CHAPTER 3
Building a Plan: Fundamental Issues There is nothing more frightful than ignorance in action. – G O E T H E
that need to be considered before, during and in final review of your international business plan. They are relevant when you are determining the scope and basic components of the plan, as well as when analyzing and planning for the risks inherent in doing business globally. Remember that for every plan there is a critical reviewer, whether it is an investor, an outside board member, an independent consultant or a senior manager in your company who has asked you to prepare a business plan. For just such a person—and regardless of why you are making the plan—always address these fundamental issues.
THIS CHAPTER COVERS THE FUNDAMENTAL ISSUES
International Focus Although domestic and international business plans have many of the same components, there is a distinct difference: an international plan is built on the fundamental premise that a company is looking at two or more countries as targets for potential sales and/or functional activities. IDENTIFY THE GLOBAL FACTORS
Your plan will have an international focus only if you have identified the global aspects of your business. When preparing each section of the plan, be certain to ask the following questions: ■
Can the company’s products be adapted for use and sale in a foreign market? If so, which foreign markets?
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If there is potential foreign demand, have you done sufficient research to develop an appropriate marketing strategy in each target country?
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Has the company identified foreign partners that could assist in local manufacturing, operations and distribution?
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Does the company’s organizational structure include resources for scanning foreign markets for new opportunities?
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What additional resources do you need for your domestic-focused company to implement a global strategy (e.g., new managers, capital, foreign offices, etc.)? P L A N N O T E : As you write each section of the plan, ensure that you have considered
global opportunities, established specific goals and included steps for achieving them.
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