Export

In order to be successful in exporting one must fully research its markets.

Always sell as close to the market as possible. The fewer intermediaries one has the better, because every intermediary needs some percentage for his share in his business, which means less profit for the exporter and higher prices for the customer. All goods for export must be efficiently produced. They must be produced with due regard to the needs of export markets. It is no use trying to sell windows which open outwards in a country where, traditionally, windows open inwards.

Sell Experience: If a person cannot easily export his goods, may be he can sell his experience. Alternatively, he can concentrate on supplying goods and materials to exporters' who already have established an export trade. He can concentrate on making what are termed 'own brand' products, much demanded by buyers in overseas markets which have the manufacturing know-how or facilities.

Selling in Export: In today's competitive world, everyone has to be sold. The customer always has a choice of suppliers. Selling is an honorable profession, and you have to be an expert salesman.

On-Time Deliveries: Late deliveries are not always an exporters fault. Dock strikes, go-slows, etc. occur almost everywhere in the world. If one enters into export for the first time, he must ensure of fast and efficient delivery of the promised consignment.

Communication: Communication internal and external must be comprehensive and immediate. Good communication is vital in export. When you are in doubt, pick up the phone or email for immediate clarification.

Testing Product: The risk of failure in export markets can be minimized by intelligent use of research. Before committing to a large-scale operation overseas, try out on a small scale. Use the a sample test, and any mistakes can then be corrected without much harm having been done. While the test campaign may appear to cost more initially, remember that some of the cost will be repaid by sales, so that test marketing often turns out to be cheaper.

Approach: If possible some indication of the attitudes towards the product should be established, like any sales operation. Even if the product is successful, to obtain reactions from the customer.

Setting up an appropriate business organization

The first and the foremost question you as a prospective exporter has to decide is about the kind of business organisation needed for the purpose. You have to take a crucial decision as to whether a business will be run as a sole proprietary concern or a partnership firm or a company. The proper selection of organisation will depend upon

• Your ability to raise finance
• Your capacity to bear the risk
• Your desire to exercise control over the business
• Nature of regulatory framework applicable to you

If the size of the business is small, it would be advantageous to form a sole proprietary business organisation. It can be set up easily without much expenses and legal formalities. It is subject to only a few governmental regulations. However, the biggest disadvantage of sole proprietary business is limited liability to raise funds which restricts its growth. Besides, the owner has unlimited personal liability. In order to avoid this disadvantage, it is advisable to form a partnership firm. The partnership firm can also be set up with ease and economy. Business can take benefit of the varied experiences and expertise of the partners. The liability of the partner though joint and several, is practically distributed amongst the various partners, despite the fact that the personal liability of the partner is unlimited. The major disadvantage of partnership form of business organisation is that conflict amongst the partners is a potential threat to the business. It will not be out of place to mention here that partnership firms are governed by the Indian Partnership Act,1932 and, therefore they should be form within the parameters laid down by the Act.

Management Story

 One young academically excellent person went to apply for a managerial position in a big company.

He passed the first interview, the director did the last interview, made the last decision.

The director discovered from the CV that the youth's academic achievements were excellent all the way, from the secondary school until the postgraduate research, never had a year when he did not score.

The director asked, "Did you obtain any scholarships in school?" the youth answered "none".

The director asked, " Was it your father who paid for your school fees?" The youth answered, "My father passed away when I was one year old, it was my mother who paid for my school fees.

The director asked, " Where did your mother work?" The youth answered, "My mother worked as clothes cleaner. The director requested the youth to show his hands. The youth showed a pair of hands that were smooth and perfect.

The director asked, " Have you ever helped your mother wash the clothes before?" The youth answered, "Never, my mother always wanted me to study and read more books. Furthermore, my mother can wash clothes faster than me.

The director said, "I have a request. When you go back today, go and clean your mother's hands, and then see me tomorrow morning.*

The youth felt that his chance of landing the job was high. When he went back, he happily requested his mother to let him clean her hands. His mother felt strange, happy but with mixed feelings, she showed her hands to the kid.

The youth cleaned his mother's hands slowly. His tear fell as he did that. It was the first time he noticed that his mother's hands were so wrinkled, and there were so many bruises in her hands. Some bruises were so painful that his mother shivered when they were cleaned with water.

This was the first time the youth realized that it was this pair of hands that washed the clothes everyday to enable him to pay the school fee. The bruises in the mother's hands were the price that the mother had to pay for his graduation, academic excellence and his future.

After finishing the cleaning of his mother hands, the youth quietly washed all the remaining clothes for his mother.

That night, mother and son talked for a very long time.

Next morning, the youth went to the director's office.

The Director noticed the tears in the youth's eyes, asked: " Can you tell me what have you done and learned yesterday in your house?"

The youth answered, " I cleaned my mother's hand, and also finished cleaning all the remaining clothes'

The Director asked, " please tell me your feelings."

The youth said, Number 1, I know now what is appreciation. Without my mother, there would not the successful me today. Number 2, by working together and helping my mother, only I now realize how difficult and tough it is to get something done. Number 3, I have come to appreciate the importance and value of family relationship.

The director said, " This is what I am looking for to be my manager.
I want to recruit a person who can appreciate the help of others, a person who knows the sufferings of others to get things done, and a person who would not put money as his only goal in life. You are hired.

Later on, this young person worked very hard, and received the respect of his subordinates. Every employee worked diligently and as a team. The company's performance improved tremendously.

brain teaser1

 1. What large India retail chain proudly describes itself as 'The Family Store' in its advertisements?

2.Everyone has heard of the catchphrase "Intel Inside".

                                                         But who authored a book entitled "Inside Intel"?

3. What brand of 'cold cream', also available in India, derives its name from a Latin word meaning 'snow white'?

4. Uncle Pai is associated with which once roaringly successful publishers of children’s literature?

5. With what cigarette brand (now gone up in smoke, I'm afraid), would you associate the once ubiquitous slogan "For Men of Action-- Satisfaction"?

6. What do you call the style of selling where the bid price goes down progressively until the deal is closed?

7. With which Management Guru of Indian Origin would you most associate the phrase "Core Competence"?

8. What is the popular (though not available in India) low calorie soft drink produced by Coca Cola, having a three letter name?

9. What expensive and legendary brand of cars is supposedly named after the founder of Dertroit - the car manufacturing capital of the world?

10. Which company started by Jim Clark has its headquarters at 'Mountain View'?

 

 ........................

 

........................... .................

................................................................

.....................................................................................

....................................................................................................

.................................................................................................................

.......................................................................................

 

Answers:

Ans1.: Pantaloons
Ans.2: Tim Jackson
Ans.3: Nivea
Ans 4: Amar Chitra Katha
Ans.5: Scissors
Ans.6: Dutch Auction

Ans.7: C. K. Prahalad

Ans.8: Tab
Ans.9: Cadillac

Ans.10: Netscape

 

Get your brain cells ticking....

Some questions to test your GK....


1) This company was called Lutsuko and later changed its name to something that literally means 'to lose money'. Which one?
a) L' Oreal
b) Sony
c) Matsushita
d) Honda

2) Which car in Spanish means 'Charming'?

a) Matiz
b) Santro
c) Ikon
d) Corsa

3) Which international brand had an ad campaign - 'Tomorrow is mine' and had signed Rahul Dravid for the campaign?

a) Reebok
b) Nike
c) Pepsi
d) Puma

4) This organisation has 1356 members and has the ad-line "the world put stock on us". Which organisation?

a) NASDAQ
b) LSE
c) NYSE
d) BSE

5) Of whom did Shahrukh Khan once say that 'our figures are similar'?

a) Pierce Brosnan
b) Roger Moore
c) Sean Connery
d) Cindy Crawford

 Happy Thinking......
 ...........................................................
.....................................................................

..........................................................................
...............................................................................
.......................................................................................
..............................................................................................
.........................................................................................................

  
Answer key:
1) (B) Sony, it's name was a tongue twister to many and had to be ultimately changed.
2) (A) Matiz
3)(A) Reebok
4)(C) NYSE
5)(D) Cindy Crawford, in fact, both Pierce Brosnan and Cindy Crawford model for Omega watches.

IB - Prospects

International Business has tremendous opportunities...

The beverages you drink might be produced in India, but with the collaboration of a USA company. The tea you drink may have been prepared from the tea powder produced in Sri Lanka. The perfume you apply might have been produced in France. The television you watch might have been produced with the Japanese technology. The shoe you wear might have been produced in Taiwan, but re marketed by an Italian company.

Most of us have the experience of browsing Internet and visiting different web sites, knowing the products and services offered by various companies across the globe. Some of us might have the experience of 'even ordering and buying the products through Internet. This process gives us the opportunity of transacting in the international business arena without visiting or knowing the various countries and companies across the globe.

Thus, international business is the process of focusing on the resources of the globe and objectives of the organizations on global business opportunities and threats.

The multinational companies which were producing the products in their home countries and marketing them in various foreign countries before 1980s, started locating their plants and other manufacturing facilities in foreign/host countries. Later, they started producing in one foreign country and marketing in other foreign countries.

For example, Uni Lever established its subsidiary company in India, i.e., Hindustan Lever Limited (HLL). HLL produces its products in India and markets them in Bangladesh, Sri Lanka, and Nepal etc. Thus, the scope of the international trade is expanded into international marketing and international marketing is expanded into international business.

Some  of you have been asking me questions as to how to link HR with IB,given that you have opted for dual specialization.

HR is a field that is applicable across industries and geographies. So, all the issues of HR will be applicable even in the international business context. There may be a few additional areas such as issues of expats (coming in to India) and specific HR issues for those being sent as expats even though they fall under the regular HR issues. The environment within which international business is carried out is increasingly competitive.

• The technological environment is such that technology supremacy is fleeting and since it does not last long - cannot be considered a strong advantage of a company.
• The economic environment is effected by too many uncontrollable factors which means a stable economic situation is less certain. The economy can be effected negatively by things which large companies and federal governments have no control over.
• The political environment responds to the socio-cultural environment - which in many countries, is undergoing the stresses of large immigration movements and cultural and religious frictions. Very few regions of the world are free of conflict so no place has a distinctively advantageous political environment
• The geographic environment, long affected by rampant pollution, deforestation, greenhouses gases from autos and factories, etc has negatively affected business and agricultural productivity.

Global HR Challenges

·         Things that make it difficult for companies to manage Human Resources situations in other countries.

·              o Compensation varies
     o Labour Laws
     o Social-Cultural Environment-"Managing Diversity"

There is very bright future of MBA -International Business with HR specialization.

Most of the organizations that deal with overseas clients are suffering from multiple HR issues because employees are not used to working abroad, cultural differences, behavior guidance, family vs work life balance, and above all attrition. HR managers in such organizations are learning from mistakes but realizing the need for formal education in this sector.

Persons with IB & HR specialization can be engaged in Customer Relationship Management (CRM).

Consultancy is one of the most sought after and remunerative career for international business professionals. An international business consultant is responsible for providing relevant and up - to - date information about various aspects of business development and market information for international companies.

The international business consultant conveys information about foreign business investments, opportunities, competitive companies and even information about business practices and legal implications of owning a business in another country. Risk analysis and business analysis based on research is also a part of responsibility to international business consultant.

I believe there is no need to draw up a detailed link of IB with Marketing and Finance specializations ( since it is quite obvious even from the course taught)

So happy Job Hunting :)

Interview Tips(contd)

Let us now break up the interview as follows from the interviewee's point of view.

1. Content of the job talk:
1. Keep it simple - try to present only the key points and make sure the audience is very clear on what those points are.
2. Be prepared for likely questions - have colleagues and mentors ask the hardest questions they can think of.
3. "Know your vulnerabilities." Make sure you know as much as possible but be ready to admit that you don't know about certain things.
4. "Plant" questions that you know you are prepared to answer.
5. Try to demonstrates that you have thought of, and think about, alternative arguments and know how to deal with them.
2. Format of the job talk:
1. Be prepared .
2. Practice enough so that you exude confidence about your opinion and at the same time that you do not appear defensive.
3. Never exceed your time limit, and try to come in under it. Nobody has ever been criticized for being too brief!
4. Use simple language, avoid jargon
3. Answering questions during the job talk:
1.  It is ok to take time to process the question
2. Make sure you are prepared for the hardest questions possible and practice being "under attack" to make sure you don't get flustered
3. Have some "prepared" responses to questions that you know you won't know how to answer.
4. Have some standard phrases  that allow you to respond positively to aggressive questioners, e.g., "That's a good question that I have been thinking about recently," etc , to help you buy time to think about the question.
5. Remember to give short answers that directly answer the question. Don't go on too long.
6. Don't interrupt or talk over people. Always make sure you leave plenty of space for others to talk.
7. Always answer the actual question asked, regardless of the context of the question.
8. If you become flustered during questioning, take a deep breath, or whatever you need to do to regain your composure fully but quickly.
4. Know the institution you are applying to, the criteria they will use in the hire, and the process they will use in making a choice.
5. Demonstrate that you would be a good colleague.
6. Demonstrate a sincere interest in the field you are applying for.
7. Do not give any person any reason to think poorly of you. Do not "badmouth" any of the people you meet to others.
8. Be well groomed.
9. Be before time for the interview.
10. Carry all the documents needed in a professional file/ folder, properly sorted ,so that you don't have to rummage through it.
11.  Thank the interviewer before leaving the room for spending his valuable time with you.

Send a thank you note after 2-3 days of your interview and just portray how professional and well behaved you are. This will definitely give a positive approach towards your character and behavior to the employer.

Follow some of the other tips in answering some common interview questions apart from these and come out with bright colors.

Interview FAQs

With our syllabus having been covered, I thought this is a right time to talk a bit about interviews.

Today I will just list some questions that are commonly asked during interviews.

SAMPLE INTERVIEW QUESTIONS

How would you describe yourself/tell me about yourself? 

/Tell us what do should know about you?

Why do you want to work for this company? Tell us what you know about our company?

Why do you think you qualify to work for us?

 /Why do you think you are important to the organization and Why should we hire you?

Where is your industry heading in the next five years?

Where do you see yourself ten years from now?

What are your main strengths and weaknesses?

 /What abilities do you possess that would make you a contributing member of this organization?

What was your most interesting/ least interesting assignment?

Have you established any long-range goals and objectives?

When and why did you establish these goals? How are you preparing yourself to

achieve them?

What additional subjects, apart from your area of specialization, would you feel 

competent to perform and at what level?

What are your plans for future improvement of professional skills?

Why did you choose the Management Profession of IB/HR/ Marketing/ Finance?

What factors are most important to you in a job?

Do you have a geographical preference? Why?

Describe your most positive/rewarding experience?

Describe your most negative/trying experience?

Why did you select to study at your particular institute?

In what way can you add value to the role?

What are your greatest concerns about your first year with our organization?

Do you have any direct sales experience?

What are your organizational capabilities? Tell us something about your interpersonal 
skills and presentation  abilities?

What do you seek for in a job?

How long you would stay with us?

What is the role of the Manager in an organization?

What principles can one use to motivate people?

What is the most exciting thing happening in the area of business today?

Describe the relationship that should exist between a manager and subordinates?

Tell me about your views on Performance Management? 

How would you resolve a conflict between subordinates, superiors, and yourself?

Describe a situation in which you encountered a problem and tell us how you dealt with it.

Describe a project on which you worked which had a very short deadline.

How did you meet that deadline?

Describe a situation which you considered stressful. What role did you play?

Describe how you dealt with the situation. 

What will you prefer a better work environment or better salary package?

How do you spend your time outside of work? What activities do you enjoy most and why?

Describe a situation where you have been in a position of leading a group in those activities.

What is the last book you read? What did you think of it?

What is your favorite sport? What aspect of it appeals to you?

 What have you done that you are proud of?

Who are your heroes? Why?

What do you do with your leisure or vacation time? What special interests do you have?

If you go through the questions carefully, you can see that  they can be broadly categorized

 into few categories like " tell me something about yourself"," why we should hire you", "what 

are your career goals"," how would you handle a challenging experience"," how you can handle 

pressure" ," what are your key strengths" etc.

In the next post I would try to address how to handle such questions.