Inter business Devpt

Going international, why ?

7 reason why to expand international

-Access new sources of revenue (deal with other currencies)

-Reduce risks on your own market

-enhance company profile (strengthen your brand)

-broaden offering (r&d, production, finance)

-optimize your own abilities

-uniqueness of your product

-my product does not travel

Conclusion : You must clearly identify reasons which motivating your intention to export since
through them you can start elaborating an exportation strategy.
Impact on organization

How various department of a company might be affected

First department to be affected is finance (allocate a budget)

Nufgeting, planning, assessing financial impact. Do we have enough ressources…

For market research

For travelling expenses

For settling down

Does it involves a new currency? Is that currency stable? Transferable?

So I need a new banking partner ? can I stay with the same bank?

How will it impact my current financial reporting system?

What are the implication with my local “tax office body”

2) marketing

First investigate the market, organize prospection, adjust product to local demande, maybe launch
new products

An international development impact in almost every way the marketing department

3) Production

4) Sales

Which customer ( marketing)

Team structuration, sales forces, prices

Sales condition, contratcs (rh)

Promotional activities

Merchandizing

5) personnel

Recruitment

Training
Culture differences

Hire

6) legal issues

Contracts, payrolls

Contracts with local administration

Medical cover

Holiday packaging

Reward policy

7) r&d

New product devpt -> finance & production

8) IT

How do I manange my flow of informarion that aree coming from somewhere else than the company

If I have a affiliate, so I implement the same erp

How do I protect y data from intruders

Production for louis Vuitton :

Quality of the product : keep the same quality wherever we sell the product (the client wants the
same products everywhere he go)

Distribution channels

Find new suppliers : always try to compete the suppliers between them to always keep the best

Innovation : stay in the flow of the market

Product Design and Adaptability: Consider the cultural preferences and aesthetic sensibilities of the
target markets. Adapt product designs, packaging, and branding to resonate with local consumers
without compromising the brand's identity.

Supply Chain Management and Logistics: Establish reliable and efficient supply chains to source
materials, components, and finished products. Partner with experienced logistics providers to ensure
smooth transportation and customs clearance.

Inventory Management and Risk Mitigation: Implement effective inventory management strategies to
balance supply and demand across international markets. Consider potential risks such as currency
fluctuations, trade disruptions, and political instability.

To support the expansion you need to find and train people

Differences

Cost of raw materials

Disponibilities of the product

Impact on organization -> it does deeply affect each organization whatever its size or market

It requires funds but not only, first and foremost a clear strategy, which will need adequate financing

It will necessitate a dedicated team which will have to embrace the project globally with a soldier
leader

Recipes for success will have to be not only adjusted to your market segment but ebven more to the
selected targeted country

ibs is time consuming, demands patience and humility( whatever is true on my home market might
be completely inadequate abroad) and a capacity think outside the box .

27/11 –

My 3 main concern as the manufacturer manager of louis Vuitton would be, first regulatory
compliance, after supply chain management and market research.

First for


Regulatory Compliance:

 Example: Introducing a new luxury fragrance in China requires meeting local ingredient
standards, accurate labeling, and navigating import regulations. Non-compliance risks both
legal issues and damage to our brand reputation.

 Supply Chain Management:

 Example: Delivering our latest fashion collection to Chinese retailers demands meticulous
planning for shipping, inventory management, and timely arrivals. Partnering with reliable
local distributors ensures a seamless and successful operation.

Market Research:

 Example: Launching a skincare line involves understanding Chinese preferences for

ingredients, packaging, and shopping habits. Adapting our products based on these insights
ensures we're meeting specific market demands accurately.