When leadership fails – an example – the Mexican shoe manufacturing industry

24 07 2006

It’s quite interesting to watch certain businesses and industries succeed and fail, and try to identify the factors that lead to these very different outcomes.

For example in Leon, Guanajuato, the shoe-making capital of Mexico, the industry is under severe pressure from imported product, and lower costs from China, Vietnam, Brazil, and other countries.

It’s quite clear to everyone in the industry that there are several solutions to the problem.

  1. Ask the government to create trade barriers and import tariffs. This will only support the inefficiencies in the national industry, postponing the inevitable.
  2. Invest in design and create a brand. Shoes are purchased for two reasons, fashion and protecting your feet. The fashion market has much higher profit margins, but requires constant investment in research and development and marketing.
  3. Invest in technology. If your product is focused on low prices in the market, you must have low costs, and lower costs than your competitors. This might be achieved with new technologies.
  4. Create alliances within the industry. If China production costs are cheaper, but it takes 60 days for the product to reach the US, doesn’t it make perfect sense to create an alliance where the initial production comes from Mexico (5 days to market), followed by the mass production from China?
  5. Purchase the shoes from the overseas competition and close your production facilities.
  6. Create new markets, export to new markets.

Those are the choices, and what do you think is happening?

The majority of companies are pointing out the danger and requesting government intervention, but not implementing any other strategies to avoid the “doomsday” scenario.

The few companies (industry leaders) that have invested in branding, design, technology and purchasing from competitors are thriving, earning money and making profits.

Why is avoiding the obvious or inevitable, such common behaviour in most organizations and groups?

I believe it has to do with the failure of the leaders to move out of the Thinking-Identifying stage and into the Planning and Implementation stages.

The cycle of business leadership and management consists of:

  • Thinking-Identifying. Thinking and identifying important internal and external factors and understanding how they interact.
  • Planning. Using the data and information to formulate a plan and strategy
  • Implementing the strategy. Putting the resources and motivation behind the plan and “making it work”.
  • Reaction-Modification. Reacting and modifying the plan as the conditions change.

Many leaders are uncomfortable or unable to identify the major factors that are and will affect their companies. They are unable to create strategies and delay important and critical decisions because they lack data, or have too much of it, or don’t know how to properly analyze it and find conclusions. Without a strategy there is obviously no implementation, and the organization begins to react to situations created by others (crisis management).

This inability to read the market, identify market forces, create strategies and adapt to changing conditions will eliminate those organizations from the market. Creating strategy is not easy, and creating successful strategies is even more difficult. It requires excellent leadership and management decisions.

What are the known problems in your organization and industry?

What strategies are waiting to be created and implemented in order to prepare your business for the future?

Why isn’t it happening now?

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Leon, Guanajuato – Footwear and Shoe Industry contacts

21 06 2006

I live in Leon, Guanajuato, Mexico….which might mean nothing to you unless you are involved in the leather industry or shoe business. Leon is home to the majority of the leather tanneries and shoe factories in Mexico.

For those of you seeking industry contacts, here is a brief list of links to the major shoe related organizations in Mexico.

SAPICA

The biggest and most important international shoe fair in Mexico. Held two times per year. Spring/Summer and Fall/Winter.

CICEG

The Mexican Shoe Association in the State of Guanajuato.

ANPIC

The National Association of Suppliers for the Footware Industry.
COFOCE

If you want to find reliable exporters of shoes, leather, and leather goods contact COFOCE. Highly recommended.

State Government of Guanajuato

Good overview of the State of Guanajuato, business opportunities and contact information for government and industry.

For more information or consulting assistance, do not hesitate to contact me.

Related Link: Mexican Shoe Manufacturing on Squidoo





Current Resume – Lee Iwan – March 2007

27 04 2006

 

Lee Iwan

International Business Development

Sales & Management Executive

Accomplished bilingual and bi-cultural executive with broad based domestic and international experience in business discovery and development; sales, marketing and operations for start-ups, growth and mature organizations.

Results oriented, proven success in new market identification, strategic thinking, negotiations and pragmatic problem solving. Track record of “hands on” leadership increasing communication, sales, efficiency and profitability.

Thrive in dynamic and fluid environments requiring enthusiasm, creativity, communication skills and organization.

Core competencies include:

Relationships and Communication

Team Leadership

Cross Culture Liaison

Innovation and Change Management

Global Focus

Entrepreneurial Focus

Contingency Planning

PROFESSIONAL EXPERIENCE

QUIMICA CENTRAL DE MEXICO S.A. de C.V. Leon, Gto., México July 1998 – Present

Business Manager, Strategic Business Discovery & Development May 2005 – Present

Serve as independent executive working directly with CEO and Board of Directors. Fully responsible for the visualization, research, creation, communication, follow-through, analysis, planning and implementation of new business development and corporate strategic diversification projects.

Key Achievements:

  • Project Leader, pharmaceutical joint venture (Swiss-México), manufacturing and commercial operations .
  • Spearheading strategic alliance negotiations to increase long-term market share and global positioning.
  • Ongoing negotiations with India and China for product representations, agencies and toll manufacturing.

Business Manager, International Business March 2000 – May 2005

Served as Business Manager, responsible for global sales and marketing, distribution and logistics, and all corporate international negotiations with clients and suppliers.

Directed export sales and market development, international supplier strategic alliances; leadership of export sales distribution and agency networks; cross-functional team participation; business intelligence; sales and marketing strategy and leadership for the Asia Pacific and Latin American regions; sales implementation and market development; logistics and supply chain management, cross cultural communications, “globalization” of company culture and corporate special projects.

Key Achievements:

  • Created and implemented commercial entrance for Asia-Pacific market, first 3 years revenue $ 5 M (US), projected annual sales growth of 200%.
  • Initiated and maintained strategic alliances with international suppliers, raw material cost savings of $ 2 M (US) fortified long term strategic positioning.
  • Negotiated exclusive agency representations in Mexico for South African and US specialty chemical manufacturers.
  • Increased company global competitiveness utilizing the export department to drive corporate cultural changes in strategic planning, production, time to market, supply chain and logistics, sales, marketing and administration.

Export Manager July 1998 – March 2000

Served as Export Manager, responsible for sales, distribution and marketing strategy and management for 20 countries including Latin America, US, Europe and Taiwan.

Key Achievements:

  • Created new commission and base price structure for agents and distributors resulting in increased loyalty and increased revenue of 8%.
  • Re-engineered department systems to increase revenue and customer loyalty through increased efficiency in communications, administrative processes and product shipping.
  • Managed international sales force in Latin America and Asia Pacific regions (18 distributors / agents).

NUVIDA S.A. de C.V., León, Guanajuato, México January 1993 – July 1998

Owner–President–Entrepreneur

Served as President for start-up specialty service business, corporate and government clients.

Key Achievements:

  • Alliance between private industry, State and Local government to create and maintain 100-acre interactive ecological area – Parque Explora.
  • Managed workforce of 45.
  • First workforce in the State to receive State Certification (training and operations procedures).

FLOWERS FLOWERS INC., Evanston, IL, USA March 1986 – August 1993 Owner–President-Entrepreneur

Served as President for start-up innovative luxury consumer goods and service business.

Responsibilities included: strategy and planning, management, sales and marketing, purchasing and operations.

EDUCATION

Bachelor of Science Agricultural Economics * University of Illinois – Urbana, IL 1980

PROFESSIONAL ACHIEVEMENTS

Board Member, State Chemical Industry Export Committee, COFOCE, February 2007 – Present

Weblog: Business South of the Border August 2006 – Present

Weblog: Lee Iwan Accumulated Experience April 2006- Present

Business Development Mission, Chennai, India, February 2007

Chromium Industry Conference, Cape Town, South Africa, February 2006

Commercial Mission, New Delhi, Mumbai India, November 2005

Course: Finance for Non-Financial Managers, 2005

Business Development Mission: Buenos Aires, Argentina, 2004

Board Member, State Leather Industry Consulting Committee, COFOCE, 2000 – Present

ANPIC, Mexican Leather Industry Fair, Leon, Gto., Mexico, 1999 – Present

ISO 9001:2000, Certification Process, 2003 – 2006

Business Development Mission: Geneva, Switzerland & Moscow, Russia, 2004

Business Development Mission: Istanbul, Turkey, 2003

All China Leather Exhibition (ACLE), Shanghai, China 2002 – 2005

Guangzhou Leather Fair, Guangzhou, China, 2002 – 2005

Business Development: Geneva, Switzerland, 2002

Commercial Mission: Mexico – Central America, 2000 – 2002

Asia Pacific Leather Fair, Hong Kong, 1999 – 2005

Linneapelle, Bologna, Italy, 1999 – 2005

Commercial Mission: Mexico – China, 2000 – 2001

Business Development: Amsterdam, Holland, 2000

Business Development: Guatemala, El Salvador, Honduras, 2000

Miami Leather Fair, Miami, FL, USA 1999 –2001

Business Development: Uruguay, Brazil, Argentina, 1999

FENAC, Leather Fair, Novo Hamburgo, Brazil, 1999

Course: Mexican International Commerce Legislation, 2001 – 2004

Diploma: Modifications in the Mexican Customs Legislation, 2003

Diploma: International Commerce – Logistics, 2001

Diploma: International Commerce, 2000

Course: The Strategic Salesperson, 1999

Periodico AM, Newspaper Columnist. 1994 – 1996

Society of American Florists, Editorial Board, 1990 – 1992

Chicago-Dempster Merchants Association, Vice President, 1988 – 1990

Lee.iwan@gmail.com