INTERNATIONAL MANAGEMENT MASTER

! EXPORT PLANNING AND MANAGEMENT FOR THE NORTH AMERICAN MARKET

-CROSS CULTURAL BUSINESS -

BY FRANCA FOLIGATTI

Istituto Adriano Olivetti, Ancona, March5th - March 7th 2014

Introduction & Agenda

Let’s get to know each other Setting objectives and expectations Schedule for the 3 day workshop

IntroductionsMy Approach is more like a coach

than a teacher.

"We cannot teach people anything, we can only help them discover it within themselves." - Galileo Galilei 

Student Introductions

tell me about you...

Objectives

• Comprehend the characteristics of American culture

• Understand the key points of the cross cultural business dynamics and challenges between Italy and America

• Become aware of US economy and market growth, export trends and its importance for Italian economic growth

• Review the fundamental tools and approaches for International Management

• Learn how to evaluate challenges and opportunities with case studies

• Experience conversations, in person and by Skype, with Italian entrepreneurs and professionals in the US

• Cultural approach to exporting Italian products into the American Market: the characteristics of the two cultures, the challenges and the opportunities.

• Game components of International Management: What are the key components? What is the difference between marketing, business development and sales?

• Case studies: Management strategies and development for ELTEK Group ( http://www.eltek.it/) in the international market and specially in the USA. Skype call with professionals, in person conversation with CEO Fulvio Cerutti, to discuss strategy and hear their success stories.

Contents

AgendaDay 1 - Setting the Framework -

Key points of cross cultural business and the dynamics between Italy and US and export trends.

Tool-box for the International Manager - Effective international management approaches; marketing, sales and business development.

Day 2 - Case Study Presentation -

The Case of Eltek Group; propose a strategy for long term development of their presence in the US market.

Work Group; Case study and group Proposals.

Day 3 - Conversations with Entrepreneurs and Professionals -

Meeting with Eltek Group CEO to discuss strategies, challenges and choices.

Defining International Management

The emergence of the global economy requires expertise and deeper attention to International Management dynamics.

Italian entrepreneurs and managers are confronting these challenges for both large and small business.

Choose the proper approach and business model .

Opportunity - Italian US Export Trends

• US market is the 3rd most important for Italian exports (after Germany and France).

• In 2012 Italy exported to the US 26.7 MLD/Billions euro equal to 5.7% of its total exports (470.0 MLD/Billions euro) with a +16,8 % compare to 2011.

• In the first part of 2013 Italian export continue to grow+4,6 %

• Export Data from ISTAT and ICE sources.

US Economy Trend

• The US Economy is recovering and growing: GDP +2,5% in 2013 while 2,2 % in 2012 and +1.8% in 2011. And expectation for 2014 are +2,7% or 3%

• From the current report of the Bureau of Economic Analysis, durable-goods manufacturing, finance, insurance and wholesale trade were the leading contributors to US economic growth in 2012 and 2013.

What Italy Exports to the US

• From aggregate data of 2009 we have

• Mechanics 18.6%

• Fashion 13.1%

• Food and wine:10.8%

• Petrochemical 10.7%

• Home and interior 4.6%

• Other 42.2%

Strength and Weakness of exports to US

• From the study of Claudio Ganesin and Stefano Schiavo: http://www.ice.gov.it/statistiche/pdf/Rapporto_ICE_2011-2012.pdf

• Strength: Quality, design and the ability to offer both industrial and artisanal solutions.

• Weakness: 50% of companies that export to the US stop after 1 year. 80% of the companies that export to the US exit the market after 5 years.

Sustainable Long Growth

• What are the reasons for non-growth in the long term?

• What are the most common mistakes made by Italian businesses?

• How can Italian companies, business relations and export trends consistently grow in the long term?

Approaches to International Management

There are three approaches to international management:

1.Ethnocentric: Management uses the same style and practices that work in their home country.

2.Polycentric: In this approach, management staffs its workforce in foreign countries with as many local people as possible.

3.Geocentric: This theory holds that the best individuals, regardless of country of origin, should be placed in management positions.

!

Tool Box Section -

• Overcome Cultural ID Challenges

• Choose International Business Models

• Effectiveness and Efficiency

• Business Development

• International Marketing

The Cultural Identity

• In Cross Cultural business, it’s key to have an understanding of the two cultural Identities.

• The identity of the country defines its assets and its leadership,

• Differences have value but create challenges.

Overcome Challenges Between Italian and American Businesses

Find your unique blend of international management approach and strategies that will help to overcome cross cultural business challenges

The Challenges of Cross Cultural Business between Italy and America

Key Point for International Marketing

• MARKETING in both B2B or B2C environments is a dominant force in the global market place.

• BUILDING RELATIONS Attracting and turning strangers into prospects, buyers and clients.

• REVERSE APPROACH In the past, the top-down approach dominated, and the company was leading the process influencing the prospects. Today the companies have to be ready to be discovered.

• THE POWER OF BRAND In the past, the buying process and the consumption of goods were led by need and aspiration.Today the proactive exercise of surfing the web changes the approach. Information, inspiration and stimulation transform the customer in a co-author, co-editor and a free thinker ( Francesco Morace).

International Business Models

Choose ways of operating in the international sphere.

The various categories of international business models include :• Export/import businesses • Independent agents• Licensing and franchising agreements• Direct investment in established foreign companies• Joint ventures• Multinational corporations (MNC)

International Management Knowledge - Efficiency

• International finance and currency matters

• Foreign legal requirements and accounting practices

• Logistic strategy

• International competition

• Market opportunities

• Marketing requirements

International Management Knowledge - Effectiveness

• Share knowledge with other individuals and groups - this will have an impact on organizational effectiveness.

• Formulate effective management strategies choosing the appropriate approach.

• Create tailored business models and marketing plans.

• Create brand messages that convey your message.

Marketing, Business Development and Sales

Marketing Business Development and Sales

• Strategic growth of the business. This can include opening new markets, new channels, new product development, strategic partnerships, licensing & cross licensing, etc.

• Marketing is generating leads, business development turns them into prospects and sales closes the deals.

• Business Development includes elements of relationship management with customers and prospects.

• Sales can come from existing customers or new ones (business development)

The Key To Grow In The Market

• Preparing a detailed business plan to keep sight of goals and objectives.

• Keeping the main objectives constantly in mind is essential, even if they evolve over time.

Case Studies !Fulvio Cerutti, Managing Director at Eltek Group

Since it was established in 1979, The Eltek Group has specialized in research, design, development and production of mechatronic components. Traditionally known for its components in the appliance and automotive sectors, the company has recently approached the medical industry and advanced research in the field of nano-biotechnology.

http://www.eltekgroup.it/

!!

!Paul Beaupain CEO at Global Export Network - Business Management Services Agency.

Global Export Network is a consortium of experienced professionals committed to establishing, managing and expanding the business of small & medium manufacturers in the U.S. market place.

http://www.globalexportnetwork.com

Successful Story -Eltek Group USA

How to Generate Consistent Growth in the US

• GLOBAL EXPORT NETWORK

• The CEO of Global Export Network will tell us the story of positioning Eltek Group in in the US Market - automotive, appliance and medical sectors

• How they entered the US with automotive and appliance products

• The long term development plan

• B2B vs. consumer market

Eltek Group USA

Exercises

• Create a list of key questions to understand in the case of Eltek Group

• Outline the Eltek Group international market positioning and challenges in the American market.

• Group presentation and open class discussion

Group Work Presentation for Eltek Group

• GROUP PRESENTATION

• Conversation with Fulvio Cerutti, AD of Eltek Group.

• Ideas for a new business development strategy; what can be done to secure long term growth of Eltek Group in the US market?

Digital Market and Marketing Strategy

!Conversation with Armand Patella, an information architect experienced in creating intuitive software experiences.!What could be the Eltek Group’s strategy to enter the US consumer market with Water Block?!http://www.hitplaylabs.com/!Please feel welcome to pass this along to your students. [https://docs.google.com/document/d/1oZyZb_DLld3E-KvgrUCguSYDnbTowKmf5XOCOpa9o2E/edit?usp=sharing] !Cheers, !Armand Patella III  Hit Play Labs - link  (443) 470-9038

Conclusion – Open Class Discussion

• What did you learn from this workshop?

• What you would like to know more about?

• Let’s stay in touch www.francafoligatti.com