DEVELOPING BUSINESS NETWORKS

DEVELOPING BUSINESS NETWORKS

In the future governments will become more selective in their approach to industrial policy,
aware that in the past billions of dollars have been wasted by bureaucratic efforts to streamline and
refocus economic efforts. This recent trend is likely to result in more government–business efforts.
However, the success of international business firms will depend more heavily on the companies
themselves than on the government. Some of these developments will include the forging of new
business networks for competitive advantage and the development of new relationships with non-
business sector groups.

Business networking is the process of developing and activating your relationships to increase your
business, enhance your knowledge and expand your sphere of influence. Successful networking of any
kind starts with the genuine desire to build relationships for the purpose of giving and receiving
business. Networking is probably the most effective and least expensive marketing method you can use
to build your business or practice, especially if you do business in your local area.

Forging new business networks

Increasingly, the relationship of successful MNEs with their suppliers, customers, and
competitors is changing. New strategies based on trust and reciprocal support are replacing the old
business–client relationship in which companies sought to dictate the terms and conditions of sales and
services.

In the case of suppliers, the current trend is toward reducing this number to a small group of
reliable, efficient, and highly responsive firms. These suppliers are then brought into a close working
relationship with the MNE so that both sides understand the other’s strategy and plans can be
formulated for minimizing working problems. The multinational will detail its needs and the supplier will
draw up plans that ensure timely, accurate delivery. Another trend is the increase in the amount of
responsibility being given to suppliers. Previously they were charged only with manufacturing, assembly,
and delivery. Now many MNEs use their network partners to develop new materials and components, to
perform industrial engineering functions, and to assume liability for warranties.

In the case of customers, network linkages now involve changing the focus of the relationship
from one in which sales representatives would work directly with MNE purchasing agents to one in
which sellers interact more directly with their customers. D’Cruz and Rugman have explained this idea in
the case of flagship firms, characterized by global competitiveness and international benchmarks. In the
conventional system the flagship firm and its customers maintain an arm’s length relationship. However,
new relationships are now being forged in which there is a direct link between the flagship firm and its
most important customers, whereas traditional relations are maintained with some distributors to serve
the firm’s less important customers. At the same time, network linkages are being developed with key
distributors to serve other customers better.

Here are some tips that can ensure your networking success.

1. Choose the right venues. Not every group of people will be right for you. Choose groups where people
congregate who share your interests and/or are potential clients

2. Develop relationships. Networking is not about selling, but rather developing relationships that can
lead to sales or referrals.

3. Dress appropriately and professionally. Establish yourself as a successful person, which you can do by
dressing the part.

4. Bse prepared. Bring plenty of business cards, but only give them to people who show a real interest in
what you do. Brochures or printed postcards can also be effective..

5. Ask questions and listen. You dont have to talk a lot about what you do in order to find potential
customers. Rather, ask people you meet questions about them and their business, then listen carefully
to their answers.
6. Sit with people you dont know. Many events have walk-around networking followed by a sit-down
meeting of some sort.

7. Talk to people who are standing alone. People attend networking events to meet others. If someone
is standing alone, thats the perfect opportunity to make a new contact

8. Move on politely. Dont spend all of your time talking to one person. Gather the information you
need, exchange business cards, if appropriate, and move on.

9. Give to get. Focus on what you can do for others, not what they can do for you.

10. Follow up. If you make a good connection with someone, after the event, send a note saying how
much you enjoyed meeting them

Networking is a process, not a one-off event. Take the time to develop relationships with people who
interest you. Be proactive and invite someone to a one-to-one meeting so you can get to know them.

Remember that most business owners and practitioners are looking for connections. Be bold and step
forward into their world.

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