Paccloa

SERVICE

Broadening your overseas business

Paccloa-style OJT service

From preparation to actual implementation of international expansion, a dedicated consultant will accompany you during OJT (On-The-Job Training) to ensure you accumulate know-how and build a sustainable system for international expansion within your company.

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The shortest route to success!
The “slow and steady wins the race” method of international expansion

Various tools exist for advancing international expansion, such as online information collection, business meeting opportunities, exhibition subsidies, forms of overseas networks, etc.
If you, the company that will utilize such tools, have the capabilities required for international expansion by making good use of such tools, you will be able to expand your sales channels by exporting, make your overseas bases profitable, and ultimately, reach your anticipated goal.

However, even amongst companies with solid track records doing business in Japan, it is extremely rare to find a company that has the know-how, strength, skill, and capacity to succeed in overseas markets right from the word go.

In recent years, even companies successful in getting off to a smooth start in terms of international expansion do not necessarily have the said know-how, strength, skill, and capacity from the outset, but rather realize at some point that such capabilities do not occur naturally, so they go back to the drawing board, pour time, effort, and money into honing these capabilities, then bask in the glory afterwards.

Below are some approaches to international expansion

  • a. Decide to make company stronger so it can handle overseas business
  • b. Determine techniques for competing overseas = determine business model/products
  • c. Actually compete, for example, create global website, or take action in terms of overseas exhibitions, overseas sales, or overseas investment strategies

Amongst the above, a and b are of the greatest importance, and it will be much harder for a company to succeed at international expansion if they omit a and b and go straight to c.

If you proceed in order of a → b → c, you will become able to view your company objectively. You’ll come to learn the reality regarding how you appear to overseas companies that don’t know your company, or that you are not visible to them at all, thus gaining an understanding of your company’s unexaggerated position in the world.

Then, by aiming for international expansion with an awareness of the reality, your motivation will soar. You’ll nurture a backbone to somehow acquire capabilities and seize opportunities on your own. While toiling away day in, day out, completing the long list of things to do for international expansion and remembering that “slow and steady wins the race,” you will be able to make concrete steps toward your goal.

Compared to leaping into action with tangible things such as global website creation, overseas exhibitions, overseas sales, and overseas investments, the activities described in a and b of first making your company stronger then determining techniques to compete overseas are time-consuming, therefore may seem dull and low-key.

However, by truly exerting ample time and money in making your company and product competitive in overseas markets too, you will be able to keep the courage and confidence without faltering even when you begin dealing with overseas customers and face tough challenges.

You could gain strength by proceeding with overseas business but, on the flip side, it is precisely those companies that exert great effort in the preparation phase who are successful in tough negotiations with overseas companies, become highly sensitive to risks specific to overseas business, and capable of seizing opportunities of the new era.

We at Paccloa have faithfully practiced the method of “slow and steady wins the race” since our establishment, and this has allowed us to continue fulfilling our promise of supporting your company’s endeavors and finding the shortest route to going global.

Shortest route to success! The “slow and steady wins the race” method of international expansion

  • a. Decide to make company stronger so it can handle overseas business
  • b. Determine techniques for competing overseas = determine business model/products
  • c. Actually compete, for example, create global website, or take action in terms of overseas exhibitions, overseas sales, or overseas investment strategies
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Devote 1-2 years to establishing a structure enabling you to succeed on your own

The feat of establishing an overseas division within your company requires as much strength as you would need to rebuild your company from the ground up.

The reason for this is because, typically speaking, the norm for Japanese companies in regards to the management philosophy, tendency to avoid risk, and slow decision-making, are the exact opposite to the norm for overseas companies who tend to be marketing-orientated, take risks, and prioritize speed. Therefore, in order to understand, develop, and approach overseas companies with such opposing business customs, it will not suffice to simply adjust your current condition, or add something extra. Rather, it is essential that you build an entirely new framework outside of your comfort zone.

That said, some elements must remain unchanged.

The Japanese business norms of stable quality, on-time delivery, brand promise, and building win-win relationships with trade partners on the premise that people are born good by nature, are all wonderful traits we take pride in as a nation. No matter how the world changes, nor how much overseas companies try to get ahead by taking short cuts, Japanese companies should uphold these traits with our heads held high.

It is not a case that either way is 100% correct or incorrect, but rather that Japanese companies and overseas companies are different. With awareness of such differences, we need to demonstrate the shrewdness and capabilities to switch between Japanese business norms and overseas business norms when circumstances call for it.

With self-awareness that there are many things you don’t know about overseas customers and markets, if you do your best to learn about these, you can avoid unnecessary falls. Taking into consideration risks that you’ve never been conscious of until now and keeping these in mind will ensure you don’t find yourself losing a game you would have otherwise won.

That is why you must devote 1-2 years to establishing a structure enabling your company to be successful overseas also.

Establishing an Internal Structure

Establishing an internal structure refers to the process after you’ve allocated the overseas business project leader as well as set up an International Affairs department and an Overseas Business department.

The work of an overseas business project leader for SMEs is extremely tough. That is because they must singlehandedly take on the work equivalent to no less than 14 specialized departments separated by individual work tasks of a large company.

The responsibilities of an overseas business project leader are as follows;

  1. Assess the overall internal work flow
  2. Receive cooperation of each department to prepare quotations, proposal materials, sales promotion tools, contracts, online meetings and factory tours…
  3. in a format suitable for overseas businesses, disseminate these…
  4. in order to ultimately develop the unknown overseas market.

In addition to having to understand the work of 14 departments and develop new business from scratch, the overseas business project leader must also be able to interact with people of different cultures using English. Perhaps only someone who has actually experienced such a role could fathom just how difficult it is. Moreover, new business development comes hand in hand with unspoken pressure applied by the company itself.

If an overseas business project leader is unable to receive the suitable support or recognition from the company executives or other internal parties, he or she feels isolated and progress stagnates. International expansion would be difficult to sustain with the will of the company president or a single department alone, and eventually all action would disintegrate in midair.

First, it is important to have the resolve of the company top executive.
He or she must constantly share their thoughts on international expansion to all employees and completely support overseas business and the project leader to achieve targets. If the top executive conveys such sincerity gradually, the whole company will start to develop a different mindset accepting of this.

Establishment of an internal structure is completed with the company top executive’s resolve, and the solidarity of the company.

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Full support by consultants with various experience in international expansion support

  1. In the 4th Industrial Revolution, industry restructuring and industries themselves are disappearing and regenerating at a dizzying pace, therefore completely new concepts and ideas are vital. Paccloa’s strength is building a business from the ground up, supporting new business development, and finding the answer that does not yet exist – together with you.
  2. A flexible and versatile business model is crucial for an SME attempting international expansion in order to achieve its envisioned future with strong intent.
    Paccloa focuses particularly on optimizing business models so that, even if an SME encounters unexpected situations, there will be no need to get flustered and start from scratch again.
    We always have a Plan B, C, and D on the ready just in case the unexpected occurs. While other companies are at a standstill, you will continue to move forward.
  3. Paccloa has a proven track record of providing various support.
    We propose an international expansion method to suit your company specifically based on the firsthand knowledge and experience we’ve gained providing the following kinds of support; importing/exporting, investment/inbound, production goods or consumer goods, local business talks/EC sales, overseas exhibitions/online matching, business in Asia/Europe & U.S., licensed product sales, exclusive/non-exclusive contracts, and much more.
    With a bird’s eye perspective of all business areas based on our know-how of international expansion spanning several industries, we aim for your goal together with you.

Paccloa also has experience providing advice on the below products.

Chemicals, plastics, building materials, tools, molds, equipment for precision/measurement/testing, electrical and electronic equipment, industrial equipment and machinery, systems, software, optics, laser equipment, OA equipment, automotive parts and manufacturing-related equipment, motorcycle parts, packaging (materials, related equipment), medical and hospital equipment, healthcare, food and beverage, aesthetics/acupuncture, tutoring schools, franchises, store equipment and devices, furniture/interior/gifts, household goods, cosmetics, children’s goods, toys and play equipment, DIY, sporting goods, education and school supplies, pet supplies, environmental goods, gardening supplies, food products, etc.

There are two essential elements to being able to being self-propelled in international expansion

Knowing which capabilities are givens in overseas business

Acquiring, then actually using, those capabilities to optimize while making adjustments

However, these are easier said than done.

Many people jump hastily to the conclusion that, if they have successfully run a business in Japan, they only need to become proficient at English in order to do relatively well in overseas business. However, the capabilities required as givens in overseas business are not limited to English ability.

You will need the capabilities of marketing, risk management, and trade administration for overseas business, as well as intercultural adaptation, and the bargaining power reflecting all these capabilities is absolutely essential. You will need the ability to take action in the target region and aggressiveness to learn from mistakes.
There are practically no cases of international expansion going smoothly without these capabilities.

Have you perhaps experienced the following?
The business talk seemed to go well but things just don’t proceed in leaps and bounds. You find the time you spend waiting for the other party’s reply is longer than the time you spend in actual negotiations with them. Or that, after you send them a quote, their response is slow, it takes ages to receive a reply to your email, if at all, you have to start approaching them as a new customer from the drawing board but you don’t want things to turn out the same way they are now…except you don’t know what else to do.

Without a great deal of confidence, you wouldn’t be able to step out on a limb and make an investment in such an unsure situation. You end up concluding that, because you aren’t sure how to proceed, you won’t cease international expansion efforts, but you’ll take a step back and “see how things go.”

In reality, this kind of experience has been the case for many SMEs attempting to go global for the first time. However, the unfortunate truth is that, after taking that step back to see how things go, the possibility of becoming capable of international expansion without improvement is extremely low, therefore the company enters a state where it is, for all practical purposes, open for business but not really doing anything.

There are 2 reasons why Paccloa focuses on OJT (On-the-Job Training) when providing its services.

To be genuinely fast, low cost, and effective

No one knows your business like you do. It is effective and low cost if you are able to go global independently without having to rely on other companies. However, in absence of specialized overseas knowledge and know-how, you will not be fast or effective.

Moreover, you will discover that the know-how you acquired is in fact difficult to reproduce if you merely scratch the surface while passively watching and listening. You will only become truly strong on your own if you act, fail, be objectively evaluated, confirm reactions, think, and make corrections because only then can you acquire know-how in the true sense.

If you follow the “slow and steady wins the race” approach to international expansion, and utilize professionals correctly while keeping the ball in your court, you can achieve your goal. When the company top executive and overseas business project leader realize which capabilities the company lacks, and steel their will to learn everything that needs to be learnt, the starting line of international expansion will finally come into plain sight.

Paccloa’s OJT service backed by abundant experience, can help you succeed at going global in a genuinely fast, low cost, and efficient way.

Maximization of growth, awareness, and motivation

Paccloa’s OJT service can be broadly divided into preparation and implementation. Some examples of the preparation portion are plan formulation and research, while examples of the implementation portion include email correspondence and overseas business trips.

In the case of preparation, you, as our SME client, will do everything as you wish from the initial phase, while in the case of implementation, Paccloa first provides comprehensive support (meaning we run along beside you to a certain extent), and then you do as you wish. Throughout all processes, so that you may stick to your path, or to have your answers confirmed, Paccloa will provide advance/follow-up advice that is both necessary and sufficient, whenever the occasion calls for it. The more precise such advice, confirmation, and evaluation is, the stronger your capabilities will grow, and you will become capable of doing more things on your own to reach your goal of international expansion.

As we provide our support to you, the greater awareness you have (in other words, actually sensing you won’t get a good response from overseas businesses if your company merely maintains status quo), the stronger your motivation will become.

Paccloa’s OJT service is second to none as a powerful way to help reach your goal as you grow and stretch up to seize your future with strong motivation.

Flow of Paccloa-style OJT services

Paccloa-style OJT comprises the below steps in the order shown.

  • Conducting a Feasibility Study
  • Developing the Necessary Capabilities
  • Formulating Strategies
  • A.Exhibiting Products and Promoting Sales Overseas
    B.Making Overseas Investments(if there is investment)

First, we verify whether or not your product or service is one that will be loved and accepted overbroad, and identify what your company is lacking in order to participate in the market with an advantage. You will gain an awareness of the differences between overseas and Japanese business customs, as well as acquire practical capabilities and negotiating know-how.

You will choose the markets where you believe you may be successful and, as an SME with limited resources, formulate multiple strategies for powerful participation, then implement your strategies for various initiatives, such as overseas exhibitions, overseas sales, or establishment of an overseas base.

Paccloa’s starting point is not the commonly practiced one of “let’s exhibit the product overseas first,” or “we may as well build a factory overseas soon,” because you will not succeed even if you do exhibit products or enter an overseas market if you don’t have the necessary capabilities to go global.

Instead, we optimize strategies while rotating the PDCA(Plan→ Do → Check → Act) cycle to simultaneously assist with steps 01 through 03. The defining feature of Paccloa-style OJT service is that after we begin providing our support, you will become incredibly busy.

External Associate Companies

Law firms

Counterfeit prevention measures, IP management (trademarks, patents, design), contract management, personal information protection, overseas PL insurance/export and investment insurance, subsidiary labor management, cross-cultural training

IT security companies

Cyber security/EDI

Tax accountants, international freight forwarders, export packaging companies

FTA/EPA management, SCM formulation, offshore trade construction, trade administration

Insurance companies

Marine insurance, overseas PL insurance, export and investment insurance

Translating & interpreting companies/website developers

Translation of sales promotion tools, website production & operation

3rd party certification bodies/testing bodies, other

Compliance with the security export control order, compliance with each country’s import regulations/standards, new product development, PL labelling, warranty slips, instruction manuals, quality compliance/warranty/control

Banks

Payment collection/settlement, financing, foreign currency, transfer pricing regulation

Patent attorneys (technical legal affairs)

IP management (trademarks, patents, design)

Internal affiliate departments

Public Relations dept., Marketing dept. Sales Dept.

Customer management, customer service, English press releases, information gathering/analysis/planning, new customer development, inquiry handling, trade administration, sales/business trips/distributor management, exhibitions, sales promotion tools management, SEO management

Logistics dept., Procurement dept.

Export packaging, shipment management, general contact for vendors, materials purchasing/inspection

Information Systems dept.

Cyber security, EDI, online management, ERP/MES/PLM integration

Technical Design dept., manufacturing dept., Quality Control dept., Production Management dept.

Compliance with the security export control order, compliance with each country’s import regulations/standards, technical inquiries, factory tours, new product development, manufacturing, maintenance, risk assessments, PL labelling, warranty slips, instruction manuals, quality compliance/warranty/control, production management

Legal & Intellectual Property dept., Management Planning dept., Human Resources & General Affairs dept.

Counterfeit prevention measures, IP management (trademarks, patents, design), contract management, personal information protection, marine insurance/overseas PL insurance/export and investment insurance, subsidiary labor management, cross-cultural training

Finance & Accounting dept.

SCM formulation, FTA/EPA certificate of origin, offshore trade construction, trade administration

There is a set method to international expansion
Unsure how to take your business international?
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