CEO to CEO

Global Expansion Strategy Viable For Many

By Robert Sher

Many CEOs will take a deep breath before even thinking about putting down a permanent footprint overseas. For years, global operations have been the province of the large firm, but this is changing. Alliance member Raju Reddy, CEO of Sierra Atlantic, stepped into China in August of 2007 without any major hiccups, and in two years has doubled the size of his China team, supporting global sales. Moreover, he is generating significant revenues from sales within China. Sierra Atlantic was only a $56 million revenue firm at that time.

Generalities about China

Summary: CEO travels to China for the first time and sees the richness and complexity in the business environment there. With an excellent guide and clear objectives, he came back with four key lessons.

Forming Productive Friendships in Asia

Summary: A seasoned global executive intentionally cultivates the friendship of a company president in Asia and pulls down the big order. When problems crop up, the President relies on the friendship to save his job and his lifestyle. The Asian custom of entering friendships for profit is explained.

Intelligent Off-Shoring

Summary: A company finds an excellent way of managing off shoring, taking advantage of the positives while avoiding the pitfalls. Blending the efforts of on shoring with off shoring and a commitment to close management are key.

Avoiding Costly Surprises When Going Global

Summary: A firm signs leases overseas and discovers some nasty surprises that cost it big bucks. Some simple but key steps are discussed to avoid being surprised by local rules, laws and practices.