1. Opportunities, Trials and Tribulations of Going Global

2. Product Camp September 17, 2011
Barbara M Fowler, JD, LL.M., CLU, ChFC
BMF Management Consulting LLC
bfowler@chiefoutsiders.com
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3. Critical Factors To Consider
Market Attractiveness
Political and Economic Stability
Employment Law
Consumer Protection Law
Financial Environment
Regulatory Environment
Competitive Situation
Labor Pool
Synergies/Obstacles
Ease of Implementation
Overall
Recommendation
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4. Country SnapshotSelected Data (2011)
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Bonanza
Agnieska
82 million
0.04%
1.2
80.0 years
41.3 years
26.6%
20% of workers
99%
US $1,976 billion
1.61%
9.8% overall
US $ 50,000
31st of 100 countries
28thof 100 -Low
81stof 100 countries
88. million
1.53%
2.49
74 years
23.8 years
54.0%
15% of people over 15
92%
US $637 billion
4.78%
9.8% overall
US$30,000
72ndof 100 countries
68thof 100-Moderateto High
30th of 100 countries
Population
Population Growth (annual)
Fertility (births/woman)
Life expectancy
Median Age
% of Pop. under age 25
% Univ. Grad, Target Cities
Literacy Rate
GDP (US$ basis)
Inflation
Unemployment
Average Income
Corruption Index
Country Risk
Business Friendly Environment
5. Country Indexes
CORRUPTION INDEX This is an index that measures the perceived corruption in the country in terms of bribes asked for and given, special deals made, integrity of business dealings, honesty of government officials and judges. With one being the best country and 100 the worst, Agnieska is at 31 andBonanza is at 72.
COUNTRY RISK The likelihood that the country could change their laws and that this change would adversely affect business (for example, the possibility of nationalization, political upheaval). Agnieska is at 28 andBonanza is at 68.
BUSINESS FRIENDLY ENVIRONMENT -The laws of the country that affect business such as employment protection laws, corporate taxation, tariffs, ease of licensing,Agnieska is at 81 andBonanza is at 30.
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6. Agnieska

A large, stable middle class

7. Income taxes are high 8. Government provides generous disability, unemployment and retirement subsidies 9. Well establishedindustries 10. Economic growth slow inlast 10 years 11. The country is aging and the birth rate is low. 6
12. Bonanza

Used to very small upper class and a large lower class

13. Incomes are now growing rapidly 14. Many people have entered the middle class. 15. Many young, educated professionals starting families and the birth rate is high. 16. Women leave work force when children are born 17. Low government provided benefits7
18. The Middle Class inBonanza is Hungry
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19. Branding
In South America, you can use the same brand as you use in the United States for your product. However, in Europe the brand you have used is already in use and you need to rebrand. How do you think this will impact business?
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20. Locations/ Benefits
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In going to the country to set up operations, is it better to start with first class office space and compensation/benefit programs or is it better to start lower and work our way up as company grows?
21. The Decision Has Been Made
You have been asked to lead a team of five ex-pats to start the operation. The team is told that they will be in-country for approximately 18 to 24 months.
What are your concerns?
What about your family?
Will you accept this opportunity?
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22. Early Issues
Free Coffee
Broken Leg
Maternity Leave
University Classes
Marriage Leave
Company Money
Volunteer Activity
Lunches
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23. Questions:
1. There are two final candidates for the CEO position. Both are good. One is especially well regarded for his people development skills but his English language skills are average at best. The other is highly regarded for her financial acumen and her English is excellent. How important are the language skills?
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24. Questions:
2. You are interviewing a candidate for a Director position. In answer to several questions during the interview, the candidate starts by saying, I talked to my psychologist about this or My psychologist and I discussed this.
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25. Questions
3. You are interviewing to hire the person to run your IT department. The recruiter tells you that most companies prefer people with Type A blood for this position. How do you respond?
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26. Questions
4. You are driving with your child and are stopped by a policeman but do not understand why. Local custom is to give the policeman your license with a 20 dollar bill wrapped around it. You do not know the language but it is apparent the policeman is expecting this.
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27. Decisions
What is the law?
What do your core values indicate you should consider? (worthy of trust, respect for each other, customer focused, winning)
What is the common business practice?
How will this impact your future decisions?
How will this affectyour companyglobally?
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28. Country Facts
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29. Country Facts
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30. 31. Thank you! bfowler@chiefoutsiders.com