Developing A Strategic Plan

1
Developing AStrategic Plan

• Joe Kimmell

2
Assemble Your Team

• Internal Resources
• External Resources
• Visit China more than once!
• Focus Your Team
• Make China a priority

3
Strategy

• Strategic Analysis
• Strategic Planning

4
Industry Analysis

• Competitors
• U.S.
• Chinese
• Customers
• Current
• Potential
• Foreign Markets
• Domestic U.S. Market

5
Strategic Analysis
Why?

• China based pricing
• Customers moving to China
• Building a Global Platform
• Chinas domestic market
• Other

6
Strategic Analysis
Why?
Examine Your Goals

• Short term
• 1 year to 3 year objectives
• addressing current needs
• Longer Term
• 3 years and beyond
• building for the future

7
Strategic Analysis
Why?
Explore Your Options

• China based pricing
• Examine your costs
• Contract manufacturing (OEM)
• Manufacturing facility in China

8
Strategic Analysis
Why?
Explore Your Options

• Customers moving to China
• Zai Jian
• Manufacture from the U.S.
• Manufacture in China

9
Strategic Analysis
Why?
Explore Your Options

• Accessing the Chinese market
• Competitors
• Government Restrictions
• Export to China
• Distribution agreements
• Licensing agreements
• Manufacturing in China

10
Strategic Planning
How Do We Enter China
(Manufacturing in China)

• Representative office
• Joint venture
• Customers
• Competitors
• Investors
• WFOE
• Acquisition

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Strategic Planning
Where?

• Customers
• Competitors
• Raw materials
• Future markets
• Incentives

• Shipping
• Infrastructure
• Employees
• Cost of Operation
• Taxation

12
Strategic Planning
Developing a Plan

• Important Issues
• Intellectual Property
• Capital
• Risk tolerance
• Market Availability
• Operational concerns
• Need for relationships
• Availability of partners

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Strategic Planning
When?

• Short term goals
• Longer term plan
• Single or multiple plans business purpose
• Co-ordinate your plans
• Build-in flexibility
• Non-compete
• Geographic coverage
• Exit options
• Growing into China

14
Charting Your Course
15
Chinas ChangingInvestment Market
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The End

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