Idea determines scientific based procedure (from diagnosis to legal framework of international trade). Concept is based on economy situation of Silesian Region.
The GP consists of steps which may be applied to any industry, regardless of the size of the enterprise. It is based on scientific methods used in business administration and management. The completion of tasks in given steps is oriented on analytic outcome.
Step 1-Identification of domestic market of given industry, description of the industry, SWOT analysis, portfolio analysis, value chain mapping, calculation of chosen financial indicators for representative companies.
Step 2-Identification of international market of given industry, methods similar to the aforementioned
Step 3-Selection of market with growth potential, based on 10 qualitative and quantitative criteria to identify its geographic and general economic extent
Step 4-Characteristics of high-potential markets, acquisition of information, identification of development opportunities of given industry in foreign market, barriers of entry, institutional conditions, legal framework of trade on given market
Step 5-Evaluation and decision
The analysis and forecast were based on mining industry - following foreign markets in this field were identified: China, Kazakhstan, India, Russia, Argentina, Chile and Vietnam. They acquired economic data on doing business in the listed countries and assessed the potentials and weaknesses of industry there. Next they identified legal and customs-related conditions of exporting to these countries. The methodology presented may be used in any type of industry.
Cooperation with public entities - staff will be responsible for:
-supply of statistics and facilitating contact with trade offices on destination markets,
-provision of information, terms and conditions regarding tax, customs and payments on domestic market and rules of export to given countries.
Evidence of success
The methodology is based on scientific publication by prof. Izabela Jonek-Kowalska and prof. Aneta Michalak, Faculty of Organization and Management, Silesian University of Technology. Research was elaborated with relevant studies and scientific tools like SWOT, PEST analysis and was based on mining equipment industry on 7 important foreign markets and indicated crucial factors of foreign expansion on those markets.
GP presents recommendation – no evidence of success exists at the moment.
Situation in Silesia Region forced the post-carbon industry to search for new possibilities of development. Due to that the growth of ‘around mining economy’ may be observed, but at the same time the lack of knowledge how to manage the process. The GP presents recommendations in this scope.
Potential for learning or transfer
The practice takes into account socio-economic and geographic conditions on doing business, which covers also soft factors and cultural issues related to given countries. It also covers psychological distance between exporters and the destination country customers. Moreover, legal analysis is concentrated on employment regulations, public procurement, additional permits and certificates required before transactions.
Replicability of this GP is remarkable. It uses universal and scientific managerial methods and puts them in the proper order to make the most of them. No specific effort must be paid to gain expertise in their use, the most important issue is the accessibility of data.
The basis in the methodology is preparing of SWOT and PEST (political, economic, socio-cultural, technological factors) analysis. Research was based on structured interviews among 214 companies (90% of producers in mining sector in Poland) and marketing research among 13 companies (out of 40).