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Managing Growth and Expansion into Global Markets

Book Description

Company executives in every field are recognizing the critical importance of entering into the global economy. As transportation and logistics companies follow their clients’ expansion into these international markets, they must be able to service their clients’ supply chain needs in new economies and turbulent markets.

Managing Growth and Expansion into Global Markets
addresses the unique logistical, transportation, and distribution issues surrounding growth and expansion into global markets. It supplies a full overview of contemporary management assessment tools, to provide an understanding of exactly what it takes to enter foreign markets and avoid common pitfalls.

Distilling the author’s decades of experience in global supply chain management and international business, this book is ideal for those looking to grow and develop their global supply chains.

The book details the benefits and drawbacks of both organic growth and merger and acquisitions into global markets. It illustrates the most common types of problems that occur during mergers and acquisitions and describes exactly what you can expect during the transition period.

Explaining why some organizations transition new business units successfully while others struggle, this book will help you properly assess your best options to grow your organization and expand your supply chain capabilities.

The book examines the array of legal and regulatory implications that you need to review, understand, and bring into your decision-making process. It also provides specific answers, strategies, and a best-practice outline that you can follow.

A must-read for anyone involved with global growth and expansion in the supply chain arena, this book is also an ideal tutorial to help students and business-school attendees gain practical insights into global supply chain issues.

Table of Contents

  1. Prologue
  2. Acknowledgments
  3. Author
    1. Apex Global Supply Chain Management
  4. Chapter 1 - Understanding the Business Model for Growth and Expansion on a Global Basis
    1. The Case for Going Global
      1. Domestic vs. International
        1. Political
        2. Economic
        3. Demographic
        4. Physical
        5. Cultural and Language
        6. Legal
        7. Compliance
      2. Margins
      3. Meeting Aggressive Growth Targets
      4. Protection from Competition
      5. Diversification
      6. Security
      7. Access to Local Market Benefits and Value Added
      8. Creating a “Panache”
      9. Going Public
      10. Selling Strategy
  5. Chapter 2 - Unique Challenges of Supply- Chain, Transportation, and Logistics Companies in Merger and Acquisition and Growth Strategies
    1. Define the Global Supply Chain
      1. Domestic Supply-Chain Parties
      2. International Supply-Chain Parties
    2. Landed Cost Modeling
      1. Why Do Landed Cost Modeling?
        1. Creates the Financial Argument for Overseas Sourcing as a Strategic Option in Choosing Suppliers and Vendors outside the Country of Destination
      2. Summary of Conclusions
        1. Determines the Margins of Opportunity
        2. Provides Information Flow and Intelligence That Allows Better Decision Making in the Various Options We Have in How the Global Supply Chain Operates and Ultimately Performs
  6. Chapter 3 - Organic Growth versus Merger and Acquisition
    1. Organic Growth
      1. Lower Costs
      2. Relationship Driven
      3. Unique Services
      4. Controlled or Protected Capabilities
      5. Hiring Key Personnel
      6. Forming Strategic Partnerships
      7. Aligning with Key Relationships
    2. What the Corporate Icons Have to Say
    3. As Reported by Pricewaterhousecoopers in August 2014
    4. Plan Early, Plan Realistically
    5. Supply-Chain Checklist for M&A Success
  7. Chapter 4 - Strategic Planning
    1. The Strategic Planning Process
      1. Identifying Stakeholders and Leadership
      2. Setting Deliverables
        1. Have Reasonable Expectations
        2. Reach Far and Beyond
        3. Tap into Creative Talents
        4. Maximize Use of Resources and Capabilities
        5. Be Both Short and Long Term
        6. Be Comprehensive
      3. Alignment of Goals and Expectations
      4. Managing a Strengths, Weakness, Opportunities, and Threats Analysis
      5. Establishment of Timelines and Action Plans
      6. Cost and Return-on-Investment Analyses
      7. Senior Management Buy-In
      8. Initial Salvos
      9. Implementation
      10. Problem Anticipation and Proactive Mitigation
      11. Tweaking Period
      12. Closure
  8. Chapter 5 - Management Assessment Tools
    1. Overview
    2. Tools and Resource Options
      1. Industry Trade Publications
      2. Centers of Influence
      3. Consultants
      4. Merger and Acquisition Leading Companies
      5. Financial Reports
      6. Industry Associations
      7. Particular Conferences
      8. Networking
  9. Chapter 6 - Anticipated Merger and Acquisition Problems
    1. Merger and Acquisition’s Likely Sources of Problems
      1. Unrealistic Expectations
      2. Not Engaging All Key Personnel
      3. No Specific Transition Strategy
      4. The Financial Side Not Holding Up
  10. Chapter 7 - Problem Resolution Strategies
    1. The Ten-Step Process for Problem Resolution
      1. Quick Assessment
      2. Stopping the Bleeding
      3. Establishing the Stakeholders
      4. Better Assessment
      5. Responsible and Timely Communications
      6. Creating Strategy, Tactics, and Action Plan
        1. Strategy
        2. Tactics
        3. Action Plan
      7. Updates and Status Reports
      8. Tweaking
      9. Summary and Closure
      10. Follow-Up
  11. Chapter 8 - Transition Management
    1. THE IMPORTANCE OF A WELL- THOUGHT- OUT TRANSITION PLAN
      1. No Transition Plan Exists
      2. The Plan That Existed Was neither Robust nor Comprehensive
      3. Transition Issues Were Handled with Poor Timing
      4. The Transition Process Lacked Leadership and/or Ownership
      5. The Transition Plan Did Not Create Enough Anticipation and/or Expectation of Potential Problems
        1. Resistance from Staff
        2. Technology Interface
        3. Human Resource Differences
        4. Clients’ Reactions
        5. Vendors’ and Suppliers’ Reactions
        6. Financials Not Working
    2. THE TRANSITION MANAGEMENT PROCESS
  12. Chapter 9 - Legal and Regulatory Considerations
    1. OVERVIEW
      1. The 9/11 Event
    2. U.S. STATUTES AND REGULATIONS GOVERNING EXPORT SHIPPING AND TRADE
      1. Introduction
      2. The International Shipping Laws of the United States
        1. The Carriage of Goods by Sea Act
        2. The Warsaw and Montreal Conventions
        3. U.S. Export Trade Controls
  13. Chapter 10 - Trade-Compliance Issues in Global Expansion and Mergers and Acquisitions Activities
    1. TRADE COMPLIANCE
    2. EXPORT TRADE COMPLIANCE BASICS
      1. Export Management Compliance Program
        1. Senior Management Commitment
        2. Identification of Risks in the Current Export Program
        3. Training and Awareness
        4. Screening of Business Partners, Customers, Financial Institutions, and Supply-Chain Partners
        5. Record-Keeping Requirements
        6. Periodic Auditing and Monitoring
        7. System for Reporting Violations and Handling Compliance Issues
        8. System for Implementing Corrective Actions
        9. Partnering with Knowledgeable and Compliant Service Providers
      2. Additional Note for Those Companies Engaged in Exports under the International Traffic in Arms
    3. SUCCESSOR LIABILITY AND EXPORT VIOLATIONS
    4. IMPORT TRADE COMPLIANCE BASICS
      1. Import Compliance Management Program
        1. Corporate Structure
        2. Invoices
        3. Valuation
        4. Harmonized Tariff Classification
        5. Country of Origin
        6. Record Keeping
        7. Internal Controls and Supervision
    5. SUCCESSOR LIABILITY AND IMPORT VIOLATIONS
    6. CORE ELEMENTS OF AN EFFECTIVE EXPORT MANAGEMENT AND COMPLIANCE PROGRAM
    7. FOCUSED ASSESSMENT PRE-ASSESSMENT SURVEY QUESTIONNAIRE
  14. Chapter 11 - Best Practices in Global Expansion
    1. Overview
  15. Appendices
    1. Appendix A: Customs-Trade Partnership against Terrorism Overview
      1. Against Terrorism
        1. A Growing Partnership
        2. Extending the Zone of U.S. Border Security
        3. How the Partnership Works
        4. An Emerging Focus: Mutual Recognition Arrangements
    2. Appendix B: Harmonized Tariff Schedule of the United States
    3. Appendix C: Export Management and Compliance Program. Audit Module: Self-Assessment Tool
      1. Introduction
      2. Methodology
      3. PRE-AUDIT CHECKLIST
      4. POST-AUDIT CHECKLIST
    4. Appendix D: The Post-9/11 Global Framework for Cargo Security
      1. Introduction
      2. International Agreements on Cargo Security
    5. Appendix E: Trade Facilitation Principles under the World Trade Organization
    6. Appendix F: Cargo Security Provisions under the International Maritime Organization
      1. Air Cargo Security Measures
    7. Appendix G: United States–Based Cargo Security Policies
      1. Customs-Trade Partnership Against Terrorism (C-TPAT) and the Container Security Initiative (CSI)
      2. Post-9/11 Cargo Security Legislation
      3. Foreign-Country-Based Programs
        1. The European Union
        2. Sweden
        3. Australia
        4. New Zealand
        5. Canada’s Partners in Protection (PIP) Program
        6. Mutual Assistance Programs
        7. U.S.-EU Mutual Assistance Agreement
        8. Free and Secure (FAST) Program between the United States–Canada and the United States–Mexico
        9. Assessment of Post-9/11 Cargo Security Programs
      4. Conclusion
      5. References
    8. Appendix H: North American Free Trade Agreement
      1. Exports
      2. Imports
      3. Trade Balances
      4. Investment
    9. Appendix I: Terms of Trade
    10. Appendix J: Finding Qualified Buyers and Expanding into Overseas Markets
      1. U.S. Department of Commerce Worldwide Buyer-Finding Programs
        1. BuyUSA.gov Matchmaking
        2. Commercial News USA
        3. Featured U.S. Exporters
        4. Customized Market Research
        5. Gold Key Matching Service
        6. International Company Profiles
        7. International Partner Search
      2. Department of Commerce Trade-Event Programs
        1. International Buyer Program
        2. Trade Fair Certification Program
        3. Trade Missions
        4. International Catalog Exhibition Program
      3. U.S. Department of Agriculture, Foreign Agricultural Service
      4. U.S. Agency for International Development
      5. U.S. Trade and Development Agency
      6. State and Local Government Assistance
      7. Promotion in Publications and Other Media
    11. Appendix K: Example of Landed-Cost Modeling Standard Operating Procedure
      1. What Is Landed Cost?
      2. Landed Cost Definition
      3. Additional Considerations
        1. How to Calculate Landed Cost When Importing from China
        2. Import Customs Duties and Taxes
        3. Duty/Tax-Free Amount (De Minimis Value)
        4. Duty Calculation
      4. Conclusion
    12. Appendix L: Example of International Marketing Plan Workbook
      1. Planning
      2. Goal Setting
      3. Identifying Products with Export Potential
      4. Determining Your Company’s Export Readiness
        1. Pros and Cons of Market Expansion
      5. Your Business/Company Analysis
      6. Industry Analysis
      7. Developing Your Export Marketing Plan
      8. Marketing Your Product/Service
      9. Support Functions
      10. Marketing Strategy
        1. Step 1: Define the international pricing strategy.
      11. Sales Forecast
      12. Cost of Goods Sold
        1. Pass-Through Costs
      13. International Marketing Expenses
      14. Projected Income Statement—Years 1 to 5, All Markets
      15. Break-Even Analysis
      16. Timetable
      17. Action Plan
      18. Summary
      19. International Marketing Plan Summary
      20. Preparing An Export Price Quotation
        1. Cost Factors
        2. Other Factors to Consider
          1. Market Demand
          2. Competition
      21. Worksheets
        1. Export Programs and Services
      22. Export Costing Worksheet
        1. Quote Preparation