8/19/2019 2 - Preparing for Export

1/28

PREPARING FORPREPARING FOREXPORTEXPORT

 _- Understanding the 5 levels of _- Understanding the 5 levels ofInternational BusinessInternational Business

- The Organization & the Export Process- The Organization & the Export Process

8/19/2019 2 - Preparing for Export

2/28

5 Levels of International Business5 Levels of International Business

Accidental Exporting

8/19/2019 2 - Preparing for Export

3/28

5 Levels of International Business5 Levels of International Business

Accidental Exporting

Selling product domestically to an internationalexporter

8/19/2019 2 - Preparing for Export

4/28

5 Levels of International Business5 Levels of International Business

Active Exporting

8/19/2019 2 - Preparing for Export

5/28

5 Levels of International Business5 Levels of International Business

Active Exporting

Main activity is to buy product for export market anddistribution

Good knowledge and relationship with customs

brokers and host government regulations

8/19/2019 2 - Preparing for Export

6/28

5 Levels of International Business5 Levels of International Business

International Marketing

8/19/2019 2 - Preparing for Export

7/28

5 Levels of International Business5 Levels of International Business

International Marketing

Committing money and people to an internationalmarket. Promoting and selling activities in a foreignland

Either with company personnel or through licensing

8/19/2019 2 - Preparing for Export

8/28

5 Levels of International Business5 Levels of International Business

International Production & Distribution in

Foreign Market

8/19/2019 2 - Preparing for Export

9/28

5 Levels of International Business5 Levels of International Business

International Production & Distribution in

Foreign MarketSetting up a distribution/warehouse facility in aninternational location

Committing money and people to creating adistribution function in a foreign land

Usually includes warehousing activities.

8/19/2019 2 - Preparing for Export

10/28

5 Levels of International Business5 Levels of International Business

Foreign Direct Investment

8/19/2019 2 - Preparing for Export

11/28

5 Levels of International Business5 Levels of International Business

Foreign Direct Investment

Creating an MNEInvesting in both production and marketing in aforeign land

Setting up a foreign division or head office.

8/19/2019 2 - Preparing for Export

12/28

The Export ProcessThe Export Process* Create organization* Create organization* Seek information on export* Seek information on export

market:market: Market ResearchMarket Research* Create marketing plan & Assess* Create marketing plan & Assess

Risk:Risk: INCO TermsINCO Terms* Assess regulations:* Assess regulations: Barriers toBarriers to

TradeTrade

* Create export operations:* Create export operations:$ Investment$ Investment

* Implement* Implement

8/19/2019 2 - Preparing for Export

13/28

AN ORGANIZATION FORAN ORGANIZATION FOR

EXPORTEXPORT

Top Management Commitment - A key success

factor required for exporting

8/19/2019 2 - Preparing for Export

14/28

AN ORGANIZATION FORAN ORGANIZATION FOR

EXPORTEXPORT

Top Management Commitment - A key success

factor required for exportingCorporate objectives

Need to expandGrowth strategies related to Profit

8/19/2019 2 - Preparing for Export

15/28

AN ORGANIZATION FORAN ORGANIZATION FOR

EXPORTEXPORT

Assess Company's Export Potential

Does it have:Mkt. knowledge and research in the foreign land

Established links to customers/agents/governments

Match strengths

Create Organization to eliminate weaknesses in

Exporting

8/19/2019 2 - Preparing for Export

16/28

AN ORGANIZATION FORAN ORGANIZATION FOR

EXPORTEXPORT

Assess Company's Export Potential

Does it have:Mkt. knowledge and research in the foreign land

Established links to customers/agents/governments

Match strengths

Create Organization to eliminate weaknesses in

ExportingAcquire Expertise in Exporting

8/19/2019 2 - Preparing for Export

17/28

AN ORGANIZATION FORAN ORGANIZATION FOR

EXPORTEXPORT

Allocate production resources to export

Budgeting requirementscreating decision-making for export

Assessing risk in exporting

8/19/2019 2 - Preparing for Export

18/28

AN ORGANIZATION FORAN ORGANIZATION FOR

EXPORTEXPORT

Allocate production resources to export

Budgeting requirementscreating decision-making for export

Assessing risk in exportingCreate separate, stand aloneDivision/Department for Exporting

8/19/2019 2 - Preparing for Export

19/28

Export Manager - Duties:

overall responsibility

Planning and organizing resources for exportgaining commitment from senior management forexport

develop & execute export marketing plandetermine levels of control

DETERMININGDETERMINING

ORGANIZATIONAL POSITIONSORGANIZATIONAL POSITIONSFOR EXPORTFOR EXPORT

8/19/2019 2 - Preparing for Export

20/28

Export Manager - Duties:

Direct Promotion and sales activities for export

Decide distribution partnersNegotiate distribution contracts

Implement procedures for product re-design and

verification of foreign packaging and labelingrequirements.

DETERMININGDETERMINING

ORGANIZATIONAL POSITIONSORGANIZATIONAL POSITIONSFOR EXPORTFOR EXPORT

8/19/2019 2 - Preparing for Export

21/28

Export Manager - Duties:

Implement documentation and quality checks on

accuracyPartner with Customs Brokers and governmentofficials in Home and Host countries.

DETERMININGDETERMINING

ORGANIZATIONAL POSITIONSORGANIZATIONAL POSITIONSFOR EXPORTFOR EXPORT

8/19/2019 2 - Preparing for Export

22/28

Export Manager - Duties:

Staffing resources include:

language24 service

technical communication

Internet/e-mail skills

automatic reordering skills

DETERMININGDETERMINING

ORGANIZATIONAL POSITIONSORGANIZATIONAL POSITIONSFOR EXPORTFOR EXPORT

8/19/2019 2 - Preparing for Export

23/28

ASSESSING EXPORT MARKETSASSESSING EXPORT MARKETS

Things to consider:

Mkt. sizeMarket ability to pay

Infrastructure

Advertising customs and practices

8/19/2019 2 - Preparing for Export

24/28

ASSESSING EXPORT MARKETSASSESSING EXPORT MARKETS

Things to consider:

Trade BarriersCurrency Risks

Customs rules and practices

Transportation modes and costs

8/19/2019 2 - Preparing for Export

25/28

ASSESSING EXPORT MARKETSASSESSING EXPORT MARKETSThings to consider:

Product SuitabilityCompetition in Host country

Limited purchasing Power

Currency of business.

8/19/2019 2 - Preparing for Export

26/28

ASSESSING EXPORT MARKETSASSESSING EXPORT MARKETSCanada's Trade performance with other countries

help to determine potential market.Thus assessing surplus/deficit flows will helpidentify areas Government will help

8/19/2019 2 - Preparing for Export

27/28

US Mexico Other  

0

10

20

30

40

50

60

70

80

90

Imports

Exports

Importance of Export to CanadaImportance of Export to Canada

Import / Export TradeImport / Export TradeNorth America in

percent

8/19/2019 2 - Preparing for Export

28/28

Recent Negative impacts onRecent Negative impacts on

Canadian TradeCanadian TradeEU Debt issues

 Weak Chineseeconomy

Weakening $Cdn

Plunging Global Oilprices

Terrorism & USHomeland Security

US Presidential

election