Glo

ba

l E

xp

an

sio

n

Glo

ba

l E

xp

an

sio

n ��

Ge

t it

Rig

ht

the

Fir

st T

ime

Aro

un

d

Ge

t it

Rig

ht

the

Fir

st T

ime

Aro

un

d

SL

WT

AO

ctob

er 2

2, 2

00

9

Mo

na

Pe

arl

(312

) 6

42

46

47

Bey

ond

AS

trat

egy.

com

In t

he

ve

ry n

ea

r fu

ture

, U

.S.

bu

sin

ess

es

wil

l fa

ll

into

on

e o

f tw

o e

xtr

em

e c

ate

go

rie

s:

A w

ait

and

see

min

dse

t is

not

hin

g sh

ort

of o

rgan

izat

ion

al s

uic

ide.

On

th

e ot

her

han

d, a

rea

ctio

nar

y, il

l-co

nce

ived

glo

bal e

xpan

sion

is

no

imp

rove

men

t. T

hat

too

sp

ells

dis

aste

r.

1)S

kil

led

pla

ye

rs i

n t

he

glo

ba

l m

ark

etp

lace

, a

nd

2)

Te

nta

tiv

e p

lay

ers

th

at

forc

ed

th

em

selv

es

ou

t o

f b

usi

ne

ss.

Wh

en K

PM

G G

loba

l En

terp

rise

In

stit

ute

su

rvey

ed U

.S. m

idd

le m

arke

t co

mp

anie

s in

late

20

07,

it f

oun

d t

hat

58

% o

f al

l bu

sin

esse

s su

rvey

ed

pla

nn

ed t

o in

crea

se t

hei

r gl

obal

pre

sen

ce o

ver

the

nex

t fi

ve y

ears

, an

d

one-

thir

d p

lan

ned

to

mai

nta

in t

hei

r cu

rren

t gl

obal

pre

sen

ce.

Inte

rest

ingl

y, in

th

e sa

me

surv

ey, f

ewer

th

an h

alf

of a

ll r

esp

ond

ents

sai

d

thei

r ex

pan

sion

eff

orts

ove

r th

e p

ast

two

year

s h

ad b

een

su

cces

sfu

l;

the

refo

re,

50

% w

ere

un

succ

ess

ful!

Wit

h f

ailu

re r

ates

like

th

ese,

it�s

tim

e to

ask

�W

hat

are

we

doi

ng

wro

ng?�

Mos

t im

por

tan

tly,

wh

at

mu

st b

e d

on

e d

iffe

ren

tly

to im

pro

ve c

han

ces

for

futu

re s

ucc

ess

in t

he

glob

al m

arke

tpla

ce?

To

p c

ha

lle

ng

es

com

pa

nie

s fa

ce:

1.O

vers

eas

acqu

isit

ion

s fa

il t

o d

eliv

er2.

Th

ey s

tru

ggle

to

exp

and

lack

ing

the

know

led

ge a

nd

dat

a as

to

wh

ere

in t

he

wor

ld t

hey

sh

ould

go

and

wh

at t

acti

cs t

o im

ple

men

t3.

Mon

ey a

nd

man

agem

ent

effo

rt is

was

ted

, oft

en b

ecau

se o

fu

nso

ph

isti

cate

d m

anag

emen

t ap

pro

ach

es

Wh

y co

mp

an

ies

face

th

ese

ch

all

en

ge

s?

1.U

ncl

ear

stra

tegi

c d

irec

tion

2.U

nd

eres

tim

ated

ris

k3.

Poo

r al

ign

men

t be

twee

n v

isio

n, m

issi

on, r

esou

rces

, st

rate

gy a

nd

op

erat

ion

s

Ph

ase

on

e �

Pre

lim

inar

y an

alys

is a

nd

sc

reen

ing:

m

atch

ing

com

pan

y/co

un

try

nee

ds

Ph

ase

tw

o �

Ad

apti

ng

the

mar

keti

ng

mix

to

targ

et m

arke

ts

Ph

ase

th

ree

�

Dev

elop

ing

the

pla

n

Ph

ase

fo

ur

�

imp

lem

enta

tion

an

d c

ontr

ol

En

viro

nm

enta

l u

nco

ntr

olla

ble,

co

mp

an

y cu

ltu

re,

an

d s

cree

nin

g.

Ho

st c

ou

ntr

y (s

) co

nst

rain

ts

Co

mp

an

y cu

ltu

re

Ma

tchi

ng

mix

re

quir

emen

ts

Pro

du

ct

Pri

ce

Pro

mo

tio

n

Dis

t./p

lace

Ph

ysic

al

Evi

de

nce

Pe

op

le

Pro

cess

Ma

rket

ing

pla

n

dev

elop

men

t

Sit

ua

tio

n

an

aly

sis

Ob

ject

ive

s

Str

ate

gic

op

tio

ns

Ta

ctic

s

Bu

dg

et

Imp

lem

enta

tion

, ev

alu

ati

on,

mea

sure

men

t,

con

trol

Ob

ject

ive

s a

nd

st

an

da

rds

Ass

ign

re

spo

nsi

bil

itie

s

Me

asu

re

pe

rfo

rma

nce

Co

rre

ctiv

e

act

ion

Wh

y G

o G

lob

al?

De

cisi

on

Ma

kin

g

1.D

eter

min

e in

tern

atio

nal

dem

and

�Is

th

ere

dem

and

for

you

r p

rod

uct

s/se

rvic

es

abro

ad?

2.A

dap

tin

g to

cu

stom

er n

eed

s

�If

so,

sh

ould

th

ose

pro

du

cts

be a

dap

ted

?

3.E

ntr

y st

rate

gies

�H

ow t

o en

ter

into

glo

bal m

arke

ts?

Be

fore

Yo

u G

o

Op

tio

ns

Ma

rke

t E

xp

an

sio

n S

tra

teg

ies

Th

e d

ecis

ion

to

exp

and

by:

�S

eeki

ng

new

mar

kets

in e

xist

ing

cou

ntr

ies

�S

eeki

ng

new

cou

ntr

y m

arke

ts f

or a

lrea

dy

iden

tifi

ed a

nd

se

rved

mar

ket

segm

ents

Se

rio

usl

y, w

hy

go

glo

ba

l?

Pro

act

ive

:

!In

crea

se p

rofi

t

!T

ake

adva

nta

ge o

f p

rod

uct

life

cycl

e

!A

chie

ve E

con

omie

s of

sca

le

Re

act

ive

:

!C

omp

etit

ive

pre

ssu

res

!O

verp

rod

uct

ion

an

d e

xces

s ca

pac

ity

!D

ecli

nin

g d

omes

tic

sale

s

!Sa

tura

ted

dom

esti

c m

arke

ts

So

cia

l a

nd

Cu

ltu

ral

En

vir

on

me

nts

�Cu

ltu

re i

s m

ore

oft

en

a s

ou

rce

of

con

flic

t th

an

of

syn

erg

y.

Cu

ltu

ral

dif

fere

nce

s a

re a

nu

isa

nce

at

be

st a

nd

oft

en

a

dis

ast

er.

"

Pro

f. G

eert

Hof

sted

e, E

mer

itu

s P

rofe

ssor

, Maa

stri

cht

Un

iver

sity

.

Cu

ltu

re,

at

its

ba

sic

lev

el,

is

the

co

lle

ctiv

e m

en

tal

pro

gra

mm

ing

o

f p

eo

ple

in

an

en

vir

on

me

nt.

Re

sea

rch

ing

an

d A

na

lyzi

ng

In

tern

ati

on

al

Ma

rke

ts

Ma

rke

t in

form

ati

on

�M

arke

t p

oten

tial

�C

onsu

mer

/ c

ust

omer

att

itu

des

an

d b

ehav

iou

r

�C

han

nel

s of

dis

trib

uti

on

�C

omm

un

icat

ion

s an

d m

edia

�M

arke

t so

urc

es

�N

ew p

rod

uct

s

Co

mp

eti

tive

in

form

ati

on

�C

omp

etit

ive

busi

nes

s st

rate

gy a

nd

goa

ls (

mis

sion

an

d

rati

onal

e of

th

e co

mp

any)

�C

omp

etit

ive

fun

ctio

nal

str

ateg

ies

and

pro

gram

s (t

arge

t m

arke

ts, m

arke

tin

g m

ix, e

tc.)

�C

omp

etit

ive

oper

atio

ns

(mor

ale,

em

plo

yee

tran

sfer

s,

i.e. d

etai

l)

Fo

reig

n e

xch

an

ge

�B

alan

ce o

f p

aym

ents

, in

tere

st r

ates

, etc

�P

resc

rip

tive

info

rmat

ion

e.g

ince

nti

ves,

con

trol

s,

regu

lati

ons.

�C

oun

try

mon

etar

y an

d f

isca

l pol

icy

�E

xpec

tati

ons

of b

anke

rs, t

rad

ers,

an

alys

ts, e

tc

�G

over

nm

ent

pol

icy

in r

elat

ion

to

its

own

co

mp

etit

iven

ess

Re

sou

rce

in

form

ati

on

�H

um

an r

esou

rces

�M

oney

�R

aw m

ater

ials

�M

&A�s

, joi

nt

ven

ture

s

Ge

ne

ral

con

dit

ion

s

�E

con

omic

fac

tors

-e.

g. g

row

th

�So

cial

fac

tors

e.g

. cu

stom

s, a

ttit

ud

es

�P

olit

ical

fac

tors

e.g

inve

stm

ent

clim

ate

�Sc

ien

tifi

c an

d t

ech

nol

ogic

al f

acto

rs -

maj

or

dev

elop

men

ts a

nd

tre

nd

s

�M

anag

emen

t an

d a

dm

inis

trat

ive

fact

ors

e.g.

rep

ort

pro

ced

ure

So

urc

es

of

info

rma

tio

n

Th

ere

is s

uch

th

ing

as

too

mu

ch

info

rma

tio

n.

Fiv

e r

ule

s fo

r in

tern

ati

on

al

rese

arc

h

�N

o.

1:

�W

hat

info

rmat

ion

do

I n

eed

?

�W

her

e ca

n I

get

th

is in

form

atio

n?

�W

hy

do

I n

eed

th

is in

form

atio

n?

�W

hen

do

I n

eed

th

is in

form

atio

n?

�W

hat

is t

his

info

rmat

ion

wor

th in

$?

�W

hat

is t

he

cost

of

not

obt

ain

ing

this

info

rmat

ion

?

�N

o.

2:

Star

t w

ith

des

k re

sear

ch

�N

o.

3:

Iden

tify

th

e ty

pe

of in

form

atio

n t

hat

is a

vail

able

fro

m

over

seas

sou

rces

�N

o.

4:

Kn

ow w

her

e to

look

(or

fin

d s

omeb

ody

that

doe

s)

�N

o.

5:

Do

not

ass

um

e th

at t

he

info

rmat

ion

th

at y

ou g

ain

is

com

par

able

or

com

ple

te.

En

try

ev

alu

ati

on

pro

ced

ure

Stag

e 1

-C

oun

try

iden

tifi

cati

on

Stag

e 2

-P

reli

min

ary

scre

enin

g

Stag

e 3

-In

-dep

th s

cree

nin

g

Stag

e 4

-F

inal

sel

ecti

on

Ne

go

tia

tio

ns

Acr

oss

Co

un

trie

sH

igh

co

nte

xt

cult

ure

�T

he

mea

nin

g of

ind

ivid

ual

beh

avio

ur

and

sp

eech

ch

ange

s d

epen

din

g on

th

e si

tuat

ion

�N

onve

rbal

mes

sage

s ar

e fu

ll o

f im

por

tan

t m

ean

ing

(rea

d

betw

een

th

e li

nes

)

�C

ontr

acts

. W

ritt

en c

ontr

acts

are

not

alw

ays

enfo

rcea

ble

as

new

peo

ple

mov

e in

to e

xecu

tive

pos

itio

ns

Lo

w c

on

tex

t cu

ltu

re

�In

ten

tion

s ar

e ex

pre

ssed

ver

ball

y

�T

he

situ

atio

n d

oes

not

ch

ange

th

e m

ean

ing

of w

ord

s

�C

ontr

acts

Me

asu

rin

g &

Co

ntr

oll

ing

P

erf

orm

an

ce

�Se

t ta

rget

s �

quan

tifi

ed o

bjec

tive

s an

d/o

r bu

dge

ts.

�D

eter

min

e th

e m

eth

od(s

) of

mea

sure

men

t

�M

easu

re t

he

resu

lts

at t

he

end

of

each

per

iod

�C

omp

are

resu

lts

agai

nst

th

e ta

rget

s an

d id

enti

fy

vari

ance

s

�Id

enti

fy a

nd

imp

lem

ent

any

nec

essa

ry c

orre

ctiv

e ac

tion

Te

chn

iqu

es

for

Me

asu

rin

g &

C

on

tro

llin

g P

erf

orm

an

ce

�F

inan

cial

an

alys

is e

.g. r

atio

an

alys

is, v

aria

nce

an

alys

is, c

ash

fl

ow, m

onit

orin

g ca

pit

al e

xpen

dit

ure

.

�M

arke

t an

alys

is �

i.e. m

arke

t d

eman

d, m

arke

t sh

are,

mar

keti

ng

reso

urc

es.

�S

ales

an

alys

is �

e.g.

sal

es t

arge

ts, s

elli

ng

cost

s.

�P

hys

ical

res

ourc

es a

nal

ysis

�an

alys

is o

f p

lan

t an

d e

quip

men

t u

tili

sati

on, o

ther

mea

sure

s of

pro

du

ctiv

ity

and

pro

du

ct q

ual

ity

�S

yste

ms

anal

ysis

�co

nsi

der

th

e ef

fect

iven

ess

of i

mp

lem

enta

tion

an

d a

pp

lica

tion

of

you

r re

sou

rces

.

�O

ther

s. .

. . .

.

Ju

st D

o I

t!

Ju

st D

o I

t!

�Th

e im

por

tan

t th

ing

is n

ot b

ein

g af

raid

to

take

ach

ance

. R

emem

ber

, th

e gr

eate

st f

ailu

re is

to

not

try

. O

nce

you

fin

d s

omet

hin

g yo

u lo

ve t

o d

o, b

e th

e be

st a

td

oin

g it

.�D

ebb

i Fie

lds

Gro

wth

In

du

stri

esW

inn

ing

Bu

sin

ess

Stra

tegi

es

Dif

fere

nce

s/

Sim

ilar

itie

s

Op

por

tun

itie

sC

hal

len

ges

Tre

nd

s

The

Eco

nom

ist

�No

bo

dy

rea

lly

kn

ow

s w

ha

t st

rate

gy

is.�

03/1

1/20

0927

©M

arc

Sni

ukas