Competing in a Global Economy: Understanding the Basics

Presented By Antoinette Vazquez International Business Consultant SCORE Chapter 219 3650 Colonial Blvd. – Suite 231 Fort Myers, FL 33966 (239)489-2935 E-Mail: tmsusa@aol.com Competing in a Global Economy:Understanding the Basics

Competing in a Global Economy:What Does It Mean? • If Some or All of Your Inputs are Imported • If Foreign Made Imports Are Eating Into Your Domestic Market Share • If You Ship Overseas In Response to Internet Requests • If Your Products are Being Indirectly Shipped to Other Countries By Your Distributors or Domestic Customers • If Your Brands, Trademarks, Designs, Logos, Domain Names or Other Intellectual Property Have Been Hijacked in Other Countries You ARE Participating in a Global Economy

Competing in a Global Economy:One Way to Level the Playing Field: EXPORT Expanding Sales Overseas Can… • Create New Sources of Revenue • Increase Global Market Share • Extend Product Life Cycles • Hedge Against Seasonal or Economic Downturns in Domestic Sales • Help Monitor Any Intellectual Property Rights Violations • Provide Access to Market Intelligence & Global Trends

Competing in a Global Economy: To Export or Not To Export? Think of Entering Foreign Markets as You Would Any Business Expansion Project. Doing Business Overseas Presents A New Set of Challenges: • There Are New Costs • There Are New Risks • Corporate Changes May Have to be Made To Answer the Question, Start With An Internal Review or Your Organization…

Competing in a Global Economy:An Internal Review: Sales & Marketing Does the Company Have Adequate Country Specific Market Information On… • The Political, Economic and Trade Environments • The Legal Framework For Doing Business In-Country • The 3 “D’s” of Marketing: Demand, Depth and Demographics • The Competition: Who Are the Principal Players? • Market Structure or Obstacles to Entry • Competitive Pricing & Terms • The Cost of Market Entry

Competing in a Global Economy:An Internal Review: Financial Resources • Does the Company Have Sufficient Financial Resources? For Example, What Is The Company’s Position With Respect To: • Net Worth? • Cash Reserves? • Cash Flow? • Aging of Receivables? • Credit Line Limit? • Does The Company’s Bank Handle International Transactions? If Not, Does It Have A Correspondent Relationship With One That Does?

Competing in a Global Economy:An Internal Review: Operations Are Existing Operations Adequate to Handle New Overseas Orders? Increased Sales May Require… • Labor Force Increases or Additional Shifts • New Training Programs • Product/Service Modifications to Meet Market Requirements • New Quality Control Procedures • New Machinery or Re-Tooling • New Packaging • New or Expanded Plant/Warehouse Facilities • Changes In Shipping and Distribution Practices

Competing in a Global Economy:An Internal Review: Management Is There an Executive or Management Level Person Responsible For The International Portfolio? • Does S/He Have Experience? How Much and What Kind? • If Lacking Experience, How Much Time Can S/He Dedicate to Gaining the Required Knowledge? • Does S/He Speak a Foreign Language? Which Language? How Fluent is S/He? • How Much Time Will S/He Commit to Managing the International Portfolio?

Competing in a Global Economy:The Corporate Commitment • Is There A Commitment From Top-Level Decision Makers? • Is the CEO on Board? • Does S/He Have the Support of Board Members, Partners, Stockholders or Other Key Decision Makers? • What Expectations Do the Decision Makers Have? Are They Realistic? • What Are Their Attitudes Towards People of Other Nations?

Competing in a Global Economy:The Good News… There are Numerous Resources Available to: • Finance Capital Investments for Expansion • Conduct Foreign Market Research • Identify New Opportunities • Provide Export Working Capital • Secure Payment on Foreign Receivables • Mitigate Many Risks Specifically…..

Competing in a Global Economy:Resources • Government Agencies, Federal, State & Local • NGO’s: SCORE, SBDC’s, Economic Development Organizations, Chambers of Commerce, etc. • Trade Associations • College and University Business Programs • The Private Sector: Service Providers, Your Peers, Your Customers and Members of Your Own Distribution Chain • Many Resources Are Free of Charge or Low Cost. Use Them. I Did.

Competing in a Global Economy:Conclusions • Some Businesses Should NOT Export Unless or Until They Are Ready To Take On The Challenges • For Others, Many Shortcomings Can Be Overcome IF Corporate Commitment Is Firm • If I Could Do It, Chances Are You Can Too.

Competing in a Global Economy: Your Speaker Antoinette Allegretti Vazquez has worked in International business for over 30 years, providing services to both U.S. public and private sector clients. Her expertise includes import, export, international credit and financing, foreign investment, market research and foreign office operations. Over the years she has assisted hundreds of companies to establish or expand their international markets, identify global opportunities and develop strategies for the future. Antoinette earned a Masters degree in Business Administration in 1987 and lived and worked in Mexico City from 1990 to 2005, guiding clients through historic political and economic changes in the hemisphere. Her Spanish language fluency and understanding of business cultures in the Americas were important factors in her clients’ successes.

Trade Management Services, Inc. was an international consulting and market research firm founded by Antoinette Allegretti Vazquez, headquartered in the U.S. with Latin American operations based in Mexico City. TMS was established initially in 1993 to promote the objectives of the North American Free Trade Agreement (NAFTA). Later, objectives were expanded to include other emerging markets throughout Latin America. After years of success and recognition TMS was dissolved in 2009.

Competing in a Global Economy: Understanding the Basics