Samenvatting Export management
,Lecture 1
What is export management?
The significance of export to the Netherlands economy
• 1600 – 1700: the Golden Age:
The Netherlands: a democratic, more liberal society: room for free entrepreneurship, free
development of ideas and innovation
Dutch trade grew: agricultural products (grain) sold over Europe
A rich merchant class developed;
Bank services developed: loans to businessmen; investments in the V.O.C.;
The Netherlands became a major world player: oversees trade;
Now: NL is the 9th largest export economy in the world!
Consequences:
The Eu brings more things
- Hardly possible to “escape” from foreign business relationships in your future business life;
- Know your languages, esp English! German too
The export plan: contents in brief
1. General introduction about the company and your assignment for that company => project
plan
2. The export position assessment of the company: where do they stand?
3. The International Market Selection: which country to aim at?
4. The industry analysis of that country
5. The commercial analysis of the country: buyer characteristics and behavior; intermediaries in
the channel, competitor identification and their strengths / weaknesses => Market Research
Plan
6. SWOT + options + option selection
7. Entry mode: how to make the commercial entry to the country?
8. The export marketing strategy;
9. The export sales and instrumental strategy
10. Estimation of costs and revenues of the export plan
You need 3 things:
- Customers find important
- S/w the principal
- S/W of competitors
Look in the eyes of the customers.
“IN EXPORT, SOMETIMES THINGS MIGHT GO RIGHT”
Not only the usual risks:
• Market risks (market size / growth; customer wishes change)
• Economic risks (buying power, inflation, etc.)
• Technological risks (your products become “outdated”)
• Etc.
Typical export risks:
• Political turbulence (revolutions, military coups; Russia – the west)
• International conflicts (wars: Saddam (Iraq or Kiwait) embargo’s)
• Logistic risks (accidents, even modern sea piracy)
• Climatological risks (HBG in Surinam)
• Cultural “risks”
• Finding your products “copied” (China, Indonesia)
=> PREPARE WELL! DO RESEARCH AND PLAN!
! There is an always a risk, but when you are international there will be more risks.
, WHY IS IT NECESSARY TO DO A MARKET SELECTION?
WHY NOT EXPORT AT RANDOM? WHAT DO WE NEED TO MAKE CHOICES?
To choice you can screen on the past risks, the possibility so the opportunity and the risks
IMS model to build:
Look first what the company is and then you would list the criteria like:
- Countries…. (+/-10)
- Opportunities variables (the more the better) !!! Positive and it helps to make something
better
- Population size
- Growth
- Welfare index (big mac)
- GDP (bruto nationaal product)
- Economic growth ect
Risk variables (the higher the worse it is) negative !!!
- Inflation grade
- Unemployment rate
- Number of bankruptcies
- Corruption index
You look at the data branche vereniging en misschien zuster in dat ander bedrijf!!
Want hoog gdp/cap hoge inkomens hoge loonkosten meer behoefte aan machines ter
vervanging van arbeid
IMS Model: country selection
This can also be on the region.
What do we need to make the IMS:
- Criteria; 2 types of criteria focus on criteria that matters to your company (when you
make toys, you do not have to look at the political situation)
- Opportunity: The higher how better
- Population size,
- Growth
- Welfare index (big mac)
- GDP (bruto nationaal product)
- Economic growth ect.
- Risk: The lower the better
- Inflation grade
- unemployment rate
- Number of bankruptcies
- Corruption index
If you make the IMS, you have to do this in 2 times;
1. Measurable criteria (with long list)
2. Find grate criteria, so the not measurable numbers (like lifestyle and political turbulent)
o In de tabel kan je aangeven met voetnoten om extra tekst in de tabel te voorkomen!
The principal need to give you a long list with countries. This is not possible to change. If the principle
do not give you a long list, you have to make it yourself but you have to discuss it, the same with
the criteria and the weight.
,Lecture 1
What is export management?
The significance of export to the Netherlands economy
• 1600 – 1700: the Golden Age:
The Netherlands: a democratic, more liberal society: room for free entrepreneurship, free
development of ideas and innovation
Dutch trade grew: agricultural products (grain) sold over Europe
A rich merchant class developed;
Bank services developed: loans to businessmen; investments in the V.O.C.;
The Netherlands became a major world player: oversees trade;
Now: NL is the 9th largest export economy in the world!
Consequences:
The Eu brings more things
- Hardly possible to “escape” from foreign business relationships in your future business life;
- Know your languages, esp English! German too
The export plan: contents in brief
1. General introduction about the company and your assignment for that company => project
plan
2. The export position assessment of the company: where do they stand?
3. The International Market Selection: which country to aim at?
4. The industry analysis of that country
5. The commercial analysis of the country: buyer characteristics and behavior; intermediaries in
the channel, competitor identification and their strengths / weaknesses => Market Research
Plan
6. SWOT + options + option selection
7. Entry mode: how to make the commercial entry to the country?
8. The export marketing strategy;
9. The export sales and instrumental strategy
10. Estimation of costs and revenues of the export plan
You need 3 things:
- Customers find important
- S/w the principal
- S/W of competitors
Look in the eyes of the customers.
“IN EXPORT, SOMETIMES THINGS MIGHT GO RIGHT”
Not only the usual risks:
• Market risks (market size / growth; customer wishes change)
• Economic risks (buying power, inflation, etc.)
• Technological risks (your products become “outdated”)
• Etc.
Typical export risks:
• Political turbulence (revolutions, military coups; Russia – the west)
• International conflicts (wars: Saddam (Iraq or Kiwait) embargo’s)
• Logistic risks (accidents, even modern sea piracy)
• Climatological risks (HBG in Surinam)
• Cultural “risks”
• Finding your products “copied” (China, Indonesia)
=> PREPARE WELL! DO RESEARCH AND PLAN!
! There is an always a risk, but when you are international there will be more risks.
, WHY IS IT NECESSARY TO DO A MARKET SELECTION?
WHY NOT EXPORT AT RANDOM? WHAT DO WE NEED TO MAKE CHOICES?
To choice you can screen on the past risks, the possibility so the opportunity and the risks
IMS model to build:
Look first what the company is and then you would list the criteria like:
- Countries…. (+/-10)
- Opportunities variables (the more the better) !!! Positive and it helps to make something
better
- Population size
- Growth
- Welfare index (big mac)
- GDP (bruto nationaal product)
- Economic growth ect
Risk variables (the higher the worse it is) negative !!!
- Inflation grade
- Unemployment rate
- Number of bankruptcies
- Corruption index
You look at the data branche vereniging en misschien zuster in dat ander bedrijf!!
Want hoog gdp/cap hoge inkomens hoge loonkosten meer behoefte aan machines ter
vervanging van arbeid
IMS Model: country selection
This can also be on the region.
What do we need to make the IMS:
- Criteria; 2 types of criteria focus on criteria that matters to your company (when you
make toys, you do not have to look at the political situation)
- Opportunity: The higher how better
- Population size,
- Growth
- Welfare index (big mac)
- GDP (bruto nationaal product)
- Economic growth ect.
- Risk: The lower the better
- Inflation grade
- unemployment rate
- Number of bankruptcies
- Corruption index
If you make the IMS, you have to do this in 2 times;
1. Measurable criteria (with long list)
2. Find grate criteria, so the not measurable numbers (like lifestyle and political turbulent)
o In de tabel kan je aangeven met voetnoten om extra tekst in de tabel te voorkomen!
The principal need to give you a long list with countries. This is not possible to change. If the principle
do not give you a long list, you have to make it yourself but you have to discuss it, the same with
the criteria and the weight.
