Planning for International Market Entry: Making

Choices and Establishing the Route to Global Success

UNIT 2
Finding the Right Partners
◎ Assessing Organizational Readiness and Identifying Gaps
◎ Defining Desired Business Partner Characteristics
◎ Finding Business Partners
◎ Determining Whether Organizations Are Complementary
◎ Performing Due Diligence

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 Why Is This Important?

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 Assessing Organizational Readiness
and Identifying Gaps
Finding appropriate partners includes the analysis of:
o Mission and goals o Financial resources
o Commitment to change o Logistics resources
o Product/service offerings o Cultural competence
o Human resources o Production resources/capacity

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 Defining Desired Business Partner Characteristics
Six basic factors that have a significant impact on the success of a
partnership:
Mission Strategy Governance

Culture Organization Management

Adapted from source: Global Market Management, Warren Keegan

Size
Capabilities
o Technical skills and resources o Financial resources
o Management resources o Competitive advantages

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 Defining Desired Business
Partner Characteristics, Continued
Markets Served Operations
o How much cooperation will be required?
Strategic Objectives o Do the differences require special arrangements?
o Can differences be accommodated?
Corporate Culture o Are operations centralized or decentralized?
o Are organizational structures compatible?
Marketing Strategies/Capabilities o Do partners have similar attitudes?
o Are financial objectives compatible?
o Is there a similar understanding of risk?
o Agreement on distribution of dividends,
reinvestment and performance?
o Similar HR practices and labour relations?

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 Finding Business Partners

Business Associates

Governments
See Table 2.1 Selected Government
Sources of Assistance

TABLE 2.1

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 Finding Business Partners, Continued

Foreign Embassies and Trade Commissioners in Foreign Markets

o Determine what the office is to do.

o Clearly state the nature of the business.

o Provide thorough, point-form background.

o Disclose previous dealings in country.

o Be aware of rotating staff.

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 Finding Business Partners, Continued

Business Associations

Business Advisors

Financial Institutions

Social Networking Sites

Commercial Databases

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 Finding Business Partners, Continued

Expos and Trade Shows

o Vertical or specialized trade shows

o Consumer trade shows

o Horizontal or universal trade shows

Published Studies and Books

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 Determining Whether Organizations
Are Complementary
Organizational or cultural clashes can be harmful to business
partnerships.
o Characteristics

o Attitudes

o Operations

See Figure 2.1 – Determining Whether Organizations Are Complementary

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 Determining Whether
Organizations are
Complementary

FIGURE 2.1

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 Determining Whether Organizations
Are Complementary, Continued

Intensive business relationships should consider:

o How much cooperation is required? o Are financial objectives compatible?

o Do difference require special arrangements? o Is the understanding of risk similar?

o Can differences be accommodated? o Is there agreement on financial distributions?

o Are operations centralized/decentralized? o Are HR policies similar?

o Are attitudes to tasks similar?

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 Performing Due Diligence

Research must be conducted to ensure the prospective partner is

exactly what it appears to be.
Due diligence involves:
o Investigating partner’s track record

o Investigating partner’s financial history

o Partner’s ability to deliver products on time and budget

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