Chapter 2

Export Planning, Joris Leeman © 2010

Export planningHow to write an international marketing plan

Internationalisation of the firm

Chapter 2: External and internal analysis



Export planningLearning objectives (learning tasks) Ch. 2

At the end of the chapter you will be able to:

1. describe a company briefly in terms of its vision and mission, its business definition,and its product lines and markets;

2. explain how to set up an external analysis by means of the DESTEP analysis;

3. execute a trend analysis based upon the DESTEP analysis;

4. explain how to set up an internal analysis by means of its organisation structure, the 7S model, and its organisational capabilities;

5. put together a SWOT analysis and SWOT matrix with its strategic options.


EXPORT PLANNING: 4 phases/10 steps


Export planningVision and mission Example from Kellogg’s


Export planningBusiness definition by Abell Example from Henkel


Export planningSales by product lines and geographic markets


Export planningOverview of the organisation structure of a company

Example of PepsiCo


Export planning7S model by McKinsey


Export planningEnvironmental analysis and trend direction


The PEST analysis consists of five main steps:

1. Understand a category's relevant trends - research the important variables of the organisation's strategy - determine the long term trends that apply to these variables - research the past behaviour of these variables - analyse the predictability of the trend lines and their fluctuations - assess the impact of these trends on the organisation

2. Understand trend interdependencies - analyse which trends are interrelated - determine which trends conflict by understanding

movements in opposite directions

3. Distil likely issues from the identified trends - validate the impact of trends on the organisation - distil the most critical trends that have the greatest impact given

the organisation's objectives

Export planningDESTEP or PEST analysis


4. Forecast the direction of issues - determine the fundamental drivers behind a critical trend - assess the behaviour of the critical trend - run a sensitivity test to assess impact (take -10% of your worst case scenario)

5. derive implications for the organisation - assess the effect of critical environmental changes on the industry - assess effect of critical environmental changes on a firm's competitive position - assess the effect of critical environmental changes on a direct competitor's position - validate a firm's competitive position given the likely positions of its direct competitors

Export planningDESTEP or PEST analysis


Internal and external analysisSWOT analysis

Examples


Internal and external analysisTOWS analysis: strategic options


Strength Weakness

S1 b

rand

imag

e

S2 b

road

pro

duct

line

S3 in

nova

tive

prod

ucts

S4 d

istr

.cha

nnel

s

W1

relia

nt o

n ex

istin

g lin

e

O1 growing population

O2 less regulation

O3 more democracy

O4 progress in techn.

T1 competition

T2 health awareness

T3 ongoing econ.crisis

T4

W2

relia

nt o

n sp

ec.te

chn.

W3

…...

W4

+ + +

+

Opportunity

Threat



Internal and external analysiSExample SWOT analysis of PepsiCo


External opportunities (O) 1. 2. 3. 4.

External threats (T) 1. 2. 3. 4.

Internal etrengths (S) 1. 2. 3. 4.

SO ‘Maxi-maxi’ strategy

Strategies that use strengths to maximize opportunities.

ST ‘Maxi-mini’ strategy

Strategies that use strengths to minimize threats.

Internal weaknesses (W) 1. 2. 3. 4.

WO ‘Mini-maxi’ strategy

Strategies that minimize weaknesses by taking advantage of opportunities.

WT ‘Mini-mini’ strategy

Strategies that minimize weaknesses and avoid threats.


Documents

Chapter 2