ALPSetup new Business

Prague, Czech Republic

22.6.2006

Agenda

• Team rules 15 min.• Plan for ALP 20 min.• Research 60 min.• Set goals and mission 10 min.• Develop alternatives to reach goals 30 min.• Set criteria for selection 30 min.• Action plan 30 min.• Finalize presentation 15 min.• Reflection 20 min.

Team rules

• Beeing direct (balance between quality and time)• Team process is leading• Consensus• Inputs should be always from CZ and NL sides• Equal• Use your talent • Talk only to contribute (added value)• Keep timeschedule

Research – Culture

NL CzechConsensus

Creative

Direct

Innovative

Open for other cultures

Structured

Risk takers

Organised

Language knowledges (west)

Individualistic

Knowledges

Compomise

Double faces

Collectivism

Task oriented (doing, not results)

Masculinity

Creative

Specialists

Skeptic to changes

Language knowledges (east)

Working spirit

Experiences

Research – Theory (Trompenaars)

Power DistanceHigh LowCZ NL

Uncentainty AvoidanceHigh LowCZ NL

Individualist - ColectivismIndividualism Collectivism

CZNL

Specific - difuseSpecific Difuse

CZNL

Inner - OuterInner OuterCZNL

Universalism - ParticularismUniversalism ParticularismCZNL

Research – Conclusion on synergy

• Knowledges (NL) and Experiences (CZ)

• Working spirit (CZ) with Innovative (NL)

• Risk takers (NL) and Structured (NL) with Sceptic to change (CZ)

• Language on both sides – different languagues

Market Research

Possibilities:

• Production with high added value

• Investment, development and services (land, hotel, golf course….)

• Hightech Research center

• International consultancy

Business Decision

• Production with high added value

• Digital lighting industry

Mission

• We are lighting provider for business customers who need special hi-tech solution

• Combing knowledges, innovation and experiences of Czech and Holland Culture

Goal

• Withing 5 years reach 30% (10 mil. EURO turnover with ROI 15%) of market of special lighting in Czech and Holland

Alternatives

• Setup completely new site in Czech

• Setup Service company without real production (which is outsourced), only modify existing products

• Long term partnership with one existing company which delivering products.

• Buy existing company

Criteria

• Differences in culture (time for integration process)

• Time to market

• Initial investment

• Usage of culture synergies

Multicriterial choice

Difference in culture

Time to market

Initial investment

Usage of synergies

Total

New site 2 5 4 1 6,5

Services only 3 2 2 2 5,5

Longterm partnership

4 2 1 3 6,5

Acquire 4 2 4 3 8

20% 20% 20% 40%

Culture in “Coolighting” Company

egalitarian

hierarchical

personal task oriented

INCUBATOR GUIDED MISSILE

EIFFEL TOWERFAMILY

Culture (continue)Power DistanceHigh Low

CZ NL

Uncentainty AvoidanceHigh LowCZ NL

Individualist - ColectivismIndividualism Collectivism

CZNL

Specific - difuseSpecific Difuse

CZNL

Inner - OuterInner OuterCZNL

Universalism - ParticularismUniversalism ParticularismCZNL

Action plan

• Business plan 2 weeks• Selecting place 3 months• Start integration programs 6 months• Hire / Recruiting employees 6 months• Start marketing 9 months• Pilot run, trainings 11 months• Start of production, Enter market 1 year• Reach 3 mil. EURO and 5% market 3 years• Turnover 10 mil. EURO / reach goals 5 years

Risk management

• Culture integration – really use synergy– Well prepared integration process avoiding double

faces using directness of Dutch people– Working on individual and team culture integration– Strongly focus on basic parameters of target culture

• Focus too much on production– This is not so helpful to really use synergy– Keep idea setup high added value company, not

mass production

Reflection

• We spoke in the rules about talent, but we are not sure if we really used all talents – there is a lot of potential in the group, but not used because time, process pressure – monitoring the process!

• Most of the rules we didn’t follow, but we follow the red line (even running out of time!)

• During the process the cooperation was getting better• Czech remarking: we did’n expect from Dutch culture to

be so much focused on details during mission discussion• The choosing of the alternatives is not mathematics• Before making decision you should be more aware of

consequences• Less talking / more listening can make process more

effective