A business audit is used to determine whether a company is of international interest and what kind of products or services it may represent. Business consulting helps owners to answer important questions such as whether it is worth entering the international market at all or whether they need to be well prepared beforehand.
Business processes and a plan for companies to enter the international market
To enter the international market, you need to understand business processes that will change the life of the company, and their implementation, over time, will lead to the international arena. Each company has its own peculiarities, but it is possible to give a general example, which is suitable for all trading and production businesses, when entering the international market in several phases:
- Phase 1 (trial export sale);
- Phase 2 (intensive sale in a particular small market with the collection of marketing information);
- Phase 3 (export marketing).
In the first phase of entering the international market, no global change in the company’s business processes is required. It is characterized by the duration of 1-3 months and a small budget to test its product on the international market. In the second phase, mutually beneficial cooperation is strengthened, business ties are deepened and business efficiency is increased.
Sales of alliance In 2006, the alliance between Nissan and Renault sold 5.9% of cars (9% of all car sales worldwide). This is the 4th place in the world ranking. < :-) >
The third phase is characterized by the development of stable bilateral relations, the product is increasingly adapting to the foreign market and acquiring an international image. The company’s entry into phase 3 means that other previously closed international markets are open for it, it no longer focuses on its own country’s market and shows significant development. When developing the right marketing strategy, it is possible to produce goods in other countries.
Audit of risk assessment before starting an international business
For a competent decision to promote the company in the international market, it is necessary to conduct an audit of business and minimize risks. For this purpose, the board of directors of the company, marketing experts, sales department, logistics department and other responsible persons at the general meeting should answer the following important questions listed below:
- What are the goals of the company and its prospects?
- What products or services can I offer?
- Do it on your own or involve business partners?
- What kind of marketing program should be developed to achieve the set goals?
- How to organize the process of marketing program organization?
- What profit and what results can be achieved in the international market?
These are the main questions that need to be solved within the company and to which the answer should be given. In the future, you can attract specialists and various expert agencies that can help you in this: to conduct a professional internal audit of your business, develop plans for further development, translate them into reality and achieve your goals.
How do we conduct an internal audit of small and medium business efficiency?
The business audit is conducted in two step. At the first step, our agency fills in a questionnaire “Profile of legal entity (enterprise) on the possibility of trade in the international market. In the process of its evaluation and thorough analysis, the company’s aspirations, opportunities, obstacles to development in the international market are identified and the appropriate conclusion of the efficiency stages is given:
Expert opinion The experts came to a unanimous decision that gaining international business experience is the best and maybe the only way to ensure the longevity of the company. < ! >
- Stage 1 (operates only in the local market, it is scalable);
- Stage 2 (operating within the region or its own country, ready for development);
- Stage 3 (the Company is searching for foreign counterparties in addition to its national market);
- Stage 4 (works with foreign contractors, enters the international market, opens its offices);
- Stage 5 (works in the international market, produces and sells products on their territory).
After carrying out the first step and defining the stage in which the company is, it is necessary to start the second step. It includes the development of an international business model, risk minimization, marketing strategy and plan for its organization.