Developing International Strategy

David ElliottB.A. (Lon), M.B.A. (Executive Management) Hull, MCIM

Agenda

• What drives International performance?

• A suggested model.

• Some thoughts.

• Some experiences.

What drives International performance

• Product adaptation.

• International experience.

• Partnerships with Distributors.

There are fewer models to support export marketing than there are to give guidance for domestic ventures. Growth orientated domestic firms must clearly address the opportunities which increasingly globalisation offer, and therefore it is appropriate and sensible to suggest a framework which might support export marketing, to the extent that this is substantiated in the literature.

A suggested ModelCavusgil & Zou (1994 & 1996) have defined three key areas -:

1) Export marketing strategy

The major consideration is "to adapt or not to adapt". The Company must, prior to applying its scarce resources, decide how much it is going to change its basic format.

2) International Competence

This is inextricably linked with its decision whether to "adapt or not". An organisation which is competent in an international context ( and this is a very different story from being competent in a domestic situation) is able to make the important decisions which key into an appropriate export marketing strategy.

A suggested Model

3) Managerial Commitment

Export marketing is enhanced if senior management is committed to the venture, allocates appropriate resources and creates an international environment within the organisation for the long term.

A suggested ModelThis indicates an interesting virtuous cycle which can be illustrated as follows -:

Management commitment

International strategy

Product Adaptation International Competence

A suggested Model

• This will require a long-term approach to export marketing which will build an organisation a growing appreciation of the specific demands of international markets which in turn enhance strategy and create products which are appropriately adapted to the demands of the different market places.

• This approach will avoid the short-term opportunistic approach to export marketing.

A suggested Model

• Having defined an export marketing model it is however important to put this together with a management model which recognises that managers operate not only in the external environment but also in the internal environment of the various departments in the Company. Fayol offers the basis for a simple management model which can be incorporated as follows…

A suggested Model

A management model • Planning • Organizing • Staffing• Leading • Controlling

External

International competence

Management commitment

Internal

Export Marketing strategy

Planning

• This involves selecting missions and objectives and the actions to achieve them. By selecting future courses of action from among the many alternatives which may be open to a Company it is able to choose where it wants to be in the future and is able to encourage group effort by allowing people to know what they are expected to accomplish.

• This is more likely to encourage success and prevent a Company from drifting into situations which it cannot control.

Organising

• This involves that part of managing which involves establishing an intentional structure of roles for people to fill in an organisation. The objective is to create a structure to ensure that all tasks which are necessary to achieve goals are covered an given to those who are best equipped to fulfil the various tasks in an organisation.

• The structure should also create a formal system of roles that people can perform so that they can work together to achieve the Company's objectives. Those modern approaches also address the informal links which make any organisation function well.

Staffing

• This involves filling, and retaining positions in an organisation.

• This is achieved by identifying work force requirements, reviewing the people available, recruiting, selecting,, putting people into the appropriate positions, planning careers, rewarding, training or otherwise developing both current and potential job holders to accomplish tasks effectively and efficiently.

Leading

• This has been described by Koontz & Weihrich as that task which influences people so that they will contribute to organisation and group goals, largely as the result of the interpersonal aspects of management which relate to motivation, leadership styles, and approaches and communication.

Controlling

• This relates to the measuring and correcting of activities to ensure that events conform to plan. Performance will logically be measured against goals and plans, show where any deviations might exist, and then put management into place corrective action to make certain that plans are achieved.

At the heart of control activity is the measurement of achievement and correction is achieved via activities which are conducted by people. Unless it is known who is responsible for results which are different from what has been planned it will not be possible to take the necessary steps to improve performance. By definition therefore outcomes are controlled by controlling what people do.

Thoughts

• No quick fix.

• Do you mean what you say?

• Build trust.

Experiences

• Be flexible.

• Be patient.

• Be strong.