IBCircle

Australian Ad - too risque for the US?

Enjoy this Aussie commercial. It's great for frequent travelers and a perfect example on how cultural sensitivities are different. I don't think this ad has a chance to air in the USA. No judgement here. Just interesting to observe the differences. (Nice luggage).

Member Stories: China Factory Conditions

We asked Charlie Lang, President, Global Supply Chain Solutions and former VP WW Supply Chain Management at Coors . . . "Charlie, what's your favorite story about working internationally?"

Charlie's answer: I was in negotiation for a new [Coors beer] producer in China and toured a new plant with the plant manager. The site had some of the most deplorable conditions I've ever seen. The workers were not protected; there was no sense of security or sanctity about them.

I asked him, "What happens if one of your workers gets hurt?" And he said, "I get rid of them. I get another one."

There was no OSHA, no sort of moral outrage; it was just a simple matter of - this is what happens. Over the next six months, as we went through the process of building our contract, I was able to convince him that, from an economic standpoint it made little sense to get a new worker and a lot more sense to protect people from being hurt - to provide safety shoes and eye and hearing protection, gloves, and things of that nature (really basic things that we would expect here in the U.S). That it costs him more to train new people to replace the ones who had been hurt, rather than actually protecting them.

Luckily, the economic argument worked well for him - once he realized he could make more money by sustaining and training and protecting those people. He loved that.

Had I approached him from a "Oh no, we don't do it this way in the U.S. You know, this is morally wrong." He would just have said "We don't want to do business with you, you're a pain in the neck."

What I learned: If I had done more talking than listening, and had arrived at this in a more forceful way, I doubt that he would have done business with us.

Podcast: Myths about international market entry

IBCircle's BEST PRACTICES SERIES - INTERNATIONAL BUSINESS A dynamic, powerful interview. INTERVIEW OF:   Bill Decker, Partners International INTERVIEW BY:   Julie Williamson, The North Highland Company Track 1 - Relationships and Connecting Track 2 - Bullet Point Culture Track 3 - Time Warp Track 4 - Talking the Lingo Track 5 - Local Marketing Partner Track 6 - Exporting Quality Track 7 - The internet, Great Savior?

Click and grow!

Drop your pants here . . . and more bad translations

Drop your pants here for best results. - sign at a dry cleaning store in Tokyo

We take your bags and send them in all directions - sign at a Scandinavian airport

STOP! Drive Sideways - detour sign in Japan

Ladies, leave your clothes here and spend the afternoon having a good time. - sign in Rome laundry

If you consider our help impolite, you should see the manager - sign in an Athens hotel

Our wines leave you nothing to hope for. - on the menu of a Swiss restaurant

It is forbidden to enter a woman even a foreigner, if dressed as a man - in a Bangkok temple

Fur coats made for ladies from their own skin. - window of a Swedish furrier

Specialists in women and other diseases - doctors' office in Rome

When passenger of foot heave in sight, tootle the horn. Trumpet him melodiously at first, but if still obstacles your passage then tootle him with vigor. - car rental brochure in Tokyo

Ladies may have a fit upstairs - sign at a dry cleaning store in Bangkok

Please leave your valuables at the front desk - sign in a hotel in Paris

No smoothen the lion - sign in a zoo in the Czech Republic

The lift is being fixed. During that time we regret that you will be unbearable - sign in Bucharest

HOT INTERNATIONAL BUSINESS TIP: USE A GOOD TRANSLATOR!

Five Unpleasant Truths of Doing Business in China

COLORADO MEMBER: Yue Xi Savage

Yue travels extensively all over Asia, wheeling and dealing for Skytek, an RFID company. Yue wrote a thought-provoking blog post "Five Unpleasant Thruths of Doing Business in China". READ IT and get a glimpse of what some Chinese think of Americans . . . OUCH!

Yue's 5 Unpleasant Truths:

1. Chinese don't follow the rules . . .

2. Chinese will copy anything . . .

3. Trap of joint ventures . . .

4. Expectations of high margins . . .

5. Most Chinese consider Americans . . . (?????)

Yue works for Skyetek, which is in the RFID business. She is the director of business development for Asia Pacific, including China, Korea, Japan, Taiwan, Singapore, India, Australia, New Zealand and southeast Asia. She spends a lot of time in Asia, particularly in Shanghai, Tokyo, Seoul, Taipei and Singapore.

Passion for Investing

Symbol: ILF, 3 year chart.

WE SEEM TO SHARE A PASSION. We like to observe global trends and invest in them.

For 3 years now, my most powerful source for investment ideas? The IBCircle members - half of whom seem to be just stepping off a plane from doing business somewhere in the world. Many come to meetings straight from the airport. In April for example, Carson just flew in from Mexico, Stephanie was jet-lagged from Hong-Kong, and Rich just got in from Argentina.

Its a powerfully direct way to find out where the action is and what's happening where. Hearing about each others' trips yields great insight into which countries and industries are buzzing and where everyone is investing.

The conversations made me see and bet on 2 key global trends:

TREND #1: CHINA is booming and needs natural resources. Who's got them? Latin America and Africa.

Bought ILF - S&P Latin America 40 Index. Companies from Mexico, Brazil, Argentina, and Chile. Result: 291% (3 years), 62% (1year).

Bought EZA - Basket of publicly traded securities in the South African market. Result: 142% (3 years), 29% (1 year).

Bought FXI - FTSE/Xinhua HK China 25 Index. Represents the performance of the mainland China equity market available to international investors. Result: 54% (1year. It's only 1 year old).

TREND #2: EASTERN EUROPE is happening and buzzing. Which country is a former empire, has a highly skilled work force, and is perfectly located between Eastern and Western Europe? Austria!

Bought EWO - Aligns with the Austrian market index. Result: 165% (3 years), 35% (1 year).

I ALSO LIKE: Malaysia (EWM) and a broader emerging market fund (EEM). For individual stocks I'm fascinated with Dave Cole's company (EMU). You first learned about it on this blog. Read 'Dave's fascinating uranium story'. EMU is the largest Uranium company in North America. Since China is supposedly building 36 nuclear power plants right now this feeds right back into Trend #1.

What are YOUR TIPS?

Lunch - New Energy Economy

6/8 LUNCH - NEW ENERGY ECONOMY
Vijay Vaitheeswaren The Economist magazine	Keynote: Can Colorado be a global player? With The Economist magazine and John Hickenlooper, Mayor of Denver Co-Organizers: TiE-Rockies, iCast Location: Denver See Details and Register

Culture Clash - Colorado Companies Share Lessons About Going Global

Americans like to get business done and then go out for dinner and drinks. In Europe, expect to spend a lot of time socializing first if you want to clinch the deal. - By Mike Cote - READ THE ARTICLE

Starting a Business in China? TOP 10 Legal Essentials

BEST PRACTICES SERIES - INTERVIEW

Thomas Yih, Associate General Counsel, Sun Microsystems talks about the legal issues executives will face when planning a market entry into China. Read this powerful interview

Very Creative Ads from Germany

Foreign ads are fun and insightful. They're perfect snapshots into the psyche of another culture. (It's slightly strange to see the abundant use of English slogans). SEE MORE GLOBAL ADS

German Quit Smoking Ad - Slogan reads "Ready to quit?"

   

Ad for a job posting site Jobsintown.de (the side panel on this vending machine is a picture).

Ad for a German funeral home. (very smart)

  SEE MORE GLOBAL ADS

Bangalore Tiger Book Discussion - RECAP

               Read the recap - click here.

Swiss Make Shock Eurovision Exit

From Maggie Fouquet  - Hello Katrin, so sorry to hear that Switzerland won't be in the final...Hope you'll still feel like flying the flag on June 1! - Maggie - Read the shocking story

Dynamic Materials on The History Channel

Our company will be on the History Channel. We will probably be the second segment of the show I believe. - Yvon Cariou, CEO, Dynamic Materials

MODERN MARVELS: WELDING on the History Channel Wednesday, May 9th at 10:00pm. Check the History Channel website's primetime schedule for next week.

IBCC Member with Chile's Most Famous Wine Producer

I recently went to Chile. This is a picture of me with Marcelo Retamal our Nuevo Mundo wine producer. Marcelo has worked for the De Martino family winery for many years. They have 300 hectares of organic grape varietals (Cabernet Sauvignon, Malbec, Carménère, Sauvignon Blanc) which they use to produce organic wines (De Martino and Nuevo Mundo brands). They also source grapes from all over Chile for conventional wines (including the Santa Ignes label).

.

In the world of wines, Marcelo is world renowned. He has won the 2004 Winemaker of the Year Award (Chilean Wine Guide) and the 2005 Chilean Wine Producer of the Year (London International Wine Competition). I'm very inspired by his philosophy and his love of nature and organic practices. He has spent 10 years managing the vines at De Martino, perfecting wines - vintage after vintage.

.

To your very good health!

IBCC Member Paolo Bonetti, President, Organic Vintners

Hotline: Question on European REACH regulation

DO YOU KNOW THE ANSWER? DO YOU KNOW SOMEONE WHO DOES?

I'm an IBCC member and currently researching the new European REACH regulations (Registration, Evaluation, Authorization and Restriction of Chemicals) in the areas of synthetic textiles and product packaging in hopes of learning what products\chemicals I need to avoid.

QUESTION: I would like to know how other U.S. companies, who produce in China (or elsewhere) and export to Europe, are weaving through this intricate new web of regulations.

Thanks for any insights.

Barbara Kantor, CEO & Founder, Vedante Corp. - Fashion that reflects well on you!

Beating the Swiss Drum

Since I'm a Swiss transplant and currently serving as IBCC Country Ambassador for Switzerland, let me proudly beat the Swiss drum and strut our latest stats.

QUALITY OF LIVING SURVEY: For the 6th straight year, Zurich and Geneva scored highest with 108.1 and 108. points respectively on the Mercer Human Resources 2007 Quality of Living Survey. Berne, the country’s capital (and my birthplace) ranked 9th with 106.5 points. New York City is the index at 100 and ranked 48th.

.

EUROPEAN INNOVATION SCOREBOARD: The 2006 European Innovation Scoreboard ranks Switzerland 2nd after Sweden among the most innovative countries worldwide.

.

Fellow IBCC Ambassadors, why not strut your stuff?!

.

Happily yours, Katrin Windsor

Source: Location Switzerland

Pictures of Zurich, Geneva

Top 10 - Doing Business Overseas

1. Use LOCAL PEOPLE and exPats for knowledge and technology transfer. Use your best people where they add true value. Companies overweight with ex pats don't succeed - from a small start up to Unilever!!
2. Use FISCAL PRUDENCE. Establish a set of financial KPIs and manage to those.
3. Set the right EXPECTATIONS. Ensure that everyone from the board down has a level set of expectations regarding market timing, resources required - avoid over exuberance.
4. LOCALIZE. Package your solutions for the local market – 80/20 - ensure you have localized where ever possible, including packaging and pricing.
5. Have CULTURAL SENSITIVITY. Eat and drink the local culture, show genuine interest in local sport, events etc, and understand what value you bring to them in their context.
6. Use VESTED LOCAL PARTNERS that have equity alongside your equity. A committed market partner will ensure alignment of goals.
7. Know the LEGAL SYSTEM. Avoid the legal traps that so often wait in all markets, usually in favor of the local company.
8. Make COMMITMENTS carefully - only make those that you know you and your partner can deliver
9. Be ETHICAL (Foreign Corrupt Practices Act). It's tempting to do whatever it takes to get a large order in line with local customs - just look at Siemens - no one is immune.
10. Solve issues through RELATIONSHIPS - spend time building relationships to resolve the bumps on the road before they become serious legal impediments that could destroy your reputation in market.

These points, though not exhaustive, are a result of running successful businesses in APAC, USA and UK as well as advising many companies on conducting international business and delivering the Power UP to Market Workshop in multiple countries. Obviously there will be nuances for different countries and industries.

Yours,

Peter Bryant

Also available:

White paper “How do emerging technology companies enter global markets"

by Peter Bryant, President of Transtech USA

Main Street Pedicabs Gets Feature in The Economist

The Economist Magazine just wrote a story about us. Many thanks to you and the IBCC for getting us international exposure for our company!

- Ruth Vanderkooi and Steve Meyer, owners Main Street Pedicabs, Inc. 

From The Economist print edition.

Pedicabs On your bike Apr 19th 2007 / DENVER, LONDON AND NEW YORK.

A PEDICAB borrowed from a friend for a conference on pedestrianisation in 1990 got Steve Meyer pedalling what is now a fast-moving business. READ

Hotline: Question on International Publishing

We provide leadership seminars to countries around the world. The owners are self-publishing their first leadership book in January. I am responsible for the publication of this book and in researching, know that I have to find a distributor to handle it, if we want to get it in bookstores.

We will be pursuing initial sales through Amazon. The owners also want to publish the book in Mexico, Brazil, England and Australia - where we do programs for multinationals like Owens-Illinois, Ford of Mexico, and Mazda.

QUESTION: I've told them we need a publisher in those countries to buy the foreign rights and let them publish locally since they have the distribution channels established. Am I right on this? Does anyone have other advice to offer?

Thanks so much for any help!

Donna Carter, Director of Communications, Pathways to Leadership, Inc.

Denver Post Interviews Katrin Windsor

A conversation with Katrin Windsor, president of the International Business Club of Colorado which provides "a vibrant forum for peer-to-peer learning on international business," according to the group's website. (Post / John Prieto)

Q: What are some of the most common mistakes people make when trying to expand into markets outside the United States? Click to read the interview.