Action planning MES costs, sales forecast & profit calculations Expro 100 Engineering The Hague November 2013 Martin Bitter Exportant Consultants Ltd.

Agenda The workplace and the fate of plans Action Plans Are we making money?? 2

Your challenges back in the office??

Implementing challenges As 9 out of 10 strategies fail to get implemented successfully: 6 mind shifts need to occur to make implementation successful. (“old mind set ” between brackets)  Mind Shift #1 - 'When crafting strategy is complete, the hardest part is over.' No, implementation is twice as difficult as creating strategy.  Mind Shift #2 - 'Most people resist change.' No, most people are open to change when it is communicated in the right ways. Robin Speculand, CEO of Bridges Business Consultancy Int. Article Source: 5

Implementing challenges -2 As 9 out of 10 strategies fail to get implemented successfully: 6 mind shifts need to occur to make implementation successful. (“old mind set ” between brackets)  'It's all about taking actions.‘  'Communication is all about making sure people understand the strategy.‘  'What worked yesterday will work tomorrow.‘  'Strategy must be reviewed twice a year.' 6

The Salami tactic 7 The french loaf as politically correct version for vegetarian CEO’s

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Action planning

The Action Planning after your PMC and MES Recap: 1. You decided on what to sell to whom and where (PMC) 2. You decided how to get to your client (remember, the one that pays the bill), Your Market Entry Strategy!

The 4 step EMP

Management responsibilities Who will be responsible and how will the workload be divided? Who will control the export activities? Do you need to hire qualified export staff?

Action plan Develop an action plan for your start-up or expansion activities. Show time schedules, deadlines, responsibilities and when applicable extra costs incurred by an action (visits, web presence, product improvement).

Budgets and forecasts Include a section on financials; demonstrating the effect your export activities will have on revenues and profits. Prepare a sales forecast (volume and turnover) for 1-3 years and costs. What do you need to invest?

The MES Strategy  Management Summary of detailed info below, sense of direction for company. Key issues, how to meet objectives  Target markets  Positioning, what do you sell where, price, how, compare to competitor, high, medium low end market  Product, how can you meet customer and market need, product adaptation  Pricing, cost plus, competitive, penetration, perceived value  Distribution, direct / indirect cost of in-market activities  Promotion: create awareness, mix of techniques

The costing of your MES actions Your MES actions, eg visiting a trade fair or appointing an agent, developing new promotion material are all elements that need money. Are you making money? To find out if you are going to make money from your export activities you need to compare the export cost with the budgeted export turnover and gross margin.

exercise You are a starting exporter and have done your research. You have come up with the following MES costs. (see next slide) Your task is to use the blank xcel sheet. In your mail you received a link to this file. 1. Complete the sheet for the action planning (costs at the timeline) 2. Determine whether you will make money in the first year, given your estimated turnover and margin compared to the export cost, using the second tab in the file (budget & forecast) 15:00

Export details Your planned costs Trade Fair 1 in April 2014, cost € Trade Fair 2 in Sep 2014, cost € Direct Marketing and Visits, Travel cost, in Feb and in Sep. Web development € 2.000, Feb 2014 Google adwords € campaign, period March and April Promotional reorganisation € in Feb. Your estimated turnover  In 2014: €  Your cost of sales 80%  Contribution to general overheads….12%