Global Market Entry and Globalization
Companies face challenges when entering new global markets (Global Market Entry) and with their existing global operations (Globalization). Lombard Global offers a comprehensive suite of services that leverage the right people with proven processes and are enabled with technology, analytics and best practices. Our proven business model combines senior global professionals who operate locally overseas with senior global professionals who operate at the headquarters level. We augment our core group of global management consultants and investment bankers with world-class Senior Advisors, such as #27 ranked Dr. Pankaj Ghemawat of Harvard Business Review’s The Thinker’s 50. http://www.thinkers50.com/biographies/123
Global Market Entry
In our supposedly globalized economy, business is often advised to charge head first across borders as if the whole world were one seamless, flat marketplace. But the world isn’t so flat in reality. Businesses that don’t take into account specific political, cultural, and economic differences are doomed to fail. Picking up the phone and asking your lawyer or accountant to take you global or to fix something in your current global operation isn’t going to cut in today’s sophisticated global economy.
Lombard Global provides a pro-growth, yet pragmatic, results-based approach to global market entry. Our delivery is flexible enough to allow you to participate in separate service modules and structured enough so that you can participate in the entire end to end solution. Typically, a solution might consist of research, strategy and execution.
RESEARCH
Services provided include:
- Data collection and analysis of the market potential lucrativeness vis-a-vis a fit with the client’s capabilities, cultural inclinations and philosophy
- Evaluation of the business-friendly climate and government(s), e.g., local and national, as a part of market attractiveness
- Specific identification of the barriers to entry, key factors for success, the decision-maker process and key influencers
- Identification and creation of possible partnerships to help in the market entry process.
We start by researching and analyzing your business, it’s products and services. Your requirements at this phase may be for a more comprehensive primary and secondary research package or could be much more basic. Our expertise allows you to assimilate information on the ground in specific geographic regions. Our research team and suppliers adhere to CASRO, ESOMAR or national professional standards. We encourage the research phase because we’ve seen too many firms make mistakes because of marginal or inadequate information.
As an example, in some cases we use global risk methodology by employing the Opacity Index, a tool developed by Joel Kurtzman, former Editor-In-Chief of The Harvard Business Review and Global Lead Partner with Price Waterhouse Coopers. This tool grades countries on how they perform according to the CLEAR framework: Corruption, Legal system efficiency, Enforcement efficiency, Accounting framework and Regulatory efficiency. The methodology and analysis surrounding it has been proven particularly effective for professional services entities such as law firms and financial services firms. As an example, by using methodology behind the Opacity Index, firms have been more successful by expanding to BRIC cities as opposed to the often recommended London or other EU capitols.
STRATEGY
Services provided include:
- Internal/external analysis – information gathering to establish a shared fact base about the potential opportunities and the choices available
- Development of three or four alternative strategies covering markets, culture, infrastructure, costs…
- Evaluation and analysis of the options – SWOT, PESTLE, CLEAR framework (Corruption, Legal system efficiency, Enforcement efficiency, Accounting framework and Regulatory efficiency), AAA (adaptation, aggregation and arbitrage)
- Strategic decision making – understanding of facts, trade-offs, competitive considerations and investment risks
- Implementation – plan and execution
In this phase, we decide together which regions or countries to expand to. We work with you and your advisors, for instance, to decide between an employee-based direct sales force, sales agents or distributor relationships, technology transfer or sale/purchase, joint venture and/or direct investment involving real estate or business acquisition. Choices may need to be made based on the tax structure of the entity, treaties between countries, import/export regulations., HR, compliance and governance considerations.
EXECUTION
Services provided include:
- Business registration
- Company formation
- Legal and fiscal administration
- Accounting
- Office registration
- Immigration assistance
- Employment and recruitment
- Operational assistance
- Funding for international projects
- Post-establishment
- Sales management
Of course, strategy is meaningless without successful execution of that strategy. This is the fun part. Strategic meetings are established with a diverse group of potential partners, competitors and business and government experts so that we are well-educated and prepared (or not ) to take the next level or execution. Lombard Global Inc. has an established high-level and often, elite international business network. In addition, we have the training and years of experience conducting and closing business at the highest levels of commerce and government. We’re senior level rainmakers and experts at global consultative sales. That’s one key differentiator. The other is our ability to grow a business rapidly. We have an established track record at focusing on top line growth and acquiring key human capital simultaneously. This will translate into results for you.
The execution phase will be more intensive as we work towards results. It could result in something as simple as the identification and establishment of sales agents and distributors and/or be as complex as choosing between a branch office entity, foreign subsidiary, joint venture or a combination thereof. Finally, Lombard Global will provide post-investment services on an ongoing or project basis in order to achieve measurable top line and bottom line results that go well beyond the establishment of the entity overseas.
Although we have a reputation for creating immediate impact and early results, a diligent follow-up strategy will produce the clearest long term results. Our business model is geared towards long-term results. Quite simply, we can’t hit our top-line targets if you don’t hit yours. The key, however, in global business is flexibility. We may even have to modify or change that strategy somewhat or altogether. Regardless of the size of the enterprise, global expansion is an entrepreneurial exercise after all. Finally and most importantly: we are direct and honest, sometimes to a fault. Good, bad or ugly, we will give you our honest assessment.
Web Globalization
Most would agree that globalization has exploded and is irreversible long-term because of the advance of the internet and information technology. Because of this and because of the fact that clients are usually able to to attain results with comparatively modest investment, Lombard Global asks all clients to review their web globalization strategy first. We use elements of language translation, cultural customization, international search engine optimization/ marketing and social media strategies to provide an incredible advantage over your global competition. We are the leader in recognizing and subsequently developing web globalization into a C-level or strategic solution for global expansion and operations. As a result, this is probably Lombard Global’s key differentiator in global market entry strategy and implementation. Also see WEB GLOBALIZATION
International Business Services, Shared Services and Business Process Outsourcing
We protect and grow your existing overseas operations with an integrated solution for your HR, finance, tax and legal needs. Having the ease of one firm and minimal points of contact providing your HR, finance, tax and legal services saves you time, money and takes the stress out of your overseas expansion. Our one point of contact services works seemlessly with SaaS dashboard work flow technology to deliver a consistent and streamlined solution. This allows you to focus on growth. Our support teams are SAS70/SSAE16 Type II certified . If you are a public company, you can be assured about Sarbanes Oxley compliance for your foreign operations.
More than ever, maturing global organizations must consistently improve efficiency, ensure regulatory compliance and manage localization issues across one or multiple countries. The road to global growth is all about managing risk, costs and a global workforce. All tasks required to provide day to day support to the local operation are covered by a single operational cost (fixed fee) of running the foreign entities. This typically works out to be half the cost of in-sourcing to a U.S., European or APAC team.
Services provided include:
- Business registration
- Company formation
- Legal and fiscal administration
- Accounting
- Office registration
- Immigration assistance
- Employment and recruitment
- Operational assistance
- Funding for international projects
- Post-establishment
- Sales management
Globalization (Existing Global Operations)
For the global going concern, we start by analyzing the following:
- Evaluation of current activities and cost efficiency
- Competitive assessment
- Market trends
- Logistics/supply chain
- Innovation process
In some cases, we may team with the world’s #1 ranked international business school and Lombard Global business partner, Thunderbird School of Global Management, to assess and implement global human capital and cross-cultural knowledge strategies. These are some of the most innovative and thoroughly researched cultural consulting programs that exist in the marketplace. short, it’s imperative that the people in your organization conducting global business possess a Global Mindset.
As another example, we might also look at three types of currently successful global strategies – adaptation, aggregation and arbitrage (AAA) – as well as a framework for implementing them. This process was developed by world renowned global strategist, Pankaj Ghemawat from the IESE Business School.
Adaptation – adjusting to differences by maximizing a firm’s local relevance through a national focus, and thus boosting revenues and market share
Aggregation – overcoming differences by standardizing products or services and grouping together development and production processes, and thus achieving scale and scope economies
Arbitrage – exploiting differences between national or regional markets to achieve absolute economies through international specialization
Creation of Success Models
In all markets, but in particular in “exotic” and less familiar markets, such as Central Asia, Sub-Saharan Africa or the Caucasian republics, we develop an illustrative success model with such variables as assortment, pricing, distribution and alliances.
Innovation
All companies across industries are struggling to find a balance between continuing innovation and cost. We preach “open innovation” — a process by which you reach out to the global community of innovators through carefully created briefs, selected but wide networks and innovation partnerships. In other words, just as you seek new ideas from different industries, you may be able to multiply innovation exponentially by seeking out new ideas from different industries in different countries. An example of this is called Reverse Innovation (see Harvard Business Review), a process by which a firm modifies a product or service, let’s say, for India or China. Thus, by using the globalization approach to innovation, you can expand the innovation cycle and cut internal innovation costs at the same time.
Supply Chain
If you’re already manufacturing in Latin America, let’s say, you may be ready to look at China. If you’re already in China, it may make sense to move further inland in China or shift some of your strategy to Vietnam or Malaysia. Maybe you want to look at moving distribution from Northern Italy to Serbia. Regardless, we look at the entire process of the supply chain from sourcing optimization to shipping and distribution. Because we know countries supply chain advantages and disadvantages, we can provide innovate solutions to accelerate and take cost out of your global supply chain. Key examples of challenges might be:
- Quality control, if the off-shore manufacturing sub-contractor procures components from other countries (e.g., China using Vietnam as a subcontractor in the consumer appliance industry).
- Creation of a multi-country supply chain (e.g., manufacturing in Hungary and shipping from Romania) has to be based on the understanding of the spirit of cooperation between countries participating in the chain, including knowledge of their cultural and historic differences.
- Degree of partnership and distribution control (in case of a sub-contractor supplying its own local markets)
and alliances.
Interim Executive Management
CEO FOR HIRE
When a firm relocates to a different political, cultural and economic environment, the learning curve and associated costs can be daunting. The USA market, for example, is a very challenging start-up environment, despite global media portrayals to the contrary. Lombard Global provides an executive or team of executives with strong leadership and diverse business backgrounds who can project a new operation towards stability and subsequent growth in a relatively short period of time. What would take us three months to accomplish could take the foreign national or firm in transition years, untold lost dollars or complete failure.
Case Study: An East Asian firm decides to expand internationally by establishing offices in the Dallas Fort Worth Metroplex. The client “exports” home country managers, employees and even sales trainers. As so often happens with other firms who employ this strategy across the world, even Global Multinationals, the operation starts to unravel and is on the brink of imploding. Lombard Global employs a strategy of 1) immediately correcting glaring issues 2) providing a period of stability and 3) preparing the company for growth. Because Lombard Global is a generalist, it eventually replaces itself with senior industry experts who are in a better position to take the operation and firm to the next level. The client redeploys all manufacturing and distribution to China and is now in the planning phase of opening retail location there.
On a micro basis, some of the major tasks accomplished were: the establishment of a true global banking and point of sale partnership, the establishment of a local advertising and public relations agency with global, business relevant clients, the hiring of a global corporate structure and tax attorney team (USA and home country expertise), the establishment of a local warehouse and global supply chain service provider. The client then relocated home country senior management to Dallas. Lombard Global handled all residential and commercial real estate transactions, construction and maintenance.
EXECUTIVE VP FOR HIRE
One of our senior staff will run departments in Sales and Marketing, International Sales and Marketing, Operations, or Finance. Lombard Global will make an immediate impact to your goals and/or top and bottom lines.
Case Study: A global middle market professional services and technology firm headquartered in the UK (operations in India, China, US, Singapore, The Netherlands, 700+ clients, 500+ employees) hires Lombard Global to head up operations in Texas and the south central US marketplace. We acquire new business for them faster than any sales individuals have in their history; and it’s accomplished initially with a client who received the largest VC-backed funding amount in 2011, (the entire USA).
GLOBAL SALES AND DEPARTMENTAL DEVELOPMENT
Sales staff and infrastructure are different all over the world. Smart global players learn local customs and laws, hire as many local people as possible and integrate locally. No longer should firms try to jam their corporate and home country cultures and ideals into the expanded region. Depending on the country or region, however, exporting home country talent and culture might be ideal.
Case Study: A middle market European furniture retailer ($100 million USD) opened its first USA store and hired its first and most important Sales staff. Lombard Global’s strategy was:
Define U.S. Sales organization
Define compensation model
Define and establish legal, compliance, and employment policy requirements
Establish effective hiring practices and help select candidates
Define on boarding and training requirements.
Execute all of the above.
Global Sourcing
Today’s marketplace demands an increasingly accelerated pace of development to keep up with the competition. Firms must now rely on their organizations and processes to access specialized talent and expertise in multiple locations and on a global basis simultaneously. The key to juggle these demands is the ability to access manufacturing, supply chain, technology and business process resources seamlessly on a global basis to decrease cost and improve delivery capabilities.
Lombard Global implements a BestShore methodology and approach to efficiently transfer this type of work to an offshore development location or to temporarily transition global resources to the client site for project work. This can be in India, China, Costa Rica or Nebraska. A key component of our organization is the ability to provide offshore technical and business process services that help you leverage significant cost savings.
Through our BestShore Delivery solution, we combine global capabilities and industry experience with a strong alliance portfolio to help you:
- Address supply chain and manufacturing constraints.
- Address IT and business process budget constraints.
- Gain seamless access to experienced, competitively priced global resources.
- Increase supply chain, manufacturing, IT and BPO delivery capabilities.
- Assess and estimate ROI for globalizing all applications.
- Provide road map for selection, transition, and delivery of all applications.
We also provide the following business consulting services in addition to modules described above:
- Cultural Immersion and Training
- Organizational and Cultural Alignment
- Global Team Building
- Multicultural Workforce Development
- Executive Coaching and Development
- Relocation services including real estate sourcing and transaction closure