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Jim Foley - Bradley UniversitySuresh Sethuraghavan - CGN & Associates
NASBITE International Annual Conference, April 2010, Austin, TX
} Background ? An Historical Perspective? Current Models
} Emerging Markets? Relevance Today? Differing Needs
} Bradley & CGN Research Partnership? Approach? Outcome – The EMARQ® Model
} Discussion? Next Steps; Your Involvement !
EMARQ ©2010 BU / CGN2
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} CORE – Company Organizational Readiness to Export? Developed in the late 1980’s by Tamir Cavusgil at
Bradley University? Later refined at Michigan State University? Remains available on Global Edge and the CITD site
– El Camino College globaledge.msu.edu elcamino.citd.org/trade_info/index.cfm
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} How long has your company been exporting?} How many employees?} Gross sales?} International sales growth rate?} Do you have your own international sales distribution
organization?} What is the scope of your marketing?} Timeframe / attitude for corporate payback?} Current level of international activities?} Access to capital?} Knowledge of foreign cultures?} Prior knowledge of international business?} Management and foreign language capability?
EMARQ ©2010 BU / CGN5
} Attitude toward international market opportunities – opportunistic, seasonal fluctuations, enhancement of competiveness, reduce risk, etc.
} Product issues: extend life-cycle, exploit unique technology, adaptations
} Management commitment including development of plan, proactive market selection, etc.
} Country specific strengths: market acceptance, tariffs, logistics, IPR, competitive position
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} This indexing study is conducted by MSU-CIBER to help companies compare the Emerging Markets with each other on several dimensions. ? Eight dimensions are chosen to represent the market potential of a country over a scale of 1 to 100. ? Each dimension is measured using various indicators, and are weighted in determining their contribution
to the Overall Market Potential Index. Example:
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} Today companies accept (generally) that they must go global
} Resources in support of global trade have improved tremendously
} Global Trade facilitation has improved (technology, logistics, communication)
} Landscape is also more competitive
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} BRIC(K) and VISTA countries continue to represent significant export opportunities
} In particular U.S. companies are in a good position with technology emerging markets are seeking:? Manufacturing? Energy? Medical / bio sciences? Services
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} Risk is higher? Reliable & up-to-date Information? IPR enforcement? Political and economic risk
} Market-related challenges greater? Distribution channels vary in accessibility and
strength? Cultural differences more pronounced? Price pressure? Local talent & competency levels? Local competitive environment
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} To explore how these higher risks and challenges impact a firm’s ability to enter emerging market, and sustain success
} To identify issues for clients (and students) so we can make them more effective working in emerging markets
} Identify the factors that determine a firm’s readiness to go to a specific emerging market
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} Goals: ? To capture the key issues & challenges for a firm as it
enters an emerging market? To help a firm identify specific weaknesses (and
strengths) related to that entry? To provide a benchmark against other firms
} EMARQ is specific to a firm and to a selected market
} Helps to show the interdependencies of the various elements
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EMARQ
Core Competencies•Strategic Commitment•Financial•Human Capital•Supporting Activities
Internal Strengths•R & D + IP Development•Technology•Market Intelligence•Marketing & Brand Equity
Execution Elements•Entry Mode & Channel Management•Scale of Operations•Supply Chain & Logistics•Knowledge of Doing Business
} All of the 12 elements have been broken down into sub-elements
} Online survey has been developed against which a firm rates their position on each sub-element on a scale:
Strongly disagree / Moderately disagree / Neutral / Moderately Agree / Strongly Agree
} We then use a back-end model to convert this to a score
} Certain items can also be flagged as a critical go/no-go issue to be address, which is separate from the final EMARQ score
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} Do you see this as relevant to your clients and students?
} How could you use this model?} We need data from both highly qualified firms
and those less so against which we can develop benchmarks
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