Export & Import

Management
Dr. Amany Ahmed
 Previous Chapter Main Points
Trade Definition.
Export & Import Definition.
Management Main Processes.
Products Classifications and Types.
Export & Import Motivations.
Trade Policy Definition.
Trade Policy Major Instruments.
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Second Chapter Main Points:
Studying Markets Before Export.
Introduction to International Marketing.
Export Preconditions for Making an offer
What is an offer ?
Offer classifications
Contents of an Offer
Exercise
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Main Elements of the Market

Any Market is made of 4 main Elements:

◦ Demand. (willing and able to buy)
◦ Supply. ( willing /able to Produce and sell )
◦ Goods & Services.
◦ Price.
Nowadays, the market is not consist with a fixed
(tangible) place. You can buy every thing you
want and need online, from different producers
and from any where from the whole world.
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 Main Elements of the Market

Before entering any market, these elements must be

analyzed carefully, for example:
1. Demand: you must study the consumer behavior
(including his purchase ability, preferences and
consuming behavior).
2. Supply: you should put in your mind the
competition you may face. Study your competitors
production ability and their products properties.

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Main Elements of the Market

3. Goods & Services: the different types of goods and

services in the market, (preferences, the advantages
and disadvantages of them all).

4. Price: You can decide the price of your G&S when

you determine the Cost and Revenues.
Do that carefully, since they respectively determine
your PROFITS.

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 Main Elements of the Market

By Studying These Elements in Detail, we can say

that Marketing is:
The Process of Creating a Market that Achieve The
Consumer Satisfaction and The Producer Benefits.
Benefits was mentioned instead of (only Profits),
because there is some institutions that doesn’t seek
profits, they only seek social, environmental and
cultural purposes.

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Relation Between Studying Market & E.I.M
Since Export represent selling domestic G&S in
foreign market, Import is the process of buying
foreign G&S to domestic market, SO, Studying the
market is IMPORTANT.
The Export and Import management in this case
tend to APPLY the Main functions of management
(planning, organizing, directing and monitoring)
on the market elements in specific scenarios.

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 Export Preconditions for Making an offer
When starting to prepare an offer, you have to check all
relevant preconditions for making the offer and for the
delivery of the goods.
Import and export laws and bills in every country
determine the rules, procedures and conditions regulating
entry and/or exit of goods.
Below are examples of variables that must subject to
checking:
◦ Export restrictions
◦ Regulations in the import country
◦ Taxation (duties, taxes, fees) in the importing country
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 What is an offer ?
❑ An offer is a kind of engagement, where the seller
informs the prices and other conditions at which he is
ready to sell his goods.
❑ one of the most important tools in marketing.
❑ The documentation of an offer is often the first
evidence of the efficiency of a company,
❑ It is recommended to use the same language in the
offer as that used in the inquiry received from the
buyer. normally English.

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 offer classifications

❑ Direct offer: directly to the final buyer

❑Indirect offer: Intermediaries
❑Partial offer : some data
❑Tender offer : Government

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 The net situation = total revenues – total costs
= 1.740.000 L.E – 740.000 L.E
= 1.000.000 L.E (profits)
Note: the net profit increased from 800000 in case of
selling in local market only to 1000000 in case of accepting
the export order
The final decision is acceptance of the export order from
both production & financial view

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 Quiz
Suppose you are an Export manager in an Egyptian company
for export & import, who received an export order from Italian
importer to export 10,000 units of shirts at price 10 $ per unit.
The additional data you may need are the following:
1. Full capacity production = 30,000 units
2. Current capacity production = 20,000 units sold domestically
at price 70 L.E
3. Total Fixed costs = 500,000 L.E
4. Variable cost = 50 L.E per unit.
5. Exchange rate = $ 1 / L.E 6.00
According to the available data:
Calculate the net Profit in case of Local market only?
Evaluate the export order from technical & financial view?
Calculate the net profit in case of accepting export order?
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