building your global empire

8/15/2019 Building Your Global Empire

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58 | April.May 2007 | PINK magazine 2007

WOMEN IN COMPANIES OF ALL SIZES ARE TAKING THEIR BUSINESS

AROUND THE GLOBE AND TO THE BANK.

arah McCann, president and CEO of Apex Per-formanceSystems, vividly remembers the rst tenta-tive toe she dipped into international markets.

The call came in 1986. Come to France, said the organizersof a European business conference. See Paris and, while youreat it, meet international entrepreneurs and try to sell them ondoing business with your sales training and management con-sulting business.

McCann accepted the invitationand decided to tack on a few days for a Parisian vacation too. Were there any butteries?Sure, she recalls. What will they think of Americans? Willour ideas be accepted? And the worst case, will they boo usout of the auditorium?

There were no boos. And things worked out better than shecould have hoped.That conference ledto two clients. One be-came the rms biggest customer for a number of years,adding about a quarter of a million dollars to her bottom line. Another became a favorite client and a lifetime friend. Today, Apex Performance Systems, while based in Madison, Wis.,

and Chicago, has clients from Jordan to New Zealand andmany places in between.McCanns experience is just oneexample of the waywomen

entrepreneurs are tapping into global business. They are ex-panding their markets, working with local representatives inthe countries they target, and seeking innovative partners orinexpensive manufacturers all over the world an increasingly atter world, where companieseverywhere are connected ona more level playing eld as if they were neighbors. ThomasFriedman, author of The World Is Flat: A Brief History of the Twenty-First Century (Farrar, Straus and Giroux, 2005), says,If you want to grow and ourish in a at world, you betterlearn how to change and align yourself with it.

Women are learning how. In a 2006 surveyby theWomensBusiness Enterprise National Council, an advocate for women-ownedbusinesses, 25 percent of thegroups members said they currently conduct business outside the United States.

A lot of business owners are getting into the internationalmarket, says Marilyn Johnson,vice president of market devel-opment forIBM. Women are looking for ways to capture new markets and grow without adding brick and mortar.

R E A D Y T O G O O R N O T ?

But how to get started? Where do business owners go to get international clients, or partners, if not during a weekend in Paris?

While business conferences are one way to begin, there arelots of other considerations to make rst, say experts like LaurelDelaney, the self-described queen of global who owns andruns a rm designed to help companies develop business in-ternationally. Delaneys company, Global TradeSource Ltd.(globetrade.com),serves as a roadmap to doing business with

the world, she says. Although selling software in South Africa, services in Sing-apore or technology in Tajikistan may sound exotic, compa-nies considering a leap abroad should ask tough questionsabout the nature of their business to determine whether ornot its even ready to go overseas, according to Delaney andothers. For example:

Is the business already successful?Overseas markets areno place for a struggling company. I ask key questions todetermine if the business is in the ready stage, Delaney says.You have to have a proven business model here in the UnitedStates. You have to have taken the transaction all the way tothe end and kept up locally.

BY ELAINE S . POVICHPHOTOGRAPHY BY CHRISTOPH WILHELM


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SHES GOT THE

WHOLE WORLD


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60 | April.May 2007 | Visit pinkmagazine.com to subscribe

ALTHOUGHSELLING SOFTWAREIN SOUTH AFRICA,services in Singapore or technology in Tajikistan may soundexotic, companies considering a leap abroad should ask tough

questions about the nature of their business.

Does the business translate to foreign mar-kets?Growing companiesshould never assumethat

the way business is done here is the way business isdone there, says Rich Sloan, co-founder of StartupNa-

tion (startupnation.com), an onlineresourcethathelps entre-preneurs. Furthermore, a product or service in demand in

America wont necessarily be in demand or be seen asaffordable in just any foreign market. For example, Amer-ican-made electronics shipped off the shelf may be useless to abuyer in Austria if they dont plug into Austrian outlets.

Can manufacturing keep up with the increased demand?Orders may come in more quickly than expected when a com-panys customer base suddenlyswells. Can local supplykeep up?

Will current banking and nancial systems handle orders

from overseas? Wire transfers and international credit transac-tions canbe tricky, but the larger U.S. banks handle thousandsof such exchanges each day helping companiesavoid most of the headache.

Can the present transportation system ship door-to-dooroverseas?Late orders can squelch new business before it starts,and the average small to mid-size companycant handle inter-national logisticson its own. Fortunately a wide range of third-party logistics providers, including UPS, FedEx, DHL anddozens of others, can manage the entire supply chain, includ-ing customs and foreign delivery.

Whats the best market to enter rst? Experts suggest pick-ing a country with a familiar language where American prod-ucts andservicesalready have a successful track record.Googling websites in that country, especially sites that sell the same cat-egory of products, can give a quick, initial idea of how mature amarket is and whether or not there is demand worth investi-gating further.

S T E P P I N G A B R O A D

For many companies deemed ready to venture abroad, going global can begin by redis- covering the world in World Wide Web. Even businesses that arent Internet-driven discover they are

already inltrating overseas markets merely by being on the Web. What were nding is through technology andthe invest-ment in technology, you are a global business if youre usingthe Internet, Johnson says. Sloan advises that companies con-ducting most of their business online should think internation-ally dedicating versionsof their websiteto each target marketslanguage and tastes in order to boost sales overseas.

Experts also suggest that less experienced companies ndsomeone in a new foreign market to serve as a local presence,such as an account representative or salesperson who knowsthe territory, or a foreign company acting in partnership.

If Im interested in distributing a product in Germany andIm based inTopeka, I will be very well-served by someone inGermany whounderstandsthelay of thelandand has resources

to help me penetrate, Sloan says.Sheryl Prince andAllison Doorbar, senior planner andman-aging partner, respectively, at JWT Education, provide marketresearch, strategic marketing and services to clients in the edu-cation sector. They also advise educational clients from theU.S. to theU.K., Hong Kong,Singapore andAustralia.Door-bar started a company in Australia, which later merged with JWT. From the companys base down under, international ex-pansion was a no-brainer because there are just 38 universitiesin Australia, while there are 3,000 in the U.S. and 168 in theU.K. Doorbar says the business took off in theU.K. becauseit doesnt exist there, but the British universities still wantedto deal with a local representative.

In our experience, its hard to service a business from anoverseas location, she says. Adds Prince: We are required tohave a presence, even for billing. The solution?The compa-ny asked a contractor in Australia, a company based in theU.K., to be its local contact in Britain.

Another way to test the market waters overseas is through

advertising. International publications such as those thatappear on international airlines or in high-class hotels oftenprovide an avenue for nding for-eign clients, especially for(continued on page63)


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K e e p i n g

t h e M u l t i

i n M ul t i n a t i o n a l

In an increasingly global mar-ketplace, even large corporations with

proven success overseas must search for new waysof doing business to keep a competitive edge. Constantly

refining its website to be internationally friendly beginningwith language options for customers in more than 100 countries is

just one of the things UPS does to keep its global business humming.UPS and global leaders Avon and Procter & Gamble share these other best

practices:D O I N G B U S I N E S S I N C O N TE X T. We dont want to come in and just stake our American flag down,

says UPS spokeswoman Karen Cole. Instead, the company works inside a specific markets business and consumerculture to make sure it succeeds within the local context, while at the same time adhering to efficiencies and expertise

gained in the U.S. It was a lesson learned the hard way. When the company moved into Europe in the 1970s, for example, itcame in with an attitude that what works well in the U.S. will work well here, according to Cole. But that didnt pan out, and

UPS had to adapt to the different countries cultures. Since then, it has used its more flexible philosophy to expand worldwide.L I S T E N I N G T O C O N S U M ER S . Customizing business for a foreign market begins with knowing the consumer firsthand.

Procter & Gamble learned early on that whats good for American shoppers isnt always right for shoppers overseas. Spokesman ScottStewart notes, for example, that while Americans like big batches of everything, women in other countries who walk to market cantlug home 1.5-gallon jugs of Tide detergent. Instead, P&G packages the product in smaller sachets that are easier to transport andless expensive.

When the P&G board gets together for meetings in various countries, the members often venture out into the consumers world totake a look at what products are being used and how. Some even go into womens homes and ask what products they use.

For example, interviewing women one-on-one in Venezuela told P&G that its Gain laundry detergent was more appealing tothat market segment because of the products nicer fragrance.

PA RT N E R I N G W I T H L O C A L S . Jennifer Vargas, a spokeswoman for Avon, says that when the cosmetics company sets upin a country, it recruits local people on the ground to oversee a particular geographic area. Those local managers then recruit localsellers. The result? Immediate knowledge of market-specific tastesand preferences, as well as sales methods that work well amongthe regions people.

Vargas recently returned from a trip to Warsaw, Poland, where she observed how the companys marketing efforts are suc-

ceeding there. What she foundwas that the direct-salesaspect of Avons business is unique and powerful in Eastern Europe,particularly because it encourages women to get training, have an income and help support their families.

When UPS went toChina, itboughtout a local company and converted it tothe Brown system instead of building a newbusiness from the ground up, which is like placing a square peg in a round hole without adequate market knowledge.

As a result, theUPS venture in China successfully blends local customs with American business practices, Cole says.B E I N G A G O O D C O R P O R AT E C I T I Z E N . Avons support of womens activities worldwide par-ticularlybreastcanceranddomesticviolence initiatives enhances thecompanysgood reputation with buy-

ers, Vargas says. Similarly, P&G works to improve the lives of children in need through its programLive, Learn and Thrive, which it says has helped 40 million children around the world. And

for the past three years, UPS employees in more than 50 countries have pitched inwith local projects as part of the companys Global Volunteer Week.

By making a difference in the everyday lives of people in all cor-ners of the world, even giant corporations can achieve a

personal touch earning consumer loyal-ty for years to come.


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high-end products. Robin Stuart, CEO of Voyage Part-ners, based in California, sells suites on boutique residen-tial cruise ships. She says there is enormous interest inher business among overseas clients, particularly inEurope, due to the favorable exchange rate betweenthe euro and the dollar at present. And, she says,the company has had an enormous number of Asian buyers.

How dothese far-ung customersknow that theluxury condo-like suites areavailable on ocean lin-ers? Advertising. Stuart says her companyadver-tises in publications likeWorld of Cruising andin coffee-table books present in Asian hotels.

Women business owners dont have to go it

alone in global markets, either, says IBMs John-son, who specializes in showing owners how toset up a partnership with her global company asa way to crack international sales. We want com-panies owned, led and inuenced by women toknow that, in a marketplace with global opportuni-ties, they [can] partner with a strong IT provider whocanhelp them grow their business, Johnson says. Sheadds that such a partnership also allows IBM to expandinto small business markets that may not know we are

talking to them: women-owned, Asian-owned, black-owned, Hispanic-owned or Native American-owned.

In some cases, American companies of all sizes cannd a helpful partner in the foreign countrys own gov-

ernment, since many ofcials are actively recruiting American business. For example, Mona Diamond,

an honorary consul general for Turkey, is workingto bring American businesswomen to Turkey fora conference on expanding American commerce

there. If someone has an idea that they want todo business in Turkey, we will reach out to anestablished company already in Turkey, shesays. If not, well help them any way we can.

Contacting an American consulate insidea country of interest is one way to nd localgovernment ofcials and businesspeople in-terestedin recruitingAmericancompanies. Butsometimes nothing beats the trade shows.Sloan, of StartupNation, got his own inter-national start promoting a product calledMore Balls than Most, a juggling kit forstress relief that eventuallybecame immense-ly successful. Sloan and his brother, Jeff,attended gift and toy shows, particularly oneheld at the Javits Center in New York City, tomarket theproduct both domestically and in-ternationally.

There were huge contingents from Italy,

France, the U.K. and Asia that had their ownsections at the trade show, hesays. It was a very convenient way to do business internationally.

And all you had to do was go to New York.So it goes in todays at world.

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wantmore?Check out these websitesfor more on going global:

Export.gov. A one-stop shop for export assistance pro-

grams and services in collaboration with agencies across thefederal government.

SBA Office of International Trade (sba.gov/oit). Help fromthe U.S. Small Business Administration through its 16 exportassistance centers.

U.S. Chamber of Commerce (uschamber.com/international).Source of trade statistics, country and market reports, bestmarket reports, trade contacts and more.

Export-Import Bank of the U.S. (exim.gov). Assistance for

companies of all sizes in financing the export of goods andservices to international markets.

State programs. Many states also have their own programsdesigned to help local companies expand overseas. Visit yourstates home page to see whats available.

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