mars best practices: going international - 10 essential facts, qamar rizvi

The William and Nona Heaslip Foundation

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GOING INTERNATIONAL

Foreign foothold 12 to 20 months / Twenty markets 3 to 5 years / Net revenue build 50 to 100 percent

TURNKEY international solutions. REAL-WORLD results.

GOING INTERNATIONAL

Fact #1 • Globalization is reality

Fact #1: Globalization is reality

Source: AT Kearney, McKinsey

“

Fact #1: Globalization is reality

From Ontario start-up to global player “We started out in 2003, with just one employee and that was me. Today, there are 45 people and

we’re doing in excess of $400 million in sales (across N. America, S. America, Europe, Middle East & N. Africa)”

- Zaid Qadoumi, Owner

“ Fact #1: Globalization is a reality

Key Take-away Every business must have an international plan

“What we are experiencing today is a process of globalization that is as irreversible as it is inevitable.

That we now live in an age when goods, capital, technology & people, are free and able to move from continent to

continent, on a scale and speed unimaginable just a couple of decades ago, and that it is those who take advantage of

these realities who will be the prime producers of wealth in the 21st century.” - Economist Paul Erdman

Fact #2 Globalization is an entry to

growing markets

Fact #2: Globalization is entry to growing markets

Source: Economist Intelligence Unit, World Bank, aQmen Research

“ Saskatchewan family farm supplying the world

“We’ve evolved from an 8,000-acre family farm into a 43,000 acres facility. We regularly turn down customers because the farm can’t meet large orders. By 2012 we plan to be managing as much as

200,000 acres.”- Greg Menzies, Owner


“ “The twenty-first century will be Asia’s century. Global

power is irresistibly shifting to Asia. Today Asia is experiencing what the West did in its Industrial Revolution.

Back then, Western societies enjoyed an impressive improvement in living standards of 50 percent in a lifetime.

Larry Summers has calculated that the comparable figure for Asia today is 10,000 percent.”

- AT Kearney, The New Asian Hemisphere

Key Take-away Asia is growth engine of world economy.

Needs to be priority #1


Fact #3 Globalization is access to spending customers

India +412%

Fact #3: Globalization is access to spending consumers

China +575%

Source: McKinsey Global Institute


Carrefour, Dubai


McDonalds, Beijing

Coffee Bean & Tea Leaf, Shanghai

⎫ ⎬ ⎭


⎫ ⎬ ⎭

China & India - % Share of Population

Source: McKinsey Global Institute

Key Take-away International markets ≠ dollar shop customers.

Delivers profitable growth velocity

“ “Asia will assume the traditional role of the US and European middle classes contributing to 43% of worldwide consumption in the next 20 years.”

- The Wall Street Journal


Fact #4 Globalization makes strategic sense

Fact #4: Globalization makes strategic sense

New

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New

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New customers

“ Canadian producer expands overseas

“From the outset we’ve been successful at selling our product internationally. Our top markets are France, Germany, U.K., U.S. and Latin America. We’re also making inroads in Japan and Asia, including

the recent sale of 52 hours of Murdoch Mysteries to China’s biggest broadcaster, CCTV.”- Christina Jennings, Chairman and Chief Executive Officer


Television Series Movies

Kids

“ “Like Japan in the 1970s, China and India are gaining

global market share today, but are doing it even faster. What should you do? You can wait and get knocked over, or you can try to ride it. The worst possible

strategy is to ignore it, hoping they'll ignore you - they won't. The best strategy is to work with them and

compete with them.” - Boston Consulting Group

Key Take-away Pursue a balanced growth strategy

Innovation + Globalization


Fact #5 Globalization makes

operational sense

Number of regional trade agreements

Fact #5: Globalization makes operational sense

NAFTA

Mercosur

Euro Union

ASEAN

ECO SCO

GCC

African Union

1990 50

2005 250

“


Quebec telecom firm goes global in five years “Canada only makes up 1-2% of business and the U.S. market just 5-6%. 25% comes from Latin

America and the rest is split between Europe, the Middle East, and Africa. The company has employees in Paris, Singapore, Silicon Valley and Hong Kong.”- The Globe and Mail, Report on Business (BWOB)

Key Take-away Declining entry barriers = speed to market

“ “For perhaps the first time in history, geography is not the primary constraint on the limits of social

and economic organization” - McKinsey Global Institute


Fact #6 Globalization makes financial sense

Size & Fact #6: Globalization makes financial sense

130 markets $8+ billion



Florenceville, NB Waterloo, ON Montreal, QC

Scale

“ Key Take-away

International markets = sales lift off

“Aldo is the most successful retailer that Canada has ever built. Their $1.5 billion shoe empire spans1,500

stores and 55 countries. It is now eyeing new markets, including China, Japan, Brazil, Italy, Germany and

France ... and believes it can double annual sales to $3 billion within five years.”

- The Globe & Mail, November 2010

Fact #6: Globalization makes financial sense

Fact #7 To get global, get local

India: McCain’s Aloo Tikki

“ McCain Foods caters to local tastes

“The company’s goal in every foreign market is to understand the local community – and to be a part of it. The result is that other countries claim McCain as their own. In Great Britain, we are known as a

British company. If you’re in South Africa, South Africans think of McCain as a South African company.”- Susan Rogers, Vice President of Global Communications

Fact #7: To get global, get local

6:00AM Street corner, Beijing


“ Fact #7: To get global, get local

Key Take-away Export your expertise, not your products

“He Qi, a 35-year-old employee at a Shanghai advertising agency, visits KFC three or four times a week to eat fish,

porridge and egg tarts. The US fast food giant has discovered it can't rely on a foreign brand name for growth and must instead adapt to local tastes and

lifestyles.” - Reuters News Agency

Fact #8 Globalization is

big (visionary) thinking

The incredible growth and success of McDonald's can be summed up with the first thought that went through Ray Kroc's mind when he first saw McDonald's: "This will go any place." The McDonalds Company

As King Gillette saw it, the razor he had invented was a universal product ... he felt sure Gillette blades and razors would one day be sold by the millions in every corner of the planet. Cutting Edge - Gillette’s Journey to Global Leadership

I believe that this nation should commit itself to achieving the goal, before this decade is out, of landing a man on the moon and returning him safely to Earth. President John F. Kennedy, May 25, 1961

Fact #8: Globalization is big (visionary) thinking

Key Take-away Big results = big thinking. Always

Small results = small thinking. Always

“ “The 2010 (Vancouver) games would not have been such a

success without many heroic performers, bit it was Mr. Furlong’s vision that fired it. He developed his bold

approach years before the Olympics began. An essay he penned for a Vancouver newspaper in 2003, headlined

‘What Dreams May Come,’ reads as if written yesterday.” - The Globe & Mail, John Furlong: Nation Builder 2010



smart planning

Fact #9: Globalization is smart planning

“ Key Take-away

Focus not on getting international. Focus on getting it right. Hire an expert

“An intelligent plan is the first step to success. The man who plans knows where he is going, knows what progress

he is making and has a pretty good idea when he will arrive.”

- Basil S. Walsh, American Author

Fact #9: Globalization is smart planning


effective implementation

On-the-ground management team

Fact #10: Globalization is effective implementation


“ “Your staff should be willing to relocate and help train overseas clients. You can’t just set up a partner and leave them alone. You have to work in the trenches and support them as you would your own company.”

- Joan Vogelesang, CEO Toon Boom

Key Take-away On-the-ground presence is crucial

Imagine a global Canada - Eh!

Thank you