Expansion into a new country
One of the possibilities for further growth is geographical diversification. This option should be assessed in relation to its alternatives. Without a USP and proper commitment this route should not even be considered.
On top of financial elements such as return and risk diversification, advantages may also be found in an increased attractiveness as an employer, new opportunities for cooperation or a positive effect on reputation.
Without a focus on results and proper execution the company will be stuck with nice plans that only use up money.
The potential of internationalization should be viewed as a strengthening of the company’s business model. This could be in the form of additional clients for the company’s products. Access to new knowledge, suppliers and production facilities can also be a reason to explore foreign opportunities.
Quantitative and qualitative considerations are at the base of the decision. Summarizing in (financial) scenarios is a well-known method in these circumstances. Keep in mind that prospective figures are not hard facts, although they have proven their value as a way to communicate and evaluate alternatives.
Implementation is the key to success. A good foundation for the decision is an absolute necessity. Concurrent and pragmatic identification of the necessary actions increases the chance of success.
Explanation of the solution
Knowledge of the chain and competitors (market analysis)
In order to assess the potential, an analysis of the market is essential. The question whether it is possible to obtain a position that is both profitable and sustainable needs to be answered.
Daily affairs demand a considerable amount of attention, which means that internationalization may end up with a low priority.
That is unnecessary if one is willing to accept flexible solutions. During the course of the project the company should make sure internationalization obtains a secure place within the organization. Therefore, at least one of the company’s employees should fulfill the role of internationalization champion and act as a linking pin between the internationalization project and the rest of the organization.
Access to a network
Building a network requires substantial efforts. Gaining access to an existing network in which one is able to make use of established links can save a lot of time and increase the chance of success.
Corridors BV is happy to open up its network to its clients.
Competences: The necessary competences and sectors are covered.
Partner: jellow and its corresponding structure.
Government subsidies and other support have become increasingly rare. It would be unwise for the company to proceed with a project that is not viable without such help. A sound budget is called for, even if the project is staffed entirely by the company’s own employees.
Travel and trade missions
Government support agencies regularly organize foreign trips. Other opportunities such as visits to trade fairs are also offered regularly. If the company’s participation doesn’t have a clear objective, there might be a substantial loss of time.
Explanation of the solution
Decision-making and uncertainty
Decision-making is up to the company’s management of course. However, based on our knowledge and experience we can contribute the necessary elements. This is merely to facilitate the process.
A transparent environment contributes greatly to a solid decision-making process. The highly pragmatic Corridors Connecting Plans Method© is particularly suitable to support proper sharing of information.
The company is the focal point.
Potential difficult to estimate
Companies operate in a dynamic environment and decision-making is not an exact science, just like in other strategic matters. A careful process that measures progress is the maximum achievable.
Solution : Keep the project highly adaptable and plan for milestones at which an evaluation will take place, to facilitate an adjustment if necessary.
Companies from a small country like the Netherlands are often smaller than foreign players. In many cases this leads to tensions in relations, for example between a parent company and its foreign subsidiaries.
This factor should be taken into account, particularly if success is likely to be highly dependent on the bigger party.
Explanation of the solution
Looking for financing? Make optimal use of the momentum by strengthening the company’s team and giving it access to financing based on a sound plan with strong execution power.
Corridors Connecting Plans Method© focuses on the company’s management team. A network of independent professionals can supplement the team if the company so desires. A company may also source additional human resources from its own network if these professionals meet the necessary criteria and feel comfortable with the methodology.
The activity plan
The activity plan is an essential part of the Corridors Connecting Plans Method©. It establishes commitments that should lead to concrete actions. This is a good way to ensure that everybody is on the same page. Moreover, it provides a basis for evaluation and, if necessary, adjustment. Everything is oriented toward optimizing the chance of success through proper preparation.
To the extent that additional financing is necessary, our method is designed to find the right form. This should be tailor-made, since the main focus is on the company and the financing is a means to support it in its endeavors to maximize value creation. Even if there is no immediate need for additional liquidity, financing is an integral part of the plan. This way the company is well prepared should financing suddenly become an issue, for example in the case of a strategic partnership.
Team building in an intercultural setting, testing and developing intercultural skills and managing intercultural risks are instruments that management has at its disposal to obtain the best result possible.
Advising and liaising
Many companies experience failure despite serious potential. A good adviser that is able to turn that potential into concrete action reduces the risk that your company falls into this trap. The adviser is critical but constructive, has a helicopter view and specialist project management skills. Our advisers are selected on the basis of these requirements. To benefit from our support, the company needs to be prepared to embark on the road to self-reliance.