rationalization of your international business and best practices for growth and expansion
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Rationalization of Your International Business and Best Practices for Growth and Expansion. Introductions and Agenda. What is rationalization? What makes sense for my company? Should I consider a Joint Venture? Your options and Modeling - PowerPoint PPT PresentationTRANSCRIPT
Rationalization of Your International Business and Best Practices for
Growth and Expansion
Introductions and Agenda
• What is rationalization? • What makes sense for my company? • Should I consider a Joint Venture?• Your options and Modeling • What are the best practices for growth
and expansion? • What phase should my business be in
in order to expand?• How do I establish, develop, and retain
key role personnel overseas? • How can I avoid costly mistakes?
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What is rationalization?
• Data driven• Based on strategy• What is a win?• Steps you night have to take within
your organization:– Business structure– Management structure
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What makes sense for my company?
• How do I know what markets are best for my company?
• How do I get started?• How do I find reliable contacts in a foreign
country?• What is the best structure for my business?• What are the tax implications to the
company and employees? • How do I take full advantage of exchange
rates?
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Should I consider a Joint Venture?
• Consider? Yes.• Assume is only option? No. • Clients usually think JV is the way in:– May get contacted by someone– You think it is how you need to enter a
new market.
• Analyze how much it takes to do it on your own and compare to JV and other options => Modeling.
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Your options and Modeling
• The spectrum:
• Modeling: understanding the economy, the clients, and your costs in other locations.
• Doing NOTHING is an option.6
Sourcing
Distribution Agreement Acquisition
Joint Venture Green Field
What are the best practices for growth and expansion?• RATIONALIZATION: data driven
decisions.• Avoid common pitfalls.• What are the most common
mistakes/pitfalls?– Lack of aligned economic interest.– Overcommitting– Short term focus with high return expectations. – Overly concerned with domestic market.– Trust everyone, but make sure you are always cutting the
cards.– You need to be from Missouri. The “Show me State”
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What phase should my business be in in order to expand?
• Stable• Management:– Sufficient– Talent– Depth
• Is it dangerous to grow too quickly?
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How do I establish, develop, and retain key role personnel overseas?
• You have to use psychological profiling for identifying and accessing talent.
• Incentives: financial and non-financial.
• Culture: awards and organizational charts.
• Training: programs and sponsorship.• Make sure they feel part of the team.
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How can I avoid costly mistakes?
• Cross functional approach: not driven by sales alone.
• Understand client values in different markets => Structure business accordingly.
• Get the right people to help you:– independent; – fiduciary duty to you only
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How can I avoid costly mistakes?
Making mistakes is ok if you learn from them…
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How can I avoid costly mistakes?
…Leaning from others’ mistakes generates
income.
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Thank YouXie XieGracias
ObrigadoDanke Schön
MerciGrazie
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Gabriela RodilAssociate – Plante & Moran Global
P: 312-602-3508
Lou LongoPartner – Plante & Moran Global Services
[email protected]: 312-602-3676
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