ibp 3: swot analysis & conclusions the role of the ca in addressing swot-issues explanation...

IBP 3:

SWOT analysis & conclusions

The role of the CA in addressing SWOT-issues

Explanation & assignments

EaP CBI Master Class Commercial Attaché &Business Promoter

Brussels November 10-14, 2014

• SWOT analysis & drawing conclusions

• How to get from conclusions to advice?

• How to approach, cooperate and enter EU markets?

• Group work on assignment

What will you learn in this session:

EaP CBI CA training - Fred Janssen - Brussels November 2014


4 basic steps in International Business Promotion (IBP)

• Home sector audit

• USPs & comparative advantage?

Step 1

• Target country analysis

• Critical succes factors & opportunities?

Step 2• Conclusions

& strategies

• How to approach & co-operate & enter target markets?

Step 3

• Business planning

• Implementation, action planning & monitoring?

Step 4

Step 1: Sector Audit Relevant/promising (sub)sectors

Outcome / results:

• Performance in current markets

• Core competencies & unique selling points

• Action points on sector development

INTERNAL ANALYSIS (SW-)

Step 2: (EU) Target Market(s)Selection & in-depth analysis countries (max 3) and pmc’s

Outcome / results:

• Market attractiveness

• Market and buyer requirements

• Critical Succes Factors ( competitive power)

EXTERNAL ANALYSIS (-OT)

Step 4: Project PlanMES (Market Entry Strategy) including marketing mix

SEMP Operational Sector Plan (OSP)

Step 3: SWOT Export which PRODUCTS

To which MARKETS (countries and market segments)

With which sales proposition (USPs)

INTERNAL SECTOR ANALYSIS (SW-)

International Business Promotion plan (CA decision making)


IBP step 1

Is the sector able to do business in selected countries (SW)? Identified by means of the sector audit

IBP step 3

What problems should the sector solve first in order to be able to turn the odds in her favor?

Identified by means of the strategic analysis (SWOT)

IBP step 2 What kind of hurdles will the sector encounter in EU (OT)?

Identified by means of the (EU) market audit

Input to strategic sector discussion & conclusions:


VS.

• Sector competencies (USPs)

VS.

• Target country opportunities• Access requirements & CSFs

Concl.

• Conclusions & recommendations (SWOT)• Export strategies & pre-conditions

IBP Step 3: Strategic Analysis (SWOT)


Done ………. assignment IBP 1Home sector analysis!

Step IBP 1

Describe status quo of the selected sector in home country (SW&OT)

Profile / characteristics

Trade structure / playing field (suppliers, producers, distribution network, buyers)

Market size and –growth

Draft conclusion on sector challenges and strategy in home country

Done ………. mini assignment IBP 2EU country analysis!

Step IBP 2

Select countries and examine the export potential of the selected sector in target

country (“OT”)

1. Identify criteria to select countries

2. Select countries and market segments

3. Analyze market attractiveness and sales potential for each selected country

4. Draft conclusion on opportunities and threats for each selected country

Summarize assignment IBP 1

Describe the following strategic aspects of your specific sector in your

country:

1. Core competencies (Strengths = what are we really good in):

……………………………………………………………………………

……………………………………………………………………………

2. Core problems (Weaknesses = sector constraints/ bottle necks):

……………………………………………………………………………

……………………………………………………………………………

Summarize assignment IBP 2

Describe the following strategic aspects of the market in the EU:

1. Market possibilities (Opportunities):

……………………………………………………………………………

……………………………………………………………………………

2. Market challenges (Threats):

……………………………………………………………………………

……………………………………………………………………………

Key SWOT aspects on own sector and Your specific target market in EU

1. Strengths (max. 5):

……………………………………………………………………………

2. Weaknesses (max. 5):

………………………………………………………………………………

3. Opportunities (max. 5):

………………………………………………………………………………

4. Threats (max. 5):

………………………………………………………………………………

Your sector: ........... …………….

Opportunities Threats

Strengths

Weakness

Fill in your SWOT elements in the appropriate boxes (numbers 1-5)• Check boxes: • For each opportunity which

strength helps us to take advantage of this, and

· Which weakness inhibits us from doing so. For each threat which strength helps us to fight this, and which weakness inhibits us from doing so.

· Focus on Core Competencies (strengths x opportunities) & Core Problems (weaknesses x threats)

Opportunities Threats1. Demand for sourcing in emerging countries is growing

2. Chances to expand into the international value chain

3. EU manufacturers are direct accessible

4. Increasing production costs in EU

5. Free trade agreements

1. A lot of competition from other emerging countries

2. Price war

3. Strong huge EU companies in the value chains

4. Established business and existing partnerships

5. Communication and country image

Strengths

1. Your country has opened up to the global economy and actively engaged in multilateral relationships

2. Sector has a lot of skilful workers for relative cheap costs

3. The private sector is developing very fast in quantity

4. High standards of equipment & services

5. Several EU certifications

Weakness

1. Lack of trained sales staff

2. EU is unknown market, no MI

3. Delayed delivery due to long distances

4. Technology is hindered by a lack of capital and R&D development.

5. High overhead, production costs





Opportunities Threats1. Demand for sourcing in emerging countries is growing

2. Chances to expand into the international value chain

3. EU manufacturers are direct accessible

4. Increasing production costs in EU

5. Free trade agreements

1. A lot of competition from other emerging countries

2. Price war

3. Strong huge EU companies in the value chains

4. Established business and existing partnerships

5. Communication and country image

Strengths

1. Your country has opened up to the global economy and actively engaged in multilateral relationships

2. Sector has a lot of skilful workers for cheap costs ++3. The private sector is developing very fast in quantity ++4. High standards of equipment & services +-

5. Several EU certifications +-

Weakness

1. Lack of trained sales staff --

2. EU is unknown market, no MI 0 --3. Delayed delivery due to long distances

4. Technology is hindered by a lack of capital and R&D development. -+

5. High overhead, production costs 0





Company: Opportunities Threats

Strengths

Weakness





What problems should the sector solve first in order to be able to turn the odds in her favor?

Identified by means of the strategic analysis (SWOT)!

Formulate the strategic justification for sector export promotion:

1. Confront the sector’s SW’s with the OT’s (matrix), draw conclusions.

2. Define your sector export strategy based on the SWOT conclusions.

3. Formulate recommendations/strategies towards stakeholders concerning both the internal country and external market factors and export promotion plan

CA input on SWOT-analysis …… the process


Your role as CA?


How can you as a Commercial Attaché assist or support a sector or an individual company in addressing the SWOT issues? (from identifying strengths, weaknesses, opportunities and threats to coming up with strategies)

What do you need (budget, staff, market information, etc.) to be able to do this effectively?

Exte

rnal

Ana

lysi

s

Inte

rnal

Ana

lysi

s Strengths

Weaknesses

Opportunities

Threats

S

W

O

T


CONFRONTATION


Assignment: from SWOT confrontation to strategy

• Take most important combinations of each of the quadrants (highest scores)• Combine into meaningful business promotion strategy

A International Business Promotion strategy on sector level should be:

based on sector insights and EU market analysis developed by a step-by-step approach objective, actionable

Offensive strategy; exploiting core competences

S - O strategies: Core competences & Comparative Advantage!!

Explain how specific strengths can help your sector take advantage of market opportunities and how you as a CA can support them.

Mini assignment = identify S – O crossing points and extract assumptions (what are the sector core competencies):

Example: S2 = skilful cheap workers linked to O4 = increasing costs in EU

S-O strategy: ++ match - exploit your core competence = promote S2 in specific EU- segment

Fill in your S-O strategy (what are your core competencies?): ……………………………………………….

STRENGTHS v OPPORTUNITIES


Strengths versus Opportunities = win-win quadrant!

Assignment

identify S – O crossing points and extract assumptions (what are the sector core competencies):

Fill in your S-O strategy (what are your sector core competencies, how are you going to promote them and how you as a CA could contribute to this)

1.

2.

3.

4.

5.


Adjust strategy: Improve present performance

W – O strategies: Invest/Divest/Hold!!

Explain how the sector can minimize its weaknesses to take advantage of EU market opportunities. Identify promising areas for future development that a sector may not currently be in a position to exploit because of some of the internal weaknesses. Explain how you as a CA can contribute to this process.

Mini assignment = identify W – O crossing points and extract assumptions (what to improve in the sector):

Example: W4 = lack of capital and R&D linked to O1 = growing demand for sourcing

W – O strategy: -+ match - management recommendations = improved your production quality and R&D and arrange budget via share holders or financial institutions

Fill in your W-O strategy (what has to be improved in your sector?): ………………………….

WEAKNESSES v OPPORTUNITIES


Weaknesses versus Opportunities = improve!

Assignment

Identify W – O crossing points and extract conclusions (what to improve in the sector):

Fill in your W-O strategy (what has to be improved in your sector and how you as a CA could contribute to this).

1.

2.

3.

4.

5.


Reactive strategy: Battle Field; fight competitors

S – T strategies: Mobilize!!

Explain how specific sector strengths could be used to avoid or minimize EU external threats. Which actions a sector must take to avoid losing ground it already holds or to transform threats into opportunities for progress, and how you as a CA could contribute to this.

Mini assignment = identify S – T crossing points and extract assumptions (how to fight the competition):

Example: S5 = EU certifications linked to T3 = a lot of competition from emerging countries

S – T strategy: +- match – beat competitors by promoting certifications in target segment

Fill in your S-T strategy (how do you beat competitors?): ………………………….

STRENGTHS v THREATS


Strengths versus Threats = battle field!

Assignment

Identify S – T crossing points and extract assumptions (how to fight the competition):

Fill in your S-T strategy (how does your sector beat competitors, how is the sector going to profile itself against the competition in your specific market segment and how you as a CA could contribute to this).

1.

2.

3.

4.

5.


Defensive strategy: minimize, avoid, reconsider, core problems

W – T strategies: Core problems / Damage Control!!

Explain how, acting defensively, the sector can minimize its weaknesses and, in the process, avoid or minimize external EU threats, eventually reconsider choice of target market and what you can do as a CA to support this.

Mini assignment = identify W – T crossing points and extract assumptions (core problems):

Example: W1 = lack of trained sales staff linked to T4 = established businesses

W – T strategy: -- match – problem zone, train your sales staff and facilitate trainings or depend on external partner, reconsider client/partner to work with, redefine target segment/market

Fill in your W-T strategy (what should you reconsider or to avoid ): ………………………….

WEAKNESSES v THREATS


Weaknesses versus Threats = avoidance!

Assignment

Identify W – T crossing points and extract assumptions (core problems):

Fill in your W-T strategy (what should you reconsider in your market strategy or to avoid and how you as a CA could contribute to this):

1.

2.

3.

4.

5.


CA‘s next steps towards IBP on sector level

S WO T

Assignment on IBP 3

1. Define your sector promotion and FDI strategy based on the SWOT conclusions.

2. Formulate recommendations towards stakeholders concerning both the internal country and external market factors and sector promotion and FDI plan feasibility



Assignment IBP 3

Draw SWOT conclusions on export readiness, challenges and promotion

strategy/recommendations for targeted EU-country

1. SWOT confrontation (done in matrix)2. Conclusions on export readiness for targeted EU country3. Define final PMC - which PRODUCTS to export to

which MARKETS (countries and market segments)4. What will be your sector’s sales proposition (USPs)5. Formulate recommendations towards management and

stakeholders

• IBP 1

• IBP 2

• IBP 3

• IBP 4

Sub-Assignment 1

• SWOT-confrontation matrix, conclusions and strategies:

Done !

Sub-Assignment 2

• Conclusions on export readiness for targeted EU country

1. ……….…………………………………………...

2. ……….…………………………………………...

3. ……….…………………………………………...

4. ……….…………………………………………...

5. ……….…………………………………………...

Sub-Assignment 3

• Define final PMC - which PRODUCTS to export to which MARKETS (countries and market segments)

Product(s)

…………………………

Country(ies)

………………………….

Market segment(s)

…………………………..

Sub-Assignment 4

• What will be your sector’s sales proposition (USPs):

USPs:1.……….…………………………………………...

2.……….…………………………………………...

3.……….…………………………………………...

4.……….…………………………………………...

5.……….…………………………………………...

Final sales proposition:

6.……….…………………………………………...

7.……….…………………………………………...

8.……….…………………………………………...

9.……….…………………………………………...

10.……………………………………………………

Sub-Assignment 4

Recommendations towards management and stake holders:

• Management:1.……….…………………………………………...

2.……….…………………………………………...

3.……….…………………………………………...

• Stake holders:1.……….…………………………………………...

2.……….…………………………………………...

3.……….…………………………………………...

Results CA‘s International Business Plan

Results (input IBP 4)

Recommendations on:

1. sector promotion and FDI strategy for targeted EU-country

2. sector growth options

3. entry & co-operation strategy

4. export promotion & FDI strategy

5. pre-conditions for feasibility of FDI


Thank you for your attention!

Any Questions?


ibp 3: swot analysis & conclusions the role of the ca in addressing swot-issues explanation...

Documents

sector audit ibp step

sector development step

sector able

eu market audit ibp

sector encounter

sector competencies

swot analysis conclusions

eu markets