Tuesday, 8 August 2017

Building a Global Business

I was going through a small manufacturing unit of CHINA. It is a tiny ceramic manufacturing unit, in a remote part of China. Having facility to manufacture ceramic cups and other domestic ceramic articles. Quality of the ceramic items manufactured is ok but not very good. But they are supplying to various parts of the world, including India. One small unit with 25 workers is creating a big impact in International Market . Growing @ 300% every year, for the past 5 years.
I wanted to understand the Indian Market and studied few such facilities. Similar unit in India with double the workforce, better quality and price advantage are just doing only local business. Surprisingly it is produced cheaper in India than China. Quality is much superior but Indian manufacturers have not made any impact in the global market. Even in Indian market I saw China products are competing in spite of higher price and lower quality. 
Why is it So? This is the case with many manufacturing units, who produce best quality items and won't sell in International market. I spoke to some of the manufacturers and producers. Met few entrepreneurs, analyzed the available information and data. Found an interesting fact. 
CONFINED MINDSET is the main reason that is blocking the growth of business. When their counterparts in China are growing at 300% every year local business owners are happy with about 10-15% growth. Why is this so?. They have price advantage and quality. Still they have not made up their mind to participate in international market.
  1. Most of them i met gave various reasons, for not growing as per their counterparts in China. but the fact is "all such reasons are just excuses."
  2. They have market, they have opportunity, they have investment, Government encouragement . But still if they are not willing or made up their mind to compete. It's the confined mindset that is stopping them from competing globally.
  3. Surprisingly, most of the manufacturers are willing to take it to the international market. But they have not done it. This is just an opinion but not a decision.
  4. They are aware how china is en cashing on opportunities. They know that China is exporting inferior quality & charging double. But still they have not made up mind to expand, are not keen on venturing into the international market.
how to Change the CONFINED MINDSET? is the biggest challenge.
  • Changing the mindset and preparing a person to think and act big is very tricky task. We need to break the mindset that thinks with in a boundary. We have to bring the mind out of comfort zone. Prepare the mind to accept the change. All such exercise has to be done, after understanding his business and related factors. There is no common formula to achieve this result.
  • This has to be done after understanding the person, his industry, how it is currently running, what are the road blocks etc. All these exercise should be done in relation to the specific business.
  • We need to figure out the areas that are blocking the growth. We need to work with the thinking of business owner as well as team.
  1. Changing the vision and bringing a clarity on the new vision is most important exercise we need to do. Clarity on vision will help us to fix the goals. Once goals are set, we can draw the path (activities) to reach the goal.
  2. But this requires the help of an expert analyst who can understand, analyse and help business owners to think different. It is not just analysis that helps. Later there should be various exercises to be carried out to bring in over all changes in owner as well as in the team. There should be a constant monitoring of activities and goals. Doing this over a period of time can bring in changes to the organisations. This helps them to create a global enterprise.
Business owners/decision makers may approach for more help. We are glad to be associated in mutual growth.
Dr. Guruprasad TN
guru@gims.co +919845429122

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