presentation by: rajan sharma getting started for export to european union first session: managing...
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Presentation By: Rajan Sharma
Getting Started for Export to
European Union
First session: Managing the organization. Beginning of the
Beginning
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Objectives
Understanding the Global ContextKinds of organization.Understanding the Features of SMEUnderstanding the Economy Sectors.Sector of EconomyFeatures of Corporate Culture
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Turning information into value
(L)earning for a living (… continuous performance improvement …)
Turning information into knowledge Turning knowledge into value
Knowledge without action is meaningless
Action without knowledge is dangerous
Superficial knowledge is risky
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CorporateCorporatefunctions,functions, processesprocesses
& & structurestructure
Function of SMEFunction of SME
objectives, objectives, policies,policies,
processes, processes, culture culture
& structure& structure
CorporateCorporate culture, mission,culture, mission,goals & policiesgoals & policies
CorporateCorporate strategystrategy
Type ofType ofOrganizationOrganization
Dimensions of the corporate environment that Dimensions of the corporate environment that influence the function in a SME exporting firm.influence the function in a SME exporting firm.
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Overcoming Barriers
Many successful multinational companies have undertaken a strategy of:
THINKING GLOBAL, ACTING LOCAL!!
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represent more than half of GDP and half of employment worldwide
The importance of SME s...
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Advantages of SMEs
Quick reactions Low overheadcosts
Reduced taxes, special credit
Close supervision& control
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Disadvantages of SMEs
Have difficulties in raising capital
Vulnerable due to limited product range
Depend ontheir leaders
Lack skilled staff
& information
systems
SME
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Constraints of SME s
Shortage of working capital influencessize & timing of orders
Limited P&S knowledge and skills
No specializedP&S staff
No IT support
P&S function not well developed SME
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AAdvantages of dvantages of MultinationalsMultinationals
Many customers & well known
More diversified
Greater access to finance
Qualified staff
Information systems
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MMultinationalsultinationalsLeverage due to high volumes & reputationP&S strategies & policies
IT support systems
Optimal order quantities
Well developed P&S functionSpecialist P&S staff
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Key differences amongst different types of organizations
Feature Private Public Non-profit
Control Individuals and other enterprises
Government Individuals and organisations
Funding Shareholders and accumulated profit
Taxation, grants, public debt and fees for services
Sponsors (grants, donations), members and fees for services
Prime goal Typically, to optimise profit
Typically, the effective and efficient provision of public services
A belief, value, ideology or service to be provided
Accountability To shareholders To the public To sponsors or members
Competition Typically yes Typically no Generally not relevant
Constraints The law (in general)
Any self-imposed constraints
The law (in general)
Laws, regulations and procedures applicable to the public sector
Changes in government policy / politics
The law (in general)
Major sponsors may impose constraints
Any self-imposed constraints
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Corporate CultureCorporate Culture
Comprises values, beliefs and norms.
Subconscious level Has an impact on:
Corporate goals and policies
Organizational structure
Control systems
Internal and external channels of communication
Reward systemsWorking hoursDress requirements, andSocial relations.
Corporate Culture
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•Importance of personal relationships
•Protocol vs. familiarity
•Concept of time & punctuality
•Degree of directness
•Attitude to risk & risk-taking
•Importance of continuity vs. innovation &
change
•Attitude to confrontation & disagreement
•Attitude to short vs. long term
What determines corporate culture? What determines corporate culture? (I)(I)
the national culture:
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What determines corporate culture? What determines corporate culture? (II)(II)#The founder and dominant
individuals
#history of the organization
#age & size
#nature of the work
#the types of power…..
Bad experiences in the past will discourage certain approaches in the future.
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Main features of the different types of corporate culturePower Culture Role Culture Task Culture
Independency Culture
Main source
of powerPower byinfluence
Power by positionIn the hierarchy
Power by expertise& capacity to bring
people togetherExpert power
Nature ofcontrol andDec.-making
Leaders’ ordersand commands
Rules & proceduresProject managers &
project groupsIndividuals
Where is itappropriate?
Fast changingenvironments
Small companies
Stable environmentwith routine tasks
Where quality iscritical
Project environmentsPartnerships ofprofessionals
Disad- vantages
Vulnerable ifkey staff lack
competence orleave
Risk of in-fighting
Stifles creativity
Significant inertiato change
Can fail if people don’twork well together
Can be difficult tocontrol
Individualist/collectivist?
Individualist Collectivist Collectivist Individualist
Suitable individual
Ambitious /power oriented
One who valuessecurity andpredictability
Team-worker Self-motivated
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Thank you for your Attention:Any Questions???
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Second Class:
A step forward for Export to Europe
By: Rajan Sharma:
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Managing the Organization
Where are you going? Vision, Mission, Goals, Strategy and Policy. Environmental, Ethical and Employee issues Organizations that participate in International
Transaction. How to enter a Market. Operating cost efficiently.
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Where are you going??Where are you going??
It is good practice for an organization to publish its vision, mission, goals and policies
Vision
Mission
StrategyPolicies
Goals
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Vision, Mission, Goals….Vision, Mission, Goals….
Vision focuses on the long term, i.e., where the organization aspires to be in the future. Vision is broad & general.
Mission represents what the company considers its basic role to be. Mission is more concrete.
Strategy is the way of achieving the goals.
Policies define the principles and guidelines to be complied with.
Goals are aligned with the mission & are more specific.
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Vision, Mission, Goals… Vision, Mission, Goals… (examples)(examples)
Vision: To become the leading manufacturer of hand tools in our country market.
Mission: To provide the widest range of hand tools for home use in our country.
Strategy: - Launch three new hand tools over the next year. - Intensive training of our sales staff. - Development of strategic partnerships with suppliers of key inputs.
Policies: - Minimize waste and avoid the use of unnecessary packaging. - Offer a good working environment and working conditions…..
Goals: To reach a turnover of $10m within 2 years.
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Energy conservation
Avoiding the use of ozone-depleting and other harmful substances
Minimizing waste / avoiding the use of unnecessary packaging
Recycling, and making use of recycling materialsMinimizing dependence on non-renewable sourcesMinimizing stock (and the associated wastage through obsolescence).
Environmental policiesEnvironmental policies
M1:U3:3.4-2
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Contains principles and rules of conduct
May cover:Conflicts of interest
Gifts and hospitality
Respect for confidentiality of information
Fair and transparent dealings with suppliers and customersNot to deal with enterprises that exploit forced labor, poor working conditions, inadequate health and safety, intimidation of workers defending their rights...
Ethics policyEthics policy
ethicsCode of
Bribes & other forms of corruption
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Guarantees of employment
Good regard for employee health and safety
A good working environment and working conditions
Provision of medical care
Greater than the statutory requirement for maternity and sick leave
Compassionate leave
Non-discrimination on the grounds of disability, race, sex, age, rehabilitated offenders
Employee welfare policyEmployee welfare policy
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How competitive are your How competitive are your firm’s products or services?firm’s products or services?
Regularly obtain feedback from
actual or potential
customers.
Quality
Availability
Customer service & responsiveness
Low cost
BenefitsBenefitscustomerscustomersseekseek
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Ph
iloso
ph
y
Stra
teg
y
Tool
to learn more about
customer needs
to customize services
and enhance added value
to increase customer
satisfaction and
customer loyalty
TQM/ISO
CRM as part of organization development
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• How can our supply chain respond to implications of alternative modes of entry?
• If it cannot currently respond, what must be done?
• How to manage the supply chain in the event of a business collaboration arrangement (e.g., centralise or keep separate)?
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• Which functions will our firm undertake, and which will it source externally?
• Which will be their objectives, priorities, policies and strategies?
• What will be the relationships amongst its functions and its processes?
• What structure will it adopt?
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Specifying requiremen
ts & planning supply
Scope of activities of SME
In small enterprises, In small enterprises, one person undertakes one person undertakes a number of functionsa number of functions
Developing
supply strategie
s
Negotiating
Managing inbound logistics
Managing inventory
Preparing the
contract
Appraising & short listing
suppliers
Analysing supply
markets
Obtaining & selecting
offers
Managing the contract &
supplier relation- ships
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Major Participants in International Business Transactions
Major Participants in International Business Transactions
Domestic Bank
Domestic Government Agencies
Foreign Government Agencies
ForeignBank
Domestic Seller
Export Facilitator
Inland Transportation Carrier
Domestic Port/Terminal of Exit
International Carrier
ForeignPort/Terminal of Entry
ForeignInland Transportation Carrier
Foreign Buyer
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QUALITY WITH ZERO TOLERANCE
A MENTALITY OF CONTINUOUSLY STRIVING FOR PERFECTION Never be completely satisfied with what
you do, how you do it and how efficiently it has to be done. Please realize that there is always room for improvement and when you miss the opportunities for improvement while your competitor turns them into competitive advantages, you will be outsmarted & outranked on the international markets
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Thank You for your attention.
Any Questions ??????