How to implement export activity within the company – first steps

An enterprise deciding to undertake activities relating to foreign trade must be aware of the changes that must be made to the structure and organisation of the entity. These activities cannot be based solely on the creation of new organisational units, but also on the selection of suitably qualified employees or training of existing staff. It is important to develop this strategy in line with the development of the company’s export activities. Depending on whether direct or indirect exporting is the chosen strategy, the adjustment of the enterprise for these activities will differ.

In the case of indirect exporting, which is one of the easiest ways of entering foreign markets, it is not mandatory to create a new export department, which would require an increase in the costs of running the company. In this case, the trade agent who is responsible for the sale of the company’s goods can complete their services using a foreign trade unit that would also be part of the sales department. This unit would be subordinated to a sales director to whom their activities would also be reported.

Figure 5 An example of the organisation of an enterprise with a foreign sales unit.

The use of this solution does not cause a large increase in the costs in the company, because, the unit can be created with the existing sales department employees who have the appropriate qualifications or, where possible by a person specifically employed to operate only within this unit.

In the case of direct exporting, the entrepreneur is obliged to undertake major changes in the organisational structure of the company. Direct sales of products entail greater involvement of those employees responsible and require the expansion of the current structure to include employees who will be fully responsible for all stages of handling exporting in the company, including:

• Handling foreign payments.
• Product promotion in a selected foreign market.
• Setting prices and forecasting sales.

In this situation, the entrepreneur should decide to create a separate foreign division alongside the sales department. Due to the wide scope of duties of foreign sales employees, this department should be expanded to include a foreign sales manager who would merge the work of the foreign department with other departments in the enterprise, additionally reporting to the sales department director thereby linking the commercial activities of the enterprise.

Figure 6 Example of the organisation of an enterprise expanded to include a separate export unit.