georgia state university emba global understanding - global reach benefits, pitfalls &...

Georgia State UniversityEMBA

GLOBAL UNDERSTANDING-

GLOBAL REACH

BENEFITS, PITFALLS & OPPORTUNITIESPresented by

Jerry M. StriplinApril 2006

www. [email protected]

1 404 275 9108

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Topics for discussion

• My background • Global Business Group• Some of my recent work• Lessons learned• What makes your future different?

Before we begin….•? What would you like to discuss?

Property of J.M. StriplinReuse with permission only

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Our Business


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Business Growth

Through Applied

Business Intelligence and Leadership

Creating sustainable business growth through... Applied business intelligence, Operational and management leadership; Supported by an…

Action-based strategy and Improved business processes;

Creating improved profitability, competitiveness and the acceleration of market share capture.

Our Business


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Recent Work


6Property of J.M. StriplinReuse with permission only

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CHINA A full Partnership and Alliance analysis for a Fortune 500

software firm.Today, for US corporations considering business in China, the questions are no longer "why" and "when." Today, the only question remaining is "how."

CONSIDER THESE ECONOMIC REALITIES: Annual GDP growth of nearly 10% for over twenty years A potential consumer market of 1.3 billion Full membership in the World Trade Organization (WTO)

Projected to be world's second largest economy by 2030

CONSIDER THESE ECONOMIC REALITIES: Annual GDP growth of nearly 10% for over twenty years A potential consumer market of 1.3 billion Full membership in the World Trade Organization (WTO)

Projected to be world's second largest economy by 2030

However, despite these accolades and the positive market potential they describe, the Chinese marketplace is exceedingly complex, with an intricate array of cultural, political and social complexities. Being successful in this complicated business environment requires market intelligence of the highest value from a trusted experienced partner.


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CHINA THE SCOPE OF THE OPPORTUNITY

The economy has been growing dramatically for 20 years: GDP expanded at an average 9.7% annually from 1997 to 2000Retail sales of consumer goods have climbed steadily to over $405 billion

in 2003. China now has the largest mobile phone market in the world, and its PC

market is about to overtake that of Japan. China attracted $400 billion in foreign direct investment in the past

decade. The largest province, Sichuan, contains 110 million people, about as

many as Japan.The provinces of Guangdong, Hubei, Anhui, Hunan, Hebei, Jaingsu,

Shandong Henan each contain 60 million people (roughly the same and population as Mexico, France and Egypt.)

It is not one market. While the “common language” of China is mandarin, there are 8 main dialects, which in turn break down into many more dialects and cultural differences. There are also a further 55 minorities, each speaking their own language.


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CHINA REASONS TO BE CAUTIOUS

China is still in transition from a centrally-planned to a market-driven economy. The banking structure is fragile; the rule of law is weak; the distribution infrastructure is underdeveloped; and corruption continues to be a widespread problem.

An estimated 900 million Chinese live in the countryside, mired in debt and hampered by inefficient farming practices.

The average disposable income of urban residents in 2000 was a mere US$708 per annum (for rural residents it was US$206 per annum).

The emerging affluent middle class is mainly located in a relatively small number of major cities on the east coast.

Social unrest is growing as the gap between the rich and the poor continues to widen dramatically.

Personal contacts are very important in China, and knowing the 'right' person can be a distinct competitive advantage.

The currency is not convertible, and it is difficult to repatriate profits.

An estimated 900 million Chinese live in the countryside, mired in debt and hampered by inefficient farming practices.

The average disposable income of urban residents in 2000 was a mere US$708 per annum (for rural residents it was US$206 per annum).

The emerging affluent middle class is mainly located in a relatively small number of major cities on the east coast.

Social unrest is growing as the gap between the rich and the poor continues to widen dramatically.

Personal contacts are very important in China, and knowing the 'right' person can be a distinct competitive advantage.

The currency is not convertible, and it is difficult to repatriate profits.


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Romania US corporation re-evaluating India outsourcing, the questions were no longer "why" and "when." The only question remaining is “where and how."

ECONOMIC AND CULTURAL REALITIES:

NEAR SHORE AND IN-CULTUREVS

OFF SHORE AND OUT-OF--CULTURE

ECONOMIC AND CULTURAL REALITIES:

NEAR SHORE AND IN-CULTUREVS

OFF SHORE AND OUT-OF--CULTURE

Despite the accolades and the positive marketing of India and China and the potential they describe, their outsourcing marketplace is losing its competitive edge due to:

An intricate array of cultural, political and social complexities.


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Romania FDI – Foreign Direct Investment

Long-term Investment

Phase I - Romanian Focused - Development for “Core and Mission Critical”

applications s

Phase II- Serving C&EE

Phase III – Global Development

Employment of up to 200 employees - Romanians

Phase I - 50 employees – Immediately

Training in the USA

Significant growth impact on Adjacent Industries

Green-Field Business opportunity

Start as soon as possible

Lease-Build, Hire or Acquisition

Software Development, Delivery, Sales and Professional Services

Sustained Phased entrance


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Romanian Selection Criteria Location

Cost of Business, space availability Phase I thru III.

Access to Expertise:

Technical and management resources

Universities … Pipeline of qualified graduates and Internships

Adjacent Technical Industries

Local Government involvement and pro-active

Taxes

Incentives

Support and ease in establishing a business … Start-up and Ongoing

Infrastructure

Telecom

Transportation & physical access

Cost-of-Employment

Salary

Benefits


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Romania


14Property of J.M. StriplinReuse with permission only

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Indonesia’sCompetitiveness Program

Industry Value Chain – IVC…Vertical and horizontal supply chains components, external drivers such as government / regulatory and internal activities, capabilities and enablers

Industry Value Chain – IVC…Vertical and horizontal supply chains components, external drivers such as government / regulatory and internal activities, capabilities and enablers

Alliance Clusters – All business/ industry / social elements that have a direct impact or contribution to the Value-Chain

Alliance Clusters – All business/ industry / social elements that have a direct impact or contribution to the Value-Chain

Initially identified 12 Industries that represent over US$15.2 billion or 21% of total Indonesian exports.

Initially identified 12 Industries that represent over US$15.2 billion or 21% of total Indonesian exports.


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Indonesian performance in the world market, 1999-2004

Electric Machinery , $6,572,508,497

Apparel Articles And Accessories, Not Knit Etc.,

$2,814,054,297

Natural Rubber, $2,181,251,502

Plastics And Articles , $1,323,264,343

Footwear, $1,320,478,684

Vehicles, Except Railway Or Tramway, And Parts Etc,

$935,136,938

Seats Of Cane, Osier, Bamboo , $205,668,889

Furniture Of Cane, Bamboo , $132,799,223

Fish Fillets, Frozen, $91,638,631

Seaweeds & Other Algae Frsh Or Dried , $25,296,399

Fish Meat Exc Fish Steaks & Fillets, Frozen, $13,644,826

Fish, Frozen (No Fish Fillets Or Other Fish Meat),

$12,990,314

Cuttle Fish And Squid, Frozen, $10,387,829

-11.00%

-6.00%

-1.00%

4.00%

9.00%

14.00%

-7.00% -5.00% -3.00% -1.00% 1.00% 3.00% 5.00% 7.00% 9.00%

Growth rate of relative market size

Gro

wth

rat

e o

f In

do

nes

ia's

mar

ket

shar

e

Apparel Articles And Accessories, Knit Or Crochet, $1,475,628,312 (-37.64%, 50.17%)

Outlier

Indonesia


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Lessons learned

• Know what you don’t know …Seek out, validate and use trusted resources.

• Culture is always an issue and an advantage.• Leadership will take the path of least

resistance.• Global expansion is a personal business.

The needs of the individual over the many

• The test… Can you reconnectAnd be welcomed


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ATTRIBUTES ATTRIBUTESExpansion or entrance into THE GLOBAL market is one of the most challenging endeavors a company can undertake.It requires: On the ground experience, Ongoing market research, brand awareness, tracking, customer satisfaction and

competitive analysis, An understanding of specific HR requirements, such as the ability to terminate for performance, long term social and health system support, and staff retention, A unique pricing strategy, Appropriate financing, terms and payment instruments, The availability of qualified personnel, technology, laws and support systems, An understanding of the market’s attitude toward service and quality, Requirements for “Time-to-Market” Implementing different security requirements for systems, software, physical and technical, Unique sales plans and approach strategies, Internationalization of the products and services, Specific contracts with “different” country based legal and financial protection, Personal contacts, Partnering and alliance expertise, An understanding of the business and political environment, A knowledge of the appropriate laws and regulations, Unique support systems for operations, sales, proposal (local language) creation,

training and delivery, Financial investment (physical presence, training, assessment of market and personnel, etc), A knowledge of the resources available to US companies, Staying power and Most importantly, an “In-Country Experience & Presence”.


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THE MISSION of every profitable business…Capture market share, obtain significant revenues and create sustainable profits in the shortest time possible. …IT IS A JOURNEYIt is possible with (1) a clear mission, (2) “current & accurate” business/market intelligence (3) a practical tactical & strategic plan and (4) leadership.


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UNIQUE VALUE PROPOSITION

IDEAL CLIENT

RESOURCES ANDCONTACTS

CURRENTSITUATIONANALYSIS

ATTRIBUTES

CHECK POINT

CHECK POINT

CHECK POINT

CHECK POINT

CHECK POINT

CHECK POINT

CHECK POINT

BARRIERREMOVAL

COUNTY LIFE-CYCLEMODEL

MARKETAPPROACH

REGIONCOUNTRYINDUSTRY

APPROACHCURRENT SITUATIONANALYSIS

BARRIERREMOVAL

TARGEYINDUSTRYSTRUCTURE &MATURITY5


SALESREADINESS

ASSESSMENT

PRODUCT & SVR.READINESS

ASSESSMENT

KEY MARKETID & FOCUS

IN-COUNTRYCONTACTS

TARGETCOMPANY

TARGETINDIVIDUALS

CYCLES-OF-LEARNINGAPPLIED

AREAS OF FOCUS

Exe. TeamSales Mgmt

Product MgmtDeliveryProgram MgmtFinanceLegalSupportMar/ComR and D Country ReqmtsEnhancements

HRSkillsRetention

OSSDesign, Billing, Service,Reporting

METHOD1-on-1 InterviewsDocumentsResearch

DELIVERABLESRiskIssues

Burning platforms

Mission critical issues

Base programplan

AREAS OF FOCUS

Experience &Expertise

Needs AssessmentMarket KnowledgeCompetitionPost win-loss reviews“Hearts and Minds”

METHOD1-on-1 Interview In person or telephone

Current Situation Analysis

DELIVERABLESIssuesReadiness Plan to improve

AREAS OF FOCUS

Market IntelligenceRegional AdaptabilityInternationalizationCountry CertificationCompetition AnalysisDocumentation, local language

Country specificcontractual rqmts

Source Code issuesSecurityLogisticsLocal languageField modificationsLocal in-country

supportabilityEnhancementsTraining

METHOD1-on1 interviewsResearch

DELIVERABLESRisk AssessmentIssues Identified

AREAS OF FOCUS

Market Intelligence viaPersonal ContactsChambers of Comm.Etc.Existing PresenceAttributes

Ability to payCompetitionPenetrationLaws and regulationsFunding to buyPeople available to

support and usePartshps and AllianceTechnical, BusinessPolitical, Credibility

Mar/ComAdvertisingSocial impactSupport and Del. PlanLanguageTraining

AREAS OF FOCUS

Political OrgFCSEmbassyChamberso Local Partners

BackgroundFinancialCapabilitiesResources

METHODResearch and

ContactsPrioritize Countries

A,B,C

DELIVERABLESID Companies

to meetArrange meetingsAssist in planning

the PresentationDevelop an “End-Game

Strategy”

METHODResearch and

ContactsPriorities Countries

A,B,C

DELIVERABLESCountry Prioritization

A – Fast TrackB – Short TermC – Long Term

Country Specific Contacts

AREAS OF FOCUS

Market IntelContact Sources

METHODIntel gathered from

previous elementsResearchFormal Market

research

DELIVERABLESCompany PrioritizationA Fast PathB Short termC Long term

Country Specificcontacts

AREAS OF FOCUS

Identify specificIndividuals within “A’ Companies

METHODIntel Gained Form

Previous StepsUse contactsIn-country Agencies,Personal Contacts

DELIVERABLESID specific individualsAssist to CreatePresentations

Arrange meetingsCreate “ End-Game”

Strategy”Join team as req’d

AREAS OF FOCUS

Repeat for “B” and “C” countries

ENTRANCE PLANENTRANCE PLANConfidential.

May not be used withoutwritten permission

from J. Striplin

ENTRANCE PLAN

CORECOMPETENCIESOF BUSINESS

CURRENTCAPABILITIES

ANALYSISEMPLOYEES COMPETITION PARTNERSCUSTOMERS BUYERS SUPPLIERS

“EYE-TO-THE-WORLD”IDEA-TO-MARKET

CONTINUUMBUSINESSSUCCESS

MISSION VALUE STATEMENTPRODUCT & SERVICESBRAND & REPUTATIONMARKET COMPETIONCUSTOMERSEMPLOYEE & WORK PLACEOTHER STAKE-HOLDERSSPECIAL ISSUES

IDEACONCEPTDESIGNMARKETINGSOLUTIONIMPLEMENATIONOPERATIONSVALIDATIONENHANCEMENTSCYCLES-OF-LEARNING

Critical Success Factors

STRUCTURESTRATEGYTACTICALMEASUREMENTSTRAININGIMPROVEMENTS

ORG OPERATIONAL SUPPORT SYSTEMS

TELECOM IT

WEB SITE

“E” CRM BSS SECURITY

SALES DELIVERY MAR/COM

FINANCE MANAGEMENT

BUSINESS AND PROCESS IMPROVEMENTS

INDUSTRY LEADERSHIP

Property of The Striplin GroupMay not be used without written permission

STEP # 2THE COUNTRY LIFE-CYCLE MODEL

STABLE

Infrastructure

Legal Systems

Medical

Security

Financial

Education

Wages

Customs

Government

Privatization

Environment

Insurance

Social Development

Fund Management

Housing & Construction

Tax

Trade

EVOLVING

DEVELOPING

EVOLVING

GROWTHKEY SECTORS.. The “Primary Parent Industry”

that will use or support the proposedproducts and services and howthey fit within the

“Value-Chain”

For Example: Automotive Mfg and Sales.The goal is to determine if the atmosphere is favorable and if the country is positioned to accommodate and embrace the manufacturing and selling of automobiles.

Perhaps the most attractive country would have reached a STABLE age of maturity.

LEGALCONTRACTUALSTRUCTURE

COUNTRYREADINESS

IS THE BUSINESSREADY & CAPABLE

BARRIERREMOVAL

ORG.ALIGNMT

ACTIVATESTRATEGIC &TACTICALPLAN

PARTNERSHIPALLIANCES ACTIVATE

CYCLES-of-LEARNING

RoIVALIDATION

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CONSULTATIVE BASED SOLUTIONS

UNIQUE SALES PROPOSITION (USP)

CONSULTATIVE BASED SOLUTIONS

UNIQUE SALES PROPOSITION (USP)

KEY “CUSTOMER AWARENESS POINTS”:THIS IS A KNOWLEDGE BUSINESS.COMPETITIVE DIFFERENTIATION IS INFLUNCED BY THE LEVEL OF CLIENT KNOWLEDGE &

EXPERIENCE.ESTABLISHED CLIENTS HAVE LITTLE OF NO “TRUE” KNOWLEGED OF THE COMPETITION – SO

A SWITCH TO THE COMPETITION IS DUE TO STRONG DISSATISFACTION WITH SERVICE OR PERFORMANCE.

CUSTOMER CENTRIC

USPLONG TERM &SUCCESSFUL BUSINESS

ISO STANDARDS

COMPANY OWNEDFACILITIES, NETWORKS,

CUSTOMER CENTERTRAINING AND SOFTWARE

OUTSOURCING ISA CORE BUSINESS

NO UNIONS

GLOBAL REACH

IN-COUNTRY PRESENCE

PEOPLE STAYLOW TURNOVER

EMBEDDED EXPERTISES

SOLUTIONS BASED ALTERNATIVES

CONSULTAIVE SELLING

OPEN SYSTEMS-IDEAS-ACTIONS

Confidential. May not be used without

written permission from J. Striplin

MAR/COM5


SALESREADINESS

ASSESSMENT

PRODUCT & SVR.READINESS

ASSESSMENT

KEY MARKETID & FOCUS

IN-COUNTRYCONTACTS

TARGETCOMPANY

TARGETINDIVIDUALS

CYCLES-OF-LEARNING

APPLIED

AREAS OF FOCUS

Exe. TeamSales Mgmt

Product MgmtDeliveryProgram MgmtFinanceLegalSupportMar/ComR and D

Country ReqmtsEnhancements

HRSkillsRetention

OSSDesign, Billing, Service,Reporting

METHOD1-on-1 InterviewsDocumentsResearch

DELIVERABLESRiskIssues

Burning platforms

Mission critical issues

Base programplan

AREAS OF FOCUS

Experience &Expertise

Needs AssessmentMarket KnowledgeCompetitionPost win-loss reviews“Hearts and Minds”

METHOD1-on-1 Interview

In person or telephone

Current Situation Analysis

DELIVERABLESIssuesReadiness Plan to improve

AREAS OF FOCUS

Market IntelligenceRegional AdaptabilityInternationalizationCountry CertificationCompetition AnalysisDocumentation,

local languageCountry specific

contractual rqmtsSource Code issuesSecurityLogisticsLocal languageField modificationsLocal in-country

supportabilityEnhancementsTraining

METHOD1-on1 interviewsResearch

DELIVERABLESRisk AssessmentIssues Identified

AREAS OF FOCUS

Market Intelligence viaPersonal ContactsChambers of Comm.Etc.Existing PresenceAttributes

Ability to payCompetitionPenetrationLaws and regulationsFunding to buyPeople available to

support and usePartshps and AllianceTechnical, BusinessPolitical, Credibility

Mar/ComAdvertisingSocial impactSupport and Del. PlanLanguageTraining

AREAS OF FOCUS

Political OrgFCSEmbassyChamberso Local Partners

BackgroundFinancialCapabilitiesResources

METHODResearch and

ContactsPrioritize Countries

A,B,C

DELIVERABLESID Companies

to meetArrange meetingsAssist in planning

the PresentationDevelop an “End-Game

Strategy”

METHODResearch and

ContactsPriorities Countries

A,B,C

DELIVERABLESCountry Prioritization

A – Fast TrackB – Short TermC – Long Term

Country Specific Contacts

AREAS OF FOCUS

Market IntelContact Sources

METHODIntel gathered from

previous elementsResearchFormal Market

research

DELIVERABLESCompany Prioritization

A Fast PathB Short termC Long term

Country Specificcontacts

AREAS OF FOCUS

Identify specificIndividuals within “A’ Companies

METHODIntel Gained Form

Previous StepsUse contactsIn-country Agencies,Personal Contacts

DELIVERABLESID specific individualsAssist to Create

PresentationsArrange meetingsCreate “ End-Game”

Strategy”Join team as req’d

AREAS OF FOCUS

Repeat for “B” and “C” countries

ENTRANCE PLAN…FULL PROGRAMENTRANCE PLAN…FULL PROGRAMConfidential.

May not be used withoutwritten permission

from J. Striplin

SALESREADINESS

ROADMAP

© Copyright 2003Property of J. Striplin

Use with permission only

MARKET SHARE CAPTURE

REVENUES AND

SUSTAINED PROFIT


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Your Future… Applied Business Intelligence

Business Intelligence is the result of the assessment, transformation, blending and interpretation of:

Firsthand experience, personal knowledge, market data- environment, supplier changes, client requirements, gaps, customer requirements, investors, current - future - forthcoming trends employee expectations, and organizational readiness.

Applied Business Intelligence is the application of “Over-the-Horizon” Business Intelligence

Allowing a business to create and apply “Cycles-of-Learning” that determine-direct the health, growth, transition and “Future State” of the business.…. Leadership


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Thank you for this honor.Your questions?


georgia state university emba global understanding - global reach benefits, pitfalls &...

Documents

business property of

striplin reuse

market intelligence

cautious china

china reasons

applied business intelligence

sustainable business

potential consumer market