Exporting: Management Issues Involved in the Export Decision

Table 1 - Management Issues Involved in the Export Decision

Management Objectives	What are the company's reasons for pursuing export markets? Are they solid objectives (e.g., increasing sales volume or developing a broader, more stable customer base) or are they frivolous (e.g., the owner wants an excuse to travel)? How committed is top management to an export effort? Is exporting viewed as a quick fix for a slump in domestic sales? Will the company neglect its export customers if domestic sales pick up? What are management's expectations for the export effort? How quickly does management expect export operations to become self-sustaining? What level of return on investment is expected from the export program?
Experience	With what countries has business already been conducted, or from what countries have inquiries already been received? Which product lines are mentioned most often? Are any domestic customers buying the product for sale or shipment overseas? If so, to what countries? Is the trend of sales and inquiries up or down? Who are the main domestic and foreign competitors? What general and specific lessons have been learned from past export attempts or experiences?
Management and Personnel	What in-house international expertise does the firm have (international sales experience, language capabilities, etc.)? Who will be responsible for the export department's organization and staff? How much senior management time (a) should be allocated and (b) could be allocated? What organizational structure is required to ensure that export sales are adequately serviced? Who will follow through after the planning is done?
Production Capacity	How is the present capacity being used? Will filling export orders hurt domestic sales? What will be the cost of additional production? Are there fluctuations in the annual work load? When? Why? What minimum order quantity is required? What would be required to design and package products specifically for export?
Financial Capacity	What amount of capital can be committed to export production and marketing? What level of export department operating costs can be supported? How are the initial expenses of export efforts to be allocated? What other new development plans are in the works that may compete with export plans? By what date must an export effort pay for itself?

Back to Exporting

More about Exporting:
Introduction
Developing an Export Plan
Developing a Market Plan
Export Advice
Methods/Channels
Making Contacts
Technology Licensing /Joint Ventures
Preparing Your Product for Export
Service Exports
International Legal Considerations
Shipping Your Product
Pricing, Quotations, and Terms
Methods of Payment
Financing Export Transactions
Selling Overseas
After-sales Service