While this winter break appeared
great for the employees that could afford to go skiing every day, most had to
find other employment and they did not return the following March. Consequently,
each March, the company faced the challenge of hiring new staff for the summer
months ahead. This high turnover of staff became very expensive, as they had to
train new employees every March.One day, in the course of
discussing business strategies, an employee asked, “Why aren’t we selling our
rides to countries in the southern hemisphere? Their seasons are opposite of
ours and we could stay busy year-round instead of only during the summer.”
Senior management accepted
the suggestion and developed a plan for marketing into South America and
Australia, enabling the company to increase sales and keep the workforce
employed year-round.
In my classes at the
universities, we use the first class to discuss the question, What motivates a
company to go global? Of course, many reasons exist including: (a) the product
does well domestically, (b) management is committed, (c) they have adequate
cash flow, and (d) they have excess capacity.
In the case of the Sky Ride
manufacturer, going global allowed them to use existing capacity to its fullest
potential, keep good employees year-round, and enjoy increased revenues without
incurring extra expenditures.
Taken from: "More Banker’s Insights on International Trade - 101 Lessons Based on Practical Experience," Published by Roy Becker Seminars, www.roybeckerseminars.com
Taken from: "More Banker’s Insights on International Trade - 101 Lessons Based on Practical Experience," Published by Roy Becker Seminars, www.roybeckerseminars.com