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Georgia State University EMBA GLOBAL UNDERSTANDING - GLOBAL REACH BENEFITS, PITFALLS & OPPORTUNITIES Presented by Jerry M. Striplin April 2006 www. Global-Business-Group.com.

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Presentation on theme: "Georgia State University EMBA GLOBAL UNDERSTANDING - GLOBAL REACH BENEFITS, PITFALLS & OPPORTUNITIES Presented by Jerry M. Striplin April 2006 www. Global-Business-Group.com."— Presentation transcript:

1 Georgia State University EMBA GLOBAL UNDERSTANDING - GLOBAL REACH BENEFITS, PITFALLS & OPPORTUNITIES Presented by Jerry M. Striplin April 2006 www. Global-Business-Group.com

2 2 Topics for discussion My background Global Business Group Some of my recent work Lessons learned What makes your future different? Before we begin…. ? What would you like to discuss? Property of J.M. Striplin Reuse with permission only

3 3 Our Business Property of J.M. Striplin Reuse with permission only

4 4 Business Growth Through Applied Business Intelligence and Leadership Creating sustainable business growth through... Applied business intelligence, Operational and management leadership; Supported by an… Action-based strategy and Improved business processes; Creating improved profitability, competitiveness and the acceleration of market share capture. Our Business Property of J.M. Striplin Reuse with permission only

5 5 Recent Work Property of J.M. Striplin Reuse with permission only

6 6 Property of J.M. Striplin Reuse with permission only

7 7 CHINA A full Partnership and Alliance analysis for a Fortune 500 software firm. Today, for US corporations considering business in China, the questions are no longer "why" and "when." Today, the only question remaining is "how." CONSIDER THESE ECONOMIC REALITIES: Annual GDP growth of nearly 10% for over twenty years A potential consumer market of 1.3 billion Full membership in the World Trade Organization (WTO) Projected to be world's second largest economy by 2030 CONSIDER THESE ECONOMIC REALITIES: Annual GDP growth of nearly 10% for over twenty years A potential consumer market of 1.3 billion Full membership in the World Trade Organization (WTO) Projected to be world's second largest economy by 2030 However, despite these accolades and the positive market potential they describe, the Chinese marketplace is exceedingly complex, with an intricate array of cultural, political and social complexities. Being successful in this complicated business environment requires market intelligence of the highest value from a trusted experienced partner. Property of J.M. Striplin Reuse with permission only

8 8 CHINA THE SCOPE OF THE OPPORTUNITY The economy has been growing dramatically for 20 years: GDP expanded at an average 9.7% annually from 1997 to 2000 Retail sales of consumer goods have climbed steadily to over $405 billion in China now has the largest mobile phone market in the world, and its PC market is about to overtake that of Japan. China attracted $400 billion in foreign direct investment in the past decade. The largest province, Sichuan, contains 110 million people, about as many as Japan. The provinces of Guangdong, Hubei, Anhui, Hunan, Hebei, Jaingsu, Shandong Henan each contain 60 million people (roughly the same and population as Mexico, France and Egypt.) It is not one market. While the common language of China is mandarin, there are 8 main dialects, which in turn break down into many more dialects and cultural differences. There are also a further 55 minorities, each speaking their own language. Property of J.M. Striplin Reuse with permission only

9 9 CHINA REASONS TO BE CAUTIOUS China is still in transition from a centrally-planned to a market-driven economy. The banking structure is fragile; the rule of law is weak; the distribution infrastructure is underdeveloped; and corruption continues to be a widespread problem. An estimated 900 million Chinese live in the countryside, mired in debt and hampered by inefficient farming practices. The average disposable income of urban residents in 2000 was a mere US$708 per annum (for rural residents it was US$206 per annum). The emerging affluent middle class is mainly located in a relatively small number of major cities on the east coast. Social unrest is growing as the gap between the rich and the poor continues to widen dramatically. Personal contacts are very important in China, and knowing the 'right' person can be a distinct competitive advantage. The currency is not convertible, and it is difficult to repatriate profits. An estimated 900 million Chinese live in the countryside, mired in debt and hampered by inefficient farming practices. The average disposable income of urban residents in 2000 was a mere US$708 per annum (for rural residents it was US$206 per annum). The emerging affluent middle class is mainly located in a relatively small number of major cities on the east coast. Social unrest is growing as the gap between the rich and the poor continues to widen dramatically. Personal contacts are very important in China, and knowing the 'right' person can be a distinct competitive advantage. The currency is not convertible, and it is difficult to repatriate profits. Property of J.M. Striplin Reuse with permission only

10 10 Romania US corporation re-evaluating India outsourcing, the questions were no longer "why" and "when." The only question remaining is where and how." ECONOMIC AND CULTURAL REALITIES: NEAR SHORE AND IN-CULTURE VS OFF SHORE AND OUT-OF--CULTURE ECONOMIC AND CULTURAL REALITIES: NEAR SHORE AND IN-CULTURE VS OFF SHORE AND OUT-OF--CULTURE Despite the accolades and the positive marketing of India and China and the potential they describe, their outsourcing marketplace is losing its competitive edge due to: An intricate array of cultural, political and social complexities. Property of J.M. Striplin Reuse with permission only

11 11 Romania FDI – Foreign Direct Investment Long-term Investment Phase I - Romanian Focused - Development for Core and Mission Critical applications s Phase II- Serving C&EE Phase III – Global Development Employment of up to 200 employees - Romanians Phase I - 50 employees – Immediately Training in the USA Significant growth impact on Adjacent Industries Green-Field Business opportunity Start as soon as possible Lease-Build, Hire or Acquisition Software Development, Delivery, Sales and Professional Services Sustained Phased entrance Property of J.M. Striplin Reuse with permission only

12 12 Romanian Selection Criteria Location Cost of Business, space availability Phase I thru III. Access to Expertise: Technical and management resources Universities … Pipeline of qualified graduates and Internships Adjacent Technical Industries Local Government involvement and pro-active Taxes Incentives Support and ease in establishing a business … Start-up and Ongoing Infrastructure Telecom Transportation & physical access Cost-of-Employment Salary Benefits Property of J.M. Striplin Reuse with permission only

13 13 Romania Property of J.M. Striplin Reuse with permission only

14 14 Property of J.M. Striplin Reuse with permission only

15 15 Indonesias Competitiveness Program Industry Value Chain – IVC…Vertical and horizontal supply chains components, external drivers such as government / regulatory and internal activities, capabilities and enablers Alliance Clusters – All business/ industry / social elements that have a direct impact or contribution to the Value-Chain Initially identified 12 Industries that represent over US$15.2 billion or 21% of total Indonesian exports. Property of J.M. Striplin Reuse with permission only

16 16 Indonesia Property of J.M. Striplin Reuse with permission only

17 17 Lessons learned Know what you dont know … Seek out, validate and use trusted resources. Culture is always an issue and an advantage. Leadership will take the path of least resistance. Global expansion is a personal business. The needs of the individual over the many The test… Can you reconnect And be welcomed Property of J.M. Striplin Reuse with permission only

18 18 ATTRIBUTES Expansion or entrance into THE GLOBAL market is one of the most challenging endeavors a company can undertake. It requires: On the ground experience, Ongoing market research, brand awareness, tracking, customer satisfaction and competitive analysis, An understanding of specific HR requirements, such as the ability to terminate for performance, long term social and health system support, and staff retention, A unique pricing strategy, Appropriate financing, terms and payment instruments, The availability of qualified personnel, technology, laws and support systems, An understanding of the markets attitude toward service and quality, Requirements for Time-to-Market Implementing different security requirements for systems, software, physical and technical, Unique sales plans and approach strategies, Internationalization of the products and services, Specific contracts with different country based legal and financial protection, Personal contacts, Partnering and alliance expertise, An understanding of the business and political environment, A knowledge of the appropriate laws and regulations, Unique support systems for operations, sales, proposal (local language) creation, training and delivery, Financial investment (physical presence, training, assessment of market and personnel, etc), A knowledge of the resources available to US companies, Staying power and Most importantly, an In-Country Experience & Presence. Property of J.M. Striplin Reuse with permission only

19 19 THE MISSION of every profitable business… Capture market share, obtain significant revenues and create sustainable profits in the shortest time possible. …IT IS A JOURNEY It is possible with (1) a clear mission, (2) current & accurate business/market intelligence (3) a practical tactical & strategic plan and (4) leadership. Property of J.M. Striplin Reuse with permission only

20 20 UNIQUE VALUE PROPOSITION IDEAL CLIENT RESOURCES AND CONTACTS CURRENT SITUATION ANALYSIS ATTRIBUTES BARRIER REMOVAL COUNTY LIFE-CYCLE MODEL MARKET APPROACH REGION COUNTRY INDUSTRY APPROACH CURRENT SITUATION ANALYSIS BARRIER REMOVAL TARGEY INDUSTRY STRUCTURE & MATURITY ENTRANCE PLAN CORE COMPETENCIES OF BUSINESS CURRENT CAPABILITIES ANALYSIS LEGAL CONTRACTUAL STRUCTURE COUNTRY READINESS IS THE BUSINESS READY & CAPABLE BARRIER REMOVAL ORG. ALIGNMT ACTIVATE STRATEGIC & TACTICAL PLAN PARTNERSHIP ALLIANCES ACTIVATE CYCLES-of-LEARNING RoI VALIDATION MAR/COM SALES READINESS ROADMAP © Copyright 2003 Property of J. Striplin Use with permission only MARKET SHARE CAPTURE REVENUES AND SUSTAINED PROFIT Property of J.M. Striplin Reuse with permission only

21 21 Your Future … Applied Business Intelligence Business Intelligence is the result of the assessment, transformation, blending and interpretation of: Firsthand experience, personal knowledge, market data- environment, supplier changes, client requirements, gaps, customer requirements, investors, current - future - forthcoming trends employee expectations, and organizational readiness. Applied Business Intelligence is the application of Over-the-Horizon Business Intelligence Allowing a business to create and apply Cycles- of-Learning that determine-direct the health, growth, transition and Future State of the business. …. Leadership Property of J.M. Striplin Reuse with permission only

22 22 Thank you for this honor. Your questions? Property of J.M. Striplin Reuse with permission only


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