Expand Internationally in the Credit Crunch - Shrink Or Expand - Why Not Do Both?

There's no denying it, times are tough globally, withofferings are today compared with 2 years ago).
the exception of a few fast moving consumer goodsLikewise, China at 26%, Singapore at 22%, Taiwan
(FMCG) companies, most are feeling the pinch. Soat 17%, Euro at 22%, USA at 18% and so on.
when posed with any suggestions about expandingAnother reason to consider going global is scale of
these are considered by many managers as taboo.economies associated with volume sales. We are a
But why?relatively small population of 61 Million so we have a
As the saying goes 'every problem is an opportunity'smallish market to saturate, whereas Japan is twice
so it's time for management to take advantage ofour size and China is huge at 1,33 billion with many
the current economic climate and shrink down themore countries populous overshadowing us.
areas of their businesses that are under-performingHowever, breaking out of the UK can have its' pitfalls
and take a long hard look at improving their cashas well as being very lucrative. If your plan is to
position. This is not just to target manpower butexpand into Asia then careful research will need to be
take close scrutiny of the product and servicesdone on which Asian markets may best suit your
portfolio, get rid of the dross and focus on theofferings, what changes you will need to make to
winners.your product or service and what challenges you will
Once the balance sheet is in good shape and isface. Fortunately, there is a lot of help available with
sustainable then it's time to review the marketregard to export services and international trade
strategy and consider areas for expansion. Thereservices to guide you in the right direction but be
couldn't be a better time than right now to considercareful with your budget. Don't go overboard by
international expansion as Sterling has droppedinitially recruiting expensive international managers or
against many foreign currencies over the last 2 yearssetting up offices overseas, rather bring in some
making our UK offerings so much more competitiveexperts who have done this many times before to
and really attractive to import. For instance thehelp and advise you through the set-up stages.
£ is now worth about 157 Japanese YenBy being strategic you can shrink and expand at the
versus 248 (that's a massive 37% cheaper oursame time!