Business Revolution From Within
Corrections or additions?
This article by Gina Zechiel was prepared for the October 17, 2001 edition of
U.S. 1 Newspaper. All rights reserved.
Going Global: It’s a Jungle Out There
After a few years of successful and growing sales in
the U.S., you may think the whole world is waiting for your widget.
Big Question, which you may not have asked: Is your widget ready for
the world? And — much more relevant — are you?
While international markets beckon with the lure of huge numbers and
corresponding profits, pitfalls abound for the uninformed and the
unwary. Globalization notwithstanding, the international business
arena is still enormously differentiated and complex, and simple
ignorance
can easily lead to failure in foreign markets.
“Competition in international markets is much tougher than at
home,” says Keld Hansen, director of the Center for Global
Business at Mercer County Community College. “There are so many
different issues that businesses here in the U.S. are unaccustomed
to dealing with. For instance, foreign currency issues, different
requirements for products and services, legal structure, language
issues, and, most important of all, intercultural differences.”
Hansen, a Danish-born MBA from Harvard, was CEO at Dansk Design before
teaching international business courses at MCCC. He became director
of the Global Business Center when the college received a grant from
the U.S. Department of Education. The center’s goal is to increase
exports from New Jersey businesses.
On Friday, October 19, at 10 a.m., the center presents a free
workshop,
“Foreign Markets and Your Company’s Marketing Strategy,” at
the Mercer Community College’s James Kearny Campus, Second Floor,
at North Broad and Academy streets in Trenton. Call 609-586-4800,
ext. 3639.
Hansen points out that the United States market has only about 10
to 15 percent of the world’s consumers, but over a third of world
purchasing power. “By marketing worldwide, you can potentially
triple your sales,” he says. “The advantages are great —
larger sales, larger profits, and if you are a company investing in
a new product, your investment can be written off through sales to
the entire world. For example, if you develop drugs, a large part
of your cost is research and development, which can be distributed
over three times as large a base when worldwide.”
That’s the good news. For while opportunities certainly abound, there
may be huge adjustment issues for companies that are used to the
comparatively
smooth sailing in American waters.
Among other tools, the workshop will offer a questionnaire-style
“export
readiness test” to help companies understand what they may be
getting into when they consider international markets.
“The most important reason why international trade fails is
because
of intercultural problems,” says Hansen. “As a general rule,
international business is conducted on a much more personal level.
A foreign buyer may not want to do business with you if he feels you
are not on the same wavelength. For instance, if you go to Latin
America,
you must develop a personal relationship with the other party. You
and he must become friends, and accept each other, before you can
effectively start talking business.”
As adjustments to business-as-usual marketing strategy, Hansen
suggests
the following:
Make it personal. Meet early on, and face-to-face,preferablytop man to top man. Leave your assumptions about the right way todo business at home!Ally yourself with a person who is familiar with both your culture,your way of doing business, and the conditions of the country withwhich you are trying to export. He can “pilot” you throughthe shoals of intercultural differences. For instance, putting yourfeet up on your desk may be OK here, but displaying the undersideof your shoes is considered disrespectful by many Middle Easterncitizens.Protect your assets. Protect yourself financially againstforeign currency problems and risk. When shipping to foreigncountries,it’s a good idea to use letters of credit, guarantees from the ExportImport Bank, or a commercial credit insurer.Customize your product for foreign markets. Be willingto adjust your product or services to foreign markets. As a glaringexample, for many years new American cars were offered to Japan withthe driving wheel on the wrong side. Needless to say, sales weredisappointing.Even packaging must follow local requirements. Color choices may becrucial. Some colors may carry specific connotations that areinappropriatein the country with which you are doing business.While successful large companies have more resources foroverseasbusinesses, small businesses should by no means feel excluded.”Thereare big opportunities for small businesses overseas; they may justhave to think differently,” says Hansen. While a large companymight have a fully-owned subsidiary in key foreign markets, a smallcompany would simply have a representative. They would have to adjusttheir marketing and business strategy.”And while the main purpose of overseas markets is to increase salesand profits, another great advantage is possible. “If we areunawareof cultural differences, we cannot take them into account,” Hansenbelieves. “The more interaction between different countries, themore able we are to understand each other.”— Gina ZechielTop Of PageBusiness Revolution From WithinEvery business has room for improvement, but in manycases, the most likely place is often the most overlooked — theskills of your workforce.In principle it sounds simple enough. You encourage your employeesto acquire high level skills at whatever they do. But if you areunsurehow to actually go about it, the experts at the Center for Trainingand Development at Mercer County Community College will show you howto get results, every step of the way.”Imagine the level at which your company could compete, if everyemployee was trained to optimum performance in their field,” saysNunzio Cernero, the center’s director. “We expect it inthe military, and in law enforcement, but when we get into business,we don’t have the same expectations.”If improving workplace standards sounds difficult or expensive, thesolution need be neither. The New Jersey Department of Labor providessome $35 million a year in funding for workforce development programs,part of the state’s set of tools to hold businesses in New Jersey,and some of this money is funneled through MCCC.”We are looking for people who have training budgets, but maynot be aware of resources,” says Cernero. “Any manager cancall us at 609-586-4800, ext. 3279. If you are uncertain about yourrequirements, we will do an assessment. Once we identify the need,we will have some idea of funding availability, so it’s importantto contact us. There is almost always a way to obtain training, andwhile we try and use funding as much as possible, we know the mostaffordable routes if you have to pay. We work closely with the 19community colleges in New Jersey, and in that way we get high volumeto get costs way down.”Cernero will speak about workforce development at a free event onFriday, October 19, at 11 a.m. at MCCC’s Kearny Campus at Broad andAcademy streets in Trenton.”We are facilitators,” Cernero says. “We can put togethera team to teach just about anything. No matter how complex, we’llfind people to do it. Whatever you do in your business, there arepeople out there who can teach you to do it better. In order to becompetitive today, you need really effective employees to keep costsdown. For example, Microsoft says that most Office users only workwith 10 percent of the program, so if you can train your people touse Access, and work with databases, you immediately gain a greatproductivity tool to provide timely information so that managers knowwhat’s going on.”A 1963 graduate of NJIT, Cernero has an MBA from Southern IllinoisUniversity, and worked for New Jersey Bell before starting his ownsmall business consulting practice. While teaching at MCCC, he startedup the Small Business Development Center (now the Center for Trainingand Development).The MCCC program provides training and organization development tobusinesses large and small — and small can mean just that. Whileprimarily aimed at manufacturing and distribution companies, smallercompanies engaged in, for instance, metal work, insulation, chemicals,or printing, can form a consortium to apply for funds.”We do the coordinating, and prepare the fundingapplications,”says Cernero, “and this way money can be funneled down tocomparativelysmall businesses. For instance, with the printing business now goingfrom ink processes to electronic, operators may need training to takedigital input. A small manufacturer may need to be ISO certified(InternationalService Organization) and will need supervisory and computer training,so we put together a package for exactly what they need. It isdefinitelycustomized training.””For small businesses, grants can be hard to get,” Cernerosays. “It’s easy to hire a consultant for $5,000 a day, but weknow how to go through networks and obtain training from vendors atlower costs, because of volume.””Right now there’s a huge demand for basic skills in theworkplace,”he says. “Reading, math, and most especially, English as a secondlanguage. (ESOL). This is the area of highest demand. We can findfunds for any kind of business that needs training in these skills,and at all levels. The hospitality business is expanding dramatically,and in many service-oriented businesses a large proportion of theworkforce is non-English speaking.”Whatever the business, the process is the same — who needstraining,what do you want these people to do, and in which fields?”We have designed courses from satellite system designs, whichrequired orbital physics instruction, to a bus driving company, whichwas just as complex in its way — and everything in between. Safetytraining, OSHA training, aviation management training, you name it,we’ve been asked to teach it. We find the resources, the instructors,and facilitate the whole project, including contracts and costs.”The center currently advises between 75 to 100 employers a year, withabout 8,000 people in classes. “Most major employers use us forquality training, either funded or at affordable rates,” Cernerosays. “We have contracts for computer training on a monthly basis,or we can work up schedule for a one-year contract. It’s allcustomized.There are no off-the-shelf courses. We design each training programto fit the employer’s needs.”Add Cernero: “You need to be constantly gathering informationabout your business. The Internet is a phenomenal source, so are tradeassociations. And here at Mercer we are another great resource. Inorder to be competitive today, you must know how to develop youremployeesto be as effective as possible, and training skills are just asimportantas your computers. We spend money on machines, but not enough ontrainingpeople to get the very most out of them.””When you upgrade your employees, you upgrade your business.”— Gina ZechiPrevious StoryNext StoryCorrections or additions?This page is published by PrincetonInfo.com— the web site for U.S. 1 Newspaper in Princeton, New Jersey.
