Key Management Decisions and Considerations

15.3 Key Management Decisions and Considerations

LEARNING OBJECTIVES

1. 
   Understand the organizational support that will be needed for exporting activities.
   
2. 
   Understand the need to select the best market to entry.
   
3. 
   Identify and describe each possible market entry strategy.
   
4. 
   Learn about the different approaches to getting paid.
   
5. 
   Appreciate the importance of business etiquette when traveling to visit customers.
   
6. 
   Understand the importance of an export plan.
   

Several important questions about the global venture should be answered before making any management decisions or considerations. ^[1] Less than satisfactory answers to these questions may put the global venture in jeopardy.

1. 
   Do the company’s reasons for pursuing export markets include solid objectives, such as increasing sales volume or developing a broader, more stable customer base, or are the reasons frivolous, such as the owner wants an excuse to travel?
   
2. 
   How committed is top management to the export effort? Is it viewed as a quick fix for a slump in domestic sales? Will the company neglect its export customers if domestic sales pick up?
   
3. 
   What are management’s expectations for the export effort? Will they expect export operations to become self-sustaining quickly? If so, how quickly?
   
4. 
   What level of return on investment is expected from the export project?