EXPORTS Edition a Driving Force to Recovery
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In Tune with the Local Connected to the World Special EXPORTS Edition A driving force to recovery JUNE 2012 The Online Executive News for Corporate Leaders In 2011, Greece achieved a 37% increase in exports, a figure sensibly “Man cannot discover new oceans unless he Contents higher than the European Union average which stood at 11.3%. has the courage to lose sight of the shore.” In absolute terms exports reached 22.4 billion Euros and contributed Andre Gide 10.4% to the country’s GDP. It is needless to say that there is still p1 Editorial In the light of the adverse current international economic plenty of room for improvement; 35% of exports executives, who environment, this newsletter, will try to show a glimpse of how Exports participated in our survey, work for companies whose exports p2,3 First National through its people, can and certainly will play a key role in the growth contribution is less than 10% to the total turnover. In real numbers, Exports Survey strategy of Greece. 12,000 companies are exporting, only the 2% of the private sector. p4 Skinos Exports represent one of the most important sources of foreign The major challenge for Greek exporters is to deliver high quality exchange income that ease the pressure on the balance of payments products and services that can compete for significant share in global Korres and create employment opportunities. Exports can increase intra- markets. A strategy combined of syndicated efforts and synergies p5 between Chambers of commerce, commercial attachés, trade industry trade, help the country integrate and compete in the world associations, increased funding and of course less bureaucracy, must economy and reduce the impact of external and internal financial p6 Gaea gear this effort. shocks. Specialized multi-cultural executive profiles, continuous training, p7 Kallimanis Indicatively, the exports as a percentage of GDP among the wealthiest advanced technology, optimum production capabilities, innovation countries in the world varies between 17% in UK, 20% in France, 21% and R&D, are the enablers for a National Export Strategy that will in Italy and reaches an overwhelming 27% of GDP in China and a 37% p8,9 Panhellenic consequently create an Export Culture in our country. Exporters in Germany. Association I am very confident that Greek Exports will be a significant On a corporate perspective, a solid path for a company to optimize its contributor to the GDP of Greece in the next years and quite global dynamics is to achieve a 20% exports share on total revenues optimistic for the future of our country. When p10,11 Folli-Follie and presence in more than 2-3 countries. In this context the size the dust settles down, Greeks will turn the of a company is not an obstacle for exports as there are plenty of page and move on as they have done at p12 Chipita successful small-medium scale companies with huge success abroad numerous instances back in history. (“the invisible champions”). “Made in Greece”, p13 Pharmathen In the era of globalization of economic activities, Greek exporting valued worldwide. companies, regardless of their size, sector, capital and managerial p14 Sidenor structure, face the issue of optimum model of internationalization. I would like to thank all partici- Greek companies nowadays have serious motives to expand their sales pants in this issue; it is an honor p15 Alumil abroad including the significant decline of the domestic market and and pleasure hosting you in our the intensification of the competition. The company’s extroversion Newswire. Corallia facilitates risk diversification, boosts innovation and application of p16 Enjoy your reading! clusters new technologies, creates new job opportunities, enhances access to initiative global practices and finally, guarantees company viability. Harris Pezoulas, President 72 offices in 46 countries What competencies are required for a successful Exports Management team? Flexibility/adaptability 56.8 % Strategic orientation 45.8 % National First Customer orientation 45.8 % Multicultural experience 39.8 % Exports Survey 2012, Communication skills 33.9 % Strongh commercial/ marketing background 31.4 % Networking 23.7 % Ability to work skillfully by Stanton Chase Athens 19.5 % In which sector do you expect major exports development? with teams Results orientation 19.5 % In those turbulent times for Greece and in continuation Creativity management ability 18.6 % Agricultural 78.0 % to a series of surveys conducted either functionally or Other Responses 7.7 % Energy 49.2 % sectorially, Stanton Chase Athens took the initiative 0% 20% 40% 60% Greek gastronomy 42.4 % Overall there is great opportunity in the development of exports It is also interesting which sub-function of Exports will be in demand for the first time to explore the “world” of Exports and its across sectors as the current % contribution of exports to the total during the next 12 months: First comes Area Exports with 55.1%. Services 31.4 % company’s turnover is still relatively small. Indicatively 35.6% of Second comes Customer Service with 39.8%, third Logistics 39% and upper and senior Executives. Industrial 25.4 % respondents work for companies whose exports contribution fourth Sales operations by 34.7%, while respondents believe that the is less than 10% to the total turnover. It should also be em- available job opportunities are more likely to be found in the sectors of: Consumer products 22.9 % xport expansion and economic development are closely phasized that there is potential in the geographical coverage as 1. Energy (58.5%) 2. Consumer products (55.1%) 3. Pharmaceuticals well. Key exporting areas are right now: Eastern Europe (79.7%), (39.8%) 4. Retail (28%) 5. Logistics & Transportation (26.3%). related. The high-growth countries are characterized by rapid Technology 7.6 % expansion in exports. Here again it is important to note that Western Europe (72%), Asia (50.8%), Africa (44.1%), US (42.4%), E Exports executives would consider a career move provided that they will export expansion is not confined to those countries fortunate in their Other (please specify) 5.1 % Australia (31.4%), Russia (28%) and CIS countries (25.4%). undertake a more senior role with increased responsibility, increased com- natural resources, such as the oil-exporting countries. Some of the To which geographical areas does your company export? pensation and benefits and an implied international relocation assignment. developing countries were able to expand their exports in spite of 0% 20% 40% 60% 80% limitations in natural resources by initiating economic policies that The percentage of Exports Executives who wish to explore the possibil- shifted resources from inefficient domestic manufacturing industries In which product categories do you expect major exports development? Eastern Europe 79.7 % ity of a new career is quite high: 54.2% The most known and effective to export production. 80% Western Europe 72.0 % way to achieve change in career, with a significant percentage of 56.9%, is through Executive Search companies. After that, follows the Network- Nowadays, more than ever, Greek exporting companies must target, Asia 50.8 % 62.7 % ing, meaning the expansion and development of the private network of set as their priority and achieve a long-term competitive advantage in 60% acquaintances and contacts (56%). the international markets. Africa 44.1 % 50.8 % How interested are you in investigating a new carrer opportunity? The survey took place in April 2012 among 450 respondents. 60% US 42.4 % 39.8 % were at a Managerial/Director level, 6.4% were General Managers 40% 37.3 % Australia 31.4 % Very much (with double role), 6.4% were Owners while the rest were Marketers 28.8 % Somewhat Russia (3.2%), New Business Development Managers (9.6%) and upper-mid- 25.4 % 28.0 % Not at all dle level executives. Furthermore, 83.9% were male and 1 out of 2 in 20.3 % 20% CIS 25.4 % the age group of 40-50. Most respondents are employed at Consumer 12.7 % 9.3 % Products (42.4%) while Pharmaceuticals absorbs 11%, Retail 7.6%, 5.1 % 5.1 % 3.4 % 0% 20% 40% 60% 80% Energy 5.9% and Logistics & Transportation 3.4%. 0% 5.9 % Fish farming/ Pharmaceuticals Aluminium Other (please specify) Tubes/Pipes With regard to the priorities of the Exports Department, in the first The vast majority of Exports Executives believe that Greece will see Aqua culture place is the Identification and Assessment of distributors. Second 54.2 % the first signs of economic recovery after 2 years (46.6%) while a Fruits, Vegetables Cheese, Daily Oil-Petrochemicals PDO products Cotton All Other Responses comes the Access to International market information followed 44.9% foresees recovery after 3 years. However, they are quite opti- Undoubtedly nowadays executives in Exports are required to manage by Product availability, Specialization of products and Back office Huge willingness is observed in exploring opportunities for relocation mistic regarding the positive contribution of exports to the coun- complex problems in an unstable and quite difficult environment. support. abroad (70.4% responded positively to this possibility). With greater try’s total recovery. More specifically 75.4% of respondents claim There are though certain reinforcers which can accelerate exports ease, the Exports executives would move to the nearest more familiar that exports will contribute significantly to the recovery of Greece and development and the research concludes that these reinforcers are: During the last year the performance of Senior Export Managers markets of Eastern Europe (71.8%). Furthermore other regions consid- 83.9% agree that exports can be a leading contributor to the GDB of Quality of products (50.8%), Access to emerging markets (43.2%), have been affected by Pricing pressures, Cost consciousness, Com- ered are: the Gulf region (67.9%), CIC countries (41.0%), Asia (37.2%) and Greece in the next 5-10 years.