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here: Step
5: Confirming management's commitment to exports |
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Confirming
management's commitment to exports
Having set your broad mission statement
and outlined the interim budget that you require to evaluate
and research export markets in order to prepare an export
marketing plan, the next step is to obtain management's
approval of this vision and budget and for them to commit
to the idea of exporting.
Lack of management commitment is the main
reason for failure in exports
One of the major reasons why companies fail
in exports is because the firm's management only pay lip
service to exports. For this reason it is essential that
your export plan includes a statement (perhaps in the form
of a memorandum) from the CEO or MD of the company committing
the firm's management team to these objectives. This statement
need not be very long and would indicate:
- Why the company should be exporting (e.g. in order
to expand sales given the limits of the local market or
perhaps in order to become more internationally competitive,
or even both)
- That management are committed to exports. In this statement,
management should confirm the need to export and then indicate
in a formal statement their support for the firm's export
endeavours.
- In this memorandum, management would also approve the
budget that was specified under step 4 (or some other amount)
and indicate in broad terms what the money is to be spent on.
This memorandum could serve as a preface
to the export marketing plan. If this statement is not
forthcoming, then the firm should consider dropping its
export activities!
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