ALP Setup new Business Prague, Czech Republic

Agenda Team rules15 min. Plan for ALP20 min. Research60 min. Set goals and mission10 min. Develop alternatives to reach goals30 min. Set criteria for selection30 min. Action plan30 min. Finalize presentation15 min. Reflection20 min.

Team rules Beeing direct (balance between quality and time) Team process is leading Consensus Inputs should be always from CZ and NL sides Equal Use your talent Talk only to contribute (added value) Keep timeschedule

Research – Culture NLCzech Consensus Creative Direct Innovative Open for other cultures Structured Risk takers Organised Language knowledges (west) Individualistic Knowledges Compomise Double faces Collectivism Task oriented (doing, not results) Masculinity Creative Specialists Skeptic to changes Language knowledges (east) Working spirit Experiences

Research – Theory (Trompenaars) Power Distance High Low CZ NL Uncentainty Avoidance High Low CZNL Individualist - Colectivism Individualism Collectivism CZNL Specific - difuse Specific Difuse CZNL Inner - Outer Inner Outer CZ NL Universalism - Particularism Universalism Particularism CZ NL

Research – Conclusion on synergy Knowledges (NL) and Experiences (CZ) Working spirit (CZ) with Innovative (NL) Risk takers (NL) and Structured (NL) with Sceptic to change (CZ) Language on both sides – different languagues

Market Research Possibilities: Production with high added value Investment, development and services (land, hotel, golf course….) Hightech Research center International consultancy

Business Decision Production with high added value Digital lighting industry

Mission We are lighting provider for business customers who need special hi-tech solution Combing knowledges, innovation and experiences of Czech and Holland Culture

Goal Withing 5 years reach 30% (10 mil. EURO turnover with ROI 15%) of market of special lighting in Czech and Holland

Alternatives Setup completely new site in Czech Setup Service company without real production (which is outsourced), only modify existing products Long term partnership with one existing company which delivering products. Buy existing company

Criteria Differences in culture (time for integration process) Time to market Initial investment Usage of culture synergies

Multicriterial choice Difference in culture Time to market Initial investment Usage of synergies Total New site25416,5 Services only32225,5 Longterm partnership 42136,5 Acquire % 40%

Culture in “Coolighting” Company egalitarian hierarchical personaltask oriented INCUBATORGUIDED MISSILE EIFFEL TOWERFAMILY

Culture (continue) Power Distance High Low CZ NL Uncentainty Avoidance High Low CZNL Individualist - Colectivism Individualism Collectivism CZNL Specific - difuse Specific Difuse CZNL Inner - Outer Inner Outer CZ NL Universalism - Particularism Universalism Particularism CZ NL

Action plan Business plan2 weeks Selecting place3 months Start integration programs6 months Hire / Recruiting employees6 months Start marketing9 months Pilot run, trainings11 months Start of production, Enter market1 year Reach 3 mil. EURO and 5% market3 years Turnover 10 mil. EURO / reach goals5 years

Risk management Culture integration – really use synergy –Well prepared integration process avoiding double faces using directness of Dutch people –Working on individual and team culture integration –Strongly focus on basic parameters of target culture Focus too much on production –This is not so helpful to really use synergy –Keep idea setup high added value company, not mass production

Reflection We spoke in the rules about talent, but we are not sure if we really used all talents – there is a lot of potential in the group, but not used because time, process pressure – monitoring the process! Most of the rules we didn’t follow, but we follow the red line (even running out of time!) During the process the cooperation was getting better Czech remarking: we did’n expect from Dutch culture to be so much focused on details during mission discussion The choosing of the alternatives is not mathematics Before making decision you should be more aware of consequences Less talking / more listening can make process more effective