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Expansion to Foreign Markets
A medium-sized business manufacturing food production equipment (mainly for baker's products and pasta) from a European Union country recently expanded its production capacities. Due to decreased sales on the domestic market, suddenly a production surplus appeared, which the company decided to sell on neighbouring markets (which was not planned when the production capacities were expanded).
The director of sales for the domestic market was asked to examine the possibilities of selling the equipment on neighbouring markets. Not knowing the markets of the neighbouring countries, their languages, their legal systems nor the existing competition, he did not know where to start. Talking to one of the company's owners, he learned that a friend of his had recently bought a local hauling company in a neighbouring country and sought the assistance and consultation of a domestic company specialized in such activities.
Contact was established, luckily with no language barriers, because the owner of the consulting company spoke the language of his prospective client. Soon, all necessary consulting services and their costs were agreed upon in detail, divided into two groups: a fixed part for the consulting services (the payment of which was fixed by the hour of work or by the delivered documentation), while the variable part was set up as a bonus if all work was done successfully (limited to those tasks that the consulting company had an influence upon).
After three weeks the client had a detailed insight into the market potential as well as the main activities of the competition and their sales channels. The client
also received recommendations as to the further steps to be undertaken.
Afterwards, joint calls to larger prospective clients were made, and talks were held with dealers who were interested in cooperation. As the results of these meetings were promising, further steps to be undertaken by the consulting company were agreed.
Since the client sought a very reliable importer, who would at the same time be the dealer, the consulting company undertook a detailed analysis of all prospective partners. The analysis was based on their current capacities (infrastructure, logistics, financial stability, quality sales personnel, degree of motivation of the company, etc.), which were compared to the profile of an "ideal dealer". Finally, two companies were chosen as most serious candidates. Before another joint meeting with them, rough financial calculations were made of an optimal pricing position on the market as well as of a "fair share" of the margin between the manufacturer and the dealer. Also, a list was made of required activities (for example, technical support and training, marketing activities) which the manufacturer will initially have to organize for the dealer, and their cost was estimated.
Then meetings were organized with the two preselected dealers, holding detailed talks. The situation became rather clear afterwards, and the dealer was chosen. After several more details agreed via e-mail, the stage was set for the signature of the dealer's contract.
The entire job was undertaken in a "win-win" situation for both the manufacturer and the dealer, and the consulting company received the variable bonus for its work.
Do You Need a Business Consultant or an Interim Manager?
If you require help analyzing the state of your business or developing a business strategy, you need a consultant. If, in turn, you are looking for help with the implementation of the strategic measures you have defined, an interim manager will be your best choice.
An interim manager can at the same time be a consultant, but a consultant is, usually, not an interim manager, because he does not engage in the implementation of the solutions he proposes.
The diagram above clarifies the division of roles of a business consultant, an interim manager and a director-employee.
The difference between a consultant and an interim manager thus lies in the fact that a consultant advises and recommends, remaining responsible to his own company. An interim manager implements the agreed measures, being directly and exclusively responsible to his client.
There are, however, persons, who due to their rich business experience, can at the same time function as business consultants and interim managers.
