The Art of American Hospitality: What Every Businessperson Should Know

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1 Fro the SelectedWorks of Stephani Richards-Wilson October 1, 2004 The Art of Aerican Hospitality: What Every Businessperson Should Know Stephani Richards-Wilson, Marquette University Available at:

2 October 2004 MWTA October Progras Thursday, October 7, 2004 Wisconsin Club 900 West Wisconsin Avenue Milwaukee, WI Progra I Successful Marketing and Market Research Strategies in Latin Aerica Dale Einerson Division VP of Manufacturing-Aericas, Rayovac Corporation Jesica Duarte Marketing Manager-Asia/Latin Aerica, Miller International Dale Alberts International Marketing Manager-DCI Marketing BALLROOM 4:00 6:00 p.. Collaboration and Networking MITCHELL 5:00 6:00 p.. Progra II (Dinner included) Partnering in a Global Marketplace Heidi Skatrud VP of Market Developent for Runzheier International MITCHELL 6:00 8:00 p.. In this issue... Progra inforation... 2 Progra registration... 3 Art of Aerican hospitality... 4 Free int'l advertising... 5 Exporters facing ore sanctions... 6 Export Service... 7 Newsletter question... 8 New staff at Export Assistance Center... 8

3 Progra I Successful arketing and arket research strategies in Latin Aerica CIBER (the Center for International Business Education and Research) of UW-Madison is co-sponsoring this event. Despite its political challenges, Latin Aerica reains an attractive arket for copanies with global intentions. The region encopasses 40 countries and over 440 illion people, creating challenges for copanies seeking to axiize their presence there. Conventional theory says that global firs ust know each individual arket, work with local partners, and arket in the right language. But, what else does it take to be successful in Latin Aerica? In this panel, Marketing and Strategic Planning experts fro Rayovac, Miller International, and DCI Marketing will present how they perfor research and arket their global brands and what successful strategies they suggest should be ipleented in Latin Aerica. There will be an ephasis on the arkets of Brazil, Argentina, and Chile. Our guest panelists are: Dale Einerson, Division VP of Manufacturing-Aericas, Rayovac Corp. Jesica Duarte, Marketing Manager-Asia/Latin Aerica, Miller International John Patneaude, International Marketing Manager, DCI Marketing There is also going to be a saller roundtable discussion fro 5:30 to 6:00 p.. for six Wisconsin copanies that will be participating in a business developent ission to South Aerica, October 23-30, Progra II Partnering in a Global Marketplace Heidi Skatrud is Vice President Market Developent with Runzheier International and has served in executive positions with Runzheier for the past eleven years. She has been a eber of Runzheier s Executive Council since Her current responsibilities include arket developent, strategic alliance, and ergers and acquisition activity. In 2003, Ms. Skatrud orchestrated a key strategic alliance relationship with international eployee obility arket leader, Associates for International Research, Inc. (AIRINC), whereby Runzheier and AIRINC are now working collaboratively to offer clients the ost coprehensive worldwide coparative living cost inforation available anywhere in the world. Prior to her current role, Ms. Skatrud lead the International Copensation & Assignent Services business unit of Runzheier. Fro 1993 to 2000, she served as Vice President Huan Resources. Before joining Runzheier, Ms. Skatrud was eployed in Huan Resource roles with Chrysler Corporation, Chrysler Financial Corporation, and Nicolet Instruents. Ms. Skatrud is a eber of MWTA, the Association of Corporate Travel Executives, and is an Advisory Board eber for the University of Wisconsin Parkside s School of Business and Technology. Ms. Skatrud holds a B.B.A. degree ajoring in Marketing and Huan Resources, and an M.A. in Industrial Relations, fro the UW Madison. Thanks to golf outing sponsors Monday, August 9, 2004 at Western Lakes Golf Club in Pewaukee APL Liited BDP International Bax Global Brah International Ltd. Brennan International Bentley World-Packaging, Ltd. Eaton Electrical Euler Heres ACI Exel Global Logistics, Inc. Global Manageent, LLC Hapag-Lloyd (Aerica) Inc. K Line Aerica, Inc. Lloyd Triestino Maersk Sealand M.E.Dey Menlo Worldwide Forwarding Roanoke Trade Services, Inc. T P Logistics Universal Forwarding Overseas, Ltd. (UFO) UTI, United States, Inc. United Parcel Service Worldwide Express Trading Fare is published nine ties a year by the Milwaukee World Trade Association, 756 North Milwaukee Street, Milwaukee, WI 53202, (414) , Fax (414) , to infor ebers of the Association s activities. Publisher: Peter Beitzel, (414) Send questions or coents to editor: Elizabeth Martorell, The Village Scribe, 2045 North 48 Street, Milwaukee, WI, 53208, (414) , e-ail: elizabethartorell@aeritech.net 2 October

4 MWTA Progras Reservation For Thursday, October 7, 2004 Wisconsin Club 900 West Wisconsin Avenue, Milwaukee, WI The cost for the October 7, 2004, events is $25.00 per person. Please enclose payent for the requested nuber of reservations. Make checks payable and ail to: Milwaukee World Trade Association 756 North Milwaukee Street Milwaukee, WI Reservation Fax # You ay also pay with a credit card for advance reservations only; this service is NOT available at the door. To pay this way please provide the following inforation: Nae of cardholder: Type of Credit Card: (VISA, Master Card, or Aerican Express only) Account Nuber: Expiration date: Billing address: Please reserve seats at $25 per person totaling $. Copany Phone Naes of persons attending Progra I only Naes of persons attending Progra II only Naes of persons attending both progras You ust use this reservation for. Please fax or ail in. Reservations and/or cancellations ust be received one week prior to the eeting date. Persons who have ade reservations but have neither paid nor canceled will be billed $30 even if they have not attended the event

5 The art of Aerican hospitality What every businessperson should know By Dr. Stephani Richards-Wilson, Marquette University Before returning to acadeia a few years ago to obtain y doctorate, I worked in picturesque upstate New York as an international arketing specialist for Nalge Copany, now Nalge Nunc International. Nalge anufactures plastic labware such as beakers, cylinders, and test tubes, aong others, and sells through an international distributor network. While the nae Nalge ay not ring a bell, perhaps that of Nalge s copetitor does Corning Incorporated of Corning, New York. Ironically, the two copanies are located within driving distance and sell through several of the sae international distributors. Many of the products Corning produces in Pyrex, Nalge produces in plastic. Hence, our ission was to break the glass habit and to educate our distributors on the benefits of plastic. But as any astute businessperson knows, there is uch ore to successfully conducting international business than the exchange of inforation, products, or currency. Establishing long-ter relationships anchored in trust, copetency, and genuine respect are key to survival. What follows is y recollection of how astering the art of Aerican hospitality helped y copany to do just that. Although I ajored in foreign languages in college, it wasn t until I started y first professional job at Nalge that I was able to apply what I learned and becoe culturally copetent. The world is a big place and I a still learning to change as the world changes. Fortunately, I benefited fro soe wonderful entors who explained the dos and don ts of working with international clientele. In retrospect, I learned ore don ts than anything else, but they were nevertheless iportant tips that helped build solid relationships with our distributors who cae to visit the plant throughout the year. For exaple, I learned the iportance of speaking slowly, articulating y words, and avoiding jargon and idios at all costs. Phrases such as I all ears, and Break a leg, ean soething entirely different than what is eant to persons whose native tongue isn t English. Moreover, knowing a few words in their language, such as Welcoe, How are you? and Thank you, go a long way in relationship building. Another iportant aspect I learned was the iportance of gift giving and being a considerate host/ess. Gift giving is iportant in any cultures and over the years I received soe beautiful scarves, pins, vases, and chocolate! In return, we typically gave quality ade pens, vinyl portfolios, or golf accessories with our logo on the to reind our distributors of our brand. I quickly learned that the color of the wrapping paper is as iportant as the gift in soe countries and will never forget y first faux pas of wrapping a gift in white paper for our Japanese distributor. Any color but white! y supervisor exclaied. White, I later cae to learn, is associated with funerals in Japan. As uch as we liked to stap our logo on our gifts, soe ties we gave gifts that were indigenous to upstate New York to reind our distributors of their plant visit and the good ties we shared. We took the on tours of local farers arkets and wineries and they often went hoe with Lake Niagara, Bully Hill, or Canandaigua wines as a souvenir. They also bought locally ade aple sugar and syrup, port wine jelly, or grape ja. Other souvenirs included handcrafts fro the local Aish counities or Native Aerican art fro the Iroquois Nation, ites that were unique to their visit of the area. Our international friends also seeed to enjoy a visit to the Wizard of Clay workshop where they could purchase one-of-a-kind pottery, soe of which included intricate leaves fro the area fired into the piece. Many distributors preferred to visit in the fall when it was still war enough to go golfing (a pastie any 4 October

6 can t enjoy abroad due to the lack of land), and yet not too late to take in the fall foliage. Before they arrived on site, we ensured that our Welcoe Board in the lobby specifically welcoed the with their copany nae. Once we concluded our business, we d often take the for a leisurely drive through the Finger Lakes Region, stopping afterwards for lunch and a war piece of apple, pupkin, or Concord grape pie. Pie doesn t exist in any countries as it s difficult to obtain the shortening to produce the crust, aking a slice of Aerican pie a real treat for soe foreign visitors. Brownies and JELL-O with suspended fruit seeed to ipress the as well. Of course the pièce de la resistance of their visit was Niagara Falls. Since our copetitor was just up the road, so to speak, our distributors usually visited both plants in the sae visit. Although their days were filled with training and plant tours, they always ade tie to visit Niagara Falls before boarding the plane to fly hoe. Being selected to accopany the to the Falls was as sacred to us as our profit argin! They genuinely enjoyed the event and, upon return to their country, often forwarded photographs of us standing in our rain ponchos under the ist of the Falls. Sharing a fond eory goes a long way in relationship building and cultivating trust aong people fro different cultures. It s good business in any language. Today I a the Assistant Dean in the College of Arts and Sciences at Marquette University and teach as an adjunct in the College of Business. I share any of these tips and pointers with y students. We discuss how the art of Aerican hospitality can be applied to local businesspeople involved in hosting international visitors. Being relatively new to the state, y students were quick to infor e that Wisconsin offers any unique tourist attractions and products that would enhance their ability to influence and host international clientele. (Any one up for a trip to Door County, Cedarburg, the Dells, or Holy Hill? How about a jaunt to the zoo, useu, lakefront, Pabst Mansion, or a suer festival?) As for locally produced gifts, y students infored e that those ade fro Wisconsin cranberries, Door County cherries, and recycled paper would ost likely be well received, as would Packer jerseys and Harley Davidson eentos. In this tie of fierce copetition and globalization, local exporters need to capitalize on their copetitive advantages. Aerican hospitality the Wisconsin way is one of your biggest assets. Interested in free int'l advertising? Featured U.S. Exporters (FUSE) is an online directory of U.S. products featured on selected websites of the U.S. Coercial Service around the world. This progra provides a copany with the opportunity to target specific country audiences in English or in the local language of business. Translation is available free of charge or for a noinal fee. Currently, this service is being offered to qualified U.S. exporters seeking trade leads or representation in the following arkets: Australia, Austria, Canada, Chile, China, Colobia, Gerany, Greece, Hong Kong, India, Indonesia, Ireland, Israel, Japan, Korea, Malaysia, New Zealand, Slovakia, Singapore, Switzerland, Taiwan, Thailand, Ukraine, Vietna, and West Africa. For ore inforation on how to register online, please visit the website at New address Please note the following change in phone nuber and e-ail for MWTA Director Louie Busalacchi: louie.busalacchi@aceworldwide.co

7 Exporters facing ore sanctions By Ulice Payne, Jr. Addison-Clifton, LLC As U.S. export activity continues to grow steadily in 2004, exporters have begun to notice the effects of increased enforceent of the U.S. Export Adinistration Regulations ( EARs ). The Bureau of Industry and Security of the Coerce Departent ( BIS ) is priarily responsible for the enforceent of the EARs. During the past year, U.S. exporters have seen the nuber of civil penalties and the dollar aount of iposed penalties increase fro an average of $148,500 per copany in 2003 to an average of $172,600 per copany thus far in Any ite sent fro the U.S. to a foreign destination is an export, including coodities, software, and technology uploaded onto and downloaded fro an internet site. It is not uncoon to find that a typical E-Coerce transaction, such as the delivery of a coodity processed through an order using the internet, ay be subject to the EARs. Types of Violations The types of activity which have violated the EARs is wide in scope and the violators range widely in size. For exaple, a copany in Wood Dale, Illinois recently agreed to pay a $44,000 penalty and accept a five-year denial of export privileges for exporting polygraph achines to the People s Republic of China ( PRC ) by diverting the erchandise through Italy and Taiwan before arriving in the PRC. The copany and its president also plead guilty to criinal charges under the International Eergency Econoic Powers Act and are scheduled to be sentenced this fall. An exporter in Garden Grove, California recently agreed to pay $690,000 in civil penalties for iproperly exporting Teflon-coated valves and pups to Israel and Taiwan. The copany s liability was created priarily as a result of the export activities of a business it had acquired several years earlier. The business which was acquired had coitted 123 violations of the EARs prior to the acquisition. An exporter of nickel powder agreed to pay $260,000 in civil penalties for exports to Chile, Peru, Taiwan and Israel in violation of the EARs. The BIS also charged the Latrobe, Pennsylvania-based copany with providing false or isleading representations on export docuentation in Export, Iport, Military & Doestic On-site Packaging " Ocean Container Loading Distribution, Warehousing & Fulfillent Handle Any Load " Packaging Consultation " 4080 N. Port Washington Rd., Milwaukee, WI bentleywp.co 6 October

8 connection with the export transactions. Deeed Export Violations Under the EARs, the release of controlled technical data to a foreign national, including an eployee, is a violation unless the proper export license is obtained. The transfer of this technical data is known as a deeed export if a license would be required to export that technology to his or her hoe country. Earlier this year, a Connecticut-based anufacturer agreed to pay a $150,000 penalty for releasing controlled technical data related to aterial coating and gas turbine engine coponents to foreign nationals fro Gerany, the Netherlands, and Spain. The BIS recently logged its first criinal conviction of a copany and its president for controlled technology transfer violations when a California-based anufacturer of detector aplifiers agreed to pay $275,000 in connection with the release of technology to a foreign national in the U.S. The purchaser of the copany s erchandise was located in the PRC and was known to be controlled by the PRC governent. The unlawful transfers occurred via the training of Chinese nationals in connection with the aplifiers. U.S exporters should take advantage of the opportunities in the current global arket environent. However, do not forget that the EARs ay apply to your export activities, the copany you acquire, or to the way your copany counicates and trains its eployees in the U.S. and around the world. Iraq opportunities Although the security environent in Iraq reains volatile and unpredictable, the rebuilding of Iraq s econoy continues. International trade is playing a ajor role in this rebuilding effort, and there are any opportunities for businesspeople. The U.S. governent has warned citizens against travel to Iraq, but you can find other business opportunities, including online arkets, at these two sites: Coalition Suppliers This site brings together buyers and sellers fro the coalition of countries that are engaged in rebuilding Iraq... Iraq Investent and Reconstruciton Task Force http: // This U.S. Departent of Coerce site is for firs interested in part of the $18.4 billion allocated by the U.S. for Iraq s reconstruction.... This is copied fro the newsletter Really Useful Sites for International Trade Professionals, a free, bi-weekly eail publication of FITA - The Federation of International Trade Associations. Please feel free to subscribe to this newsletter at The Wisconsin Departent of Coerce has staff located here in Wisconsin that can help you succeed globally. We also have a network of overseas representatives that can provide arket intelligence, locate distributors or agents, conduct product/arket viability analyses, and help you build your export sales. Phone : (608) or (262) E-ail: ie@coerce.state.wi.us

9 Rethinking the newsletter For several reasons, the Board of Directors is considering the feasibility of sending out the newsletter in electronic for ONLY after June 05. We would like your reaction to this proposal. To respond, please send your ideas to us via eail at or by fax to , Attn: Michele. New staff help exporters The Milwaukee Export Assistance Center is pleased to announce that it has two new ebers available to assist Wisconsin exporters. Both joined the organization as part of the Coerce Departent s SCEP initiative (Student Career Experience Progra), which encourages the hiring of university students in their junior or senior year. These students can then be converted to full federal eployee status upon copletion of their studies. Koreen Kuhiow joined the Milwaukee Export Assistance Center last year. She recently graduated fro UW-Milwaukee with a Bachelor s degree in Business Marketing, after receiving an Associate s degree fro UW- Sheboygan in John Janbois started working with the export assistance staff in Milwaukee at the end of June. He is fro Onalaska in La Crosse County. A graduate of St. Thoas Aquinas High School in La Crosse, John is currently a senior at Marquette University. He will graduate in May of 2005 with ajor degrees in Econoics and International Business and a inor degree in Spanish. 8 October

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