Going Global

“Going Global”A Review of Managing in the Global Business Environment

Presented By:Justin Gates, MBA

Thursday, January 25, 2007

Overview• Introduction• Section I: Firm Assessment & Planning• Section II: Geopolitical Factors• Section III: Economic Factors• Section IV: Socio-Cultural Factors• Section V: Finding A Partner• Section VI: Facilitating Operations

IntroductionMany times, firms of various sizes desire toexpand their service footprint and to move into theglobal marketplace. However, this desire issometimes hampered by senior management’slack of foresight and/or planning in terms ofdeveloping an effective global strategy. Thepurpose of this seminar is to highlight some of themajor issues associated with global expansion thatevery firm, regardless of size or offering, should beaware of when considering “Going Global”.

Home vs. Host Market

• Home/Domestic Market (Nation, Country) – The country of origin for a firm or the nation from which foreign interest and/or investment originates.

• Host/Foreign Market (Nation, Country) – The country in which a firm desires to invest, often in the form of Direct Foreign Investment (DFI).

Section I: Firm Assessment and Planning

• Review the Firm’s Key Products and/or Services

• Review Differentiation and “Universality” • Develop a “Global” Plan • Review Production Standards and Capital

Requirements • Assess SWOT and BCG Analyses • Find Reliable Sources of Information

Section II: Geopolitical Factors of Global Business

• Review the Legal System and Structure in Host Markets

• Review Business Laws in a Prospective Host Market

• Review the Political Climate in a Particular Host Market

Sector III: Economic Factors of Global Business

• Consider International Trade Conditions

• Consider Currency Fluctuations, Inflation, Banking Institutions, and Economic Volatility

• Review the Economic System and Tax Rates and Collection Conditions

• Consider Purchasing Power Parity (PPP), Gini Index, and Balance of Trade

Sector III: Economic Factors of Global Business

(Continued)• Review the Economic Mix

• Assess the Ease of Removing Foreign-Based Earnings

• Review Debt Financing Conditions in Potential Host Markets

• Review Logistics and Infrastructure in Potential Host Market

Section IV: Socio-Cultural Factors of Global Business

• Review Each Prospective Host Market’s Hofstede Dimensions

• Review Local Customs and Norms

• Review Symbols and Historical Events

• Assess the Typical Uses for Products

• Review Channels of Marketing and Advertising

Section V: Finding A Partner

• Develop Risk Comfort Level

• Review Potential Partners’ Management Style

• Determine the Worth of a Potential Partner

Section VI: Facilitating Operations• Assess Logistics in Each Prospective Host Market • Develop International Professionals

• Design and Deploy Foreign Accounting Systems

• Design Contingency Plans

• Develop Local Resource/Service Provider Agreements

• Maintain Proper Business Ethics and Social Responsibility

Want More Information?

The following websites provide additionalinsight into the seminar material and oninternational business.

Executive Planet – http://www.executiveplanet.com

U.S. Council for International Business – http://www.uscib.org

International Business Center – Michigan State University – http://ciber.msu.edu

The Economist – Country Briefings – http://www.economist.com/countries

About the Presenter Justin Gates is serving as Special Projects Manager for United Information Technologies (UIT), a provider of Consulting, Staffing, and Training services. He holds an MBA with a concentration in Administrative (Strategic) Management along with a Magna Cum Laude BBA with concentrations in both International Business as well as Economics. Justin’s research interests include Broadband Telecom,International Trade, and Comparative Economic Systems. Justin is amember of Omicron Delta Epsilon, a Certified Manager (CM), and hehas visited international operations sites forsome of the world’s mostwell known companies including Volkswagen and Johnson Controls.