Business
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IBM416-Chapter18-GlobalManagement1.pptxGlobal Management
Chapters 18
Finding Intermediaries
Most serious aspect of Int’l Expansion
Passive –
Unsolicited Orders
Advertising or Domestic Trade Show
Active –
Pursue partnerships abroad
Attend Int’l Trade Shows
Int’l Management Structure
Geographic Structure
Centralized Control @
Corporate HQ
HQ
Territory 1
Europe
Distributor
Italy
Distributor
France
Territory 2
Asia
Distributor
Japan
Distributor
Indonesia
Int’l Management Structure
Product Structure
Central Control @
Corporate HQ
HQ
Product
Group A
Territory 1
Europe
Territory 2
Asia
Product
Group B
Territory 1
Europe
Territory 2
Asia
Territory 3
S. America
Distributor Agreements
Verbal Agreement
Letter of Intent/Agreement
Simple letter outlining terms of business relationships
Full Contract
Detailed and specific
Termination
Usually for lack of performance
Change in market situation
Change in ownership of partners
Motivating Distributors
Yearly Plan
Market Exclusivity
Pricing >>> Profits
Partnership
Open Communication
Monthly/Quarterly/Yearly Reports
Feed back
Managing Your Channels
Regular Visits to Country
Meet with Int’l Partners
Discuss Business Operations
Product Range
Inventory& Logistics Issues
Marketing Plans & Strategies
Sales & Customer Service Issues
Meet Local Customers
Conduct Market Research
Meet with Advertising Agencies, etc.
Meet Service Providers
Attend Trade Shows
Managing Your Channels
Invitation to Corporate Headquarters
Regional Sales Meetings
Training Sessions
Product Launch
Marketing Presentations
Managing Your Channels
Local Representative
Hire Local or Expat
Territory Responsibility
Can be paid commission or salary
Responsible for:
Sales
Marketing
Forecasting
Trade Shows
Less Regular Visits by Company Reps
Managing Your Channels
Subsidiary
Hire Sales & Marketing Team
Outsource with In Market Firm
Distribution
Accounting
Receiveables, etc.
