Developing Masterful Management Skills for International Business

Contents

Foreword .............................................................................................xvii

Preface ..................................................................................................xix

Acknowledgments ...............................................................................xxi

Author ............................................................................................... xxiii

Chapter 1 Understanding and Executing Successful

Leadership and Management ............................................ 1

Defining Leadership and Management .....................................2

Innate or Learned? ........................................................................5

Quality Leadership Skills ............................................................7

These Traits Can Be Both Represented or Argued as

Positives and Negatives ..............................................................10

They Are All Positive and Negative to an Extent ...................10

Where Do We Stand as Individuals in All These Traits? ......11

And How Do We Know Where We Really Stand? ................11

Chapter 2 Business Management Skill Sets ..................................... 13

Business Management 101 .........................................................13

Finance .........................................................................................14

Communication ..........................................................................14

Be a Student Always...............................................................15

Be Articulate ...........................................................................16

Be Interesting..........................................................................16

Be Direct, No Nonsense ........................................................17

Utilize Storytelling ................................................................18

Create Feedback .....................................................................19

Be Timely ................................................................................19

Make Sure Your Points Are Understood by Keeping

It as Simple as Possible ...............................................................19

Do Not Waste People's Time ............................................... 20

Learn to Speak to Groups, Publicly, and to Utilize

PowerPoint ............................................................................. 20

Create a "Communication Style" .........................................21

Project Management ..................................................................21

Problem Resolution ....................................................................24

Stop the Bleeding ...................................................................25

Assessment ..............................................................................25

Strategy ....................................................................................26

Action ......................................................................................26

Reassessment ..........................................................................27

Revision ...................................................................................27

Outreach ................................................................................. 28

Mitigation .............................................................................. 28

Closure.....................................................................................29

Negotiation ................................................................................. 30

Time Management .....................................................................31

Delegating .............................................................................. 34

Time Management and Communicating ................................35

People Skills .................................................................................36

Business Development ...............................................................37

Growth Strategies .......................................................................38

Raising the Bar of Sales Management .................................38

In Organic Sales ................................................................38

Creating a Viable Sales Strategy ..........................................39

Hiring Quality Business Development and Sales

Personnel .................................................................................41

Building a Sales Pipeline of Opportunity .......................... 43

Creating an Inventory of Prospects .................................... 44

Closing More Deals .............................................................. 46

Price ........................................................................................ 46

Customer Service ...................................................................47

Specific Sales Strategy .......................................................... 48

Concluding Remarks ............................................................ 48

Operations ...................................................................................49

Strategic Planning as an Operational Responsibility ............52

Strategic Planning Considerations ......................................52

Mantra ................................................................................52

Goals and Deliverables .....................................................53

Specific .....................................................................................53

Measurable ..............................................................................53

Attainable ................................................................................53

Contents * xi

Relevant .................................................................................. 54

Time Frame............................................................................ 54

Collaboration ......................................................................... 54

Chapter 3 Financial Considerations ................................................. 57

Financial Controls ......................................................................57

Controlling Spend through Procurement Management .......61

Senior Management's Role in Procurement .......................61

Overview ............................................................................61

Sourcing ..............................................................................63

Purchasing..........................................................................63

Vendor Management ............................................................ 66

The RFP Tool in Managing the Purchasing Function ......67

Risk Management in Procurement .................................... 68

Summary .....................................................................................70

Chapter 4 Going Global-The Business Case to Go Global:

Foreign Purchasing and Export Sales ............................. 71

The "Case" to Go Global ............................................................72

Export Sales ............................................................................73

Choice of INCO Terms .....................................................75

Utilization of Freight Forwarders ...................................76

Landed Costs .....................................................................77

Competitive Pressures ......................................................77

Trade Compliance Issues .................................................77

Use of Distributors and Agents .......................................78

Global Expansion ..............................................................78

Global Sourcing ......................................................................79

Foreign Asset Expansion ......................................................79

Developing the Skill Sets of Global Business ..........................79

Understanding Foreign Cultures ........................................ 80

Understanding Import and Export Operations,

Regulations, and Procedures ............................................... 80

Global Supply Chain..............................................................81

International Legal, Accounting, and Finance Issues ......82

International Marketing, Sales, and Customer Service ..... 82

Technology on a Global Scale ..............................................85

International Purchasing ..................................................... 86

Benefits to Americans and the World ................................ 88

Foreign Purchasing ................................................................... 88

Sourcing Globally: Senior Managements Guide to

"Twelve Key Best Practices" ................................................ 88

Trade Compliance and Regulatory Responsibilities..............92

Buying Internationally: Import Supply Chain ..................93

Duties and Fees .................................................................94

Harmonized Tariff Classification ...................................94

Country of Origin Marking ............................................95

Trade Compliance with Customs .................................. 96

Reasonable Care Standard .............................................. 96

Customhouse Brokers ................................................... 100

Internal Supervision and Control .................................103

Supply Chain Security ....................................................104

Invoice Requirements .....................................................106

Bonds ................................................................................107

Record Retention .............................................................108

Selling Internationally: The Export Supply Chain ..........109

Government Agencies Responsible for Exports .........109

International Traffic in Arms Regulations ..................110

Export Administration Regulations.............................110

Commerce Control List ..................................................111

Electronic Export Information .....................................112

U.S. Principal Party in Interest .....................................112

Schedule B Number/Harmonized Tariff Number ......113

Valuation ..........................................................................113

Recordkeeping Requirements .......................................114

Denied Party Screening .................................................114

Embargoed Country Screening ....................................114

Consularization and Legalization ................................115

Solid Wood Packing Material Certificates ..................115

Preshipment Inspections ................................................116

Free Trade Affirmations .................................................116

Getting Paid .....................................................................116

Customs-Trade Partnership against Terrorism Benefits .....117

Background ...............................................................................118

Contents * xiii

Customs-Trade Partnership against Terrorism

Approach and Guiding Principles ......................................... 120

External Factors ....................................................................... 122

Customs-Trade Partnership against Terrorism for

Exporters ................................................................................... 122

Additional Consideration: Drawback, Free Trade

Agreements, Foreign Trade Zones, and Bonded

Warehouses ............................................................................... 123

Chapter 5 Mastering Business Development ................................. 125

Developing an International Business Strategy ...................125

Understanding the Cultures of the World ........................... 126

Business Culture ..................................................................127

Considering Cultural Factors .............................................127

Twelve Steps to Building a Successful International

Business Model .....................................................................132

E-Commerce in Global Trade ................................................ 134

Creating an E-Commerce Website Globally .........................148

Step 1-Select a Domain Name .........................................148

Using Country-Level Domain Codes ...........................148

Internationalizing Your Domain Name ......................148

Step 2-Register with Search Engines ..............................149

Step 3-Choose a Web Host ...............................................149

Step 4-Website Content: Localize and

Internationalize ....................................................................150

Step 5-Execute Orders ......................................................151

Policy-Advice ...................................................................152

Chapter 6 Decision Management ................................................... 155

Better Decision Making: Qualitative versus

Quantitative ......................................................................... 155

Understand the Decision ....................................................161

Mine .......................................................................................161

Build a Team .........................................................................163

Establish Preliminary Findings .........................................163

Build a Metrics and Quantitative Model ..........................164

Evaluate Qualitative Criteria ..............................................164

Complete the Analysis ........................................................164

Make the Decision and Implement ...................................165

Follow-Up and Tweak .........................................................165

Emotional Intelligence ........................................................165

Chapter 7 Delivering Successful Negotiations .............................. 171

Defining What We Want to Accomplish in Negotiation

and Developing a Strategic Plan .............................................172

Goal Setting ..........................................................................172

Assessment ............................................................................173

Mining ...................................................................................173

Planning ................................................................................173

Action ....................................................................................174

Tweaking ...............................................................................174

Closure...................................................................................174

Negotiating Globally ................................................................174

The Essence of Compromise ...................................................175

Trust Is the Critical Asset ........................................................176

Chapter 8 Building the Sustainable Business Model ..................... 189

Overview of the Sustainable Business Model .......................189

The Ten Steps of Sustainable Business .................................. 190

Integrative Management ..........................................................191

Developing and Managing Team Initiatives.........................194

Team Building ......................................................................194

Collaboration ...................................................................194

Camaraderie ....................................................................194

Effective Delegation ........................................................195

Mentoring Effectiveness .................................................195

Crossing Company Silos ................................................196

Better Results ...................................................................196

Choosing Team Members ...................................................196

Managing the Team .............................................................197

Commercial Example ...............................................................197

Cyber Security Issues in Global Trade ..................................199

Avoiding Costly Mistakes ...................................................199

Overview of Cyber Security .............................................. 200

Cyber Security Impacts ...................................................... 200

Application Security ...................................................... 200

Information Security ..................................................... 200

Network Security ............................................................201

Disaster Recovery and Continuity Planning ............. 202

Operational Security...................................................... 202

Technology Bullying ...................................................... 202

End-User Education and Training .............................. 202

Cyber Security Cases .......................................................... 203

Best Practices in "Mitigating" Potential Security

Issues ...................................................................................203

Assessment ...................................................................... 204

Professional Support ...................................................... 204

Mindset ... Cyber Security Is a Very Real Threat! ...... 204

Establish Cyber Security Initiative .............................. 204

Train and Educate Staff ................................................. 205

Personnel Issues in Cyber Security .................................. 205

Additional International Cyber Concerns ...................... 205

Appendix ............................................................................................ 207

Index .................................................................................................... 323