This document summarizes the objectives and agenda of a 3-day workshop on export planning and management for the North American market. The workshop will cover understanding cultural differences between Italy and the US, challenges in cross-cultural business, case studies of Italian companies exporting to the US, and conversations with Italian entrepreneurs established in the American market. Participants will learn tools for international management, marketing, and developing long-term growth strategies for exporting to the US. The case of the Italian company Eltek Group and its expansion into the US market will be discussed.

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EXPORT PLANNING AND MANAGEMENT FOR THE NORTH AMERICAN MARKET
-CROSS CULTURAL BUSINESS -
INTERNATIONAL MANAGEMENT MASTER
Istituto Adriano Olivetti, Ancona, March5th - March 7th 2014
BY FRANCA FOLIGATTI

2. Introduction & Agenda
Let’s get to know each other
Setting objectives and expectations
Schedule for the 3 day workshop

3. Introductions
My Approach is more like a coach
than a teacher.
"We cannot teach people anything, we can only help them discover it within
themselves." - Galileo Galilei

4. Student Introductions
tell me about you...

5. Objectives
• Comprehend the characteristics of American
culture
• Understand the key points of the cross cultural
business dynamics and challenges between Italy
and America
• Become aware of US economy and market
growth, export trends and its importance for Italian
economic growth
• Review the fundamental tools and approaches for
International Management
• Learn how to evaluate challenges and
opportunities with case studies
• Experience conversations, in person and by
Skype, with Italian entrepreneurs and
professionals in the US

6. Contents
• Cultural approach to exporting Italian products into the American Market: the
characteristics of the two cultures, the challenges and the opportunities.
• Game components of International Management: What are the key components?
What is the difference between marketing, business development and sales?
• Case studies: Management strategies and development for ELTEK Group ( http://
www.eltek.it/) in the international market and specially in the USA. Skype call with
professionals, in person conversation with CEO Fulvio Cerutti, to discuss strategy and
hear their success stories.

7. Agenda
Day 1 - Setting the Framework -
Key points of cross cultural business and the dynamics between Italy and
US and export trends.
Tool-box for the International Manager - Effective international
management approaches; marketing, sales and business development.
Day 2 - Case Study Presentation -
The Case of Eltek Group; propose a strategy for long term development of
their presence in the US market.
Work Group; Case study and group Proposals.
Day 3 - Conversations with Entrepreneurs and Professionals -
Meeting with Eltek Group CEO to discuss strategies, challenges and
choices.

8. Defining International Management
The emergence of the global economy requires
expertise and deeper attention to International
Management dynamics.
Italian entrepreneurs and managers are confronting
these challenges for both large and small business.
Choose the proper approach and business model .

9. Opportunity - Italian US Export Trends
• US market is the 3rd most important for Italian exports (after
Germany and France).
• In 2012 Italy exported to the US 26.7 MLD/Billions euro equal
to 5.7% of its total exports (470.0 MLD/Billions euro) with a
+16,8 % compare to 2011.
• In the first part of 2013 Italian export continue to grow+4,6 %
• Export Data from ISTAT and ICE sources.

10. US Economy Trend
• The US Economy is recovering and growing: GDP +2,5% in 2013 while 2,2 % in 2012 and
+1.8% in 2011. And expectation for 2014 are +2,7% or 3%
• From the current report of the Bureau of Economic Analysis, durable-goods manufacturing,
finance, insurance and wholesale trade were the leading contributors to US economic
growth in 2012 and 2013.

11. What Italy Exports to the US
• From aggregate data of 2009 we have
• Mechanics 18.6%
• Fashion 13.1%
• Food and wine:10.8%
• Petrochemical 10.7%
• Home and interior 4.6%
• Other 42.2%

12. Strength and Weakness of exports to US
• From the study of Claudio Ganesin and Stefano Schiavo: http://www.ice.gov.it/
statistiche/pdf/Rapporto_ICE_2011-2012.pdf
• Strength: Quality, design and the ability to offer both industrial and artisanal
solutions.
• Weakness: 50% of companies that export to the US stop after 1 year. 80% of the
companies that export to the US exit the market after 5 years.

13. Sustainable Long Growth
• What are the reasons for non-growth in the long term?
• What are the most common mistakes made by Italian businesses?
• How can Italian companies, business relations and export trends consistently grow in the
long term?

14. Approaches to International Management
There are three approaches to international management:
1.Ethnocentric: Management uses the same style and practices that work in their
home country.
2.Polycentric: In this approach, management staffs its workforce in foreign countries
with as many local people as possible.
3.Geocentric: This theory holds that the best individuals, regardless of country of
origin, should be placed in management positions.
!

15. Tool Box Section -
• Overcome Cultural ID Challenges
• Choose International Business Models
• Effectiveness and Efficiency
• Business Development
• International Marketing

16. The Cultural Identity
• In Cross Cultural business, it’s key to have
an understanding of the two cultural
Identities.
• The identity of the country defines its assets
and its leadership,
• Differences have value but create
challenges.

17. Overcome Challenges Between Italian and
American Businesses
Find your unique blend of international management approach and strategies that will help to
overcome cross cultural business challenges

18. The Challenges of Cross Cultural Business
between Italy and America

19. Key Point for International Marketing
• MARKETING in both B2B or B2C environments is a dominant
force in the global market place.
• BUILDING RELATIONS Attracting and turning strangers into
prospects, buyers and clients.
• REVERSE APPROACH In the past, the top-down approach
dominated, and the company was leading the process influencing
the prospects. Today the companies have to be ready to be
discovered.
• THE POWER OF BRAND In the past, the buying process and the
consumption of goods were led by need and aspiration.Today the
proactive exercise of surfing the web changes the approach.
Information, inspiration and stimulation transform the customer in
a co-author, co-editor and a free thinker ( Francesco Morace).

20. International Business Models
Choose ways of operating in the international sphere.
The various categories of international business models include :
• Export/import businesses
• Independent agents
• Licensing and franchising agreements
• Direct investment in established foreign companies
• Joint ventures
• Multinational corporations (MNC)

21. International Management Knowledge - Efficiency
• International finance and currency matters
• Foreign legal requirements and accounting practices
• Logistic strategy
• International competition
• Market opportunities
• Marketing requirements

22. International Management Knowledge - Effectiveness
• Share knowledge with other individuals and groups - this will have an impact on
organizational effectiveness.
• Formulate effective management strategies choosing the appropriate approach.
• Create tailored business models and marketing plans.
• Create brand messages that convey your message.

23. Marketing, Business Development and Sales

24. Marketing Business Development and Sales
• Strategic growth of the business. This can include opening new markets, new channels, new
product development, strategic partnerships, licensing & cross licensing, etc.
• Marketing is generating leads, business development turns them into prospects and sales
closes the deals.
• Business Development includes elements of relationship management with customers and
prospects.
• Sales can come from existing customers or new ones (business development)

25. The Key To Grow In The Market
• Preparing a detailed business plan to keep sight of goals and objectives.
• Keeping the main objectives constantly in mind is essential, even if they evolve over time.

26. Case Studies
!
Fulvio Cerutti, Managing Director at Eltek Group
Since it was established in 1979, The Eltek Group has specialized in research, design,
development and production of mechatronic components. Traditionally known for its
components in the appliance and automotive sectors, the company has recently approached
the medical industry and advanced research in the field of nano-biotechnology.
http://www.eltekgroup.it/
!
!
!
Paul Beaupain CEO at Global Export Network - Business Management Services Agency.
Global Export Network is a consortium of experienced professionals committed to
establishing, managing and expanding the business of small & medium manufacturers in the
U.S. market place.
http://www.globalexportnetwork.com

27. Successful Story -Eltek Group USA

29. How to Generate Consistent Growth in the US
• GLOBAL EXPORT NETWORK
• The CEO of Global Export Network will tell us the story of positioning Eltek Group in in the
US Market - automotive, appliance and medical sectors
• How they entered the US with automotive and appliance products
• The long term development plan
• B2B vs. consumer market

30. Eltek Group USA

31. Exercises
• Create a list of key questions to understand in the case of Eltek Group
• Outline the Eltek Group international market positioning and challenges in the American
market.
• Group presentation and open class discussion

32. Group Work Presentation for Eltek Group
• GROUP PRESENTATION
• Conversation with Fulvio Cerutti, AD of Eltek Group.
• Ideas for a new business development strategy; what can
be done to secure long term growth of Eltek Group in the
US market?

33. Digital Market and Marketing Strategy
!
Conversation with Armand Patella, an information architect
experienced in creating intuitive software experiences.
!
What could be the Eltek Group’s strategy to enter the US
consumer market with Water Block?
!
http://www.hitplaylabs.com/
!
Please feel welcome to pass this along to your students. [https://docs.google.com/document/d/
1oZyZb_DLld3E-KvgrUCguSYDnbTowKmf5XOCOpa9o2E/edit?usp=sharing]
!
Cheers,
!
Armand Patella III
Hit Play Labs - link
(443) 470-9038

34. Conclusion – Open Class Discussion
• What did you learn from this workshop?
• What you would like to know more about?
• Let’s stay in touch www.francafoligatti.com