • Web or physical? how or who • Direct or in partnership? • Distributors, agents or franchises • Products and services? what • Complete range or just a selection? • Current products or something new or modified? when • Don’t set artificial deadline but by all means use external events to help you to set targetsFebruary 2011 doing business internationally 12
  13. 13. Hard issues are easy to define• The business climate – Market size and requirements – Competition• Marketing: the 4Ps are always useful: – Place/partners: routes to markets – Communications: in its broadest form; language – Pricing and margins – Products: quality and standards• How should we use marketing to facilitate exporting ... discuss!February 2011 doing business internationally 13
  14. 14. Keep it simple: stay with the 4Ps Place and Promotion or Pricing and Products partners communications margins Meet local service Pricing to standards Material in Meet local reflect local local language regulations value Establish appropriate management Ensure Margins to Understand internal Employ the reward activity market needs understanding right peopleFebruary 2011 doing business internationally 14
  15. 15. Soft issues: they may be soft but that doesn’t mean they’re easy• What are the soft issues which we need to consider? – Language and nuance – Attitudes to women in the work place – Local negotiating practices – National chauvinism – Inter-personal communication etiquette – etc etc• But all of these are a part of a bigger pictureFebruary 2011 doing business internationally 15
  16. 16. Fact is that there are different cultures and they pervade• Geert Hofstede is one of the gurus in this area. Let’s not take his ideas as gospel but they do alert us to some of the difficulties we might have• Geert talks about – Power distance – Individualism – Masculinity – Uncertainty avoidance – Long term thinking• www.geert-hofstede.comFebruary 2011 doing business internationally 16
  17. 17. Let’s take a look at some of our near neighbours: France • Very different profile but it’s what we’d expect isn’t it? • Lots of hierarchy and lots of thinking. • Surprisingly ‘feminine’February 2011 doing business internationally 17
  18. 18. Let’s take a look at some of our near neighbours: Germany • Surprisingly similar • Emphasis on uncertainty avoidance is to be expectedFebruary 2011 doing business internationally 18
  19. 19. Let’s take a look at some of our near neighbours: Netherlands • Surprisingly different in some respects • The high ‘femininity’ is shared with the Nordic countriesFebruary 2011 doing business internationally 19
  20. 20. The US is similar ... as expected? • As expected and echoed in other work • Biggest challenge with the US is not being caught out by the similaritiesFebruary 2011 doing business internationally 20
  21. 21. Whereas China is very different • Quite different as expected • Long term view is typical of Asian countriesFebruary 2011 doing business internationally 21
  22. 22. 7 cultures of capitalism• Hampden-Turner and Trompenaars looked at 7 ‘dilemmas’ (dimensions) which largely overlapped those of Hofstede.• One interesting question: what image do you aspire to?`February 2011 doing business internationally 22
  23. 23. Neutral vs affective; Analytic vs integrative Approval Esteem • Sweden • Japan • Netherlands • Germany Enjoyment Love • United • France How might we avoid States • Italy • Spain cultural clashes? ... discussFebruary 2011 doing business internationally 23
  24. 24. Practical matters: organisation, management and resources• What’s your new organisation going to look like?• Who are you going to employ and where are they going to be located?• How are you going to manage the activity?• What changed and additional functional skills do you need? ... discuss!February 2011 doing business internationally 24
  25. 25. Practical matters: organisation, management and resources• What’s your new organisation going to look like?• Who are you going to employ and where are they going to be located?• How are you going to manage the activity?• What changed and additional functional skills do you need? Changed additional Customer service Supply chain Marketing Finance and credit control Sales management LegalFebruary 2011 doing business internationally 25
  26. 26. There’s plenty of help around• UKTI: www.ukti.gov.uk• The Institute of Export: www.export.org.uk• Business Link: http://bit.ly/fGk4RO• HM Revenue and Customs: http://bit.ly/eLtdJ1• British Chambers of Commerce: http://bit.ly/e0Rt1X• Industry associations such as Gambica: www.gambica.org.uk• Trade shows eg Interpack www.interpack.com• Coaches, consultants and non-execsFebruary 2011 doing business internationally 26
  27. 27. and finally .. .if you want to know more about sales channels Come along to ‘sometimes you’ve got to meet your customer’ 11.00 Tue 8 Mar 11 St John’s http://bit.ly/eIl4v5February 2011 doing business internationally 27
  28. 28. David Jenkins i2i@davidjenkins.org.uk www.i2i-management.com +44 1223 236232 or +44 7739 759859 Skype i2i-management Twitter thisisi2iOctober 2010 28

×