International Expansion -Overcoming Cultural Differences
0:05 I’m missing light based in London and I head up the global commercial bank in
0:09 international team as companies plan their international growth
0:12 a lot of attention is given to establishing a sound strategy
0:16 not identifying the target market however companies
0:19 often overlook the importance of the cultural differences on the new market
0:23 and they found to consider who will see make up there were crumbs
0:26 companies need to consider how to fully integrate their operations
0:30 I need to research the best way to onboard managed to retain the best
0:34 employees
0:35 overlooking the cultural and human capital aspects of expansion
0:39 are the main reason for failure: the culture intelligence up your target
0:44 market
0:44 should be a primary consideration when building the company’s international
0:48 strategy
0:49 let’s start with what makes that target market distinct
0:53 this could be as simple as observant holidays in your new market to the more
0:57 complex task
0:58 of working within the parameters of diverse political
1:02 environments cultural influences such as the political landscape
1:06 shape the infrastructure of the country distribution networks
1:10 efficiency and product delivery out all dependent on road
1:13 rail another transport systems if the infrastructure make that difficult to
1:18 move goods
1:18 materials and people this will result in addition expenses and decreased
1:22 efficiency
1:23 remember what may work in your home market may not work overseas
1:27 establishing long-term relationships
1:31 can help to better navigate unfamiliar political business
1:35 and cultural landscapes while learning best practices he some cultures
1:40 small details overlooked condemns relationships in many countries
1:44 relationships carry the same if not more significance
1:48 them written a contractual obligations Western economies
1:52 rely on written contract to provide a foundation for the way
1:55 business relationship should proceed however in some cultures
1:59 the personal relationship has much more meaning an extensive written contract
2:03 a deal is sealed with a handshake between two trusted parties
2:07 carries more weight and the longest contractual document when expanding
2:11 overseas
2:12 you human capital Kamina difference between success
2:15 I’m failing getting the right people in the right location
2:19 can provide you with a competitive advantage the quality of the local
2:23 workforce
2:23 can be the deciding factor in determining whether to expand your
2:27 business to that location
2:29 and also in determining how successful expansion will be
2:32 when setting up local workforce in your target market
2:36 key considerations are official companies industry strongly represented
2:40 in the Newmarket will there be a deep talent pool how much for your company
2:45 need to invest in training
2:46 miscommunication is one of the biggest challenges when expanding
2:50 into a country where English is not the primary language
2:53 although much of your new work folks may speak the language
2:56 they may not understand subtle nuances such as acronyms
3:00 analogies a humor but you are used to in your home market taking the time to
3:05 understand a new environment and people will help build trust with the team’s
3:09 but a negotiation skills managing an ethical and socially
3:13 responsible way the thing to bear in mind when expanding into foreign markets
3:17 is to be flexible things that have been successful in your home market may not
3:21 work overseas
3:22 listen to your environment learn from your mistakes can apply best practices
3:26 for successful grant