International Business Organization
Export/International business can take on many challenges as it unfolds. Goal should be to construct the company’s strategic building blocks, using it’s assets to support international opportunities. The outline is formatted from a more basic approach, increasing through stages of complexity. There will be points below that overlap and dovetail. Some corporations may have already touched on many of these points. The examples below are geared toward the food/protein industries. Nevertheless, the concepts are transferable to many others. Below are organizational ideas for consideration:
I. International Business Unit Establishment- Create P&L.
A. Budget to encompass 3-5 key trade shows and conferences that support the geographic strategy.
- Restaurant Chain Shows (Subway, McDonalds, etc.)- Important shows that demonstrate a company’s willingness to globally expand with the chains.
- Distributor Shows.
- Trade organization conferences. Provide key insights to new emerging markets and trends i.e., USMEF, USDEC, etc.
B. Forecasting- By product category and market to determine business profitability.
C. Expenses- Identify expenses against the business. Be fiscally prudent.
II. Geography- Are the most immediate markets being efficiently addressed by export? Begin with the immediate opportunities i.e., target nearest or import friendly international geographic markets.
D. Domestic Exporters-
III. Export Product Portfolio- Product’s export potential? What are the popular US items sold? Using meat products as an example:
A. Pork- More than likely highest export potential.
B. Poultry- Certain drawbacks (Avian viruses), but often has the necessary price points for market entry.
C. Beef- Still questionable into many overseas markets (BSE). Slowly improving.
D. Other- Veal and lamb offer the specialty items often sought in many of the smaller boutique markets i.e., Caribbean. Should be a high margin opportunity?
IV. Utilize and maximize current customer base. Grow internationally with domestic customers.
A. Chains- What chains are currently being serviced (i.e., McDonalds)? What are the int’l springboard applications of those chains?
B. Distributors- GFS,US :: GFS, Canada; Sysco, US :: Sysco, Canada…Sysco, Export
C. Schools- Offer products supplied to the US to Puerto Rico. Puerto Rico, Virgin Islands and Guam have same requirements.
V. Expand Geography- Be first in emerging markets. Chains, trade organizations and trade shows will assist in breaking into new venues.
A. Australia, open to US pork imports. US plants must be Australian approved.
B. Brazil and Argentina- as economies improve, so should pork imports.
C. Middle East- Israel.
D. Asia- SE Asia, Latin America.
VI. Product adaptation-
A. A commitment to international product customization. Overcome import non-tariff barriers through product modification.
B. As point “A” is evaluated, determine volumes and pricing with the customer completing the value proposition.
C. New protein introduction- Growing US Hispanic community looking to satisfy traditional diets i.e., goat. US ranchers begin to emerge from their traditional ranching habits to fill a consumer need. Shift creates new export opportunities.
D. Profit Margin/Revenue Growth- Theoretically, there is no competition for custom production and margins should reflect business value.
VII. Resource utilization-
A. R&D efforts to meet a qualified opportunity. Example, a 51% breaded product can be exported to Canada vs. a product with less than 50% breading.
B. Account Managers- Joint calls on corporate to further support the chains international expansions.
Distributor Managers- Joint calls in evaluating immediate opportunities extending across borders.
C. School Managers- Joint calls in US territories to expand and maximize product presence.
VIII. International Partnership Arrangements. Partnering/Joint Ventures with like businesses overseas. Some ideal targets are Japan, Australia, Mexico, China. Key defining terms…product novelty, business profitability, uniqueness, pricing, product demand, market distribution, language understanding, product understanding. If there is a commitment from an overseas manufacturer who understands the product/species, but lacks certain manufacturing capabilities, a partnership should be suggested.
A. Responsibility considerations :
o Raw Material Hedge
o Currency Hedge
o Brokerage Agreement
o Time lines
o Production Capacity
o Legal contract/Export Insurance
B. Partner’s Responsibilities:
o Volume Projections
o Co-Pack Agreement
o QA Plant Approval
o End User Presentations
o Stand-by Letter of Credit/Purchasing Contract
o Currency Hedge
o Other product opportunities
Notice currency hedge may fall under both and is open for negotiation. It depends on relationship’s strength. Many times it should be for the account of the partner. An exception may be made to consummate the deal, or as a long term service insuring a yearly contract renewal.
IX. Licensing- Often used as a barometer in evaluating potential opportunities and minimizing immediate risks.
A. Brand Licensing- What is the true value of a certain brand in an international market? Would be determined by the partner company in that country.
Example. What was the value of the Parkay brand in Canada? Became the second best Canadian margarine brand. Produced by Parmalat in Canada. Brand was licensed by ConAgra US.
B. Technology- Minimizes capital overseas investment, while transferring US production technology.
X. Mergers and Acquisitions- Up to this point a corporation may be supplying and evaluating their export potential. Simultaneously, it should be considering the business worthiness of certain key markets. Ultimately, it may consider investment in those markets.
A. Partnership/JV company may be ripe for buy-out.
B. Margin potential internationally warrants an acquisition for corporate diversification purposes.
C. Many similarities i.e., language, business culture, profitability, increased product demand from growing middle class, business supporting political environment.
D. Overcome stringent food import barriers i.e., EEC. Example- Companies have improved international exposure, opening manufacturing plants within the EEC. An example has been the recent purchase of Sara Lee European brands by Smithfield.
XI. Summary- These idea compilations are based on 20 years of international business experiences with four major corporations and an MA in International Business. No one size fits all. The outline can be used to build new profitable opportunities that may not otherwise have been realized or fully exploited.
RICHARD J. PORWIT has been an International Sales and Business Director with extensive food and CPG experience, including new product development, market growth, profit and loss accountability in retail, food service and business to business markets. Consistently known for exceeding set goals, division turn arounds, with cross-functional team leadership in customized product development. Recognized for ability to establish and expand international markets in Asia, Latin America/Caribbean, and the Middle East.
International Business Program is designed for students interested in a career in an international environment. The program (Undergraduate Program: International Business Program) meets the need for business men and women who are able to work in an international business life and contains general as well as specialized courses, all given in English. You will meet students from different parts of the world during the program (Undergraduate Program: International Business Program) which gives you an excellent basis for understanding other cultures. If you take the chance to go abroad, on a university exchange and/or an international internship, you will have experience from studying and working in an international environment. This provides you with valuable experience when applying for future work.
Career opportunities After studying on the International Business Program you will have the competence and qualifications to work with international business related tasks in companies, organizations or in the public sector. The internship program offers you a unique opportunity to work abroad where you will have the chance to practice and develop your skills in marketing, management or finance. The program (Undergraduate Program: International Business Program) gives you eligibility for advanced and post-graduate studies in business administration.
All courses are studied one at a time with an examination at the end of each module. Normally each course module is 5 weeks.
Courses in the first five semesters and part of the sixth semester are obligatory.
• Business International Administration A (International Business Environment, marketing, organization and management of the firm, management accounting)
• Statistics (Introduction into statistical quality control and statistical decision theory) and Economic History (about the evolution of economic phenomena in historical perspective)
• Economics (how to manage limited resources)
• Business International administration B (Financial accounting B, entrepreneurial and enterprise and enterprise resource planning systems, Research methodology in Business Administration, foundations of Finance.
• Business Administration C and electives (In this semester, you will study 15 credits at C level where you choose between marketing and finance, and 15 credits (elective courses) in any subject as long as you fulfill the requirements and there are seats available on that course. You are guaranteed a seat on all courses in the following institutions: Business Administration, Economics, statistics, Law and economic history. You may also apply for other courses with in languages, behavioral sciences and informatics. You may also go for exchange studies abroad in this semester.
• Jurisprudential survey course (Introduction to Swedish Law and Basic EU Law) and 15 credits elective courses (students have an opportunity to go for internship abroad ( optional) but which we highly recommend or choose to study 15 credits electives( same conditions as in semester 5)
In the seventh semester, you will choose a specialization between the unique courses for each emphasis in Business administration. (Marketing, Management,Business Development and Internationalization).
Semester 8: Degree project. The degree project should have the same emphasis as your area of specialization (to be written with another student).
Assistance in oral and written presentation in English will be given parallel with courses in semester 1 and 4.
For many business owners the prospect of trading internationally for the first time can be a very worrying experience. The choice to locally source products has always been a favoured method of conducting business however in today’s day and age there is simply so much money in international trade that businesses often cannot afford to miss out. Due to lower labour costs, lower tax and generally lower production costs countries such as China, as a small example, manage to produce high quality products at a fraction of the price; something which could seriously increase your businesses profits.
The first thing that many people have to realise is that international business negotiation is never going to be exactly the same as local business negotiation. As you travel around the world various different countries and business communities have various different business principles. Being able to adapt to these principles is therefore a must if you wish to trade in those regions of the world.
An international business site offers a very in depth look into the cultures and business principles of the most common countries where international business takes place and aims to help those new to international trading get a head start. It will teach you not only about the culture and common practices in the country, but also about the business etiquette and how you should move towards international business negotiation.
Common things you need to know about the country before you start international business negotiation.
The chances are that if you wish to conduct international business negotiation you will be flying out to your country of choice. Even if you find a company you would like to trade with online this is a certainty. Here are some of the things you should know before you make your initial visit:
1. The business practices for greeting / meeting a new person such as handshakes and hellos.
2. What the general business attire is in any given country. Some countries will keep the idea of wearing a suit whereas some may be more relaxed on what you can where to a business meeting.
3. Different countries have different practices when presenting business cards or exchanging credentials. For example in Asia you are meant to treat a potential partners business card with the up most respect, meaning that you receive it in two hands and place it careful in your inside jacket pocket.
4. You should learn about the rules when eating in said country as the company you are negotiating with may take you for a meal. This is important in places such as China, where cleaning your plate is considered an insult; very different to countries such as the UK where it would be a compliment.
5. Look into the countries culture and what they like to do for business entertainment.
Using the international business site will help to learn all of the things mentioned above about various different regions of the world. This will give you a head start when it comes to travelling abroad when looking to kick start some sort of international business negotiation.
If you have always been fascinated by world cultures, exotic languages, international travel and foreign customs, you may want to pursue an Associate’s Degree in International Studies. Unlike a Bachelor’s Degree, an Associate’s Degree only requires two years of schooling.
What does an Associate’s Degree in International Business entail? Students who choose to enroll in a college training degree program in International Business will participate in intensive courses, focused classes and career preparation training that will prepare them for successful careers.
International business generally encompasses any subject or topic that deals with the function and operation of any businesses that are involved with or located in several different countries. These companies are often called multinational corporations.
Today, there are hundreds of multinational companies. Some well-known examples of them are Gillette, ALCOA, Procter & Gamble, Polo Ralph Lauren, Shiseido, DuPont, Citibank, DHL, Federal Express, Silicon Graphics, Sylvania Lighting, Hewlett Packard, Unilever, AT & T, Bacardi, Bank of America and Lockheed Martin International. These businesses typically have an interest or subsidiary over another company in the country of venture. International business is often substantially influenced by the factors outside of business, such as social, political, cultural, global and legal environmental standards of specific countries. Globalization has also powerfully contributed to the growing profit of international firms.
Everyday standards of living, legal regulations and government laws can vary from continent to continent. A person who wishes to professionally interact with international or foreign clients must face issues such as cultural differences, climate changes, language barriers, business practice variations and other possible conflicts.
Earning an Associate’s Degree in international business give students a comprehensive education. Students will take business studies courses, general studies classes and cultural awareness program training. Associate Degree school degree programs provide students with skills in information technology, business management and international studies. Students will acquire skills that incorporate business strategies and smart tactics that will lead to the development of a culturally-educated, knowledgeable
An Associate’s Degree in international business can lead a college graduate into many different types of careers. A graduate can go on to pursue a Bachelor’s Degree in Business Management or International Business or can go and work directly in the corporate world. By learning a second language, a person can become an even more valued asset to a company. Many companies seek out college graduates who are fluent in Spanish or Chinese and also possess a background in international business.
There are many different routes that a student can take with an Associate’s Degree in international business. A graduate can explore the areas of exporting and importing foreign banking, tangible goods and world-servicing nonprofit organizations and international business empires. By pursuing an education in international business, a student can:
Study business ideals, practices, laws and standards in a multicultural or international environment
Familiarize oneself with the legal practices and procedures of various cultures and countries
Gain experience in the spheres of international business that are continuously evolving
Learn about cultural differences that may potentially impact an cross-cultural relationship among clients