Lessons learnt from Asian failed experiences

1. Strategic Planning for Successful International Expansion Lessons learnt from Asian failed experiences By Walter Adamson Founder & Principal Digital Investor Melbourne, Australia October, 2005 www.digitalinvestor.com.au [email_address]

4. Business Characteristics Supports global and local customers Local customer focus, global customers only with great difficulty Local customers supported by national sales, global customers with difficulty All customers get the same treatment Customers Decisions made at centres of competence Strong national organisations, HQ plays primarily financial role HQ controls national companies Home country nationals Organization EOS of production and knowledge, and low cost/customer driven Local responsiveness Sharing innovations outbound from HQ Economies of scale in production Basis of Competition Highly networked and distributed around the globe Highly duplicated in each country Distributed but highly controlled by home country Highly concentrated in one country Value Chain Activities Flexible architecture allowing for mass customisation Customised – some homogeneous Homogeneous- some customised Homogeneous Products & Services Global Multi-local Multinational Global Exporter Characteristic

5. Global Assessment Investment returns support local/global balance Capture global benefits Effective common systems Leveraging IT to build global capacity Global values, compensation tied to behaviours Developing global leaders and teams Managers managing in local cultures sensitively Managing the connections Deliberately sharing knowledge and synergies Building globally scalable resources Customised offers and cultural fit ● Appealing to customers worldwide Multidisciplinary teams active in global programs ● Building global initiatives All employees aware of global vision and acting ● Commitment to global vision Managers thinking of the world as one environment ● Thinking Global Description Never --Scale-- Always Attributes