2 - Preparing for Export
Transcript of 2 - Preparing for Export
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PREPARING FORPREPARING FOREXPORTEXPORT
_- Understanding the 5 levels of _- Understanding the 5 levels ofInternational BusinessInternational Business
- The Organization & the Export Process- The Organization & the Export Process
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5 Levels of International Business5 Levels of International Business
Accidental Exporting
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5 Levels of International Business5 Levels of International Business
Accidental Exporting
Selling product domestically to an internationalexporter
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5 Levels of International Business5 Levels of International Business
Active Exporting
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5 Levels of International Business5 Levels of International Business
Active Exporting
Main activity is to buy product for export market anddistribution
Good knowledge and relationship with customs
brokers and host government regulations
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5 Levels of International Business5 Levels of International Business
International Marketing
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5 Levels of International Business5 Levels of International Business
International Marketing
Committing money and people to an internationalmarket. Promoting and selling activities in a foreignland
Either with company personnel or through licensing
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5 Levels of International Business5 Levels of International Business
International Production & Distribution in
Foreign Market
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5 Levels of International Business5 Levels of International Business
International Production & Distribution in
Foreign MarketSetting up a distribution/warehouse facility in aninternational location
Committing money and people to creating adistribution function in a foreign land
Usually includes warehousing activities.
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5 Levels of International Business5 Levels of International Business
Foreign Direct Investment
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5 Levels of International Business5 Levels of International Business
Foreign Direct Investment
Creating an MNEInvesting in both production and marketing in aforeign land
Setting up a foreign division or head office.
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The Export ProcessThe Export Process* Create organization* Create organization* Seek information on export* Seek information on export
market:market: Market ResearchMarket Research* Create marketing plan & Assess* Create marketing plan & Assess
Risk:Risk: INCO TermsINCO Terms* Assess regulations:* Assess regulations: Barriers toBarriers to
TradeTrade
* Create export operations:* Create export operations:$ Investment$ Investment
* Implement* Implement
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AN ORGANIZATION FORAN ORGANIZATION FOR
EXPORTEXPORT
Top Management Commitment - A key success
factor required for exporting
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AN ORGANIZATION FORAN ORGANIZATION FOR
EXPORTEXPORT
Top Management Commitment - A key success
factor required for exportingCorporate objectives
Need to expandGrowth strategies related to Profit
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AN ORGANIZATION FORAN ORGANIZATION FOR
EXPORTEXPORT
Assess Company's Export Potential
Does it have:Mkt. knowledge and research in the foreign land
Established links to customers/agents/governments
Match strengths
Create Organization to eliminate weaknesses in
Exporting
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AN ORGANIZATION FORAN ORGANIZATION FOR
EXPORTEXPORT
Assess Company's Export Potential
Does it have:Mkt. knowledge and research in the foreign land
Established links to customers/agents/governments
Match strengths
Create Organization to eliminate weaknesses in
ExportingAcquire Expertise in Exporting
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AN ORGANIZATION FORAN ORGANIZATION FOR
EXPORTEXPORT
Allocate production resources to export
Budgeting requirementscreating decision-making for export
Assessing risk in exporting
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AN ORGANIZATION FORAN ORGANIZATION FOR
EXPORTEXPORT
Allocate production resources to export
Budgeting requirementscreating decision-making for export
Assessing risk in exportingCreate separate, stand aloneDivision/Department for Exporting
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Export Manager - Duties:
overall responsibility
Planning and organizing resources for exportgaining commitment from senior management forexport
develop & execute export marketing plandetermine levels of control
DETERMININGDETERMINING
ORGANIZATIONAL POSITIONSORGANIZATIONAL POSITIONSFOR EXPORTFOR EXPORT
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Export Manager - Duties:
Direct Promotion and sales activities for export
Decide distribution partnersNegotiate distribution contracts
Implement procedures for product re-design and
verification of foreign packaging and labelingrequirements.
DETERMININGDETERMINING
ORGANIZATIONAL POSITIONSORGANIZATIONAL POSITIONSFOR EXPORTFOR EXPORT
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Export Manager - Duties:
Implement documentation and quality checks on
accuracyPartner with Customs Brokers and governmentofficials in Home and Host countries.
DETERMININGDETERMINING
ORGANIZATIONAL POSITIONSORGANIZATIONAL POSITIONSFOR EXPORTFOR EXPORT
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Export Manager - Duties:
Staffing resources include:
language24 service
technical communication
Internet/e-mail skills
automatic reordering skills
DETERMININGDETERMINING
ORGANIZATIONAL POSITIONSORGANIZATIONAL POSITIONSFOR EXPORTFOR EXPORT
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ASSESSING EXPORT MARKETSASSESSING EXPORT MARKETS
Things to consider:
Mkt. sizeMarket ability to pay
Infrastructure
Advertising customs and practices
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ASSESSING EXPORT MARKETSASSESSING EXPORT MARKETS
Things to consider:
Trade BarriersCurrency Risks
Customs rules and practices
Transportation modes and costs
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ASSESSING EXPORT MARKETSASSESSING EXPORT MARKETSThings to consider:
Product SuitabilityCompetition in Host country
Limited purchasing Power
Currency of business.
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ASSESSING EXPORT MARKETSASSESSING EXPORT MARKETSCanada's Trade performance with other countries
help to determine potential market.Thus assessing surplus/deficit flows will helpidentify areas Government will help
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US Mexico Other
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Imports
Exports
Importance of Export to CanadaImportance of Export to Canada
Import / Export TradeImport / Export TradeNorth America in
percent
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Recent Negative impacts onRecent Negative impacts on
Canadian TradeCanadian TradeEU Debt issues
Weak Chineseeconomy
Weakening $Cdn
Plunging Global Oilprices
Terrorism & USHomeland Security
US Presidential
election