2. Brian David Butler
Teaching:
Brian Butler is currently a professor with Forum-Nexus,
which is co-sponsored by the IQS Business School of the
Ramon Llull University in Barcelona, and the
Catholic University of Milan. He teaches classes on
International Finance and Global Entrepreneurship in
brian.butler@forum-nexus.com Europe every July and January.
briandbutler@gmail.com
LinkedIn/briandbutler
Skype: briandbutler In Miami, Brian has taught Finance, Economics and Global
Trade at Thunderbird’s Global MBA program in Miami.
He previously worked as a research analyst at the
Columbia University Business School in New York
City.
3. Brian David Butler
International:
A global citizen, Brian was born in Canada, raised in
Switzerland (where he attended international British
school), educated through university in the U.S., started his
career with a Japanese company, moved to New York to
work as an analyst, married a Brazilian, and has traveled
brian.butler@forum-nexus.com extensively in Latin America, Asia, Europe and North
briandbutler@gmail.com
LinkedIn/briandbutler America.
Skype: briandbutler
Brian currently lives in Recife, Brazil where he is teaching
classes on ―Global Entrepreneurship‖ at the university
―Faculdade Boa Viagem‖.
6. Outline to cover today
1. What is global entrepreneurship?
2. Tips for entrepreneurs
3. Global mindset - defined
4. Homework review
▫ 3 questions – print out spreadsheet - Review +
student presentations
▫ Team projects – review guidelines - Find out who
teams will be (anyone not on team yet?) - Team
presentations – what countries? What products?
5. Finance section
6. Intl IQ
7. Assign homework
7. Global Entrepreneurship
―Fun things happen when you earn dollars, live on
pesos, and compensate in rupees, but that’s just the
beginning….‖
• Idea:
▫ Earn money in US dollars, Euros, Japanese Yen,
British Pounds, Swiss Francs
▫ Living expenses in Brazilian Reais
▫ Business expenses in Indian Rupees, or Chinese Yuan
(Renminbi)
―The 4-Hour Workweek‖, Expanded and Updated, Timothy Ferriss
9. Tips:
The main benefit of your product should be
explainable in one sentence or phrase. How is it
different and why should I buy it? ONE sentence
―The 4-Hour Workweek‖, Expanded and Updated, Timothy Ferriss
10. Tips: Look for outside help
―I not only use all the brains that I have, but all that I can
borrow‖. —WOODROW WILSON, President USA
• Some of the world’s best-known brands and products
have been borrowed from someone or somewhere else.
▫ The basis for the energy drink Red Bull came from a tonic
in Thailand
▫ the Smurfs were brought from Belgium.
▫ Pokémon came from the land of Honda.
▫ The band KISS made millions in record and concert sales,
but the real profit has been in licensing—granting others
the right to produce hundreds of products with their name
and image in exchange for a percentage of sales.
―The 4-Hour Workweek‖, Expanded and Updated, Timothy Ferriss
11. Scalable model
Your business plan should target a ―scalable
model‖. Remember this word, as it will be
important later.
Make sure your business plan is scalable (i.e, can
grow bigger without restraints).
Watch out for information and decision
bottlenecks: (often the entrepreneur themselves)
―The 4-Hour Workweek‖, Expanded and Updated, Timothy Ferriss
12. Dream BIG
Doing the Unrealistic Is Easier Than Doing the
Realistic
Ninety-nine percent of people in the world are
convinced they are incapable of achieving great
things, so they aim for the mediocre. The level of
competition is thus fiercest for ―realistic‖ goals,
paradoxically making them the most time-and
energy-consuming. It is easier to raise $1,000,000
than it is $100,000. It is easier to pick up the one
perfect 10 in the bar than the five 8s.
―The 4-Hour Workweek‖, Expanded and Updated, Timothy
13. Dream BIG
Having an unusually large goal is an adrenaline
infusion that provides the endurance to
overcome the inevitable trials and tribulations
that go along with any goal. Realistic goals, goals
restricted to the average ambition level, are
uninspiring and will only fuel you through the
first or second problem, at which point you
throw in the towel.
―The 4-Hour Workweek‖, Expanded and Updated, Timothy
14. Why waste a good recession?
• Facebook and LinkedIn launched in the post-
2000 dot-com ―depression.‖ Other recession-
born babies include Monopoly, Apple, Cliff Bar,
Scrabble, KFC, Domino’s Pizza, FedEx, and
Microsoft.
• Lesson: don’t wait for the ―right time‖… launch
today!!
―The 4-Hour Workweek‖, Expanded and Updated, Timothy Ferriss
15. The 3 “R’s” of entrepreneurship
▫ Risk
▫ Reputation
▫ Relationships
Who can tell me why these 3 are important for
entrepreneurs?
16. The 3 “R’s” of entrepreneurship
▫ Risk
Calculated risk taking
Risk => return (potential)
Types of risk:
Social
financial
17. Culture of risk taking
• Importance of "risk-taking"
• Entrepreneurship is about taking risk. The behavior
of the entrepreneur reflects a kind of person willing
to put his or her career and financial security on the
line and take risks in the name of an idea, spending
much time as well as capital on an uncertain
venture.
• What are the cultural links between risk aversion
and entrepreneurship? Are some cultures more
likely to produce more risk takers (and hence
entrepreneurs)?
http://kookyplan.pbworks.com/
18. “Culture of Risk & Entrepreneurship:
• Cultural observation – American relation to risk
in Silicon Valley:
▫ Failure = ―badge of honor‖
▫ Not afraid to fail (fast)
▫ Note: in US, its common to brag about humble
roots, humble beginning. ―rags to riches‖
19. Cultural “dimensions” important to
consider for entrepreneurship
• Individualistic vs. Collectivistic cultures
▫ Where do you see Brazilian vs. US culture with
relation to individualist vs. collectivistic comparison?
(example from class: group at Disney world)
• Hierarchy – flat equalitarian vs. hierarchy
▫ Question: is it ok to publicly challenge your boss, or to
chastise an employee?
▫ Can decisions be made by the lowest of employees?
▫ Do low-level employess think ―Im just as good as the
boss‖?
▫ Famous Quote: ―we hold these truths to be self –
evident that all men are created equal‖ Thomas
Jefferson, US Declaration of Independence
20. Cultural “dimensions” important to
consider for entrepreneurship
• Acceptance of failure:
▫ Is it socially accepted to fail in your culture?
▫ Is failure celebrated (as a learning process)
▫ What historical role models of ―loosers‖ are apart
of your national culture / history?
▫ Question: does national attitudes toward ―failure‖
have an impact on the level of entrepreneurship in
the country?
21. Famous story taught to US students:
• He failed in business in 1831.
He was defeated for Legislature in 1832.
His second failure in business was in 1833.
He suffered a nervous breakdown in 1836.
• He was defeated for Speaker in 1838
• He was defeated for Elector in 1840.
He was defeated for Congress in 1843.
Again, he was defeated for Congress in 1848.
He was defeated for Senate in 1855.
He was defeated for Vice President in 1856.
He was defeated for Senate in 1858.
Who was this “loser”?
22. Abraham Lincoln:
He was elected as President in 1860.
• And went on to become Americas ―best‖
president:
• ―He successfully led his country through its
greatest internal crisis, the American Civil
War, preserving the Union
and ending slavery.
• Lesson: If at first you don't succeed, try, try
again!
23. Culture of Entrepreneurship:
• Culture of Abe Lincoln (see resume) – role
models, heros, risk and failure
• How is that different in other countries? Stigma
of failure? Easy to start again? Funding?
Bankruptcy?
24. Take risks – even if others don’t think
you will succeed!!
―The reasonable man adapts himself to the world;
the unreasonable one persists in trying to adapt
the world to himself. Therefore all progress
depends on the unreasonable man.‖
—GEORGE BERNARD SHAW, Maxims for
Revolutionists
―The 4-Hour Workweek‖, Expanded and Updated, Timothy
25. The 3 “R’s” of entrepreneurship
▫ Reputation
Not just among your friends & family…
But, how is your reputation online?
If a future employer were to GOOGLE your name, what would
he / she find?
Note: everyone in todays world has TONS of photos online
they would rather employers not see (remember that spring-
break vacation? Once content is online, its there forever!)
The goal is not to remove all traces of your past from online,
but to make sure that there is enough professional material
that will come FIRST.
So if an employer/ partner / business associate… if they were to
google your name… what would they find? Are you giving off
the right image? Are you MANAGING THAT IMAGE?
26. The 3 “R’s” of entrepreneurship
▫ Reputation
Investors invest in competent entrepreneurs
Business partners join reputable leaders
Employees risk working for an entrepreneurs if they believe in
them
Reputation is essential
Embrace risk, don’t fear failure, but manage your reputation
(online especially!!)
Build with online tools
LinkedIn
Blogs, networks
In a future class (coming soon) we will look at social media
(online tools) that you can use to manage your online
REPUTATION
27. The 3 “R’s” of entrepreneurship
▫ Relationships
With clients, bosses, teachers, alumni, networks
Entreprenurs must be the PR department, the
marketing department, the sales department
You are the face of the company (so keep smiling)
Build your network of influential people, and ASK
THEM TO HELP YOU!!
Maintain with online tools
28. The 3 “R’s” of entrepreneurship
Suggestion: actively try to take risk
everyday (get into habit) + work to
build your reputation + relationships
Future lecture … will cover social media
talks
29. Tips:
―The most important actions are
never comfortable.‖
―The 4-Hour Workweek‖, Expanded and Updated, Timothy
Ferriss
30. Become a decision maker:
―To have an uncommon lifestyle, you need to
develop the uncommon habit of making
decisions, both for yourself and for others.‖
―Stop asking for opinions and start proposing
solutions. Begin with the small things.‖
―The 4-Hour Workweek‖, Expanded and Updated, Timothy
31. Become a decision maker:
If someone asks, ―Where should we eat?‖ ―What movie should
we watch?‖ ―What should we do tonight?‖ or anything similar,
do NOT reflect it back with, ―Well, what do you want to … ?‖
Instead…Offer a solution. Stop the back-and-forth and make a
decision.
Practice this in both personal and professional environments.
Here are a few lines that help (my favorites are the first and
last): ―Can I make a suggestion?‖ ―I propose …‖ ―I’d like to
propose …‖ ―I suggest that … What do you think?‖ ―Let’s try …
and then try something else if that doesn’t work.‖
―The 4-Hour Workweek‖, Expanded and Updated, Timothy
35. NO!
Prefer:
Think Globally…. Act Globally
• Pay attention to what is going on globally
▫ Opportunities, threats, inspiration
• Take action globally
▫ Launch companies, products, services…. With
Global Potential!!!
36. Challenge of course:
• Learn to develop ―global mindset‖
• Objectives:
▫ Increased International IQ
▫ Awareness of opportunities, trends
▫ Awareness of business models (from other side of
world)
▫ Interest in international Travel
37. Defining Global Mindset
http://www.thunderbird.edu/about_thunderbird/inside_tbird/truly_global/global_mindset.htm
38. Defining Global Mindset
―Developing a global corporate
mindset (and a group of global
managers as its main flag bearers)
has become a key prerequisite for
successfully competing and growing
in worldwide markets.‖
more: http://www.geocities.com/akottolli/dev
eloping_a_global_mindset.htm
39. Defining Global Mindset
http://www.thunderbird.edu/about_thunderbird/inside_tbird/truly_global/global_mindset.htm
40. Example – Case study of Global Mindset
• Local furniture designer / producer
▫ High price locally
▫ Wants to look abroad for market
• Advice: don’t just think about making products here
to sell abroad.
▫ First Step– design locally – make prototype locally,
but mass-produce the products wherever cheapest
(perhaps India) and sell to biggest market (perhaps
USA).
▫ Advanced: build global design team (perhaps in New
York/ Milan), with production wherever cheapest,
selling to global markets
41. Another Example – Case study of Global
Mindset
• Purse designer from Sao Paulo
• Hires Italian design team
• Produces in China
• Sells in USA
▫ Earning US dollars (strong currency)
▫ Lives in Brazil (weak currency)
Result? Lives very well!!
Alibaba.com
42. Why Does Global Mindset Matter?
• Forces
▫ ―The increasing complexity of the global environment,
▫ the continued flattening of organizations
▫ and the blurring of boundaries
• Impact:
▫ We need leaders who can collaborate with people from
all parts of the world.
• Benefits:
▫ Find opportunities others are missing
▫ Understand global competitors and customers.
http://www.thunderbird.edu/about_thunderbird/inside_tbird/truly_global/global_mindset.htm
43. How to develop “global mindset”
• Travel
• Watch international news - BBC, CNN
• Read international newspapers, blogs
▫ Example: read businessweek.com in English.
Learn about local business models in USA, consider
copying model in Brazil.
▫ As you read Business Week… think about
―Localization‖: Would it work here?
45. How to develop “global mindset”
• Find foreigners in your home town, and go to dinner
with them
• Eat at foreign food restaurants
• Join networking group with foreigners
• Ask questions:
▫ ―what do you have in your home country that is great?‖,
▫ ―what do you miss most from home?‖
▫ ―what problems do you see here that you wish you could
fix?‖
▫ ―what is missing here that you remember from home?‖
▫ ―what types of businesses do you remember from home,
but don’t find here?‖….. Etc..
46. How to develop “global mindset”
• Join online networking groups
▫ Facebook, linkedin
▫ Ask same questions
▫ Travel abroad
▫ Travel in your home country
▫ Travel in your home city / state
▫ ** try to see the local through the eyes of the
foreigners
47. Developing Global Mindset
• 1. Learn a language (Category advantage:
Skills)
▫ multilingualism is an essential element of an
international career.
▫ Having basic comprehension and conversational
abilities in one language is the beginning step.
▫ Take a class. Join a language club. Teach yourself
online (see www.livemocha.com) .
▫ Make your goal to add a minimum amount of fluency
in one language. As you build your fluency in one
language, start adding more languages to your skill
sets.
http://blog.goinglobal.com
48. Developing Global Mindset
• 2. Join an international club or group (Category
advantage: Community Involvement)
▫ They say that you are a reflection of who you surround yourself
with.
▫ If you want an international career, start going to places where
there are international people.
▫ Build your global competencies by discussing and exposing
yourself to international politics, economics, culture and history.
▫ Meet the local Swedish Chamber of Commerce. Join the
International Students Club. Have dinner with the local French
Cuisine Connoisseurs.
▫ If there is no group that you gravitate towards, start one yourself.
• See Recife International Society – meeting each month in
Recife
http://blog.goinglobal.com
49. Developing Global Mindset
• 3. Study abroad (Category advantage:
Education and Professional Experience)
▫ Enrich your educational experience by doing your
course work in another country.
▫ Not only are you building your cultural awareness but
you are also exposing yourself to an international
lifestyle.
▫ Transitioning to an international lifestyle is something
that requires the right kind of personality.
▫ Your marketability as a future expat increases
because you have already experienced life in
another country.
http://blog.goinglobal.com
50. Developing Global Mindset
• 4. Do an international internship (Category
advantage: Professional Experience)
▫ Kick off your international career by doing an internship
abroad.
▫ Your internship experience gives you a competitive edge in
the marketplace as a young professional that has exposure
in the workforce as well as living abroad.
▫ Similar to a study abroad experience, companies want to
know that you can handle the pressures that an
international transition poses.
▫ By interning abroad, you have already proven yourself
capable of excelling as an international
professional, even if it is an internship.
http://blog.goinglobal.com
51. Developing Global Mindset
• 5. Build your network with international
professionals (Category advantage: Skills,
Community Involvement)
▫ Nothing is more important for an international
profession than their network.
▫ Most international opportunities arise because of you
word-of-mouth exposure into the international
market.
▫ Start by joining a LinkedIn group or follow some key
people on twitter involved in international hiring.
▫ The more people that know your international career
goals, the easier it will be to find a job or opportunity.
http://blog.goinglobal.com
53. Online tools
• Resources and Tools
• Startup News
• Startup School
• TechCrunch
• Mashable
• GigaOm
• O'Reilly Radar
• Domain Name Search
• Red Herring
• Startupping
• HBS Working Knowledge
• STVP Educators Corner
• Reddit: Startup
• del.icio.us: Business, Startup, Web 2.0
• Technorati: Startup
• Digg: Startup
54. Online guide from YCombinator:
• How to Start a Startup. Build something users love, and spend less than you make.
• Hiring is Obsolete. The market is a lot more discerning than any employer.
• How to Make Wealth. To get rich you need to get yourself in a situation with two things,
measurement and leverage.
• Why to Not Not Start a Startup. All the reasons you aren't doing it, and why most (but not
all) should be ignored.
• A Student's Guide to Startups. Starting a startup could well become as popular as grad
school.
• Ideas for Startups. The initial idea is not a blueprint, but a question.
• Why Smart People Have Bad Ideas. A hacker who has learned what to make, and not just
how to make, is extraordinarily powerful.
• The 18 Mistakes that Kill Startups. If you avoid every cause of failure, you succeed.
• The Hardest Lessons for Startups to Learn Some things about startups are kind of
counterintuitive.
• How to Fund a Startup. Venture funding works like gears.
• The Hacker's Guide to Investors. Hackers don't know how little they know about this
strange world.
• How to Present to Investors. Explain what you're doing and why users will want it.
• The Equity Equation. You should always feel richer after trading equity.
• The Venture Capital Squeeze. Why not let the founders have that first million, or at least
half million?
• The Other Road Ahead. You may not believe it, but I promise you, Microsoft is scared of
you.
• What Business Can Learn from Open Source. There may be more pain in your own
company, but it won't hurt as much.
• What the Bubble Got Right. Even a small increase in the rate at which good ideas win
would be a momentous change.
56. In class assignment
• Each student to select one (problem, or trend)…
AND one ―localization‖ idea to the class
• Class discussion, review, and feedback
But, first… lets take a look at the assignment…
57. Homework #1
3-questions exercise – AGAIN – try
to improve 2nd time!
• Identify at least (1) major problem, (1) major trend,
and (1) transferrable idea in:
• (a) locally – Recife
• (b) locally – Brazil
• ( c) globally – some other part of world, or
worldwide
• Due Saturday March 20th – Maximum 1 page – word
document – submit by email to :
briandbutler@gmail.com
59. Tip: look for “problems”
Creating demand is hard. Filling demand is much
easier. Don’t create a product, then seek
someone to sell it to. Find a market—define your
customers—then find or develop a product for
them.
Be a member of your target market and don’t
speculate what others need or will be willing to
buy.
―The 4-Hour Workweek‖, Expanded and Updated, Timothy Ferriss
60. Trends
• Analyzing trends to find opportunities: ie.
▫ Goals: Awareness of global trends, global
business models
▫ Possible Trends = wherever there are changes,
risks and opportunities
▫ Look for changes in
technology, communications, capital markets,
regulations, consumer tastes, credit availability,
technology and more; and how they create
opportunities for entrepreneurs
61. ―The future is here. It’s just not widely
distributed yet. ―
—WILLIAM GIBSON, author of Neuromancer;
coined term ―cyberspace‖ in 1984
―The 4-Hour Workweek‖, Expanded and Updated, Timothy
62. Trends in Technology (to think about)
• Mobile
• Social
• Tv + internet (screen convergence)
• Service on cloud
• Digital natives -born between 1980 and
• Always on
• 3-D
• More… can you add to this list??
63. • Tech Trends to watch
Clean-tech
• Cloud Computing
• computing becomes a utility
• Crowd-Sourcing : Using the power of groups
• Blogging as a business
• online video
• Software as service
• semantic web
• Mobile Web
• making technology affordable
• VoIP
• IPV6:
• Convergence of Internet and television
• Ultra Mobile PC's
• custom fabrication
• Developer Platforms (for social networking companies)
• Peer to peer
• Data Portability
• Information overload
• Putting computing technology in everything
64. Localization
• Localization and replication locally:
▫ Localization of foreign business models and
technology, or
▫ Finding local business models to replicate
abroad
65. Localization
▫ Pay attention to:
cultural differences,
regulatory differences,
consumer behavior,
tastes, taxes
income levels, and more
** these elements should ALL be apart of your TEAM
project!!
…in the process of evaluating localizing strategies
66. And now….
• Time for presentations….
• Each student to select one (problem, or trend)…
AND one ―localization‖ idea to the class
• Class discussion, review, and feedback
• Good luck!
68. Homework #2
Group Project
• Pick your group (3 students)
• All groups must deliver the following
▫ Proposed product/ service
▫ Proposed 2 countries
▫ Outline of major issues (cultural, technological,
political, economic…for why it may / or may not work)
▫ Due: Saturday 27th 10am
▫ Word document 2 pages max
▫ submit by email to : briandbutler@gmail.com
69. Country Analysis
• The first step, of course it to conduct a thorough
country analysis, including culture, political risk,
product adaptations, and more...
▫ Country Analysis
▫ international marketing
▫ political risk assessment
▫ Value Chain
▫ International perspectives
▫ international strategy
See links to: KookyPlan, the Wiki for Entrepreneurs
70. Country Analysis
• PEST analysis: for market research - looking outside
the company to get a feel for the marketing
environment
• PEST analysis (marketing environment)
▫ Political/Legal
▫ Economical, Competition, Infrastructure, Geographic,.
▫ Social/Cultural
▫ Technology
See links to: KookyPlan, the Wiki for Entrepreneurs
71. Country Analysis
• Political
▫ factors include areas such as tax policy, employment laws,
environmental regulations, trade restrictions and tariffs
and political stability.
• Economic
▫ factors are economic growth, interest rates, exchange rates
and inflation rate.
• Social
▫ factors often look at the cultural aspects and include health
consciousness, population growth rate, age distribution,
career attitudes and emphasis on safety.
• Technological
▫ factors include ecological and environmental aspects and
can determine barriers to entry, minimum efficient
production level and influence outsourcing decisions.
Technological factors look at elements such as R&D activity,
automation, technology incentives and the rate of
technological change.
http://kookyplan.pbworks.com/PEST+analysis
72. TEAM PROJECT
• This team project is designed to provide you
with a sound understanding of how
entrepreneurs that engage in international
business apply the concepts discussed in class to
make real-life business decisions. Your team
assumes the role of consultants that will advise
the chosen company on some critical issues
related to expanding into a new market. Teams
will be made up of 3-4 students each.
• Students will be asked to market a good or
service from one country to another country.
The project must include the following sections:
73. TEAM PROJECT
I. Product and Company Selection
• Select a product or service that at least one members of
the team has a specific knowledge about and is currently
marketed in a foreign country. Describe the product, the
manufacturer, and the international business orientation
of the firm.
II. Market Analysis
• Research the possibility of bringing that product/ service
to another country (localizing the foreign business).
Elaborate a market analysis in which you examine the
competitive, economical and political environment that
will impact the future success of your product and
company there. Focus on the aspects of these
environments that are most relevant to your company
and product.
74. TEAM PROJECT
III. Market Entry Strategy
• After selecting a product and analyzing the target market,
evaluate the different market entry strategies available.
Assume that the company does not merely want to export its
product to the given market, but has plans to develop a more
strategic approach to entering this market.
IV. Location
• As part of your analysis in part III, make sure to suggest one
or more particular cities or regions that will play a role in your
proposed strategy. Describe the advantages of the proposed
locations in terms of operations and distribution among
others.
• The project report should be between 6 and 8 pages long
(Font: Arial, 12; Line Spacing: 1.5).
75. Factors to consider
• Successful global entrepreneurship needs to take
into account the:
▫ culture,
▫ political and legal environment,
▫ economic system and development,
▫ technology environment, and
▫ the overall infrastructure.
77. Homework
3-questions exercise – modified
• Identify (1) transferrable idea ABROAD, and analyze if you think it
could be brought to BRAZIL
• Consider (P.E.S.T) factors
1. Political
2. Economic
3. Social
4. Technological
▫ Based on these 4 areas… do you think the foreign business model would
work / not work in Brazil? Why? Why not?
• Due this Friday by midnight (before next class) – Maximum 1 page
– word document – submit by email to : briandbutler@gmail.com
• Be prepared to present your analysis in Class (with class review)
80. Follow the 007 trail…
• Licence to travel: jet-setting with James
Bond
•
No one makes travel look so effortlessly suave as
good old 007. Get on board the adventure with
these Bond-themed destinations
• Do you like your travel shaken or stirred?