Opportunities, Trials and

Tribulations of Going Global

Product Camp September 17,

2011

Barbara M Fowler, JD, LL.M., CLU, ChFC

BMF Management Consulting LLc

bfowler@chiefoutsiders.com

2

Critical Factors To Consider1. Market Attractiveness

2. Political and Economic Stability

3. Employment Law

4. Consumer Protection Law

5. Financial Environment

6. Regulatory Environment

7. Competitive Situation

8. Labor Pool

9. Synergies/Obstacles

10.Ease of Implementation

3

Overall Recommendation

Country Snapshot—Selected Data (2011)

82 million0.04%

1.280.0 years41.3 years

26.6%

20% of workers99%

US $1,976 billion1.61%

9.8% overallUS $ 50,000

31st of 100 countries28th of 100 -Low

81st of 100 countries

4

Agnieska Bonanza

PopulationPopulation Growth (annual)

Fertility (births/woman)Life expectancy

Median Age% of Pop. under age 25

% Univ. Grad, Target Cities Literacy Rate

GDP (US$ basis)Inflation

UnemploymentAverage Income

Corruption IndexCountry Risk

Business Friendly Environment

88. million1.53%2.49

74 years23.8 years

54.0%

15% of people over 1592%

US $637 billion4.78%

9.8% overallUS$30,000

72nd of 100 countries68th of 100-Moderate to High

30th of 100 countries

Country Indexes1. CORRUPTION INDEX – This is an index that measures the

perceived corruption in the country in terms of bribes asked for and given, special deals made, integrity of business dealings, honesty of government officials and judges. With one being the best country and 100 the worst, Agnieska is at 31 and Bonanza is at 72.

2. COUNTRY RISK – The likelihood that the country could change their laws and that this change would adversely affect business (for example, the possibility of nationalization, political upheaval). Agnieska is at 28 and Bonanza is at 68.

3. BUSINESS FRIENDLY ENVIRONMENT - The laws of the country that affect business such as employment protection laws, corporate taxation, tariffs, ease of licensing, Agnieska is at 81 and Bonanza is at 30.

5

Agnieska

• A large, stable middle class

• Income taxes are high

• Government provides generous disability, unemployment and retirement subsidies

• Well established industries

• Economic growth slow in last 10 years

• The country is aging and the birth rate is low.

6

Bonanza• Used to very small upper class and a large

lower class

• Incomes are now growing rapidly

• Many people have entered the middle class.

• Many young, educated professionals starting families and the birth rate is high.

• Women leave work force when children are born

• Low government provided benefits

7

The Middle Class inBonanza is Hungry

8

Branding

In South America, you can use the same brand as you use in the United States for your product. However, in Europe the brand you have used is already in use and you need to rebrand. How do you think this will impact business?

9

Locations/ Benefits

10

In going to the country to set up operations, is it better to start with first class office space and compensation/benefit programs or is it better to start lower and work our way up as company grows?

The Decision Has Been Made

You have been asked to lead a team of five ex-pats to start the operation. The team is told that they will be in-country for approximately 18 to 24 months.

What are your concerns?

What about your family?

Will you accept this opportunity?

11

Early Issues Free Coffee

Broken Leg

Maternity Leave

University Classes

Marriage Leave

Company Money

Volunteer Activity

Lunches

12

Questions:

1. There are two final candidates for the CEO position. Both are good. One is especially well regarded for his people development skills but his English language skills are average at best. The other is highly regarded for her financial acumen and her English is excellent. How important are the language skills?

13

Questions:

2. You are interviewing a candidate for a Director position. In answer to several questions during the interview, the candidate starts by saying, “I talked to my psychologist about this” or “My psychologist and I discussed this.”

14

Questions

3. You are interviewing to hire the person to run your IT department. The recruiter tells you that most companies prefer people with “Type A” blood for this position. How do you respond?

15

Questions

4. You are driving with your child and are stopped by a policeman but do not understand why. Local custom is to give the policeman your license with a 20 dollar bill wrapped around it. You do not know the language but it is apparent the policeman is expecting this.

16

DecisionsWhat is the law?

What do your core values indicate you should consider? (worthy of trust, respect for each other, customer focused, winning)

What is the “common business practice”?

How will this impact your future decisions?

How will this affect your company globally?

17

Thank you! bfowler@chiefoutsiders.com