International Business Consulting Case Study
Bill Warner Tuesday, January 01, 2008
Interim International Executive
Situation: A large well established manufacturing company had expanded new sales operations in a large South American country. Since its establishment, the company was not getting the sales results they expected and their products were held up in customs for many weeks. The distribution agreements that were put in place were flawed with legal issues.
Engagement: Paladin and Associates was engaged to perform a complete assessment of the international operations, both in the US and in South America. They found many operational issues that were at the root cause of the company’s business failures:
- There was not a specific corporate executive in charge of international operations
- The budget for international operations was insufficient
- The marketing and sales plan was not integrated with the US strategy and supporting infrastructure
- They did not have in-country management in place
- The contracts with in-country distributors did not comply with local regulations and therefore were unenforceable
Paladin took over interim leadership of the international business, while the company proceeded to find someone to fill that position. A comprehensive international marketing and sales plan was established with a team of people that were assigned from within the company to the international expansion project. A financing plan was established and approved by management. In-country staffing was hired for marketing and sales and established as accountable for business results. With the new funding, marketing programs were put in place within the country and new distribution agreements were established.
Results: Within 120 days, sales started to substantially grow and within 180 days the company was on the sales track it had previously planned for. A new international executive was hired who continues to grow the international sales and is now expanding to two more countries.
Summary: The management of an international business has to be taken as seriously as any domestic business expansion. A fully supported and comprehensive business expansion strategy needs to be put in place and the right people have to be acquired to execute it. In addition, the international business operation has to be integrated in all the appropriate functional areas within the domestic company, including, marketing, sales, manufacturing and customer support.
Filed Under:
Bill Warner is the Managing Partner of Paladin and Associates, a business consulting firm in the Research Triangle Park area of central North Carolina, and is the Chairman of the Triangle Accredited Capital Forum, an angel investor network with over one hundred members throughout the southeast.
