Full_Final_Thesis

Master Universitario di 2° livello in
ESPERTI NEI PROCESSI DI INTERNAZIONALIZZAZIONE DELLE IMPRESE
2° edizione - A.A. 2008/2009
Core of the project: The Analysis of the Danish market for Nitty Gritty s.r.l.
Student name: Mohammed SH Abdallah
Company: Nitty Gritty s.r.l.
Date: 07.05.2010
Trade in Denmark
Case study of Nitty Gritty s.r.l
I

ACKNOWLEDGEMENTS
With pleasure, I want to thank everybody who enabled the writing of this paper by dedicating time,
tutorials, and financial resources. I want to thank my tutor Dott.Antonio Olivieri, Dott.Stefano
Muratori the "CEO of Nitty Gritty", and Mr. Diego Tarenzi the responsible of the "Area Sales
Manager at Nitty Gritty ".
Their openness, their willingness to provide us with information and other support enabled
conducting the case study.
Furthermore, I want to express a special gratitude to Dott.Silvia Barbi from Democentersipe and
Prof.A.O.andrisano from the university of Modena and Reggio Emilia. Without their
encouragement to attend the master lessons in Italian language, I couldn’t follow confidently. I
would not have been able to continue hopefully without their support.
Additionally, it was really a special chance to gain a professional understanding about the MADE
IN ITALY export model.
Mohammed SH Abdallah
07.05.2010
Bologna
II

ABSTRACT
Empirical studies have focused on the observable aspects of the internationalization that are international
activities (Johanson & Wiedersheim, 1975). Some researchers tend to describe ‘internationalization’ as the
outward movement in a firm’s international operations (Turnbull, 1985; Piercy, 1981; Johanson &
Wiedersheim, 1975).
This common feature has been broadened further by considering ‘internationalization’ as a process in
which specific attitudes or orientations are associated with successive stages in the evolution of
international operations (Wind et al., 1973), or defined as a "sequential" and orderly process of increased
international involvement and the associated changes in organizational forms (Reid, 1981; Cavusgil, 1980;
Bilkey & Tesar, 1977; Johanson & Vahlne, 1977)
Internationalization as the process by which firms both increase their awareness of the direct and indirect
influences of international transactions on their future, and establishes and conducts transactions with other
countries. Later, Calof & Beamish (1995) defined internationalization as "the process of adapting firms"
operations (strategy, structure, resource, etc.) to international environments” (p.116)
This paper aims to harnessing the case study of Nitty Gritty in the Danish market with an objective to gain
a better understanding of the barriers to internationalizing Italian SMEs firms and their abilities to initiate, to
develop, or to sustain business operations in cross-border markets and to share knowledge of government
interventions to reduce those barriers with proposing an analytical approach.
FOREWORD
The EU report revealed that only 17% of the micro enterprises (0-9 employees) in their sample had exports
or exports in combination with other forms of international business. This number increased to 38% for
small companies (10-49 employees) and 51% for medium-sized firms (50-249 employees)
This study aspires to explore critique and highlight on the serious factors that may hinder the process of
SMEs internationalization.
The data will be derived from the period of my stage that I conducted with one small Entrepreneurial Italian
company between the periods of December 2009 till May 2010.
Acronyms & Abbreviations
SMEs: Small & Medium-sized Enterprises
MRP: Materials Requirement Planning
BOM: Bill of Materials
ISO: International Standardization organization
ICT: International telecommunication Technology
VAT: Value Added Tax
CEE: Central & East Europe
SIMES : Società Italiana per le Imprese all'Estero
SACE: Agenzia di Credito all'Esportazione
III

TABLE OF CONTENTS
Subject Page
1. Premise 1
2. Company situation analysis 2
2.1 History 3
2.2 Financial statement 3
2.3 Company structure 3 - 4
2.4 Marketing activity 5
2.5 Internationalization approach 5
3. Analysis of the sector in the international level 6
3.1 Evolution of demand 6
3.2 Offer, competitive forces, Barriers &Success factors 6
4. Intercultural aspect in internationalization 7- 8
5. Corporate strategy & SWOT analysis 9
5.1 Company Commercial strategy 9
5.2 SWOT analysis 10
5.2.1 Strengthen 11
5.2.2 Weakness 11
5.2.3 Opportunities 12- 13
5.2.4 Threats 14
SWOT analysis Template (Nitty Gritty s.r.l ) 15
5.3 International marketing plan 16 – 20
6. Conclusion 21
Bibliography & internet 22
Annexes
IV

Analisi di mercato e oppurtunità commerciali per Nitty Gritty in danimarca
1
1. Premise:
This formative document revolved around the internationalization strategies
for the SMEs (Small & Medium-sized Enterprises), Regarding with the Italian
model (Made in Italy).
The university of Modena & Reggio Emilia, collaborating with the ICE (Italian
trade commission), Supported with the Reiogn of Emilia Romagna. Have
organized this course of "ESPERTI NEI PROCESSI DI
INTERNAZIONALIZZAZIONE DELLE IMPRESE"
In its second edition 2008 – 2009 this course aspiring to provide both regional
small and medium enterprises and the participant students the privilege to
gain more understanding in the strategies of international business
development.
The formative periods for the master divided into two parts:
1st
: Theoretical part:
Included 5 months of lectures and testimonials focusing on (Macroeconomics,
Business organization, modern firms, international commercial law, export-
import techniques, intercultural aspects, international marketing planning,
business planning and financial analysis.
2nd
: Practical part:
Included two integrated periods,
1. Two months inside an Italian entrepreneurial small sized company ,inside
the commercial department .which I was able to realize the story of the
company , the sector of business ,the dynamics and nature of work , the
demand and evolution, the national and international customers , the
marketing policy and strategy.
2. Two months outside Italy inside the office of ICE to start the trade analysis
for the Danish market with diverse aspects ( cultural , economical , trade
policy , industrial policy , competitors , key of success , and how to penetrate
such market ) .
Next, I will illustrate in my SWOT analysis some factors which hindered my
work inside the Danish market which may help as a reference for the
internationalization problems in Denmark.

2
2. Company situation analysis
2.1 History
Nitty-Gritty was founded in 1995 to serve the stainless steel surface
treatment machinery market, with the aim of providing solutions which are
"down to earth" the name “Nitty-Gritty” itself means "down to earth",
"innovative",“Nitty-Gritty” have registered a number of patents and
"straightforward" (easy to use).
The sector of INOX became – vastly - known recent years. Beside the fame
and importance of INOX steel, the methods of treating, polishing, and finishing
it became more numerous and different.
Nitty-Gritty decided to be inside this VORTEX such a distinguished
innovative solution for the aforementioned topic.
Our target: To outline, study, analyze, present, and feature Nitty-Gritty
products to be able to determine how far it's feasible to enter, penetrate, and
dominate the International markets by utilizing the modern tools that we have
studied and practiced during our master program.
Nitty-Gritty's clients include: stainless steel plant, machinery, tank and
product manufacturers, and it provides simple, innovative systems to improve
the quality of clients finished product and the safety and environmental impact
of their workplaces, with the following product lines:
CLINOX: electrochemical machines for cleaning and passivating stainless
steel welds, comprising the following products:
• TIG.CLINOX
• MIG.CLINOX
EASY INOX : electrochemical marking systems and chemical products for
stainless steel surface finishing, comprising products for:
MARKING
FINISHING

3
Nitty-Gritty is the global leader in terms of product quality and sales in the
electrochemical stainless steel surface treatment machinery market.
Nitty-Gritty's R&D programme has enabled us to register numerous patents
for the CLINOX line of equipment for cleaning and passivating stainless steel
welds. The following equipment is patent protected:
TIG.CLINOX for cleaning stainless steel TIG welds
MIG.CLINOX for cleaning stainless steel MIG welds
The commercial success of Nitty-Gritty internationally patented products is the
confirmation of the innovative character and quality of Nitty-Gritty’s R&D
programmes.
Nitty-Gritty products are intended for all stainless steel fabrication
companies:
1. Manufacturers of stainless steel plant, machinery, tanks and other
products.
2. Contractors for the following industries:
• Food
• Marine
• Furnishing
• Biomedical, etc.
2.2 Financial statement
Capitale sociale : 35.000.00 Euro
( 50 % Stefano muratori , 50 % Michele lapelosa ) .
2.3 Company structure
The company structure can be simplified with a pre-bureaucratic organization
chart. This structure is most common in smaller organizations and is best
used to solve simple tasks. The structure is totally centralized. The strategic
leaders make all key decisions and most communication is done by one on
one conversations. Pre-bureaucratic organization chart is particularly useful
for such (entrepreneurial) business as it enables the founder to control growth
and development.

4
Business Climate: There is enough standardization of tasks in work. As this is
a centralized structure, employees are not involved in the decision making
process.
The structure included of ten persons divided into two activities:
• Administrative (Stefano).
• Technical (Michele).
Dependents:
• Soci Amministrativi : 2
• Dipendenti : 6
• Collaboratori : 4
Organization Structure

5
2.4 Marketing activity
The marketing activity currently focusing on two products:
1. CLINOX (owns the main profit & turnover – see annex No.1)
2. EASYINOX. (New product – see annex No.2)
2.5 Internationalization approach
The company working with several methods to promote for their products
locally and internationally:
Fairs & Exhibitions (welding, surface finish)
Brochures
CDs
Website
A monthly newsletter for 3500 members (2300 in Italy, 1200 international
in four languages (Italian, English, French, Spanish)
International markets:
In addition of Italian clients, Nitty-Gritty has several clients in diverse
countries:
Europe: Germany, France
Overseas: USA, Canada, and Japan

6
3. Analysis of the sector in the international level
3.1 Evolution of demand
During the last years, the utilization of INOX steel has grown and broaden
from the traditional ideas that was only defining the INOX steel such a highly
resistant steel , into a new industrial sectors which require a special final form
, Ex:( food , furniture ) .
The chemical and mechanical methods in surface treatment were known
dominantly. But, gradually, such methods became less relevant due to the
growth & the change of INOX steel market demand because , it has a lack of
technical & productive satisfaction, in addition of the urgent necessity of
offering aesthetic final products.
Nitty-Gritty exploited its innovative idea to fill this gap in mind to provide the
advanced INOX steel market those advantages:
1. Undamaged final product with high technical formation
2. Non-toxic used materials which are compatible with the environment
3. Less time consumption
3.2 Offer, competitive forces, Barriers &Success factors
Nitty-Gritty offers a final product which is highly qualified while not neglecting
the healthcare aspects. The dialectical aspects which faced Nitty-Gritty can be
summarized with PESTEL or PEST analysis elements as followed:
POLITICAL
International regulations in terms of using machines
and its chemical products , EU enlargement, the euro,
international trade, taxation policy
ECONOMICAL
Machine is used instead of the cheap traditional
manual methods , interest rates, exchange rates,
national income, inflation, unemployment, Stock Market
SOCIAL
Change resistance from the side of clients and
operators ageing population, attitudes to work, income
distribution
TECHNOLOGICAL
Unknown innovative technology , new product
development, rate of technological obsolescence
ENVIRONMENTAL global warming, environmental issues
LEGAL competition law, health and safety, employment law
The success factors for Nitty Gritty described briefly from its focus on a
specific determined market not out of those key words (INOX, WLEDING).
Nitty Gritty can't offer its main service without the presence of the
aforementioned key words together.

7
4. Intercultural aspect in internationalization
A cultural difference among negotiators is a constant in international business
negotiations.
Four elements of culture (behaviors, attitudes, norms and values) influence
such negotiations, particularly with regard to communication, the form and
substance of transactions, and negotiating style. In international business,
transactions not only cross borders, they also cross cultures.
Culture profoundly influences how people think, communicate and behave,
and it also affects the kinds of deals they make and the way they make them.
Intercultural negotiation is the ability to understand differences, conduct
analysis and knowing how to adapt to the tasks and objectives to be
achieved.
The inside guide to Danish business culture and etiquette
Danish business people can appear somewhat formal at first, but are
likely to quickly show a more informal side of themselves, just as the
dress code sometimes may seem a little relaxed to a foreign business
person.
However, they are likely to get down to business right away and are
generally conservative and efficient in their approach to business
meetings.
Handshakes are the accepted form of greeting. Danes shake hands
both for greetings upon arrival and departure from a meeting.
Virtually all Danish business people have a good working knowledge of
English and interpreters are rarely required.
Business gifts are not a normal custom in Denmark. Business
entertaining is usually done at lunch, and more rarely at dinner in a
restaurant. Even more rarely is it to be invited for dinner at the home of
a business acquaintance.

8
Business Appointments
Advance appointments are always required and punctuality is a must; it
is considered rude to be late.
Danes work shorter hours than many other nationalities. The standard
work week is 37 hours. Mandatory vacation is five weeks plus up to five
more days per year, plus local holidays (see below).
At least three weeks are taken during summer. School summer
vacation is from about June 20 to about August 8 and generally,
business is slow in that period with many executives out and some
companies closed. It is not advisable to schedule business meetings or
other business activities in Denmark from late June to early August,
from December 20 - January 5, or in the week of Easter.
Danes treasure their leisure time, most of which is spent with the
family. Business persons should not routinely expect to meet with their
Danish counterparts after 4.00 p.m. on weekdays.
On Fridays, many Danes leave early, generally between 2 - 3 p.m. Do
not plan meetings for Saturdays, Sundays, or on national holidays. Not
all Danes appreciate breakfast meetings, which should be scheduled
only with due consideration to the situation.
The Danish market involves diverse factors that must be clear before
introducing our product.
Strategically we need to keep in mind such elements:
The techniques of negotiation and the ability to be culturally effective.
Communicational analysis of differences (styles of verbal – nonverbal
communication).
Analysis of differences of values (ideologies, dominant values, cultural
anthropology, lifestyles).
Analysis of strategic social referents (who lived experiential staff and
their partners).
Intercultural negotiation of specific applications for different
professional contexts that the manager faces.

9
5. Corporate strategy:
5.1 Company Commercial strategy:
Nitty- Gritty focused carefully from the beginning to globalize its products all over the
world. With keeping in mind, The Company's and the product's reputation for both of
the distributors & the end-users.
Our clients :
1. Distributors: Who can guaranty the following:
Cover all of the country we develop out business inside
They own their marketing plan
They own their salesmen
2. Resellers:
Cover sales area
Sell for direct end-users
3. Agents:
They know the market
They can sell to both of Distributers & resellers
Who can be Nitty-Gritty distributor?
1. Chemical companies (Pickling gel)
2. Abrasives Company
3. Welding machine producers
4. Commercial organizations (industrial equipments agents)
5. Companies who sell tools
Facilities & Discounts:
End-users: 5% - 10%
Distributors: Clinox line: Max discount 50 % for distributor Vs quantity.

10
5.2 SWOT analysis
The SWOT analysis is the foundation for developing your strategies and
tactics that then become the road map for writing your business operating
plan.
Prior to defining the company’s strengths, weaknesses, opportunities and
threats I needed to:
Have a written Vision, Mission and Values statement
Have completed a thorough internal and external business status
evaluation
This example is meant to show all the parts of a SWOT analysis with some
typical results.
To start putting together Nitty-Gritty analysis I can do so with 4 pieces of
paper labeled:
1. Strengths
2. Weaknesses
3. Opportunity
4. Threats
I gave all of the staff a copy of the SWOT paper and start brainstorming.
There are two schools of thought on this,
To start you can brainstorm together filling out each sheet of paper or
you can send everyone off to fill out each sheet as they see the
business then get back together to discuss and agree on a final SWOT
analysis.
If you are the staff it might be wise to seek outside consultation to work
with you while going through the process and critiquing the information
you put together.
This could be a member, or members, of your board of directors,
advisory group or a business management coach with expertise in
business planning.

11
5.2.1 Strength
The company exploited the augmentation of INOX demand in the national
market to create its innovative idea .The immediate result from the machine
helped it to expand its sales with the national end users in Italy. The inner
increase of demand wasn’t a serious hurdle because of the obtainable raw
materials form the local suppliers .along with a flexible relationship with the
logistics systems and transportation companies ,The company was able to
higher its sales more in the national market which motivated it to be
enthusiastic to cross the border and move outside Italy .
The strong relationship between the company and the academic innovation
centers helped it to work more in R&D to keep in touch with the latest
modifications and evolutions in the related sectors.
Nitty Gritty has had a real evolution during the last years accompanied with
partitioning the market by releasing some portable products to broaden the
sales network in more specific segmented areas.
5.2.2 Weakness
The company facing different internal hurdles during the international
commercial processes related with the administrative procedures
(MRP, BOM, etc.).
The lack of coordination between the departments sometimes confuses
the delivery plans.
The absence of management responsibilities can be one of the serious
barriers which slow the international business development plan.
The absence of international quality certificate (Ex., ISO certification)
affects negatively during the international marketing performance.
The absence of annual financial plans related with the development
plans, even if Managerial or technical Ex., R&D).
The lack of annual documented statistical surveys which may help in
setting an effective marketing plan regarding with (segmentation,
positioning, marketing mix, 5 forces models, and PESTEL).

12
5.2.3 Opportunities
Top 5 Reasons for choosing Denmark:
A natural gateway to the Scandinavian countries and the Baltic area -
Copenhagen Airport is the main hub in Northern Europe and Europe’s
most efficient airport; a high-quality motorway network means swift and
easy access to all markets in the Northern European region
One of the world’s top 3 flexible labour markets
One of the most advanced telecommunication infrastructures in Europe
with world leading use of PC, Internet and Broadband
A company tax rate of 25% and foreigners can benefit from a special
tax regime
A well-educated population with a high proportion of university
graduates and excellent language skills
Infrastructure
Denmark has a well-developed network of motorways. The high-quality
motorway network means swift and easy access to all markets in the Northern
European region. Through the opening of the Øresund Bridge in July 2000,
the only bridge in the world connecting two countries, Denmark is now the
gateway to the Scandinavian countries and the Baltic area. There is direct
access from Copenhagen to the city of Malmø in Sweden either by train or car
via the Øresund Bridge. The train ride merely takes 20 minutes.
A small country with four international airports
Copenhagen Airport is the main hub in Northern Europe. It is SAS’ principal
airport and it has been retained by DHL as its Northern European hub. In
2005, the Air Transport Research Society named Copenhagen Airport the
best airport in Europe. The airport is located only 8 km from the city centre

13
and Copenhagen Central Station can be reached in 15 minutes. 63 airlines
operate from the airport and serve all together 125 destinations. Besides
Copenhagen, Denmark has three other international airports, Aarhus,
Aalborg, and Billund, all located in the peninsula of Jutland.
Highly developed ICT infrastructure
Denmark has one of the most advanced telecommunication infrastructures in
Europe and the network is fully digitalized. Denmark’s penetration of mobile
telephone subscriptions is ahead of the average European level.
Denmark is characterized as a top-ranked country with regard to penetration
rates for PCs and household Internet (broadband) access. Denmark is in the
global Top 5 what regards computers per capita, Internet Users and
Broadband Subscribers.
Taxation
Denmark has a favourable tax climate thanks to a corporate tax rate of 25%,
an extensive network of tax treaties and attractive rules for expatriates.
Taxation obligations for physical goods ordered via the Internet, as with any
other transaction, require payment of VAT (currently at 25%) and, if the goods
are imported into the EU, import duties.
Europe’s most flexible labour market
The Danish workforce is among the most productive in Europe and no
restrictions apply regarding overtime work, allowing companies to operate 24
hours a day, 365 days a year. Contrary to most European countries, basic
practices in the Danish labour market are mainly founded on collective
agreements between the employers’ and the employees’ representative
organizations, thus ensuring a high degree of consensus in the labour market.
Most of the working conditions are negotiated at company level in accordance
with each company’s specific needs.
Together, employers and employees reach mutually binding agreements on
labour issues and as a result, Denmark has a low frequency of strikes. In
Denmark most people are insured against unemployment and thereby
guaranteed a high level of social security, which results in a relatively high
The strong points of the Danish commercial system thus remain the
increasing wealth and purchasing power which, due to the Nordic climate, are
mainly directed towards the home (furniture, interior decoration, accessories
and articles for large spaces) but also towards food and beverages (13% of
Italian export to Denmark), all products aiming at a general improvement in
the “quality of life”.

14
5.2.4 Threats
The export model in Scandinavian countries (Denmark, Sweden, and
Norway) in general shape occurs dominantly by mediatory agents.
The agents can facilitate, support, and remove barriers between the
exporters and their clients.
Such situation should be expensive for the Italian SMEs .Thus, the
company tried to enter the market in a tentative mode.
The dominant presence of neighbored competitors affected a high
challenge to find a resellers, distributers, and even agents.
As I aforementioned before , The marketing strategy for Nitty Gritty
focusing on ( Resellers ,Distributors , and agents ) Which tight and
limited our company research .
SWOT analysis draft

Strengths
The company:
[1] Patented, innovative products & accessories.
[2] Fast handled job with immediate results.
[3] Strong relationships with transportation companies.
[4] Available law materials in the local geosphere.
[5] Helpful software for the purchasing dept. (ERP business
excellent).
[6] Flexible supply system (even in urgent delivers).
[7]The relationship between commercial dept. & technical
dept. compatibly high.
[8] Good relationship with academic innovation centres.
The product:
[9] Two portable products, easy to use, easy to demonstrate
(Easy inox, easy mark).
[10] More economic in comparison with the other products.
[11] New Modern design.
Weaknesses
[1] No delivery plans.
[2] Lack of information between consignment office &
warehouse (MRP).
[3] Notable complex documentation in extra – countries (Ex.,
CEE, Russia).
[4] No management responsibility.
[5] No ISO, or other quality Certifications.
Opportunities
[1] Secure & legal business environment.
[2] A Stable political situation.
[3] A stable economic system with a high adaptability with
the global crisis.
[4] High economical capability and willing to B2B.
[5] Small coverable area with four international airports, and
the same kind of nature.
[6] Entrepreneurial atmosphere, willing to trade
[7] One of the world’s top 3 flexible labor markets which
allowing companies to operate 24 hours a day, 365 days a
year.
[8] Highly developed ICT infrastructure with advanced
telecommunication infrastructures and world leading use of
PC, Internet and Broadband.
[9] A well-educated population with a high proportion of
university graduates and excellent language skills.
Threats
The country
[1] Existence of two dominant competitors with a serious
strong study for the market.
[2] Lack of information about the Nordic Intercultural aspects
(behaviours, attitudes, norms and values), communication
and contact methods.
[3] Distant clients, in the various cities.
[4]
The product
[1] Tendencies for more self automated machines.
[2] Vast market for numerous end users (which is out of the
company marketing strategy), regarding with agents and
distributers.
[3] Not an Execlusives product.
[4] An ongoing business (the product known previously) in
the Danish market.
Nitty Gritty Criteria
Market developments?
Competitors' vulnerabilities?
Industry or lifestyle trends?
Technology development and
innovation?
Global influences?
New markets, vertical, horizontal?
Niche target markets?
Geographical, export, import?
New USP's?
Tactics: eg, surprise, major
contracts?
Business and product development?
Information and research?
Partnerships, agencies, distribution?
Volumes, production, economies?
Seasonal, weather, fashion
influences?
Disadvantages of proposition?
Gaps in capabilities?
Lack of competitive strength?
Reputation, presence and reach?
Financials?
Own known vulnerabilities?
Timescales, deadlines and
pressures?
Cashflow, start-up cash-drain?
Continuity, supply chain
robustness?
Effects on core activities,
distraction?
Reliability of data, plan
predictability?
Morale, commitment, leadership?
Accreditations, etc?
Processes and systems, etc?
Management cover, succession?
Political effects?
Legislative effects?
Environmental effects?
IT developments?
Competitor intentions - various?
Market demand?
New technologies, services, ideas?
Vital contracts and partners?
Sustaining internal capabilities?
Obstacles faced?
Insurmountable weaknesses?
Loss of key staff?
Sustainable financial backing?
Economy - home, abroad?
Seasonality, weather effects?
Advantages of proposition?
Capabilities?
Competitive advantages?
USP's (unique selling points)?
Resources, Assets, People?
Experience, knowledge, data?
Financial reserves, likely returns?
Marketing - reach, distribution,
awareness?
Innovative aspects?
Location and geographical?
Price, value, quality?
Accreditations, qualifications,
certifications?
Processes, systems, IT,
communications?
Cultural, attitudinal, behavioural?
Management cover, succession?
Philosophy and values?
SWOT Analysis Template
Nitty Gritty srl
By: Mohammed Abdallah
2009 -2010
15

analisi di mercato e oppurtunità commerciali per Nitty Gritty in danimarca
16
5.3 international marketing plan:
Foremost, and before starting any expected marketing entry in a new country.
Nitty Gritty needs to determine its internationalization level.
A professional Framework:
The process of a company's internationalization has been explained in five
stages by Kotler and Armstrong (2001):
(1) The company has to decide to go international or not, The Company has
to compare and evaluate the opportunities and risks of going abroad.
(2) The Company has to define their international market objectives and
policies, and decide which market to enter.
(3) The company has to decide how to enter that or those markets. There
are several market entry modes a company can chose from, for
Example: export, strategic alliances, foreign direct investment (FDI) etc. Each
entry mode contains commitments and risks as well as control and potential
profits.
(4) The company has to decide on a global marketing program and
adjust their national marketing program to international standards. This is a
question of using either a standardized marketing mix or an adapted
marketing mix, adjusted for each new market.
(5) The company has to decide upon a global marketing organization,
most companies have at least three different ways of managing their
international activities. Generally, companies start with organizing an
export department, then an international Division is created and finally they
become a global organization. (Kotler & Armstrong, 2001).
Yet, accessing international markets is not a simple task. Many of the
problems facing SMEs for their efforts to internationalize or expand their
international activities are known as follows:
High costs of getting quality information about the markets SMEs want
to enter
Difficulties obtaining finance; protectionist and stringent regulatory
frameworks.
Lack of managerial experience
Difficulties in finding trustworthy partners. Heightened uncertainty;
corruption; etc

17
All these constraints hinder the firm’s ability to initiate, to develop, or to
sustain business operations in overseas markets. Almost all governments
currently provide a package of services and programmes designed to assist
firms to internationalize effectively. However, it appears that little is known
about whether these programmes are effective in promoting
internationalization, whether they are reviewed and modified in light of
changes in the international business environment, and whether the particular
needs of internationalizing SMEs have been fully taken into account when the
programmes are designed and implemented.
Therein lays the dilemma for management practices within SMEs during the
internationalization process. Although their small size may provide some of
the competitive advantages described above, the internationalization process
calls for efficient management at the corporate, business and functional levels
(Lefebvre et al., 1993).
It also requires high levels of experience and expertise. Of course a major
problem for SMEs at the international level, consequent upon their size, is a
low resource base. The internationalization process often requires the
development of new information systems, new technology and new products,
involving substantial resource inputs and close co-ordination over a lengthy
time period. To attain a truly international position, given its resource
constraints, Lindell and Karagozoglu (1997) argue that the SME needs to co-
operate and to put considerable effort into networking.
A typology of international SMEs was developed to establish the skills and
knowledge needs of international SMEs at different stages in their experience
of international trading activity as follows:
1. The Curious
Have considered international activity in the past. They have very low levels of
self-analysis with little appreciation of the key problem areas. Many firms in
this category were largely resigned to the fact that they are unlikely to be able
to resolve any of the major challenges facing them in terms of international
activity. In terms of their product, they either feel that they probably don’t have
the right product, or suspect that there might be a market for them but are
uncertain how to proceed.
2. The Frustrated
Have experience of international activity, but are currently inactive within the
international business environment. They identify strategic planning,
marketing skills, and product issues as their key challenges. For this group of
firms, the whole planning process looks so complex and daunting that they do
not know where to start. There is general awareness that international activity
requires a different set of management skills and that their inability to
successfully pursue international activity is probably due to their poorly
developed skills in this area.

18
3. The Tentative
Have limited experience of international activity and have developed some
skills but have major problems with no real solutions. They see market
intelligence as the critical issue facing them. They generally feel that internally
things are under control and the only real problem is in finding customers.
Within this group a general inability to self-analyze with a tendency to look to
service providers to solve their problems for them.
4. The Enthusiastic
Have considerable experience of international activity and are keen to grow
this side of their business but are experiencing barriers to that growth. They
identify management skills, finances and market intelligence as their key
challenges. As their international activity grows, the increasing need for higher
level management skills becomes apparent if they are to manage an
increasingly complex environment effectively. Finance now becomes more of
an issue both in terms of capital funding and cost management. Market
intelligence remains a key issue, but less so than for the tentative SMEs
representing an increased awareness that the key issues here are more
internal to the firm than external.
5. The Successful
Have extensive experience of international activity with some major
successes. They have very high skills and knowledge development, very
aware of available support with a high degree of usage. They are often aware
of their skills and knowledge gaps and very keen to improve effectiveness in
international activity. They identify management skills as their key challenge,
because many of these firms operate in a highly complex environment. Whilst
they still may face problems related to finance or market intelligence, their
knowledge and learning ability have enabled them to regard these problems
as secondary considerations.
The key challenge to international trading activity reported by successful firms
can be identified as the increasing complexity of the environment within which
they are required to operate. Managing relationships at distance,
understanding unfamiliar business customs, cultural and language
complications and the need to develop different business solutions in different
parts of the world all add up to a highly problematic set of circumstances. The
point is consistently made that SMEs wishing to compete effectively in their
international markets must learn to operate outside of their “comfort zone”.
The challenge for managers of international SMEs is to develop skills-sets
and strategies to overcome these barriers and challenges.
These skills-sets which could be viewed as pre-requisites for any SME
wishing to compete effectively in international markets can be broken down
into the concepts of planning, manning and scanning.

19
A. Planning
Describes the way in which a company navigates its involvement in foreign
markets. This comprises financial and legal matters as well as production,
resources and logistics. Some companies (a minority) will undertake careful
preparations and analysis of its own readiness and suitability for a particular
international venture in a foreign market including the drafting of a business
plan. Other companies (the majority) simply respond to an international
opportunity with a view to generating revenue without too much thought as to
the implications of this action or how to undertake it in a sustainable way.
B. Manning
Manning describes the management process by which a company organizes
or develops its resources to service foreign markets. These resources are
usually both material and human. Some adaptation of products and
manufacturing process may be needed to meet the needs of overseas clients.
The need to communicate with those clients will generate a demand for skills
such as foreign language competence. These may be met by recruitment,
training or consultancies.
C. Scanning
Describes the way in which the business informs itself about those markets.
Market information is one of the more obvious elements of international
activity. More and more channels of communication requiring varying levels of
skills and investment are now available. Many of these can be carried out at a
distance but the most valuable form of knowledge, market intelligence, is usually obtained via
personal relationships and visits to the market or other events such as trade fairs.

20
From the reviewed analytical approach above, I considered the situation of
the company alpha s.r.l. In the tentative position.
Overview of the probable dialectical elements to be discussed:
Case study: alpha s.r.l.
The Tentative: Little ability to self analyzes. Have discovered that international trading is
complex and challenging and have lost their initial enthusiasm. Perceive problems to be
largely external to the firm and expect support agencies to solve them on their behalf.
Key questions :
Planning 1. How to develop more established guidelines and procedures.
2. How to identify processes by which to evaluate current international
activity.
Manning 1. How to affirm market operations and negotiate changes, if necessary.
2. How to identify the appropriate type of market presence.
3. How to undertake an audit of skills and resources.
4. How to move towards a geo centric HR strategy.
5. How to understand the differences between markets and how to
manage them.
Scanning 1. How to service the needs of current international customers.
2. How to identify new market opportunities.
3. How to develop a framework for new market development.
4. How to find and assess the most appropriate type of support.
Source: Lloyd-Reason, L and T. Mughan, 2003.
Other recommendations:
1. Public relations enhancement & press language policy:
Many businesses today have high risk, high visibility, high impact on the
public and our everyday lives, and high exposure to potential crises. Because
of these characteristics, the potential damage from a crisis can be greatly
multiplied. An unprepared, misinformed, or ill-at-ease company
spokespersons, pamphlets, or bulletins; a disgruntled employee; and a victim
of a tragedy at a building site have the potential of doing inestimable damage
to your business or industry by their remarks to the media.
Yet there are countless times when a company representative is thrust into
the spotlight as an official “spokesperson” with little or no training in dealing
with the media, especially in a crisis situation. In fact, when it comes to
dealing with the media, most people would rather “be excused” from the task,
because they are ill-prepared psychologically and professionally to deal with
the media. In today’s world, you must become prepared psychologically and
professionally. No business is an island and, without exception,
communication lies at the heart of every successful – and unsuccessful –
business. It’s obvious that any business needs to communicate with everyone
who has anything to do with it. But what, how, why, when and with whom are
the key questions to be asked with every form of communication.

21
Conclusion:
Joint venture: My research proved that, the most active competitors in
pasivation, pickling products located in India with a wide expansion in
the Middle East and Arabian countries .Thus, a joint venture with one
Indian entrepreneurial company can be feasible in term of
commercialization and technological operations which can enrich the
Nitty Gritty industries in terms of business and technology.
New exclusive products: One of the most effective threats in the
international market was the absence of uniqueness of Nitty Gritty
products. This absence will have to open the gate to enforce the R&D
process, product design managers to scale up the creation in sense of
inventing more fashionable products.
CEE & Turkey: The strong relationship between Nitty Gritty and CEE
region clients represents a hopeful window which can be expandable
towards turkey which considered nowadays as the gate of central Asia
countries.
Strengthening the relationship with the Italian institutes that support the
entrepreneurial companies searching for new channels and way to
internationalize their products and help them to out reach more and
find further financial support which can balance the company budgets
and reduce the risk of the cross-border investments .(Ex. SACE
,SIMEST ) .
Many recommendations and aspects can be explored depends on the
internal situation for the company and the willing of re-engineering their
activities, revitalizing their ideas, and assessing all what they need and
what they are able to do " gradually , strategically , and courageously
to face the world crisis challenges.

Annex No.1
Clinox
TIG.CLINOX PRO
Technical details:
TIG.CLINOX.PRO: is the most compact system available on the market with a flexible,
easy used, and multifunctional for cleaning, polishing, and marking.
1. Cleaning: This process can be executed with AC current by adjusting it to work
flexibly with two torches.
Big torch & small torch: Can be adjusted to work with AC current (as shown in the control
panel), and the current can start from 10 volts Min. till 30 Volts Max. depends on the
required clean.
2. Polishing: Big torch & small torch: Can be adjusted to work with DC current (as
shown in the control panel), and the current can start from 10 volts Min. till 30 Volts Max.
Depends on the required clean.
3. Marking: One torch: Can be adjusted to work with 12 volts (standard), with black or
white mark depend on the required mark.
Testimonials:

Annex No.2
EASY INOX
[Easy Spot Brill]
This machine working for Cleaning and Polishing, by a fast-acting electrochemical reaction
using AC current and a special chemical solution (BRILL BOMAR), EASY SPOT grants an
excellent quality pickling and passivation of lightweight stainless steel sheet metal welds.
Technical details:
Work process selection:
AC: weld-cleaning function
DC: weld-polishing function
Hint: Polishing requires a greater delivery of electrolytic solution than cleaning
Testimonials

Annex No.3
Technical questions
(FAQ)
Frequently Asked Questions anticipated from Distributors & clients:
1. Why it's hopeful to abandon the traditional surface treatment methods?
We have four major reasons:
1. Nitty-Gritty can offer you a final result for the finish products highly qualified
comparing with the traditional methods (Testimonials)
2. Ecologically safe
3. Instant results
4. Cheaper comparing with the traditional systems
2. How far CLINOX & EASY INOX machines can be effectively stable?
• Warranty for CLINOX, EASY INOX (Two years)
3. Do we have to order the accessories & liquids frequently from Nitty-Gritty (any
substitution – NO, YES, consignees requests & delivery manners)?
• For the chemicals ( liquids ) :
If you don’t use out liquids the warranty will be taken off (not valid more)
For inserts & pids: not so easy to find a substitution highly qualified with long life time
4. What is the ambient which Nitty-Gritty machines can't work in it?
Nuclear sites (NO phosphoric acids. but, YES neutral solutions).
Explosive materials
5. Why it's privileged to be our distributor or client?
Offers, discounts, etc)
6. Does the machine make a passivation?
Yes, the machine can do the passivation; Pickling gel can do it too

Annex No.5
Certificate of Patent

Full_Final_Thesis

Recommended

Recommended

More Related Content

Similar to Full_Final_Thesis

Similar to Full_Final_Thesis (20)

More from Mohammed SH Abdallah

More from Mohammed SH Abdallah (8)

Full_Final_Thesis