Planning For International Succession. #NewToHR

Planning For International Succession

It has been said time and time again:

We live in a large, global marketplace with billion of consumers that are ready to buy from a huge selection of products.

The skill of being able to tap into new markets internationally can be an enormous vehicle for long-term prosperity.

Global markets also provide lucrative opportunities for local entrepreneurs, who are ready to jump on the bandwagon of prosperous, new ideas ready to flourish. Understanding the ins and outs of international business strategies make it easy for businesses and large corporations to succeed on the global scene.

With all the advantages and rewards that can potentially come with international succession, there are also numerous challenges and obstacles that may present themselves along the way.

Differences in cultures, languages and foreign business procedures account for the greatest difficulties that companies often have to hurdle with.

With the proper guidance and a little creativity, a company can offer its products and services with a unique twist, adding synergistic value to their new location.

The Problem of Language and Culture

Language remains to be one of single most talked about barriers preventing companies from smoothly transitioning to the global marketplace.

Culture is an even greater issue.

For example, Australians speak English, but have a completely different view on buying certain consumer products. This becomes even more complicated in non-English speaking cultures, where certain colors or even hand gestures can mean different things in different nations. White is a symbol of purity in North America, but represents death in some Asian countries. It is imperative that one does their homework before planning such a succession!

There are several strategies available for companies who intend to venture into foreign markets.

A few companies enter with virtually no assistance from other organizations or professional individuals.

This is an extremely high-risk enterprise, and the company better be sure that they have all the resources essential before going in. It is an edge in the fact that if a organisation shines, it is going to have great gains alone. There can be great losses, if the undertaking does not succeed!

The majority of companies usually go for a partnership or form subsidiaries. In the former, businesses can share the risks involved as well as their strengths. This is far more productive that a company that enters the foreign marketplace solo, since they do not have to squander any money or time as they attempt to familiarize themselves with the local marketplace. Some countries such as China require this in many cases.

A subsidiary is a smaller branch of a larger parent company and is an excellent way of offsetting the risk of entering the international marketplace. The subsidiary company receives guidance from the parent company, although its main operations are completely independent. It is treated like a local business and thus appreciates all the advantages offered by the foreign country in which it is based.

How would you work within these types of subsidiaries or branches?

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