Developing Masterful Management Skills for International Business

Thomas A. Cook is the Chief Executive Officer at American River International Ltd. American River International Ltd., has specialized in the time-sensitive and unique handling needs of the communications, broadcast and high-tech industries for over 16 years. Companies such as Bexel, United, Duke City, NBC, and NMT have utilized their services to move freight both internationally and domestically. They are recognized leaders within these fields, managing the very difficult logistics needs of all types of electronics, computers, video, and audio equipment companies.

• ContentsForeword .............................................................................................xviiPreface ..................................................................................................xixAcknowledgments ...............................................................................xxiAuthor ............................................................................................... xxiiiChapter 1 Understanding and Executing SuccessfulLeadership and Management ............................................ 1Defining Leadership and Management .....................................2Innate or Learned? ........................................................................5Quality Leadership Skills ............................................................7These Traits Can Be Both Represented or Argued asPositives and Negatives ..............................................................10They Are All Positive and Negative to an Extent ...................10Where Do We Stand as Individuals in All These Traits? ......11And How Do We Know Where We Really Stand? ................11Chapter 2 Business Management Skill Sets ..................................... 13Business Management 101 .........................................................13Finance .........................................................................................14Communication ..........................................................................14Be a Student Always...............................................................15Be Articulate ...........................................................................16Be Interesting..........................................................................16Be Direct, No Nonsense ........................................................17Utilize Storytelling ................................................................18Create Feedback .....................................................................19Be Timely ................................................................................19Make Sure Your Points Are Understood by KeepingIt as Simple as Possible ...............................................................19Do Not Waste People’s Time ............................................... 20Learn to Speak to Groups, Publicly, and to UtilizePowerPoint ............................................................................. 20Create a "Communication Style" .........................................21Project Management ..................................................................21Problem Resolution ....................................................................24Stop the Bleeding ...................................................................25Assessment ..............................................................................25Strategy ....................................................................................26Action ......................................................................................26Reassessment ..........................................................................27Revision ...................................................................................27Outreach ................................................................................. 28Mitigation .............................................................................. 28Closure.....................................................................................29Negotiation ................................................................................. 30Time Management .....................................................................31Delegating .............................................................................. 34Time Management and Communicating ................................35People Skills .................................................................................36Business Development ...............................................................37Growth Strategies .......................................................................38Raising the Bar of Sales Management .................................38In Organic Sales ................................................................38Creating a Viable Sales Strategy ..........................................39Hiring Quality Business Development and SalesPersonnel .................................................................................41Building a Sales Pipeline of Opportunity .......................... 43Creating an Inventory of Prospects .................................... 44Closing More Deals .............................................................. 46Price ........................................................................................ 46Customer Service ...................................................................47Specific Sales Strategy .......................................................... 48Concluding Remarks ............................................................ 48Operations ...................................................................................49Strategic Planning as an Operational Responsibility ............52Strategic Planning Considerations ......................................52Mantra ................................................................................52Goals and Deliverables .....................................................53Specific .....................................................................................53Measurable ..............................................................................53Attainable ................................................................................53Contents • xiRelevant .................................................................................. 54Time Frame............................................................................ 54Collaboration ......................................................................... 54Chapter 3 Financial Considerations ................................................. 57Financial Controls ......................................................................57Controlling Spend through Procurement Management .......61Senior Management’s Role in Procurement .......................61Overview ............................................................................61Sourcing ..............................................................................63Purchasing..........................................................................63Vendor Management ............................................................ 66The RFP Tool in Managing the Purchasing Function ......67Risk Management in Procurement .................................... 68Summary .....................................................................................70Chapter 4 Going Global—The Business Case to Go Global:Foreign Purchasing and Export Sales ............................. 71The "Case" to Go Global ............................................................72Export Sales ............................................................................73Choice of INCO Terms .....................................................75Utilization of Freight Forwarders ...................................76Landed Costs .....................................................................77Competitive Pressures ......................................................77Trade Compliance Issues .................................................77Use of Distributors and Agents .......................................78Global Expansion ..............................................................78Global Sourcing ......................................................................79Foreign Asset Expansion ......................................................79Developing the Skill Sets of Global Business ..........................79Understanding Foreign Cultures ........................................ 80Understanding Import and Export Operations,Regulations, and Procedures ............................................... 80Global Supply Chain..............................................................81International Legal, Accounting, and Finance Issues ......82International Marketing, Sales, and Customer Service ..... 82Technology on a Global Scale ..............................................85International Purchasing ..................................................... 86Benefits to Americans and the World ................................ 88Foreign Purchasing ................................................................... 88Sourcing Globally: Senior Managements Guide to"Twelve Key Best Practices" ................................................ 88Trade Compliance and Regulatory Responsibilities..............92Buying Internationally: Import Supply Chain ..................93Duties and Fees .................................................................94Harmonized Tariff Classification ...................................94Country of Origin Marking ............................................95Trade Compliance with Customs .................................. 96Reasonable Care Standard .............................................. 96Customhouse Brokers ................................................... 100Internal Supervision and Control .................................103Supply Chain Security ....................................................104Invoice Requirements .....................................................106Bonds ................................................................................107Record Retention .............................................................108Selling Internationally: The Export Supply Chain ..........109Government Agencies Responsible for Exports .........109International Traffic in Arms Regulations ..................110Export Administration Regulations.............................110Commerce Control List ..................................................111Electronic Export Information .....................................112U.S. Principal Party in Interest .....................................112Schedule B Number/Harmonized Tariff Number ......113Valuation ..........................................................................113Recordkeeping Requirements .......................................114Denied Party Screening .................................................114Embargoed Country Screening ....................................114Consularization and Legalization ................................115Solid Wood Packing Material Certificates ..................115Preshipment Inspections ................................................116Free Trade Affirmations .................................................116Getting Paid .....................................................................116Customs-Trade Partnership against Terrorism Benefits .....117Background ...............................................................................118Contents • xiiiCustoms-Trade Partnership against TerrorismApproach and Guiding Principles ......................................... 120External Factors ....................................................................... 122Customs-Trade Partnership against Terrorism forExporters ................................................................................... 122Additional Consideration: Drawback, Free TradeAgreements, Foreign Trade Zones, and BondedWarehouses ............................................................................... 123Chapter 5 Mastering Business Development ................................. 125Developing an International Business Strategy ...................125Understanding the Cultures of the World ........................... 126Business Culture ..................................................................127Considering Cultural Factors .............................................127Twelve Steps to Building a Successful InternationalBusiness Model .....................................................................132E-Commerce in Global Trade ................................................ 134Creating an E-Commerce Website Globally .........................148Step 1—Select a Domain Name .........................................148Using Country-Level Domain Codes ...........................148Internationalizing Your Domain Name ......................148Step 2—Register with Search Engines ..............................149Step 3—Choose a Web Host ...............................................149Step 4—Website Content: Localize andInternationalize ....................................................................150Step 5—Execute Orders ......................................................151Policy-Advice ...................................................................152Chapter 6 Decision Management ................................................... 155Better Decision Making: Qualitative versusQuantitative ......................................................................... 155Understand the Decision ....................................................161Mine .......................................................................................161Build a Team .........................................................................163Establish Preliminary Findings .........................................163Build a Metrics and Quantitative Model ..........................164Evaluate Qualitative Criteria ..............................................164Complete the Analysis ........................................................164Make the Decision and Implement ...................................165Follow-Up and Tweak .........................................................165Emotional Intelligence ........................................................165Chapter 7 Delivering Successful Negotiations .............................. 171Defining What We Want to Accomplish in Negotiationand Developing a Strategic Plan .............................................172Goal Setting ..........................................................................172Assessment ............................................................................173Mining ...................................................................................173Planning ................................................................................173Action ....................................................................................174Tweaking ...............................................................................174Closure...................................................................................174Negotiating Globally ................................................................174The Essence of Compromise ...................................................175Trust Is the Critical Asset ........................................................176Chapter 8 Building the Sustainable Business Model ..................... 189Overview of the Sustainable Business Model .......................189The Ten Steps of Sustainable Business .................................. 190Integrative Management ..........................................................191Developing and Managing Team Initiatives.........................194Team Building ......................................................................194Collaboration ...................................................................194Camaraderie ....................................................................194Effective Delegation ........................................................195Mentoring Effectiveness .................................................195Crossing Company Silos ................................................196Better Results ...................................................................196Choosing Team Members ...................................................196Managing the Team .............................................................197Commercial Example ...............................................................197Cyber Security Issues in Global Trade ..................................199Avoiding Costly Mistakes ...................................................199Overview of Cyber Security .............................................. 200Cyber Security Impacts ...................................................... 200Application Security ...................................................... 200Information Security ..................................................... 200Network Security ............................................................201Disaster Recovery and Continuity Planning ............. 202Operational Security...................................................... 202Technology Bullying ...................................................... 202End-User Education and Training .............................. 202Cyber Security Cases .......................................................... 203Best Practices in "Mitigating" Potential SecurityIssues ...................................................................................203Assessment ...................................................................... 204Professional Support ...................................................... 204Mindset ... Cyber Security Is a Very Real Threat! ...... 204Establish Cyber Security Initiative .............................. 204Train and Educate Staff ................................................. 205Personnel Issues in Cyber Security .................................. 205Additional International Cyber Concerns ...................... 205Appendix ............................................................................................ 207Index .................................................................................................... 323