Introducing New Services in the BROs Workshop: Developing activities of business cooperation 10.07.2

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Introducing New Services in the BROs
Workshop Developing activities of
business cooperation
10.07.2008, Sofia
PHARE Business Support Programme of the European
Union UEAPME - SME FIT II
Gabriele Hanisch Assistant Director
Enterprise Europe Network, Baden-WürttembergHand
werk International
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Host structure
Enterprise Europe Network is integrated in its
HOST-Structure, the Chamber of Craft Industries
of the Region of Stuttgart. The Chamber of
Craft Industries of the Region of Stuttgart is
registered as a public organization under German
law since 1900 Compulsory membership 28.000
companies Main branches - building and
construction sector - metalworking/machinery
- electronics and electro-technology -
woodworking sector
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Main topics over the past 20 years
1987
-
1992
Common
market
1987
-
1992
Common
market
-
start of EIC
-
start of EIC
network
-
regulations

legislation
-
regulations

legislation
-
free trade
of
goods
and
services
-
free trade
of
goods
and
services
-
CE
marking
-
CE
marking
1996
Standardisation
1996
Standardisation
-
Euro
-
Euro
1997
Commun Currency
1997
Commun Currency
Enlargement
of EC
Enlargement
of EC
2002
-
Enlargement Campaign
2002
-
Enlargement Campaign
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Market access

• - within Europe
• adding the candidate countries
• outside Europe
• AL Invest
• Asia Invest

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Review
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Re the EICS Main emphasis of the work of the
EICs Internationalization of SME through
information, consultancy and measures to open up
markets 240 EICs in Europe 21 EICs in
Germany 3 EICs in Baden-Württemberg Re
the IRCs Main emphasis of the work of the IRCs
Innovation through the initiation of technical
cooperation 71 IRCs in Europe 16
IRCs in Germany 1 IRC in
Baden-Württemberg
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Outlook

• New call for tenders
• Integration of the contents of both networks
• New consortiums to be formed
• Kick-off 06/07 Feb 2008 in Brussels

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150 consortiums to be formed in Europe   13
consortiums in Germany   One consortium with ten
partners in Baden-Württemberg
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Goal

• Internationalization
• Promotion of SME with innovative products and
  services
• Promotion of cooperation / network formation
  between SME, universities and research
  institutions
• Feedback/dialogue with the Commission
• Duration period 2008-2013

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Modul A
Services for internationalization and the
opening of new markets
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Modul A

• Information (guidelines, newsletter, fact sheets,
  feedback mechanism etc.) and consultancy for
  companies
• Seminars and workshops (on countries / sectors)
• Initiation of cooperation
• Trade fair participation / joint stands

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Modul B
Services to strengthen innovation through
technology and the transfer of knowledge
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Measures

• Innovation policy, EU directives and
  dissemination of promotion programmes
• Information Measures
• Evaluation of Research Results
• Initiation of cooperation in technology and
  knowledge transfer (cross-border!)
• TO/TR, brokerage, cross-border cooperation
  projects
• Increase of the innovation capacity of SME
• Study visits, seminars (for clusters), IMT
• Links to innovation services

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Modul C Promotion of the participation of SME in
7th Framework Programme for Research
Technological Development (FP7)
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Measures Modul C

• Public announcement widely among the target
  group
•  
• SME Individual Assistance
• - Analysis of research requirements (audits)
• - Partner search
•  
• Support in the Application Process
• - Training
• - Innovation Vouchers (EK might be dropped)

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Modul D
Common activities
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Extensive International and Trans-national Events

• Matchmaking / initiation of cooperation at
  international trade fairs in Baden-Württemberg
  
• AMB, September 2008 / 2010
• Cluster Conference 2009
• - Global Connect (int. consulting meeting,
  matchmaking, exchange of experiences,
  conference 11 12 November 2008 / 2010)
• International Matchmaking Forum 2009

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Total of financial volume

• Total Volume 6.6 million
• EU Subsidy 3.82 million
• Partners' Share 2.78 million

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Target group SMEs

• important pillar in the economy
• innovation potential
• employee-intensive structure
• flexibility
• size

• SMEs need assistance in order to remain
• competitive in the Globalisation process

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• Global markets
• big international companies
• increasing pressure on SMEs
• - price - just-in-time delivery -
  competition - missing international network
  - demand of full package services
  - focus on individual customer oriented
  solutions

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Advantages of co-operation activities

• networking handling of disadvantages due
  to size transfer of Know-how more
  product and organizational innovation
• " conquer " new market segments
• customer satisfaction (service)
• competitiveness (large orders) overcome
  crucial competitive disadvantages, as for
  example - small financial capacity, small
  amounts of purchase, lacking personnel
  ressources, underestimation of
  possible risks, lacking active sales activities
• Enter international markets

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The main disadvantages/risks of international
business cooperation

• Modification of product or packaging
• Additional overhead costs (coordination)
• Unreliable business partners
• - communication
• - quality of product services
• - different objectives concerning the
  cooperation

Fear Nr. 1 loss of independance!
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Active networking Business co-operation
create win-win-situations
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Types of cooperation
Horizontal Cooperation companies from thesame
branch, havingthe same product(joint buying of
raw material)
Vertical Cooperation companies comingfrom
different production andtrade
levels(producers, distributors,subcontractors)
Complementary Cooperation companies with
complementaryproducts, aiming at the
samemarket abroad(joint distribution,joint
stockkeeping)
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The Bureaucrat
The Patriarch
Four types of entrepreneurs
The Democrat
The Cooperative

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We identify four characters of Enterpreneurs

• The Patriarch
• Doesnt like to subordinate himself
• Doesnt go for real compromises
• Has a lot of energy and is very goal oriented
• Prefers working alone
• Fosters the building of cooperation but as soon
  as things are going smoothly, he will leave the
  team in order to be his own Boss again

• The Bureaucrat
• Sticks to the rules
• Never acts against regulations
• Shows little flexibility
• Keeps the team together, but due to his
  bureaucratic attitude, he blocks the development
  of the team

• The Cooperative
• Independence and responsibility of the members
  are more important than regulations
• Has trust in the ability of the partners
• Builds up trust and works on it
• Cooperative teams often hold a strong position
  within the market

• The Democrat
• Contribution of all members is important to him
• Sense of integration
• heart of the team
• Tends to run into a loophole
• Tries to take into consideration every opinion of
  the members

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International business cooperations need

• common objectives
• confidence
• rules
• common engagement
• permanent communication
• the right partner(s)

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International Business Cooperation

• SWOT-Analysis
• Market Research
• International Marketing
• Market Access
• Fields of International Business
  Cooperation
• Partner Research

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SWOT-Analysis
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SWOT-Analysis
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Market ResearchExamples of market research
(Kotler, in Marketing Management)

• Coca Cola knows that we put 3.2 ice cubes in a
  glass, see 69 of its commercials
  every year, and prefer cans to pop out of
  vending machines at a temperature
  of 1,6 C ....
• 51 percent of all males put their left pants
  leg on first, whereas 65 percent of women
  start with the right leg
• Kimberly-Clark, which makes Kleenex, has
  calculated that the average
  person blows his or her nose 256 times a year
• Consumption partners in countries e.g.
  - The Swiss consume the most chocolate
  - Greeks the most cheese

All successful business owners must know their
markets, competitors, customer wants and needs,
and what it takes to be competitive.
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Market screening factors

• political / legal
• cultural
• geographical / demographic
• technological / economic
• market potential

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Sources of Information

• Customers
• Competitors
• Multipliers / associations
• European Commission
• http//ec.europa.eu/europeaid/where/acp/regional
  -cooperation/microfinance/index_en.htm
• http//www.enterprise-europe-network.ec.europa.e
  u/index_en.htm.
• Trade fairs
• Field trips

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International marketing
Marketing is how you define your product, promote
your product, distribute your product and to
maintain a relationship with your
customers/partners. An appropriate and
individual marketing-mix should be developped
for each product.
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The 4 Ps
Product Price Place Promotion
(product concept quality)
(distribution)
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International marketing

• more information with less available ressources
• Higher costs and risks

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Market Access

• export import
• co-operation
• to set up a subsidiary

Presence on foreign markets
to set up a branch office
cooperation
export/import
financial risk
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Fields of international business co-operation

• production agreements
• commercial agreements
• financial agreements
• technology transfer agreements

Distribution

• Joint after sales service
• Joint sales representative
• Joint vocational training
• Joint warehouses/logistics

Joint buying
win-win-situation requires compomises !

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European Business-Cooperation-Database

• since 2004
• standardization of company profiles within
  the EIC-Network in Europe
• EICs encode the profiles (quality assurance)
  

• 5383 active profiles
• 57 commercial cooperation
• 30 technical production
• 15 financial co-operation

Data Dezember 2007
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Main sectors

• manufacturing
• wholesale retail trade
• real estate
• construction
• agriculture / hunting / forestry

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Partner search
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Tradefairs
? ?

• amount of exhibitors/ visitor of a
  specific sector
• regularly repeated event
• overview of market/ competitors in a
  short period of time
• information about new trends and products

• cost - intensive
• labour intensive
• time - consuming

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Co-operation of SMEs - increase size /
minimise risks

• Matchmakingevents
• (Ibex/Interprise)

• Internationaltradefairs
• (HMI, Motortec, MIDEST)

b2fair Combination of two successful
marketing instruments One of
six Pan-European-Scheme-Projects (PES)

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Innovative concept with high added value

• - use of well established business plattforms
• - representative offer and supply of a
  sector/branch
• organisation of prearranged and spontanuous
  meetings between
• - exhibitors - exhibitors and visitors -
  visitors and visitors

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Results

• ? 2.500 participants (50 E / 50 V)
• ? approx. 15.900 meetings
• 35 of the meeting results in
• longer-term contacts
• ? positive evaluation by participants

www.b2fair.com
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Conditions of success in international business
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PHARE Business Support Programme of the European
Union UEAPME - SME FIT II
Thank you for your attention Gabriele
Hanisch Assistant Director
Enterprise Europe Network / Handwerk
International Heilbronner Str. 4370191
Stuttgart Telefon [phone], Fax
0049-711-1657-827email gabriele.hanisch_at_handwerk
-international.dewww.handwerk-international.de