1. Roles that span the Strategic, Tactical and Operational horizons

2. New Market Supply Chain Import Model Supply Chain compo nents Manu facturing Profit ability

3.  Customer development  Product Adaptation  Marketing  Sales  Profitability considerations  Price positioning  Cost structure  Currency effects  Supply Chain Components  Demand Planning/Forecasting  Inventory levels and management  Demand management  Logistics Import model – exploration and putting down roots

4.  Transfer Pricing impact on  Customs duties  Income taxes  Profitability considerations  Price positioning  Supply Chain Components  Inventory levels and management  Logistics Import model – exploration and putting down roots

5. The impact of Transfer Pricing Exporting country Price to Hub versus Price in local market Hub Re-invoicing considerations Importing Country Customs Income Tax Customs prefers highest invoice price. Income Tax prefers highest profits.

6.  Inventory and its management  Length of supply pipeline  The importance of Accounts Receivables  Profitability considerations  Price positioning  Cost structure  Supply Chain Components  Inventory levels and management Import model – exploration and putting down roots

7. Per Unit Financials: Price = 100 Cost = 50 For 100 units, the value of A/R = 10000 (30 day terms) Inventory = 5000 1 month of A/R (100 units) consumes the same working capital as 2 months of Inventory (200 units) Thinking of Inventory in terms or working capital (instead of units) can change your perspective on Inventory levels and help Sales. Especially if you can encourage them to reduce payment terms so as to leverage working capital in their favor. The importance of Accounts Receivables

8.  Talent Development  Short vs Long term approaches  Signaling the market  Profitability considerations  Cost structure  Supply Chain Components Import model – exploration and putting down roots

9.  Nature of Establishment  Importer  Company Office  JV  Profitability considerations  Price positioning  Cost structure  Currency effects  Supply Chain Components  Demand Planning/Forecasting  Inventory levels and management  Demand management  Logistics Import model – exploration and putting down roots

10. New Market Supply Chain Import Model Supply Chain compo nents Manu facturing Profit ability

11.  Site selection and development  Scale  For Local market only  For Local market and for Export  Construction  Facing the first challenges to Company values  Establishing relationships with the Community  Profitability considerations  Price positioning  Cost structure  Currency effects  Supply Chain Components  Capacity Planning  Demand Planning/Forecasting  Inventory levels and management  Demand management  Logistics Manufacturing – becoming a local player

12.  Manufacturing equipment sourcing  Local  Import  Establishing relationships and contributing to the local economy  Profitability considerations  Cost structure  Currency effects  Supply Chain Components  Capacity Planning  Logistics Manufacturing – becoming a local player

13.  Talent Development  Learning from previous experience  Short vs Long term approaches  Expressing confidence in the market  Profitability considerations  Cost structure  Supply Chain Components Manufacturing – becoming a local player

14.  Plant start up/ramp up  Meeting Company standards and expectations  Safety  Quality  Productivity  Meeting market expectations  Upholding Brand image  Profitability considerations  Price positioning  Cost structure  Supply Chain Components  Capacity Planning  Demand Planning/Forecasting  Inventory levels and management  Demand management  Logistics Manufacturing – becoming a local player

15.  Raw Materials supply  Purchasing or Procurement  Profitability considerations  Price positioning  Cost structure  Supply Chain Components  Capacity Planning  Demand Planning/Forecasting  Inventory levels and management  Demand management  Logistics Manufacturing – becoming a local player

16.  Sourcing Substitution  Refocussing the supply chain  Local supply - autonomy  Export supply – integrating into the global supply chain  Profitability considerations  Price positioning  Cost structure  Currency effects  Supply Chain Components  Capacity Planning  Demand Planning/Forecasting  Inventory levels and management  Demand management  Logistics Manufacturing – becoming a local player

17. New Market Supply Chain Import Model Supply Chain compo nents Manu facturing Profit ability

18. Roles that span the Strategic, Tactical and Operational horizons Thank you Questions?

20. USA France China India Demography

21. Economic Development (1965-2004); Share of Industry in GDP Source: IMF Report on the Boom in Non Commodity prices Industrialization

22.  Institutional Quality measured by six World Bank governance indicators (political stability, government efficiency, corruption, etc)  Institutional Quality indifferent for growth to $12000 per capita  Example: Soviet Union collapsed as incomes reached $12000 ref: Fatas, Mihov, Insead Governance