Global Business: Playing on the World Stage
 The weak U.S. dollar has helped Elaine Fitzgerald increase business at her Pompano Beach vacation apartments, Cottages by the Ocean. [Photo: Lew Lautin] |
Where the global economy goes, so goes Elaine Fitzgerald’s business.
The Pompano Beach hotelier has seen her occupancies soar as the weakening dollar has made international vacation travel to the U.S. more affordable. Whereas in the immediate years after Sept. 11, 2001, foreign visitors disappeared amid fear and hard-to-get travel visas, today visitors from Canada, the U.K. and even Russia constitute half her bookings.
In the fall, her occupancy rate, which typically averages 40%, topped 80%, she says. For first quarter 2008, occupancy was 100%.
“One week in January, we had five families from Norway — totally independent of each other,” says Fitzgerald, who runs Beach Vacation Rentals Hotel Group, a cluster of 25 efficiency apartments in six buildings — all within eyeshot of the Atlantic. “The weak dollars hurts some businesses. But it’s keeping us very busy.”
While exporters and businesses that cater to international visitors are benefiting from the weaker U.S. dollar, other Florida businesses face challenges in the international market. Many raw materials costs are up due to demand outside the U.S. Some international businesses sell their products and services at rock-bottom prices to get a foothold in the U.S. market, a tactic that puts more pressure on local Florida businesses to lower their prices to remain competitive. “We’re in a global economy, and Florida is smack in the middle of that,” says Jerry Ross, executive director of the Disney Entrepreneur Center in Orlando. “We don’t compete with the person across the street any more. Our competition is in Beijing.”
Sherman Miller has capitalized on overseas opportunities, but also faces a new set of challenges. As president and CEO of Multicom Inc., a Longwood-based manufacturer and distributor of hardware for both cable TV equipment and traffic signals, Miller serves both domestic and overseas markets. He imports much of his cable TV hardware from Taiwan and China, and exports to Latin America and the Caribbean.
Today, export is roughly a third of his business. While his products may be cheaper overseas today than a few years ago, costs have gone up, too. But Miller’s of no mind to change his model or numbers.
What keeps him up nights? The unpredictable global market. When economic or political volatility hit Argentina, Brazil and Venezuela, for example, he boosted sales efforts in other countries throughout the region, he says. When several accounts receivable start to age from customers in a specific country, Miller wonders: Is that a harbinger of change, like a spreading virus?
 Multicom CEO Sherman Miller imports from Taiwan and China and exports to Latin America. [Photo:Gregg Matthews] |
“I keep a pulse on that very closely. I’m always thinking about globalization and how it can help or affect my business,” says Miller, a stick-to-the-basics entrepreneur of 74 who relies on market diversity, new products — like a new voice-over-Internet protocol (VoIP) service — and customer satisfaction to keep his Florida business well protected in a changing global market. “If we keep our customers happy, and get a few more from our competitors, we can fight any trend.”
As Fitzgerald and Miller have found, doing business in a global market can pay dividends for companies that take the time to learn how to tap the wants and needs of international customers. That means studying target markets and having the capital to expand without damaging the core business.
Competing in a Global Market
Keep up with world news. Market conditions can shift quickly, so it’s vital to monitor political and economic developments in countries of interest. Trade associations often have regular updates of industry changes around the world. Regular reading of publications like The Economist (economist.com), Financial Times (ft.com), the Wall Street Journal Asia (wsj-asia.com) and BBC News online (news.bbc.co.uk) will give you an edge.
ResourcesEnterprise Florida Inc.eflorida.com Contact one of EFI’s offices about export counseling, trade events and export sales leads. Boca Raton (561) 362-5626 U.S. Export
Assistance Centers Clearwater (727) 893-3738 |
Research your specific market. Talk with a trade specialist at one of Enterprise Florida’s six field offices or the U.S. Export Assistance Center nearest you (export.gov).
Find out about non-U.S. businesses that are potential competitors in Florida or overseas. Enterprise Florida (eflorida.com/ForeignCompanies.aspx) has an interactive map and database of foreign-affiliated companies in the state. The database is searchable by industry, country of origin and location in Florida.
Brush up on language, culture and international etiquette. If you are going to do business in Latin America, speaking Spanish is a plus. Even if business communication is in English, it’s important to know the do’s and don’ts of negotiating, business dress, gift giving and entertaining. Check out Executive Planet’s guides to more than four-dozen countries (executiveplanet.com).