Transcript 1st and 2nd session

Presentation By:
Rajan Sharma
Getting Started for Export to
European Union
First session: Managing the
organization. Beginning of the
Beginning
Objectives
Understanding the Global Context
Kinds of organization.
Understanding the Features of SME
Understanding the Economy Sectors.
Sector of Economy
Features of Corporate Culture
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
Dimensions of the corporate environment that
influence the function in a SME exporting firm.
Corporate
culture, mission,
goals & policies
Type of
Organization
Function of SME
objectives, policies,
processes, culture
& structure
Corporate
functions,
processes
& structure
Corporate
strategy
Overcoming Barriers
Many successful multinational companies have
undertaken a strategy of:
THINKING GLOBAL,
ACTING LOCAL!!
The importance of SME s...
represent more than half of
GDP and half of
employment worldwide
Advantages of
Quick reactions
Close supervision
& control
SMEs
Low overhead
costs
Reduced taxes,
special credit
Disadvantages of
SMEs
Vulnerable due to
limited product
range
Depend on
their leaders
SME
Constraints of SME s
No IT support
P&S function
not well
developed
SME
Shortage of
working capital
influences
size & timing of orders
Limited P&S
knowledge
and skills
Advantages of Multinationals
Many customers & well known
More diversified
Greater access to finance
Qualified staff
Information systems
Multinationals
Leverage due to high volumes & reputation
P&S strategies & policies
IT support systems
Optimal order quantities
Well developed P&S function
Specialist P&S staff
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
Typically, to optimise
profit
Typically, the effective
A belief, value, ideology or service to
and efficient provision of
be provided
public services
Prime goal
Accountability To shareholders
Competition
Typically yes
To the public
To sponsors or members
Typically no
Generally not relevant
The law (in general)
The law (in general)
Constraints
Any self-imposed
constraints
Laws, regulations and
procedures applicable
to the public sector
The law (in general)
Changes in government
policy / politics
Any self-imposed constraints
Major sponsors may impose
constraints
Corporate Culture
Comprises values, beliefs and norms.
Subconscious level Has an impact on:
Corporate goals and policies
Corporate
Culture
Organizational structure
Internal and external channels of
communication
Control systems
Reward systems
Working hours
Dress requirements, and
Social relations.
What determines corporate culture? (I)
the national culture:
•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? (II)
#The founder and dominant
individuals
Bad
experiences
the organization
past will discourage
#history
of inthe
certain approaches in the future.
#age & size
#nature of the work
#the types of power…..
Main features of the different types of corporate culture
Main source
of power
Nature of
control and
Dec.-making
Where is it
appropriate?
Disadvantages
Power
Culture
Power by
influence
Suitable
individual
Task Culture
Power by position
In the hierarchy
Power by expertise
& capacity to bring
people together
Leaders’ orders
Rules & procedures
and commands
Fast changing
environments
Small companies
Vulnerable if
key staff lack
competence or
leave
Risk of
in-fighting
Individualist/
collectivist?
Role Culture
Individualist
Ambitious /
power oriented
Project managers &
project groups
Stable environment
with routine tasks
Significant inertia
to change
Collectivist
One who values
security and
predictability
Expert power
Individuals
Project environments
Partnerships of
professionals
Can fail if people don’t
work well together
Can be difficult to
control
Where quality is
critical
Stifles creativity
Independency
Culture
Collectivist
Individualist
Team-worker
Self-motivated
Thank you for your Attention:
Any Questions???
Second Class:
A step forward for Export to Europe
By: Rajan Sharma:
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.
Where are you going??
Vision
Mission
Goals
Strategy
Policies
It is good practice for an organization to publish its
vision, mission, goals and policies
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.
Goals are aligned with the mission & are more specific.
Strategy is the way of achieving the goals.
Policies define the principles and guidelines to be complied with.
Vision, Mission, Goals… (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.
Goals: To reach a turnover of $10m within 2 years.
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…..
Environmental policies
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 materials
Minimizing dependence on non-renewable sources
Minimizing stock (and the associated wastage
through obsolescence).
M1:U3:3.4-2
Ethics policy
Contains principles and rules of
conduct
May cover:
Code of
ethics
Conflicts of interest
Bribes & other forms of corruption
Gifts and hospitality
Respect for confidentiality of information
Fair and transparent dealings with suppliers and
customers
Not to deal with enterprises that exploit forced labor,
poor working conditions, inadequate health and safety,
intimidation of workers defending their rights...
Employee welfare policy
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
How competitive are your firm’s
products or services?
Quality
Availability
Customer service &
responsiveness
Low cost
Benefits
customers
seek
Regularly obtain
feedback from actual
or potential
customers.
CRM as part of organization
development
Tool
to learn
more
about
customer
needs
to
customize
services
and
enhance
added value
to increase
customer
satisfaction
and
customer
loyalty
TQM/ISO
• 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)?
• 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?
Scope of activities of SME
Developing
supply
strategies
Negotiating
Specifying
requirements &
planning supply
Preparing the
contract
Appraising &
short listing
suppliers
Analysing
supply markets
Obtaining &
selecting offers
Managing inbound
logistics
Managing
inventory
Managing the
contract & supplier
relation- ships
In small enterprises,
one person undertakes
a number of functions
Major Participants in International
Business Transactions
Domestic Bank
Domestic Government
Agencies
Domestic Seller
Export Facilitator
Inland Transportation Carrier
Domestic Port/Terminal of Exit
International Carrier
Foreign Port/Terminal of Entry
Foreign Government
Agencies
Foreign Bank
Foreign Inland Transportation Carrier
Foreign Buyer
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
Thank You for your
attention.
Any Questions ??????