Presentation By: Rajan Sharma

Getting Started for Export to

European Union

First session: Managing the organization. Beginning of the

Beginning

Objectives

Understanding the Global ContextKinds of organization.Understanding the Features of SMEUnderstanding the Economy Sectors.Sector of EconomyFeatures of Corporate Culture

Turning information into value

(L)earning for a living (… continuous performance improvement …)

Turning information into knowledge Turning knowledge into value

Knowledge without action is meaningless

Action without knowledge is dangerous

Superficial knowledge is risky

CorporateCorporatefunctions,functions, processesprocesses

& & structurestructure

Function of SMEFunction of SME

objectives, objectives, policies,policies,

processes, processes, culture culture

& structure& structure

CorporateCorporate culture, mission,culture, mission,goals & policiesgoals & policies

CorporateCorporate strategystrategy

Type ofType ofOrganizationOrganization

Dimensions of the corporate environment that Dimensions of the corporate environment that influence the function in a SME exporting firm.influence the function in a SME exporting firm.

Overcoming Barriers

Many successful multinational companies have undertaken a strategy of:

THINKING GLOBAL, ACTING LOCAL!!

represent more than half of GDP and half of employment worldwide

The importance of SME s...

Advantages of SMEs

Quick reactions Low overheadcosts

Reduced taxes, special credit

Close supervision& control

Disadvantages of SMEs

Have difficulties in raising capital

Vulnerable due to limited product range

Depend ontheir leaders

Lack skilled staff

& information

systems

SME

Constraints of SME s

Shortage of working capital influencessize & timing of orders

Limited P&S knowledge and skills

No specializedP&S staff

No IT support

P&S function not well developed SME

AAdvantages of dvantages of MultinationalsMultinationals

Many customers & well known

More diversified

Greater access to finance

Qualified staff

Information systems

MMultinationalsultinationalsLeverage due to high volumes & reputationP&S strategies & policies

IT support systems

Optimal order quantities

Well developed P&S functionSpecialist P&S staff

Key differences amongst different types of organizations

Feature Private Public Non-profit

Control Individuals and other enterprises

Government Individuals and organisations

Funding Shareholders and accumulated profit

Taxation, grants, public debt and fees for services

Sponsors (grants, donations), members and fees for services

Prime goal Typically, to optimise profit

Typically, the effective and efficient provision of public services

A belief, value, ideology or service to be provided

Accountability To shareholders To the public To sponsors or members

Competition Typically yes Typically no Generally not relevant

Constraints The law (in general)

Any self-imposed constraints

The law (in general)

Laws, regulations and procedures applicable to the public sector

Changes in government policy / politics

The law (in general)

Major sponsors may impose constraints

Any self-imposed constraints

Corporate CultureCorporate Culture

Comprises values, beliefs and norms.

Subconscious level Has an impact on:

Corporate goals and policies

Organizational structure

Control systems

Internal and external channels of communication

Reward systemsWorking hoursDress requirements, andSocial relations.

Corporate Culture

•Importance of personal relationships

•Protocol vs. familiarity

•Concept of time & punctuality

•Degree of directness

•Attitude to risk & risk-taking

•Importance of continuity vs. innovation &

change

•Attitude to confrontation & disagreement

•Attitude to short vs. long term

What determines corporate culture? What determines corporate culture? (I)(I)

the national culture:

What determines corporate culture? What determines corporate culture? (II)(II)#The founder and dominant

individuals

#history of the organization

#age & size

#nature of the work

#the types of power…..

Bad experiences in the past will discourage certain approaches in the future.

Main features of the different types of corporate culturePower Culture Role Culture Task Culture

Independency Culture

Main source

of powerPower byinfluence

Power by positionIn the hierarchy

Power by expertise& capacity to bring

people togetherExpert power

Nature ofcontrol andDec.-making

Leaders’ ordersand commands

Rules & proceduresProject managers &

project groupsIndividuals

Where is itappropriate?

Fast changingenvironments

Small companies

Stable environmentwith routine tasks

Where quality iscritical

Project environmentsPartnerships ofprofessionals

Disad- vantages

Vulnerable ifkey staff lack

competence orleave

Risk of in-fighting

Stifles creativity

Significant inertiato change

Can fail if people don’twork well together

Can be difficult tocontrol

Individualist/collectivist?

Individualist Collectivist Collectivist Individualist

Suitable individual

Ambitious /power oriented

One who valuessecurity andpredictability

Team-worker Self-motivated

Thank you for your Attention:Any Questions???

Second Class:

A step forward for Export to Europe

By: Rajan Sharma:

Managing the Organization

Where are you going? Vision, Mission, Goals, Strategy and Policy. Environmental, Ethical and Employee issues Organizations that participate in International

Transaction. How to enter a Market. Operating cost efficiently.

Where are you going??Where are you going??

It is good practice for an organization to publish its vision, mission, goals and policies

Vision

Mission

StrategyPolicies

Goals

Vision, Mission, Goals….Vision, Mission, Goals….

Vision focuses on the long term, i.e., where the organization aspires to be in the future. Vision is broad & general.

Mission represents what the company considers its basic role to be. Mission is more concrete.

Strategy is the way of achieving the goals.

Policies define the principles and guidelines to be complied with.

Goals are aligned with the mission & are more specific.

Vision, Mission, Goals… Vision, Mission, Goals… (examples)(examples)

Vision: To become the leading manufacturer of hand tools in our country market.

Mission: To provide the widest range of hand tools for home use in our country.

Strategy: - Launch three new hand tools over the next year. - Intensive training of our sales staff. - Development of strategic partnerships with suppliers of key inputs.

Policies: - Minimize waste and avoid the use of unnecessary packaging. - Offer a good working environment and working conditions…..

Goals: To reach a turnover of $10m within 2 years.

Energy conservation

Avoiding the use of ozone-depleting and other harmful substances

Minimizing waste / avoiding the use of unnecessary packaging

Recycling, and making use of recycling materialsMinimizing dependence on non-renewable sourcesMinimizing stock (and the associated wastage through obsolescence).

Environmental policiesEnvironmental policies

M1:U3:3.4-2

Contains principles and rules of conduct

May cover:Conflicts of interest

Gifts and hospitality

Respect for confidentiality of information

Fair and transparent dealings with suppliers and customersNot to deal with enterprises that exploit forced labor, poor working conditions, inadequate health and safety, intimidation of workers defending their rights...

Ethics policyEthics policy

ethicsCode of

Bribes & other forms of corruption

Guarantees of employment

Good regard for employee health and safety

A good working environment and working conditions

Provision of medical care

Greater than the statutory requirement for maternity and sick leave

Compassionate leave

Non-discrimination on the grounds of disability, race, sex, age, rehabilitated offenders

Employee welfare policyEmployee welfare policy

How competitive are your How competitive are your firm’s products or services?firm’s products or services?

Regularly obtain feedback from

actual or potential

customers.

Quality

Availability

Customer service & responsiveness

Low cost

BenefitsBenefitscustomerscustomersseekseek

Ph

iloso

ph

y

Stra

teg

y

Tool

to learn more about

customer needs

to customize services

and enhance added value

to increase customer

satisfaction and

customer loyalty

TQM/ISO

CRM as part of organization development

• How can our supply chain respond to implications of alternative modes of entry?

• If it cannot currently respond, what must be done?

• How to manage the supply chain in the event of a business collaboration arrangement (e.g., centralise or keep separate)?

• Which functions will our firm undertake, and which will it source externally?

• Which will be their objectives, priorities, policies and strategies?

• What will be the relationships amongst its functions and its processes?

• What structure will it adopt?

Specifying requiremen

ts & planning supply

Scope of activities of SME

In small enterprises, In small enterprises, one person undertakes one person undertakes a number of functionsa number of functions

Developing

supply strategie

s

Negotiating

Managing inbound logistics

Managing inventory

Preparing the

contract

Appraising & short listing

suppliers

Analysing supply

markets

Obtaining & selecting

offers

Managing the contract &

supplier relation- ships

Major Participants in International Business Transactions

Major Participants in International Business Transactions

Domestic Bank

Domestic Government Agencies

Foreign Government Agencies

ForeignBank

Domestic Seller

Export Facilitator

Inland Transportation Carrier

Domestic Port/Terminal of Exit

International Carrier

ForeignPort/Terminal of Entry

ForeignInland Transportation Carrier

Foreign Buyer

QUALITY WITH ZERO TOLERANCE

A MENTALITY OF CONTINUOUSLY STRIVING FOR PERFECTION Never be completely satisfied with what

you do, how you do it and how efficiently it has to be done. Please realize that there is always room for improvement and when you miss the opportunities for improvement while your competitor turns them into competitive advantages, you will be outsmarted & outranked on the international markets

Thank You for your attention.

Any Questions ??????