During the past week it has been intriguing to see a number of the issues we discussed on this Blog coming to pass.

We discussed sovereign wealth funds. Many articles abound this week with disclosures on Chinese strategy to support their national foreign-policy and taking their huge reserves—a transfer from America of their wealth to China— and using that to buy commodities and position themselves for the economic turnaround in the next 12 to 18 months.

They are acquiring these reserves oil and gas and key minerals. They have entered into contracts with nations ‘stumbling’ because of the economic climate to provide them loans such as Brazil, Russia’s major oil company and others in return for long-term guarantee supply of oil and commodities. Are also winning the hearts and minds of these developing in underdeveloped countries by providing loans not tied to the strict conditions offered by the IMF.

So what — As they consume the reserves acquiring commodities they will have less funds available to loan to America and purchase USA’s  IOUs.

In particular although I do not believe they’ve made any large inroads in Canada they certainly have been kicking the tires on a number of our resource-based entities. Let us watch for inroads in nickel, oil and gas as well as copper in the coming months.  Indeed the Canadian dollar falling from parity is now at a 20% discount adds to the attraction to purchase Canadian assets on a 20% sale!

Strategic Case Studies: Aide de Memoir

Trade Shows and the New to Export Company [26]

Trade shows are often an excellent tool to assist the new export company to break into new markets. There are literally tens of thousands of shows each year of which perhaps 150 are of international significance.  Given the cost in time and money of attending shows in countries such as Germany and Japan it is important for firms to carefully evaluate their participation. Important questions to ask include:

• Why does the company want to attend the show?
• Who has attended the show in the past?
• What do previous exhibitors and attendees think of the show?
• What is the show, or the show manager’s, reputation?
• What does the show manager do to help attendees and exhibitors?

Many firms question whether they should simply walk a show or
actually exhibit. Given the costs and the fact exhibiting sends a signal
that the firm is ready to do business in that market (often not the case)
most first time trade show attendees are advised to simply walk the show.
They should do so in a professional manner, however. Walking the show
allows companies to evaluate the competition, see new technology and
meet potential customers and agents. Five key guidelines for getting the
most out of a show are:

• Decide why you are attending the show.
• Select the right show to attend.
• Set objectives before attending the show.
• Cover the show floor efficiently, don’t just wander.
• Get the most out of each exhibit, don’t be distracted by giveaways
• and products you are not interested in.

The Ten Commandments of Exporting [26].

Successful exporting involves some fundamental rules that companies should not ignore. They are:  

1.      Develop a thorough export marketing plan and make it an integral part of the overall business plan.
2.      Commit dedicated resources to the export drive.
3.      Choose your export partners (e.g. agents, customs brokers) with care.
4.      Never give your export customers second-class treatment, ensure they receive the same high quality of service offered your domestic customers.
5.      Focus on specific markets and opportunities, don’t take the shotgun approach.
6.      Consider the export market of equal importance relative to your domestic markets.
7.      Modify products and services to meet the needs of the offshore market.
8.      Be aware of the differences between Canada and its culture and language and those of your target market.
9.      Use export specialists, such as the banks and freight forwarders, don’t try to do everything yourself.
10. Look for new ways to do things, don’t assume the methods tried and true in Canada will work overseas.