User talk:MaHaPeMo

Disadvantages of Exporting:

For Small-and-Medium Enterprises (SME) with less than 250 employees, selling goods and services to foreign markets seems to be more difficult than serving the domestic market. The lack of knowledge for trade regulations, cultural differences, different languages and foreign-exchange situations as well as the strain of resources and staff interact like a block for exporting. Indeed there are some SME’s which are exporting, but nearly two-third of them sell in only one foreign market. The following assumption shows the main disadvantages:

• Financial Management Effort: To minimize the risk of exchange-rate fluctuation and transactions processes of export activity the financial management needs more capacity to cope the major effort • Customer Demand: International customers are demanding for more services form their vendor like installation and startup of equipment, maintenance or more delivery services. • Communication Technologies Improvement: The improvement of communication technologies in recent years enable the customer to interact with more suppliers while receiving more information and cheaper communications cost at the same time like 20 years ago. This leads to more transparency. The vendor is in duty to follow the real-time demand and to submit all transaction details. • Management failures: The management might tap in some of the organizational pitfalls, like poor selection of oversea agents or distributors or chaotic global organization. MAKING THE EXPORT DECISION

Once a company determines it has exportable products, it must still consider other factors,such as the following: •What does the company want to gain from exporting? •Is exporting consistent with other company goals? •What demands will exporting place on the company's key resources - management and personnel, production capacity, and finance - and how will these demands be met? •Are the expected benefits worth the costs, or would company resources be better used for developing new domestic business? Answers to these questions can help a company not only decide whether or not to export but also determine what methods of exporting should be initially used.  THE VALUE OF PLANNING

Many companies begin export activities randomly, without carefully screening markets or options for market entry. While these companies may or may not have a measure of success, they may overlook better export opportunities. In the event that early export efforts are unsuccessful because of poor planning, the company may even be misled into abandoning exporting altogether. Formulating an export strategy based on good information and proper assessment increases the chances that the best options will be chosen, that resources will be used effectively, and that efforts will consequently be carried through to completion. The purposes of the export plan are, first, to assemble facts, constraints, and goals and, second, to create an action statement that takes all of these into account. The statement includes specific objectives; it sets forth time schedules for implementation; and it marks milestones so that the degree of success can be measured and help motivate personnel. The first draft of the export plan may be quite short and simple, but it should become more detailed and complete as the planners learn more about exporting and their company's competitive position.

At least the following ten questions should ultimately be addressed:

1. What products are selected for export development? What modifications, if any, must be made to adapt them for overseas markets? 2. What countries are targeted for sales development? 3. In each country, what is the basic customer profile? What marketing and distribution channels should be used to reach customers? 4. What special challenges pertain to each market (competition, cultural differences, import controls, etc.), and what strategy will be used to address them? 5. How will the product's export sales price be determined? 6. What specific operational steps must be taken and when? 7. What will be the time frame for implementing each element of the plan? 8. What personnel and company resources will be dedicated to exporting? 9. What will be the cost in time and money for each element? 10. How will results be evaluated and used to modify the plan?

One key to developing a successful plan is the participation of all personnel who will be involved in the exporting process. All aspects of an export plan should be agreed upon by those who will ultimately execute them. A clearly written marketing strategy offers six immediate benefits:

1. Because written plans display their strengths and weaknesses more readily, they are of great help in formulating and polishing an export strategy. 2. Written plans are not as easily forgotten, overlooked, or ignored by those charged with executing them. If deviation from the original plan occurs, it is likely to be due to a deliberate choice to do so. 3. Written plans are easier to communicate to others and are less likely to be misunderstood. 4. Written plans allocate responsibilities and provide for an evaluation of results. 5. Written plans can be of help in seeking financing. They indicate to lenders a serious approach to the export venture. 6. Written plans give management a clear understanding of what will be required and thus help to ensure a commitment to exporting.

In fact, a written plan signals that the decision to export has already been made. This last advantage is especially noteworthy. Building an international business takes time; it is usually months, sometimes even several years, before an exporting company begins to see a return on its investment of time and money. By committing to the specifics of a written plan, top management can make sure that the firm will finish what it begins and that the hopes that prompted its export efforts will be fulfilled.

Speedy deletion nomination of Export strategy
A tag has been placed on Export strategy, requesting that it be speedily deleted from Wikipedia. This has been done under section G11 of the criteria for speedy deletion, because the page seems to be unambiguous advertising which only promotes a company, product, group, service or person and would need to be fundamentally rewritten in order to become an encyclopedia article. Please read the guidelines on spam as well as FAQ/Business for more information.

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