Wednesday, August 20, 2008

MSMW Case Study: Internationalisation Plan

MSMW Case Study: Internationalisation Plan

The owner may like to employ his daughter in a role of setting up MSMW international trade office on site however he might prefer someone with more experience for that position. Specifically an international market manager will be required followed up over time by administrative clerks, international sales manager, shipping manager, and procurement manager.

The first functions required will be as detailed in figure 6.2:
-experienced manager of all international market functions
-active markets development and research
-market intelligence database compilation
-selective market entry strategies
-coordinating sales manager and shipping manager functions
-marketing and sales plans
-advertising, promotion and trade fairs for foreign markets

Initially MSMW would be wise to take on an international trade manager to begin coordination of the internal reorganization and develop rapport with current domestic managers of sales, logistics and procurement. As these are ideal candidates for international trade training and possible transfer to the international trade office they should be offered the opportunity to develop international skills and perhaps groom domestic managers for their replacement. Additional staff will be required to fill new roles but initially the growth of the new trade office should be based on market profits similar to a passive mode of international sales in the introduction to its growth to moderate proportion of sales to fully dedicated office becoming a core business strategy at MSMW.

Some services may be outsourced initially, for example freight forwarders and customer service may be outsourced until the scope of foreign market strategy is established. The initial financing of the export office growth must come out of domestic profits and operating capital. As the development of international trade increases and it becomes a profits-based endeavour dependent upon growth and sales forecasts being met more allocations in terms of hiring and internal sourced management may be made directly from international trade related income.

The roles of international trade sales manager, logistics, and procurement will further increase complexity and importance of trade office relative to its increased share of company profits and growth. But introducing those positions and functions will require justification based on meeting or exceeding business plan results.

It would appear prudent to have a three to five year plan moving in first year with an international marketing manager, adding a sales manager in the second year or stage two, and additional staff as needed annually or in planned stages (for example meeting growth targets and forecasts) until the office is fully established and ideally contributing significant international profits to justify, enhance and fulfill its existence.

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