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Strategy Export Business Plan

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Strategy Export Business Plan document sample

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									Danida Fellowship Centre (DFC)                                                                     COWI A/S
                                                                                                   Parallelvej 2
Private Sector Development Training                                                                DK-2800 Kongens Lyngby
                                                                                                   Denmark
Preliminary Course Planning: Export-oriented SMEs                                                  Tel +45 45 97 22 11
                                                                                                   Fax +45 45 97 22 12
                                                                                                   www.cowi.com




                                     Table of Contents
                                     1             Introduction                                                          1
                                     2             Objectives of the training course                                     2
                                     3             Target group                                                          2
                                     4             Approach                                                              2
                                     5             Course outline                                                        4
                                     6             Venue and Facilities                                                  9
                                     7             Staffing                                                              9


                                     1             Introduction
                                     In response to DFC's plan to offer training courses in private sector develop-
                                     ment in 2008, DFC called for COWI to present a capability statement including
                                     ideas for potential topics (April 2008). On the basis of priorities for topics iden-
                                     tified by Danish embassies (May 2008), COWI has been asked to plan a train-
                                     ing course related to "Export-oriented SMEs".

                                     According to the Danida strategy for the promotion of trade, growth and devel-
                                     opment, Danish assistance is seen to revolve around two pillars, namely eco-
                                     nomic growth and enhanced social development.

                                     The SME sector is seen as an important part of the national economy in devel-
                                     oping countries. It is important to support the framework conditions for private
                                     sector development and SME development in order to make business conduct
                                     profitable while it is also important to improve the internal performance of
                                     SMEs by strengthening their knowledge and skills within business management
                                     and development and market orientation.

                                     SMEs that cater to export markets are particularly important for economic
                                     growth in developing countries as they have the potential to generate much
                                     needed foreign income and job creation. Yet, export-oriented SMEs face a
                                     number of challenges and barriers in relation to gaining access to export mar-
                                     kets such as knowledge about product standards and tools for analysing export
                                     potentials etc.

                                     This document presents preliminary thoughts on the training course on "Export-
                                     oriented SMEs" in relation to objectives, target group, approach, course con-
                                     tents and modules, logistics and staffing.


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                                     2             Objectives of the training course
                                     The overall objective of the training course is to build the capacity of SMEs to
                                     analyse export potential and plan their business and export activities.

                                     The immediate objective of the training course can be divided into two: 1) de-
                                     velop the export orientation of the SME; 2) improve the internal performance
                                     of the SME.

                                     The first objective aims at improving the participants' understanding of export
                                     analysis, strategy and implementation; EU market access; export product stan-
                                     dards and certifications; product diversification; branding; and intellectual
                                     property rights.

                                     The second objective is to introduce the participants to comprehensive SME
                                     training in strategic business management, change management, business inno-
                                     vation, human resource development, financial management, quality manage-
                                     ment and the principles of CSR.


                                     3             Target group
                                     The overall target group of the training course is private sector actors within the
                                     SME sector. These may include:

                                                Business owners and entrepreneurs
                                                Senior management and specialists supporting strategic and sales man-
                                                 agement
                                                Business consultants involved in export development
                                                Representatives from export oriented institutions/associations

                                     As mentioned in the capability statement, we strongly suggest that participants
                                     be selected from existing business cooperation initiatives (e.g. B2B, PPP)
                                     and/or BSPS programmes to the extent possible. This ensures that a certain de-
                                     gree of pre-selection has taken place in relation to legal compliance in the coun-
                                     try of origin as well as a certain degree of interest in improving business per-
                                     formance and maintaining or developing relations with the Danish market. It
                                     also ensures that participants have a minimum of experience from and interest
                                     in export and market orientation.

                                     We propose that the criteria for selection of participants include consideration
                                     of company size, sector, export experience etc. and we would prefer to be in-
                                     volved in the selection of participants.


                                     4             Approach
                                     Training methods. Throughout the training course, various training methods
                                     will be applied including participatory approaches, teacher centred training,
                                     cases and best practice material and examples. The course will introduce the
                                     participants to methods, approaches and tools that participants will be asked to


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                                     apply in problem-solving situations through discussions, group work and indi-
                                     vidual planning sessions in relation to development of business plans.

                                     Cases. Participants will be exposed to Danish and European examples but we
                                     shall at the same time strive to use cases and examples from the participants'
                                     countries of origin in order to ensure that the training is made relevant to the
                                     contextual background of the participants.

                                     Individual business plan. We propose to develop the course in a very practical
                                     way in order to provide the participants with an opportunity for experiencing
                                     management principles put into practice, e.g by focusing the training of actual
                                     problems of performance in the participants' own organisations. Participants
                                     will be asked to develop/improve their own company business plan or strategic
                                     plan by using the tools and methods presented during the course. A number of
                                     business plan development sessions coached by experienced facilitators will be
                                     included in the programme.

                                     Excursions. The training programme will include some carefully selected ex-
                                     cursions to organisations and businesses of high relevance to the participants.
                                     The exposure to 'real-life' aims to ensure practical learning aspects. Visits to
                                     relevant trade fairs may also be included1.

                                     Practical visits. If feasible, we suggest that participants that already participate
                                     in business cooperation initiatives under the Danida B2B or PPP programmes
                                     spend 2 days visiting their respective Danish partners at the end of the pro-
                                     gramme. The participant and the Danish partner will be responsible for devel-
                                     oping individual programmes for the visit and will be encouraged to discuss the
                                     business plan/strategic plan developed during the training course.

                                     Pre- and post-course activities .We propose that time is set aside for supporting
                                     course participants before and after their stay in Denmark in order to facilitate
                                     the most optimal learning process. This support could be made available
                                     through an e-learning facility set up by COWI (CoursePortal).
                                                Before the course: We suggest that participants are guided to prepare
                                                 themselves for the course by describing their company according to a
                                                 number of set criteria, e.g. company mission, strengths and weaknesses,
                                                 market position and ideas/plans for export. These considerations will
                                                 feed into the individual work with company business plans during the
                                                 stay in Denmark.
                                                After the course: Upon return to their home countries, participants will
                                                 be given the option to continue the dialogue with their facilitators on
                                                 the actual implementation of their business plans through the Course-
                                                 Portal. The CoursePortal will furthermore support continuous network-

                                     1
                                         Foodpharmatech is an international trade fair for machinery, packaging and ingredients for the
                                     food and pharma industry. This is largely dominated by small and medium industries, catering,
                                     mainly for the domestic market. It takes place in Herning, Denmark, 11-13 November 2008.
                                     Agromek is an international trade fair for agricultural products and machinery held in Herning,
                                     Denmark, 25 - 29 November 2008.



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                                                 ing among participants and they will be encouraged to interact and
                                                 share experiences after the end of the course.

                                     5             Course outline
                                     The table presented on the following pages presents our proposed course out-
                                     line. The outline should not be perceived as a full course programme, but
                                     merely as a reflection of the intended overall contents of the course. The de-
                                     tailed course curriculum will be developed upon having received information
                                     regarding the needs, interests and responsibilities of the course participants as
                                     described in their application forms to DFC. Learning material for the different
                                     modules will likewise be developed and selected during detailed course plan-
                                     ning.

                                     The course management may decide to pay more attention to one of the imme-
                                     diate objectives of the training course in the development of the detailed course
                                     curriculum rather than equal attention to both of them, depending on the back-
                                     ground and interests of participants and the experience within exporting. In this
                                     connection, it may also be deemed relevant to merge or omit certain modules
                                     while putting more emphasis on others.

                                     We propose to allocate 2½ weeks for the course in view of the type of partici-
                                     pants expected for this course. It is unlikely that managers/decision-makers
                                     from private sector entities will be able to leave their positions for periods
                                     longer than a couple of weeks. We propose that the first 2 weeks will consist of
                                     actual training at the premises of COWI. The remaining 2-3 days will be set
                                     aside for practical visits to Danish partner companies. These practical visits will
                                     have to be arranged by the participants themselves in cooperation with their
                                     partner companies, i.e. COWI will not be involved in this part of the stay.




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             Contents/ Activity                                                                    Facilitator   No. of
                                                                                                                 Sessions




             Module A-1                                                                            DFC           1
             Introduction to DFC

             Module A-2                                                                            COWI          1
             Course introduction, incl. teambuilding
             •      Introduction to course programme and schedule, and facilitators
             •      Round table introduction: who are we?
             •      Clarification of expectations ('hopes and fears')
             •      Define and agree on success criteria and ground rules for the course
             •      Team building
             •      Practical information about study, study place and facilities
             •      Learning approaches
             Module B-1                                                                            COWI /        1
                                                                                                   External
             Trade instruments available
             •      ACP-EU Cotonou Agreement and Economic Partnership Agreements
                    (EPAs)
             •      WTO
             •      Regional free trade areas
             Module C-1                                                                            COWI /        2
                                                                                                   Danish
             The export environment: Road map to European market
                                                                                                   Techno-
             •      How to approach the European market as a third-world exporter?                 logical In-
             •      EU directives governing product standards                                      stitute
             •      Harmonised standards
             •      CE labelling (required in the EU)
             •      Process of having a product CE labelled
             •      Quality control and documentation
             •      Market control and monitoring
             •      Intellectual property rights
             Module C-2                                                                            COWI          0,5
             The export environment: Market trends and market preferences
             •      Overview of voluntary certification schemes and eco-labels
             •      Advantages of voluntary schemes - e.g. branding, access to niche markets
             •      Disadvantages of voluntary schemes - e.g. non-tariff barrier to certain mar-
                    kets?
             Module C-3                                                                            COWI          0,5
             The export environment: Market trends and market preferences
             •      Importance of corporate social responsibility (CSR)
             •      Why does CSR matter?
             •      What are CSR activities?
             •      Principles of CSR, e.g. UN Global Compact
             •      CSR and the global supply chain
             •      Criticism of CSR
             •      Exercise: can you identify potential CSR activities within your com-
                    pany/organisation?




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             Contents/ Activity                                            Facilitator   No. of
                                                                                         Sessions




             Module D-1                                                                  2
             Export diagnosis
             Company export profile
             •  Is the company ready for export?
             •  Analysis of company resources
             •  Competitive advantages
             •  Critical factors and risks

             Analysing potential export markets
             •    Desk research, field research
             •    Information sources, primary and secondary data
             •    How to get information

             Case studies and exercises will be developed.
             Module D-2                                                                  2
             Export strategy
             Selection of export markets
             •    Access and barriers
             •    Business-to-business markets
             •    Consumer markets
             •    Public/institutional markets
             •    Buying behaviour
             •    Segmentation

             Distribution channels and partners
             •     Which channels to use?
             •     Outsourcing and subcontracting
             •     Ventures and alliances
             •     Choosing export partners
             Module D-3                                                                  2
             Developing the export marketing plan
             •      Internal analysis
             •      External analysis
             •      SWOT analysis
             •      Marketing strategy, plan of action
             •      Budget
             •      Risk analysis
             Module E-1                                                    COWI          1
             Business innovation and management
             •      Product analysis and development
             •      Product diversification
             •      Product differentiation
             •      Branding
             Module F-1                                                                  1
             Quality Management
             •      Total quality management
             •      Quality and standards improving process organisation




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             Contents/ Activity                                                                  Facilitator   No. of
                                                                                                               Sessions




             Module G-1                                                                          COWI          1
             Monitoring and improving business performance
             •      Defining business targets
             •      Performance planning and monitoring
             •      Tools for business performance appraisal
             •      Linkages between performance measurement systems and strategies
             •      Key performance indicators
             •      Enterprise benchmarking
             •      Exercise: define business targets
             Module H-1                                                                                        1
             Financial management in an export-oriented SME context
             •      Costs calculations and pricing
             •      Product contribution
             •      Sales
             •      Budgeting
             •      Cash flow and profit margins
             •      Financial sustainability
             Module I-1                                                                          COWI          0,5
             Building capacity for Change
             •      Manage change as a process
             •      Planning a change intervention
             •      Steps in implementing a change intervention
             •      Exercise: imagine and plan a change intervention in your company accord-
                    ing to the major steps of a change process
             Module I-2                                                                          COWI          0,5
             Human Resources Development/Management
             •      Motivation and team work
             •      Career and staff development
             •      Skills training and development
             •      Organisational development
             •      Organisational culture
             •      Gender aspects
             •      Case: human resource planning in a SME
             Module J                                                                            COWI          3
             Developing Individual Business Plan/Strategic Plan
             How to develop and implement a business plan or a strategic plan? (measure
             and plan based on realities, simulating the decision options etc.)
             Participants should start developing a business plan already before departure for
             the training course, considering main points of concern in their business.
             A number of plenary sessions supported by coaching in smaller groups will as-
             sist participants in developing and/or sharpening their business plan.
             Presentation and feed back including possible networking arrangements with
             fellow participants.




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             Contents/ Activity                                                                Facilitator   No. of
                                                                                                             Sessions




             Module K                                                                                        2
             Exposure / Excursions
             A number of excursions to relevant businesses and/or organisations will be
             planned, e.g.:
             •    Ministry of Foreign Affairs: Danida business related initiatives and pro-
                  grammes
             •    Danish Import Promotion Programme
             •    Danish Federation of Small and Medium-Sized Entreprises (DFSME)
             •    Danisco
             •    Butler's Choice
             Module L                                                                                        4
             Exposure / Practical visits
             If feasible, practical visits to Danish partner companies will be arranged. The
             Danish companies will be responsible for setting up individual programmes.




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                                     6             Venue and Facilities
                                     Training activities will be conducted at COWI's Head Office in Lyngby where
                                     a maximum of 20 course participants can be accommodated. Computer and
                                     Internet facilities will be available for the participants at the premises of COWI
                                     during the course period.


                                     7             Staffing
                                     The point of contact for DFC will be the Course Management, whose main
                                     tasks and responsibilities will include, but not be limited to overall planning of
                                     the course, liaison with DFC, contact with participants prior to the course start
                                     and coordination of trainers and facilitators before, during and after (follow-up)
                                     the course.

                                     For the Course Manager, we propose Ms Zita Rye Hedeby. Furthermore, an
                                     Assistant Course Manager will be identified among the below mentioned key
                                     staff members.

                                     Upon award of the contract we will establish a course curriculum development
                                     group consisting of the course manager and main course facilitators.

                                     In the following we present the names of key staff members of the training
                                     course. They will act as course managers, trainers and facilitators and some
                                     may take on more than one of these responsibilities during the course. Pls. refer
                                     to the capability statement from April 2008 for detailed profile descriptions:

                                                Zita Rye Hedeby (Course Manager)
                                                Peter Mallow
                                                Nicolas Gebara Jørgensen
                                                Kimiko Ishida Pedersen
                                                Mikkel Klim
                                                Carsten Glenting
                                                Mikkel Rye Christensen
                                     For selected topics we intend to draw on external trainers with specific knowl-
                                     edge and competences, e.g. experts from Danish Technological Institute for EU
                                     directives for product standards etc. - see Module C-1.




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