How the ROI Adds Up
Based on a £70,000 Management Position
* Four-month delay incurred finding a permanent employee = £70,000 lost contribution. Why?
* Speed of delivery (depending on project) = £200,000 to £1,000,000 in accelerated results. Why?
* Value of impartial advice = £20,000. Why?
* Value of having someone overqualified in place = £20,000. Why?
Cost of interim £700/day over four months = £56,000. More about pricing.
Return = between £310,000 and £1,200,000
ROI = between 5 and 21
The actual return on investment varies enormously, but as a guide we would say that for every £1 you invest in an interim manager you get between £5 and £21 back. See our case studies for examples.
If you would like to read the full article and interact with the questions asked, please go to the ExecutivesOnline website by clicking at the above title.
Tuesday, February 10, 2009
Are most US companies, afraid of export, just not interested in pursuing international expansion, or what?
While we are well aware of some very famous US brands around the world, many of which are international household names, it seems that the 80-20 rule holds true when it comes to export, as many US companies remain without any international presence at all.
I was recently at an international trade show for medical devices in the Middle East chatting with business people form all around the world when I came across a gentleman from the United Kingdom who said to me textually “God forbids for when the US really starts to export their products”. Many of us know how much the rest of the world appreciates US medical products, unfortunately for our economy not many companies are doing much about it. And by the way, our economy, especially in times such as these, can certainly do with a lot more revenues from export.
I believe that the main hurdle is the fact that for medical devices, the US market comprises of 40% of worldwide market share. Although I do agree that this makes it undeniably a very lucrative market from many stand points - homogenous, familiar, uniform and with no currency exchange risk, it is somewhat disappointing for companies not to take advantage of the remaining shares that lie outside of our borders.
As much as it is true that international expansion needs additional manpower, time, dedication, focus and expertise, medical device companies need to keep in mind that: a) 60% of the rest of the WW market is outside the US borders, b) the five leading EU countries alone equal 26% of WW market share (Germany 11%, France 5%, Italy 4%, UK 4%, Spain 2%) , c) Japan equals 10% of WW market share, and d) export can be very rewarding in many different ways (incremental business, monetary gains, capturing know-how from foreign markets, fending off foreign competition, spreading your bets / risk, to name a few.)
If you do not know where to go for advice on how to export, I strongly suggest that you start off with the US Department of Commerce. Although their staff may not be able to answer specific information about your product line / business they can certainly provide you with a lot of very useful information and put you in the right direction to start off.
And for those of you who are lucky enough to be living in the State of Pennsylvania, the Center for Trade Development can assist you even more and provide with local support around the world.
Unfortunately, not all States (California being one where export assistance has been discontinued for many years due, ironically, to budget constraints), nor many Medical Trade Associations around the country, do much at all to focus on or support export efforts (If you know of some I would appreciate you letting the readers and I know who they are) and I am really puzzled as to why not.
Therefore, until we raise the profile and importance of export around the US, this goldmine will always be marginalized and /or ignored and companies will be missing out on a great opportunity to secure more jobs and more money for themselves and for the nation.
I was recently at an international trade show for medical devices in the Middle East chatting with business people form all around the world when I came across a gentleman from the United Kingdom who said to me textually “God forbids for when the US really starts to export their products”. Many of us know how much the rest of the world appreciates US medical products, unfortunately for our economy not many companies are doing much about it. And by the way, our economy, especially in times such as these, can certainly do with a lot more revenues from export.
I believe that the main hurdle is the fact that for medical devices, the US market comprises of 40% of worldwide market share. Although I do agree that this makes it undeniably a very lucrative market from many stand points - homogenous, familiar, uniform and with no currency exchange risk, it is somewhat disappointing for companies not to take advantage of the remaining shares that lie outside of our borders.
As much as it is true that international expansion needs additional manpower, time, dedication, focus and expertise, medical device companies need to keep in mind that: a) 60% of the rest of the WW market is outside the US borders, b) the five leading EU countries alone equal 26% of WW market share (Germany 11%, France 5%, Italy 4%, UK 4%, Spain 2%) , c) Japan equals 10% of WW market share, and d) export can be very rewarding in many different ways (incremental business, monetary gains, capturing know-how from foreign markets, fending off foreign competition, spreading your bets / risk, to name a few.)
If you do not know where to go for advice on how to export, I strongly suggest that you start off with the US Department of Commerce. Although their staff may not be able to answer specific information about your product line / business they can certainly provide you with a lot of very useful information and put you in the right direction to start off.
And for those of you who are lucky enough to be living in the State of Pennsylvania, the Center for Trade Development can assist you even more and provide with local support around the world.
Unfortunately, not all States (California being one where export assistance has been discontinued for many years due, ironically, to budget constraints), nor many Medical Trade Associations around the country, do much at all to focus on or support export efforts (If you know of some I would appreciate you letting the readers and I know who they are) and I am really puzzled as to why not.
Therefore, until we raise the profile and importance of export around the US, this goldmine will always be marginalized and /or ignored and companies will be missing out on a great opportunity to secure more jobs and more money for themselves and for the nation.
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