Interview with Dr Nicolas Forsans

Director, James E Lynch India & South Asia Business Centre

Centre of International Business, University of Leeds (CIBUL)

Can you give an overview of your business background and research interests relating to international business?
My key expertise lies in the area of international business and corporate strategy. At the Centre of International Business we have created a research centre dedicated to Indian business and the conduct of international business in and with India. India is a fast growing country, and is of an increasing interest to me, particularly the way in which companies can do business with this market

Can you give an overview of the specialist areas of international business that you are involved in?
More specifically, my research interests tend to focus on the internationalisation strategies of Indian firms in the UK, UK investments in India, the performance of British firms in India, the role of mobile technologies, education and poverty reduction, and comparative research on Indian versus Chinese business and the strategies of UK firms in these emerging markets. All means of servicing foreign markets are of interest to me, whether it is through exports, contractual arrangements, local production, or the establishment of a local sales and marketing offices

Is there any leading edge research or academic work that you are involved in that will benefit businesses looking to enter or develop international markets?
We have two projects currently under way at the James E Lynch India Centre, which will be of interest to our corporate audience:

First, our research project on the performance of UK firms in India will be of interest to any UK firm currently operating in India or contemplating whether to invest in India or not. Although the UK’s share of FDI in India has declined significantly over the past thirty years, there is conflicting evidence regarding the performance of UK firms there. India is a very diverse and highly price-sensitive market. Indian consumers are very discerning. India is a market where brand name alone, however established the brand is, is not enough. Our research project aims at identifying what is behind the performance of UK plc in India and the determinants of successful strategies.

Our second project focuses on the internationalisation of Indian firms in the UK. Five years ago, Indian firms were not a significant investor in foreign countries. Last year, India was the second largest investor in the UK, and the single largest in London..! Understanding their management practices, the source of their competitive advantage, their business and corporate-level strategies will provide with interesting insights on the competitors of UK firms in their home market

What type of interventions can the Centre of International Business (CIBUL) offer to businesses in Yorkshire & Humber that wish to develop international markets?
CIBUL can be of benefit to Yorkshire & Humber-based firms in many ways:

• through the delivery of seminars and training on how to penetrate foreign markets, how to export, how to set up a local presence overseas. Some firms, the smaller ones in particular do not have much experience in doing business across borders – and this is an area in which we can add value. We have just started a series of seminars for practitioners on China and India –and this is thanks to our expertise in this area. CIBUL was recently ranked 1st in the world for the quality of its research, and 6th in the world for the quality of its teaching in international business – and this particular ranking was conducted by our alumni, so this is a great testimony of the strength of our faculty. Our seminars will focus on the Chinese and Indian consumers, the protection of intellectual property, the political and economic environment of these two countries. China and India are fast growing markets, and many UK firms –in particular the smaller ones- are still unclear as to how China and India can benefit them.
• through Knowledge Transfer Partnerships (KTPs). CIBUL is home to two KT Associates who work full time on an internationalisation project for two UK firms – this scheme is a great opportunity for SMEs, as it is subsidised by the DTI. It means they can benefit from the services of a top graduate whose mission it is to transfer knowledge and expertise that typically reside within the university – and the cost is shared by the firm and the government.

For firms wishing to consider India as part of their strategy, our India centre offers a full set of services to help local firms benefit from India’s advantages:

• we produce a series of market research briefings on the overall Indian economy and key sectors such as manufacturing, pharmaceuticals, telecoms, IT, Business Process Operations (BPO) /Knowledge Process Operations (KPO), retail, entertainment. These briefings are entitled Watching India, and they enable UK and European firms to keep up-to-date with the fast changing nature of the economy and the opportunities that await them in India. We can also undertake more bespoke research and market research on a wide range of topics and industries and tailored to the needs of individual firms.
• we can also go further and assist the firm in its location decisions, its approach to the Indian consumer and Indian market, etc. This work would typically take place either through the KTP scheme or through consultancy.
• training and seminars are offered to both SMEs and larger Multinational companies within the Yorkshire & Humber region with current or potential business interests in India.
• But, something truly unique and of tangible value to Yorkshire-based firms is our “Indian Executives can Help your Business Grow” scheme. That is, the opportunity for Yorkshire & Humber-based businesses to benefit from the experience of one -or a small number of- top Indian executives with 10 years industry experience, a wealth of practical expertise in industries as diverse as banking, finance and insurance, IT, energy and transport. Twice a year, our India Centre is home to these bright, experienced and ambitious executives enrolled in an Executive MBA at India’s most prestigious business schools, the Indian Institutes of Management in Ahmedabad and Calcutta. In our India centre for one week, they sharpen their cross cultural management skills, as Indian firms increasingly venture outside of India. We then offer internships for four weeks, during which time our business partners can discover what they can do for them, whether it is the development of new skills, exposure to new markets, new ways of doing things. These Executives have got unrivalled expertise, and UK firms get first-hand exposure to the potential of these hard-working, and committed Indian Executives. These people are snatched by top recruiters – the like of PwC, Accenture, KPMG, but also HSBC, Pepsi, Tata, Ranbaxy, etc- and their salaries last year matched those offered at Harvard, Wharton and Stanford..! If a firm wants to do business with India, then this is a unique opportunity to employ an Indian executive at a very low cost to fine-tune its strategy, since these Executives would expect the firm to contribute to some of their living expenses (in the region of £100 per week).

Can you give some examples of the types of interventions that the Centre of International Business (CIBUL) is currently involved in with businesses?
Right at the moment CIBUL is involved with businesses in two distinct ways:

• through the Knowledge Transfer Partnership scheme I mentioned earlier. Two Knowledge Transfer associates are currently working for two firms based in Yorkshire for two years under the supervision of our staff. This is a unique opportunity to transfer our knowledge and expertise to those who are in need of these, i.e. businesses.
• through the delivery of focused seminars for firms on “doing business with India and China”. Four seminars are to be delivered by the end of the year, and three more are already in the pipeline for the early part of 2008. Our very first, half-day seminar took place on May 23rd, when an audience of 100+ companies were presented with key facts and figures about India and China. It went very well, and we have received many enquiries from firms who want to find out more. Seminars that focus on particular aspects of the India versus China comparison will logically follow in the next few month – our next seminar takes place on 18th July. It will specifically look at the political and economic environments of these two emerging economies. China and India are key markets no firm can afford to ignore, and this is where most our efforts are directed towards.

Which technologies, geographic markets, and industries does the Centre of International Business (CIBUL) have specialist knowledge in that can help businesses develop overseas?
We do not have any particular technological expertise –if you exclude the brain..! We are good at using our brains, and even better at using it to produce frameworks, explore innovative approaches and structure the way one can approach a particular business problem; in our case, a problem related to the conduct of business across borders. That’s what we do, and these innovative frameworks and approaches come directly from the fruit of our research.

In terms of markets, clearly China, India and South Asia are central to our remit. We also have expertise on Eastern Europe and Japan, and with twelve year experience conducting and disseminating the outcome of our research; the world is our oyster..!

How can businesses access the specialist research, knowledge, and graduate facilities that you offer?
The easiest way to get access to our specialist knowledge is to start getting in touch with us. Our knowledge transfer unit will identify the functional or area specialist who will be more than happy to examine how we can help. Please contact Helen Ashworth, Knowledge Transfer Officer on telephone: 0113 343 7947 or email: h.e.ashworth@lubs.leeds.ac.uk

Can you explain how graduate placements and language skills of students at the Centre of International Business (CIBUL) can benefit businesses developing internationally?
The University of Leeds is an amazing place – with students originating from 250 different countries, it is a very diverse place. Our business school, whose strength is recognised every year by The Economist’s Which MBA?, and the Financial Times’ rankings of top business schools in the world, is home to 500 postgraduate business students from 50+ different nationalities… there is bound to be country-specific expertise..! Although English has become the language of business, our students have more than language skills – they know about the way things get done in their home country, local customs, etc. Whether it is an assessment of the drinks market in Columbia, or the design of an internationalisation plan for a UK-based company in Sri Lanka – by combining the knowledge that resides in universities with their own language skills, our students can clearly add value to a company’s international business strategy.

What sort of education facilities and qualifications does the Centre of International Business (CIBUL) offer to businesses and international trade employees?
Our business school has a variety of courses on offer to choose from. CIBUL launched last year a new Masters degree in international business, and this programme builds on our expertise which is recognised and acclaimed internationally. Our MSc in International Business has been developed to provide students with an in-depth understanding of the dynamics of international investment and the complex issues relating to it. It's an academically rigorous programme, with strong hands-on and skills-based elements, all designed to prepare students for their next step - whether that's with an established multinational, an SME looking to expand its activities internationally, or a government organisation that advises firms and formulates policy.

What type of international business projects is the Centre of International Business (CIBUL) interested in receiving from businesses?
Any project related to our core expertise, whether through the Knowledge Transfer Partnership scheme, consultancy, training or a student placement scheme. I think the best way is to give us a ring, talk to us and we can then identify what we can do for you.

Are any of these interventions free or partially funded, or are these interventions conducted at commercial business rates?
Our student placement schemes and projects do incur a small cost to the company to cover a contribution towards the students living expenses. Our seminars and workshops are often free or just incur a nominal charge to cover costs. The Knowledge Transfer Partnership scheme is part-subsidised by the DTI with the balance paid for by the company. Our consultancy work is negotiated with businesses usually on a commercial basis, as we do need to cover our costs.

How is the Centre of International Business (CIBUL) working alongside UK Trade & Investment to enhance and add value to international business support?
We work together through a network of regional academics, UKTI staff and businesses which aims to develop an integrated international business offer.. For example our India-China seminars for Yorkshire firms are the outcome of our partnership which is jointly branded and supported by UKTI. We also work with other partners, such as PWC and the Chinese British Business Council here in Leeds.