Table 1 - Management Issues Involved in the Export Decision
- 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
- 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?
- 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
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
- Who will follow through after the planning is done?
- 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?
- 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:
Developing an Export Plan
Developing a Market Plan
Technology Licensing /Joint Ventures
Preparing Your Product for Export
International Legal Considerations
Shipping Your Product
Pricing, Quotations, and Terms
Methods of Payment
Financing Export Transactions