strategic options abc
TRANSCRIPT
Tackling the EU Market Belgium: your gateway
Going continentalWhy ?Strategic optionsPractical approach
Cultural aspects theory & relevanceClient relationshipsEmployee / Agent relationships
Business opportunities & market intelligence
BrusselsBridge-to-Growth
22/2/2010
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HE Doctor Rachel Aron
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Vision Vision (Prof Stéphane Garelli)(Prof Stéphane Garelli)
Closed to open economyClosed to open economy Low cost countries >>> high qualityLow cost countries >>> high quality Technological convergenceTechnological convergence Competitiveness beyond the productCompetitiveness beyond the product
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More Visions More Visions (Prof Stéphane Garelli)(Prof Stéphane Garelli)
Reaction speed : evolutionary increase is not enough Quality is too important to leave it to the Q dept Outsourcing and networking : the extended
enterprise Workplace is not “in company”
Strategic considerationsStrategic considerations
Market penetration in MW is topping Foreign threats Part of “global” company strategy Reduce business to CORE activity >
territorial increase
International trade : WHY?International trade : WHY?
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Market Penetration in WMMarket Penetration in WM
Expansion costs related to local market share?Are you ready to discount the “home game”
advantage
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Foreign threatForeign threat
As a reaction on export ambitions of foreign colleagues
As part of a strategy to achieve territorial agreements from overseas principals
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Internationalisation has to fit in Internationalisation has to fit in the big picturethe big picture
Do you want to dump production capacity or is it part of your corporate strategy?
A once-only involvement or a profound commitment?
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Strategic optionsStrategic optionsfor your continental approachfor your continental approach
Find a Belgian / Continental importer Develop your own sales infrastructure Participation or acquisition Temporary joint venture
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Find a continental importerFind a continental importer
How important is it to stay close to the
end-user?
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Develop your own sales infrastructureDevelop your own sales infrastructure
Goals Budget management Back office support Sales management support Choice of company type
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Stay close to the end-user?Stay close to the end-user?
Commodity versus strong differentiated product
The internal organisation is not focused on the extension of an export department
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Sales representativesSales representatives
Term of notice or compensation same as employees
In addition special rules apply like the non-competition directive and reimbursement for bringing in new customers
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Your challenge:Your challenge:
Competitiveness becomes a different ball game Uncertainty is certain
The greatest risk you can take,
is not taking risk.
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Typical Business ModelTypical Business Model
Distribution Finance
Sales & MProduction
R & D
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Traditional European ModelTraditional European Model
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Centralising reactionCentralising reaction
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Networked CompanyNetworked Company Distribution Finance
Sales & MProduction
R & D
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CaseCase
invoice
order
paym
ent
delivery
finan
ce le
gal
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Extended enterprise modelExtended enterprise model
your field staff
1-6 field staff
You staff will be ableto focus on the mostimportant subject...
your clients
Your shared staff will lookafter the office logistics and
the internal sales supportfunctions
shared staffoptions
see separate sheet on "sharedteam"
Front office call center facilities
Back office data management
Back office knowledge services
Decision support
YourBeneluxRegional
SalesOffice
YOUR CORE YOUR CORE
ACTIVITYACTIVITY
Facility ManagementFacility Management
Telecom CarriersTelecom CarriersTelecom PABXTelecom PABXSecuritySecurityOffice maintenanceOffice maintenanceOffice equipmentOffice equipment
HRM supportHRM supportRecruitmentRecruitmentLocal contractsLocal contractsPension & Medical plansPension & Medical plansSalary admin.Salary admin.Social admin.Social admin.Lease carLease car
Marketing supportMarketing support
Local Market informationLocal Market informationTelemarketingTelemarketingPress releasesPress releasesPrint & PublishersPrint & Publishers
Accounting Accounting supportsupport
Import & export doc.Import & export doc.Invoicing- billingInvoicing- billingDebtor controlDebtor controlPaymentsPaymentsBookkeepingBookkeeping
Sales supportSales supportLocal Savoir AffaireLocal Savoir AffaireMulti lingualMulti lingualCustomer ServicesCustomer ServicesCorrespondenceCorrespondenceOngoing training Ongoing training provided by youprovided by you
IT supportIT supportPC support & BackupPC support & BackupLAN WLANLAN WLANBroad band Internet Broad band Internet VPN - RASVPN - RASApplication supportApplication support
AABC BC SERVICES SERVICES
MenuMenu
Serv
icin
gServ
icin
g Serv
ing
Serv
ing
SellingSelling
ManufacturingManufacturing
Serv
icin
gServ
icin
g Serv
ing
Serv
ing
Office SolutionsOffice Solutions
Reflect Your imageReflect Your imageFlexible in sizeFlexible in sizeflexible in timeflexible in timeflexible in furnitureflexible in furniture
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Market Research
Market Research Phase 1
Market Research Phase 2
Market Research Phase 3
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Cashflow simulation of a new venture in Belgium with and without ABC
-100
-50
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50
100
150
2000 2 4 6 8
10
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20 22 24
Cashflow solo Cashflow in ABC
Cash flow simulation of a new venture in Belgium with and without ABC
-100
-50
0
50
100
150
200
0 2 4 6 8
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12 14 16
18
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22 24
Cash flow solo Cash flow in ABC
Cash flow modelCash flow model
Strengths of Belgium :Strengths of Belgium :Cultural crossroadsCultural crossroads
Central point of Europe Brussels - capital of the European
Institutions 3 official languages in Belgium (Dutch,
French, German) and English fluently spoken
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Borders and CoastsBorders and Coasts
Borders : Belgium = 1 445 km UK = 443 km
Coasts : Belgium = 66 km UK = 12 429 km
source : http://www.infoplease.com/ipa/A0108078.html
0
200
400
600
800
1000
1200
1400
1600
Borders
BelgiumIreland
0
2000
4000
6000
8000
10000
12000
14000
Coasts in km
BelgiumUK
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Transport facilities (2002)Transport facilities (2002)
Highways Belgium = 148 216 km UK = 371 913 km
Rails Belgium = 3 422 km UK = 16 893 km
source : http://www.infoplease.com/ipa/A0108078.html
0
200040006000
800010000
120001400016000
18000
Rails in km
BelgiumUK
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Export-Import (2008)Export-Import (2008)
Import
Belgium = 471 billion US $ UK = 622 billion US $
http://comtrade.un.org/pb/
Export Belgium = 477 billion US $ UK = 436 billion US $
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Beer production & consumptionBeer production & consumption
Production Belgium = 14 084 hectoliters/year UK = 60 843 hectoliters/year
Consumption Belgium = 126 l/inh. UK = 110 l/inh.
source : http://www.infoplease.com/ipa/A0108078.html
0
10000
20000
30000
40000
50000
60000
70000
Production
BelgiumUK
100
105
110
115
120
125
130
Consumption
BelgiumUK
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Chocolate production & consumptionChocolate production & consumption
Production Belgium = 176,415 ton/year UK = 545,095 ton/year
Consumption Belgium = 10.06 kg/head per annum. UK = 8.59 kg/head per annum
source : http://www.american.edu/projects/mandala/TED/chocolat.htm
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2
4
6
8
10
12
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Consumption
BelgiumIreland
050
100150200250300350400450500
Production
BelgiumUK
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Fresh water abstractions per Fresh water abstractions per capita (2002)capita (2002)
Belgium = 730 m³ UK = 230 m³
source: http://www.oecd.org/dataoecd/42/27/34416097.pdf
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About daily life (2007)About daily life (2007)
Number of doctors Belgium = 4,19 to a thousand (3,133 $ per
capita) UK = 1,64 to a thousand (2,560 $/ per capita)Source: http://www.infoplease.com/ipa/A0108078.html
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Foreigner’s rate (2004)Foreigner’s rate (2004)
Belgium = 11,0 % of the population UK = 3,8 % of the population
source: unknown
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Number of traffic death (1999)Number of traffic death (1999)
Belgium = 13,7 for 100 000 inh. UK = 6 for 100 000 inh.
source: http://epp.eurostat.cec.eu.int/portal/page?_pageid=1090,30070682,1090_30298591&_dad=portal&_schema=PORTAL
0
2
4
6
8
10
12
14
16
Number of traffic death
BelgiumUK
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Average length of the term of Average length of the term of notice of an employment contractnotice of an employment contract
Belgium = 12 weeks UK = 2 weeks
0
2
4
6
8
10
12
Term of notice
BelgiumUK
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Estimated Internet users per 100 inhabitants
Belgium = 67 UK = 72
http://data.un.org/Data.aspx?d=ITU&f=ind1Code%3aI99
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TOTALOFFER
THE BEST LOCATIONS IN EUROPEFOR DISTRIBUTION CENTRES2005
COSTS TRANSPORT ACCESS
Rent
Area
Labour
Compac
tness
road n
etwork
Satura
tion ro
ad network
Compac
tness
track
way
s
Road tr
affic
Rail tr
affic
Air tra
ffic
Maritim
e tran
sport
Population co
mpac
tnes
s
Access
to E
U
Access
to th
e ea
st
Areas
SCORE
Ranks
THE BEST LOCATIONS IN EUROPEFOR DISTRIBUTION CENTRES2005Belgium 2 7 12 1 2 4 12 12 8 7 2 1 8 1 5 5,1 1France 3 6 7 6 3 9 1 4 3 4 10 4 10 1 5 5,3 2Germany 11 14 10 5 6 3 4 2 1 6 4 2 4 7 1 5,5 3Netherlands 10 10 15 2 7 7 8 13 4 2 1 3 7 7 1 6,3 4Czechia 4 2 2 13 10 2 1 6 15 13 7 7 2 7 9 6,5 5Poland 4 1 4 11 14 5 7 3 13 11 8 11 1 7 5 6,9 6Austria 4 13 8 3 4 8 10 9 9 13 11 6 3 1 14 6,9 7Italy 7 11 13 8 8 10 3 5 5 3 5 8 9 1 5 7,2 8Hungary 8 3 2 4 12 1 15 11 14 13 6 9 5 1 9 7,5 9UK 15 12 11 6 11 6 5 7 2 1 3 5 11 1 9 8 10Portugal 1 8 5 12 5 11 11 14 11 9 9 14 14 7 9 9,4 11Spain 9 15 6 9 13 12 6 10 7 5 12 13 13 7 1 9,5 12Russia 14 4 1 15 15 15 14 1 6 12 15 15 6 7 1 9,6 13Ireland 12 8 9 10 9 13 13 15 12 10 13 10 12 7 9 11 14Sweden 13 5 14 14 1 14 9 8 10 8 14 12 14 7 14 11,7 15Source : Cushman & Wakefield Healey & BakerM:\ABCNV\Marketing\ABC Tools\Basisteksten\[BESTE LOCATIES VOOR DISTRIBUTIEC(3talig).xls]english
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Region (NUTS 2006)
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KPIKPI
Belgium offers easy access to the main European countries
Well organized road system Multicultural society, Belgians make excellent
front liners for your continental business Export culture 6 x higher than UK Antwerp is the most Anglo Saxon city on the
continent
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ntwerpBusinessCenter
A
Basic individual
assumptions
Norms and values
Habits and symbols
Relevant of just interesting?Relevant of just interesting?
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• General business practices similar
• Application of the rules may vary
• Impact Employer- Employee
• Impact Client -Supplier
80% alike and 20% different80% alike and 20% different
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80%-20% Making the difference80%-20% Making the difference
US congresman: if the English language was good enough for Jesus Christ, it is good enough for me.
Dan Quale « I have just travelled through Latin America and I wish I had taken Latin in school « .
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Prof. Fons TrompenaarsProf. Fons Trompenaars
Universalism versus particularism
Collectivism versus individualism
Neutral versus effective
Diffuse versus specific
Retributive versus attributive
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Questions about research methodology Acclaimed for his ingenious cultural labels
Prof. G HofstedeProf. G Hofstede
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ntwerpBusinessCenter
A
SWE
NOR NET
DEN
POR
FRA
SIN
CAN
BEL
HOK
GRE
USA
GBR
GER
ITAAUT
JAP
0
20
40
60
80
100
120
0 20 40 60 80 100Masculinity
Un
cert
ain
ty a
void
ance
Prof. G HofstedeProf. G Hofstede
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Power-Distance
Risk AcceptanceHigh Power-Distance
Low Risk Avoidance
Low Power-Distance
Low Risk Avoidance
High Need for Hierarchy
High Risk Avoidance
Low Power-Distance
High Risk Avoidance
GERFRA
ITAGRE
SPAIRE
POR
GBNL
DEN
Need for hierarchy and risk avoidanceNeed for hierarchy and risk avoidance
BEL
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Masculinity
Individualistic
PORIRE
GRE
DEN
SPA
GERFRA
GB
ITA
Low individualityMasculinity
Collectivistic
Femininity
Collectivistic
Femininity
Individualistic
High
masculinity
Individuality - masculinityIndividuality - masculinity
NL
Caesar, being contented, at so severe a season, to disperse the gathering foes, and prevent any new war from breaking out, and being convinced, as far as reason could foresee, that no war of consequence could be set on foot in the summer campaign, stationed Caius Trebonius, with the two legions which he had with him, in quarters at Genabum: and being informed by frequent embassies from the Remi, that the Bellovaci (who exceed all the Gauls and Belgae in military prowess), …
Julius Caesar
De Bello Gallico
Planning things or making Planning things or making things work – Quick fixersthings work – Quick fixers
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Fixer..Fixer..
Probability to receive a fine for traffic offencesBelgium Netherlands
Number of cars 4,6 million 6,3 millionNumber of km driven 89,1 billion 122,5 billionNumber of fines 400 000 4,4 millionProbability 1 in 250 000 1 in 30 000Traffic deaths per 100 000 inh 13,7 6,9
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Cultural SynergiesCultural Synergies
It is clear - and I will keep repeating this - that the cultural diversity, although sometimes cause for friction, can and should be a source of spiritual and material enrichment.
King Boudewijn, 1986
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ntwerpBusinessCenter
A
Recommendation
GO ABC! ntwerpBusinessCenter
A
www.abc.be Theo Vaes
Thank You