global business

'Global' and 'world-class' sound like big words for big companies. But a small business can think as globally as anybody and, what's more, achieve world-class rank in its niche: witness the Green Tyre Company of Middlesbrough.

It produced its first bicycle tyre only three years ago, employs 19 people and has a profitable turnover just in seven figures. But those sales are made in 22 countries, because founder Colin Scarsi, 43, 'never thought of it as anything but a world company.'

His attitude sprang from the frustration of an 'awful lot of work trying to promote UK exports.' Scarsi used to work for the financial services arm of bankers Citicorp, but had 'always fancied manufacturing.' He saw businesses that had difficulty competing. 'Was it really all that difficult?'

Today he says 'it is that difficult' - although you wouldn't think so from Green Tyre's phenomenal pace of development. It all began with an article in the Daily Mail, reporting on the Goodyear giant's work on a puncture-proof tyre. That sounded like a wonderful idea to Scarsi, and in May 1991 he launched into his tubeless tyre project, using microcellular polyurethane.

Three introductions were invaluable. One brought in a business angel, a private investor who provided funds and owns the other half of Green Tyre. Second, visiting the US in August 1991, Scarsi found the 'mad scientists' who could turn the technology (Goodyear had only 'pottered' about with the idea) into a commercial product.

Third, the Development Corporation on Teesside did an 'absolutely incredible' job in easing the passage. Scarsi rang one day, and the next, even though the project was still pie-in-the-sky, people from the Corporation came to see him in London. 'These boys', he said to himself, 'are keen.'

Scarsi fell keenly in love with Teesside himself, not least because, with 'ICI on the doorstep, it wasn't frightened of chemicals.' The financial aid packages were a help, though not very substantial in relation to the half-million pounds of capital required. And by October 1991, Scarsi was 'fairly confident' that he had a business.

Seven months later, the first tyre was made. Scarsi waxes eloquent about the 'fairly unique' and 'fantastic' properties of his chemicals, which happen to be environmentally virtuous. Hence the name: although the 'green' qualities are actually the weaker of Scarsi's two marketing cards.

The strongest, the one which earns the tyres their premium prices (starting at double that for a pneumatic product), is the 'never goes flat' argument. But the green issue is 'very important' in markets like Germany and Austria, and is the easier way to create a unique market identity.

To achieve Scarsi's world ambitions, that identity had to be global: 'You've got to present your company as international' - even though at first that may well mean stretching the reality. For a start, Green Tyre operates in six languages, and every person in administration must speak two tongues.

Scarsi also put a great deal of effort into product profiles, a four-minute video (made in nine lanuages), visiting cards, etc. As he says, the material you take abroad is 'all they're seeing.' The potential customers are unlikely to travel to Middlesbrough: so they have to be impressed on the foreign spot.

The second global necessity is to have a world pricing policy. Pricing must be fairly consistent, and you need to think of the world as a single market. Since Green Tyre faces no domestic competition, that thought comes naturally - Scarsi says that 5.5 million bike tyres are imported into Britain annually.

In relaunching Britain's bike tyre production, Scarsi had his setbacks. While the first year made a profit, it was precisely £515, and the second year made a small loss. In the third year, though profits began to flow at around £150,000, Green Tyre ran into capacity problems: at the end of this month, however, a new automated line comes on stream.

Theoretically, Green Tyre can treble production and thus mightily strengthen its unique world position. There's no doubting the main moral: even if you're small, 'You've got to think big.'