The book describes the strategies and processes of a multi-national US corporation applied in entering emerging markets around the globe. It details the structured approach, innovative ways and concerted efforts involved. Executives learned how to gain foothold in unknown territory and how to deal with complexity and diversity. This process was strongly supported by: sharing of learning, know-how and resources within the company and with the local partners, thus creating mutual added value, and, applying a four-phase template involving steps that are bold enough to ensure a strong market penetration and realistic enough to allow a business unit to follow. This is put in the context of external political economic and social conditions impacting the emerging markets and the difficult transformation to a free economy and liberal society.
Chapter 1 - Regions in Transition 1
Mainstreams and Driving Forces 1
Complexity and Diversity 1
The Legacy of the Past 2
The Impetus of Freedom 2
Transformation at Diverse Speeds and Intensity 3
New Alignments
Chapter 2 - The 21st Century Has Entered the Door 5
Globalization as the Driving Force 5
The Future Political Arena 5
The Economic Battlefield 6
Demographics and Resources: A Ticking Bomb 6
A Quantum Leap in Technology 7
Globalization 7
The Impact on Corporations 8
Can Emerging Markets Keep Pace? 8
Emerging Markets Come and Go 10
Which Are the Present Emerging Markets? 10
Cellular Communications in a Global World 10
Chapter 3 - An Unprecedented Market Scenario 15
The Early Outpost Years 15
A Powerful People Message 15
A Region an the Move 16
Through Thick and Thin 16
Through the Deep Valley of Reforms 17
Market "Exceleration" by a Total Systems Approach 21
The Need for a Plan 22
Applying the Team Approach to All Market Phases 22
Platforms for Steering Team Activities 23
The Four Phase Approach 24
Chapter 4 - The Exploration and Pre-Startup Phase 27
Laying the Foundations 27
Appointing a Champion 27
The Strategic Positioning Process 28
The Shared Office Concept 30
The Country Manager 31
The Business Development Manager 33
Other Forms of Country Leadership 33
Top Management Commitment 34
The Senior Executive Program (SEP) 34
Establishing Selection Criteria 35
Scenario Option Development 36
Country Prioritization 37
Country Exploration 38
The Desk Survey 38
The Field Survey 39
The Information Analysis 39
The Overview Matrix 39
Market Selection 40
Core Competencies 41
Strategic Planning Recommendation 43
The Beachhead Concept 44
A Scenario Planning Case 45
Doing Business in Latin America 46
Country Awareness Programs 48
Chapter 5 - The Startup Phase 51
Building Local Presence 51
Selecting a Legal Structure 51
Which Leadership Level Is Appropriate? 54
Designing the Organizational Structure 55
Company Registration 56
The Selection and Facilitation of Offices 57
Establishing a More Complex Operation 61
The Origin of Present Infrastructures 62
Staff Recruitment 62
The Corporate Support Functions 64
Orientation Training 64
Setting Up the Policies and Procedures 65
The Office Grand Opening 65
Building a Country Relations Network 66
The Asian Diasporas 67
The Hapsburg Dynasty 67
Involve Your Distributor 67
Chapter 6 - The Consolidation Phase 69
Upgrading the Local Presence 69
The Country Council 69
The Memorandum of Understanding 70
Human Resources Development 72
Organizational Integration 73
Chapter 7 - The Maintenance and Expansion Phase 75
Enlarging the Local Platform 75
Expanding the Organization 75
Upgrade Support Infrastructure 75
Adjust Policies and Procedures 76
Regionalize 76
Provide Job Enrichment 76
Re-integrate 76
The Effects of Unstable Markets 78
Ups and Downs in Latin America 78
The Long Walk in China 79
Chapter 8 - Added Value of Market Entry Strategies 83
The Strategic Fields 83
Leverage Our Strengths 84
Shift Resources into the Country 85
Enhance Premier Employer and Good Citizen Role 85
Promote Synergy and Corporate Identity 85
The Emerging Market Development Fund 86
The Tailwind of Aid Programs 87
Added Value Programs 87
How to Identify Possibilities for Added Value Programs 92
The New Dimension 93
Chapter 9 - Field Experiences in Virgin Markets 95
Gaining Footholds in the Market Place 95
Building Infrastructure in No Man's Land 95
Entrust Local Markets to Local People 96
Double Your Time Frame and Halve Your Expectations 97
Business Development Needs Creativity 98
We Are With You 99
Sales Are Strategic 100
Survival 101
Consumer Behaviour - Pure Psychology 101
A Defect 500 Miles Away 102
From Garage Assembly to Manufacturing Excellence 103
New Partnerships Through Local Sourcing 104
Uncut Diamonds: The R&D Potential 105
Chapter 10 - The Crucial Rote of Corporate Functions 111
Supporting the Local Business 111
Starting from a Zero Baseline 111
A Roll-Out Plan for Finance 112
Compliance in an Arbitrary Environment 114
How to Protect and Generate Intellectual Property 115
Communications in a Changing Environment 118
Chapter 11 - A New Challenge for Human Resources 123
The Initial Scenario 123
Ten Key HR Issues 125
Organization 126
Vision as a Premier Employer 127
Money 127
Security, Safety and Health 127
Management of Our Expatriates 130
Employee Welfare 131
Education: Asset or Shortfall? 131
Equal Employment Opportunities and Affirmative Action 132
Change Management 133
Cultural Diversity 135
The Bird in a Cage 136
Walk as You Talk 137
Chapter 12 - Looking Backward and Looking Forward 139
What Have We Done Right and Wrong? 139
Dedicated Resource 139
Business Migration 139
Added Value Strategy 140
Tuming Barriers into Opportunities 140
Mapping of Time Frames 142
The Appropriate Legal Form 142
Which Office Size? 142
Timing of Awareness Programs 143
The Critical Stand-Alone Period 143
When to Invest in Local Support 144
Up-Front Policies and Procedures 144
What Is the Conclusion? 144
No Blueprint for the Future 144
Many Events Are Unpredictable 144
Latin America in the New Millennium 145
From Old to New Europe 146
Growing the Growing Corporation 146
A Regional Update 148
Chapter 13 - Different Regions - One Mission 151
A Comprehensive Approach 151
El Dorado, a Key Initiative in Latin America 152
A Destiny Shared 155
Chapter 14 - The Price for Freedom and Prosperity 159
A Wake-Up Call 159
Appendix 163
A Business Plan 163
Process Flow Chart 166
Country Information Gathering 172
Regional Aid Programs 182
Regional Organizations and Institutions 185
About Motorola 187
About the Author 188