1st Edition

Managing Growth and Expansion into Global Markets Logistics, Transportation, and Distribution

By Thomas A. Cook Copyright 2016
    352 Pages 71 B/W Illustrations
    by CRC Press

    Company executives in every field are recognizing the critical importance of entering into the global economy. As transportation and logistics companies follow their clients’ expansion into these international markets, they must be able to service their clients’ supply chain needs in new economies and turbulent markets.

    Managing Growth and Expansion into Global Markets
    addresses the unique logistical, transportation, and distribution issues surrounding growth and expansion into global markets. It supplies a full overview of contemporary management assessment tools, to provide an understanding of exactly what it takes to enter foreign markets and avoid common pitfalls.

    Distilling the author’s decades of experience in global supply chain management and international business, this book is ideal for those looking to grow and develop their global supply chains.

    The book details the benefits and drawbacks of both organic growth and merger and acquisitions into global markets. It illustrates the most common types of problems that occur during mergers and acquisitions and describes exactly what you can expect during the transition period.

    Explaining why some organizations transition new business units successfully while others struggle, this book will help you properly assess your best options to grow your organization and expand your supply chain capabilities.

    The book examines the array of legal and regulatory implications that you need to review, understand, and bring into your decision-making process. It also provides specific answers, strategies, and a best-practice outline that you can follow.

    A must-read for anyone involved with global growth and expansion in the supply chain arena, this book is also an ideal tutorial to help students and business-school attendees gain practical insights into global supply chain issues.

    Understanding the Business Model for Growth and Expansion on a Global Basis
    The Case for Going Global
    Domestic vs. International
    Margins
    Meeting Aggressive Growth Targets
    Protection from Competition
    Diversification
    Security
    Access to Local Market Benefits and Value Add
    Creating a "Panache
    Going Public
    Selling Strategy

    Unique Challenges of Supply-Chain, Transportation, and Logistics Companies in Merger and Acquisition and Growth Strategies
    Define the Global Supply Chain
    Domestic Supply-Chain Parties
    International Supply-Chain Parties
    Landed Cost Modeling
    Why Do Landed Cost Modeling?
    Creates the Financial Argument for Overseas Sourcing as a Strategic Option in Choosing Suppliers and Vendors outside the Country of Destination
    Summary of Conclusions
    Determines the Margins of Opportunity
    Provides Information Flow and Intelligence That Allows Better Decision Making in the Various Options We Have in How the Global Supply Chain Operates and Ultimately Performs


    Organic Growth versus Merger and Acquisition
    Organic Growth
    Lower Costs
    Relationship Driven
    Unique Services
    Controlled or Protected Capabilities
    Hiring Key Personnel
    Forming Strategic Partnerships
    Aligning with Key Relationships
    What the Corporate Icons Have to Say
    As Reported by Pricewaterhousecoopers in August 2014
    Plan Early, Plan Realistically
    Supply-Chain Checklist for M&A Success

    Strategic Planning
    The Strategic Planning Process
    Identifying Stakeholders and Leadership
    Setting Deliverables
    Alignment of Goals and Expectations
    Managing a Strengths, Weakness, Opportunities, and Threats Analysis
    Establishment of Timelines and Action Plans
    Cost and Return-on-Investment Analyses
    Senior Management Buy-In
    Initial Salvos
    Implementation
    Problem Anticipation and Proactive Mitigation
    Tweaking Period
    Closure

    Management Assessment Tools
    Overview
    Tools and Resource Options
    Industry Trade Publications
    Centers of Influence
    Consultants
    Merger and Acquisition Leading Companies
    Financial Reports
    Industry Associations
    Particular Conferences
    Networking


    Anticipated Merger and Acquisition Problems
    Merger and Acquisition’s Likely Sources of Problems
    Unrealistic Expectations
    Not Engaging All Key Personnel
    No Specific Transition Strategy
    The Financial Side Not Holding Up


    Problem Resolution Strategies
    The Ten-Step Process for Problem Resolution
    Quick Assessment
    Stopping the Bleeding
    Establishing the Stakeholders
    Better Assessment
    Responsible and Timely Communications
    Creating Strategy, Tactics, and Action Plan

    Updates and Status Reports
    Tweaking
    Summary and Closure
    Follow-Up

    Transition Management
    The Importance of a Well-Thought-Out Transition Plan
    No Transition Plan Exists
    The Plan That Existed Was neither Robust nor Comprehensive
    Transition Issues Were Handled with Poor Timing
    The Transition Process Lacked Leadership and/ or Ownership
    The Transition Plan Did Not Create Enough Anticipation and/or Expectation of Potential Problems
    The Transition Management Process

    Legal and Regulatory Considerations
    Overview
    The 9/11 Event
    U.S. Statutes and Regulations Governing Export Shipping and Trade
    Introduction
    The International Shipping Laws of the United States
    The Carriage of Goods by Sea Act
    The Warsaw and Montreal Conventions
    U.S. Export Trade Controls


    Trade-Compliance Issues in Global Expansion and Mergers and Acquisitions Activities
    Trade Compliance
    Export Trade Compliance Basics
    Export Management Compliance Program
    Additional Note for Those Companies Engaged in Exports under the International Traffic in Arms

    Successor Liability and Export Violations
    Import Trade Compliance Basics
    Import Compliance Management Program
    Successor Liability and Import Violations
    Core Elements of an Effective Export Management and Compliance Program
    Focused Assessment Pre-Assessment Survey
    Questionnaire

    Best Practices in Global Expansion
    Overview

    Appendices
    Customs-Trade Partnership against Terrorism
    Harmonized Tariff Schedule of the United States
    Export Management and Compliance Program: Audit Module: Self-Assessment Tool
    The Post-9/11 Global Framework for Cargo Security
    Trade Facilitation Principles under the World Trade Organization
    Cargo Security Provisions under the International Maritime Organization
    United States-Based Cargo Security Policies
    North American Free Trade Agreement
    Terms of Trade
    Finding Qualified Buyers and Expanding into Overseas Markets
    Example of Landed-Cost Modeling Standard Operating Procedure
    Example: International Marketing Plan Workbook

    Index

    Biography

    Thomas A. Cook has been involved in domestic and global business for over 35 years in an array of supply chain management and international business trades. He graduated from Maritime College at Fort Schuyler, New York, where he holds a BS degree in transportation science and a graduate degree in transportation and business management.

    His career began in the US Naval Reserve and the US and Dutch Merchant Marine, where he served as an officer in various commercial and military capacities on passenger, tug, oil, chemical, break bulk, and container vessels all over the globe.

    He has authored over 225 articles and published 15 books on international trade, with three of the latest as follows: Post 911 "Compliance in Today’s Global Supply Chain", Mastering Import and Export Management, Purchasing Management, and Driving Risk and Spend out of the Supply Chain.

    Thomas A. Cook has lectured all over the world on varied subjects involved with global trade. He is considered by many leading professionals to be top in the field of global logistics and international operations.