This article will look at the different ways your business could be affected, and the chances to grow, as you expand your business internationally.

Opportunities
As many businesses operate across multiple markets, it is important to take heed of any opportunities that come your way. But what opportunities could be presented, and how can you make the most of them to grow your business?

Access to new markets
Perhaps the most obvious opportunity that presents itself when expanding internationally is new markets becoming available. International expansion opens doors to previously untapped markets, increasing the potential for sales and, ultimately, higher turnover and revenue.

These new markets may be easily accessible too, thanks to modern transport, as we deal with various changes across the world.

Helen Brown, Sales and Marketing Manager at Electrix, leading manufacturer and stockist of Stainless Steel Enclosures , said of selling to markets that are based outside of your operating country: “Despite being based in another continent, the transportation options that are available to us (as a daily international shipper) can often result in transit times from the UK to the US being faster than buying internally in the US.

“In addition, because of the effects that Brexit has had on moving goods from the UK to Europe, shipping our electrical enclosures, wireway and trunking systems to the US can prove to be more efficient.  This demonstrates the benefit of us being visible globally and helps to offset any challenges closer to home.”.

International Diversification
International diversification is a technique whereby an organisation uses international expansion as an opportunity to manage risk and protect the business in changing markets.

By spreading operations across the globe, you are not only able to attract new customers in new markets, but also able to mitigate potential risks in individual countries.

Operating a business across alternative markets while differing the business in style and size in those markets, as well as spreading assets across markets, can help to offset the impact of any economical event or crisis.

An example would be a business operating in markets in Asia, as well as the UK; the Asian market would help to manage and reduce the overall impact to the company arising from something happening specifically in the UK.

Put simply, if sales are going down in your domestic market, you lean on profit from sales in other regions.

Access to a Larger Talent Pool
Operating in different markets can allow your business to attract some of the best talent the world has to offer, and means you can localise the business in those different markets.

Challenges to International Expansion
Of course, as well as the opportunities that may become available when expanding across the world, the situation is also likely to present a number of challenges. What are those challenges, how could they affect business plans, and importantly how can businesses look to overcome them?

Language Barriers and Cultural Differences
Different countries have different languages; although that isn’t going to be a surprise to any business looking to expand internationally. It is important, however, to consider the language of the market you are going to expand into.

This can be relevant to the brand messaging, and even the name of the company. Does the name translate well, does it not make sense, or worse, does it translate into something negative and even offensive in the market in question?

Language barriers can also cause communication problems in different countries.Consider the languages spoken in your business locations, and to give your expansion the best chance of success, look to employ local talent who have a knowledge of the area and the market.

If sending staff from a headquarters or main global office to locations around the globe, it can be worth considering the use of interpreters.

Not only is understanding and communicating effectively important for the brand image and reputation, a failure to tackle a language barrier could result in an expensive overseas trip becoming a costly waste of time.

Cultural differences are also something to consider, with working hours and even working days differentiating across the world.

Many Arab countries have traditionally had weekends on Thursdays and Fridays, and while this is in some cases changing for economic benefit, working days remain something to consider when expanding into new markets, both for business reasons and respecting culture.

It is also important to consider [MC2] the implications of working in different time zones, such as communication with clients and colleagues.

Managing Global Teams
Managing teams across the world is another challenge of expansion, and as we have seen with language and cultural issues, these are obstacles that need to be overcome. Even once you have implemented a regional team, it is important to have strong communication between offices and teams.

Regular check ins with other teams and managers can keep employees engaged with the business, resulting in higher levels of productivity. It is also important not to leave global teams feeling isolated – employees can be up to 15 times more disengaged if they feel they are ignored at work.  Utilise technology to effectively communicate regularly.

Overall
By making the decision to expand globally, you are opening your business up to a range of opportunities and challenges.

As a business, making the most of any opportunities and capitalising on them are key to making it a success – when done effectively it can be used to offset risk in the home market.

Challenges, if dealt with efficiently, should not derail the plans and expansion, and they can even become opportunities over time.

Sources

5 benefits of international expansion – The Business Journals (bizjournals.com)

5 Common Challenges of International Business | HBS Online

https://www.bbc.com/news/politics/uk_leaves_the_eu

Language barriers in international Business (businesslanguageservices.co.uk)

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We understand that making the jump from college/sixth form to university can be a daunting one, but there are things you can do to get ahead of the curve and ensure you have the best possible start. Here, we’ll be taking a look at how the approach to business management differs across some cultures.

United Kingdom

Let’s start with the area of the globe that you’ll probably be most familiar with: the United Kingdom. The UK is the sixth-largest national economy in the world, and behind this thriving economy are business leaders with a particular way of doing things.

Here, leaders will encourage and promote discipline and punctuality among their employees, as these two factors are seen as the key to a successful business. In addition to this, they expect excellent time management skills from anyone they do business with, whether that’s staff, partners, or clients. 

Not only do they expect deadlines to be hit without compromising on the quality of work, but they also expect people to arrive on time or, in many cases, earlier than expected. This demonstrates manners, organization, and commitment. 

Employees are encouraged to work as a team and a good manager will enforce this; individual ambition should not be prioritized over the success of a team effort.

British business leaders are polite but often indirect, which can be confusing for foreign guests. Although decisions and requests can sometimes sound like an invitation to discuss, this is not the case. There is the authority behind the courtesy.

France

Patience is huge within French business culture. As a leader, you don’t expect decisions to be made on the spot or even shortly after the meeting has closed. 

French businesspeople prefer to discuss things at length before deciding on something, especially if the business owner was not present at the meeting and therefore executives need to give an exact account of what took place.

Leaders in France are direct, straightforward, and have no trouble asking questions, whether that be to staff or executives from other organizations who are hoping to come to a business arrangement. 

Sometimes a leader may even interrupt somebody before they’ve finished their point; this is supposed to be a positive sign as it means they’re actively listening/interested in what the person has to say. 

Staff are encouraged to take sufficient lunch breaks that usually span 1.5 hours. In some areas of the world, such as the United Kingdom, employees are guilty of eating lunch at their desks because they’re so busy with the task at hand. Well, this action is against the law in France, with managers and staff using the allocated time to eat a good meal and allow it time to digest, or visit the gym and run errands.

Spain

Spain is a diverse country and a ‘one size fits all’ doesn’t work across all business owners. However, there are certain traits and habits that can be identified among leaders in all areas of the country.

Leaders are generally more relaxed when it comes to deadlines and timescales because that’s the Spanish culture in general; people tend to take their time in doing things and deal with each day as it comes. Business owners will likely see more people engrossed in their work at 20:00 than at 09:00.

This part of the world is one of the leading countries for expats to live and work, with foreign workers making up around 15 percent of Spain’s total labour force.

Working hard as an individual is much more highly regarded than teamwork, so it’s not uncommon for leaders to acknowledge the success that comes as a result of a single person’s work as opposed to a whole department or team. 

Japan

Respect for age and status is very important in Japan’s business culture as well as their general culture. Managers and owners of a business are aware of their position at the top of the hierarchy, and they expect those below them to actively respect their prestigious rank. 

Status among employees is determined by their job role, where they went to university, and marital status, so it’s common for business leaders to make important decisions based on the background of their staff.

Owners and managers in Japan prioritize relationships above all else, and they make certain that they know and trust somebody fully before engaging in business with them. 

If an introduction is being made between two businesses, the person leading the introduction will usually choose an informal gathering involving food and drink to bring the two leaders together, first ensuring that the two parties are positioned within the same place on the hierarchy.

United Arab Emirates (UAE)

In a similar way to Japan, the business culture in Dubai focuses strongly on hierarchy. Business leaders in the UAE are the key decision-makers and tend to be older and more experienced from the top down.

Age, money, and family can also determine where in the hierarchy someone is positioned; leaders are more likely to base hiring decisions on these three factors, as opposed to who would be the best at the job role.

It’s very rare a leader will accept ideas, suggestions, or any input from lower-level employees. They are expected to always listen and follow, and overstepping could be seen as rude and disrespectful rather than innovative and ambitious.

Leaders dress moderately and expect their staff to do the same – most men wear a kandura (an ankle-length white shirt) and most women wear an abaya (a black flowing garment that covers most of the body).

Personal relationships are at the center of all business in Dubai, and face-to-face meetings are prioritized over phone calls and emails. These forms of communication can sometimes be seen as impersonal. 

The common denominators

Of course, business is handled differently across the world and leaders adopt different approaches based on culture, but there are consistent factors no matter which part of the globe they’re being conducted in.

In every country, the leaders have more than likely gained a good education, as well as have a particular set of skills and thorough knowledge relevant to their business sector.  

An international business management course will help you develop important skills, such as critical thinking, problem-solving, and communication, that can be transferred and applied to different parts of the world. Good luck with your studies!

Sources

https://worldpopulationreview.com/countries/countries-by-gdp

https://asialinkbusiness.com.au/japan/conducting-business-in-japan/japanese-business-culture-and-etiquette?doNothing=1

https://www.expatica.com/es/working/employment-basics/business-culture-in-spain-102512/

https://nhglobalpartners.com/japan-business-culture-five-things-you-should-know/

https://www.todaytranslations.com/consultancy-services/business-culture-and-etiquette/doing-business-in-france/#:~:text=French%20executives%20tend%20to%20focus,at%20times%20might%20become%20intense.

https://www.expatica.com/uk/working/employment-basics/uk-business-culture-103182/

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