1. Does a small company such as Murphy Company Limited have the capability of exporting? Explain. Would it be better for the company to expand its product line for the New Zealand market? The Murphy Company Limited, located near Auckland, New Zealand, manufactured dishwashers and garbage pulverizers for home use, and cooking equipment and commercial pulverizers for restaurants.

A relatively young company, its products were highly regarded by housing contractors and builders. The company had a reputation for quality construction and for good and prompt after-installation service.

Although sales were still growing, the managing director of Murphy, Bryan Murphy, realized that the New Zealand market was limited and would level off within a few years. There is a relatively small population and it is not growing appreciably. Therefore, he proposed exploring the possibility of exporting as a way to maintain growth.

The Export Institute was holding a two-day seminar in Wellington, the national capital, on opportunities for export by New Zealand companies. The director of marketing, Fred Murphy, along with his assistant Sam Murphy, decided to attend this seminar to see what these opportunities were and what types of assistance would be available to a company such as Murphy Company Limited, which had no export experience at all.

One of the presentations at the seminar was by Michelle Akory, an expert on export marketing and a university lecturer. Among the items that Ms Akory gave to the seminar participants was a listing of potential mistakes made by new exporters. This list is reproduced below:

1. Failure to obtain qualified export counseling and to develop a master international marketing plan before starting an export business.

Correction: Get qualified outside guidance.

2. Insufficient commitment by top management to overcome the initial difficulties and financial requirements of exporting.