Business is a challenging sector given the modern complexities of the market dynamics and the resulting variation in customer preferences. Increasing competition, difficult market entry, rising prices of input material, and lack of talented human resources are creating great hurdles for businesses worldwide. Due to this, organizations are eagerly looking for every possible opportunity and avenue to maximize their profitability and increase their market footprint. Expanding business to other countries and having a global presence is certainly one of the best ways to uplift the overall business.
International business is not easy and certainly not for everyone. It requires hefty financial resources and strong managerial muscle to control trade in other countries. Globalization and trans country movement are bringing cultural diversity even to a single town. However, these challenges are unprecedented when a business moves to an entirely different country.
Christopher Bartlett, a leading scholar on global business management, defines international business across a spectrum of different managerial levels. His main emphasis is on the importance of having the right team at the right places. One that understands the underlying business mission and vision but can cater to different countries’ national and cultural needs. It means creating the right team for global business places the cornerstone for its success. This article can greatly help you develop the right team for your international business.
It discusses five strategies for building a team for your global business.
1. Never leave it all on the Locals
Having a business team comprising all the local business managers of your host country can prove catastrophic. Since they’ll lack knowledge regarding your business philosophy, they’ll find it challenging to execute international business strategies. Therefore, you must have your native representation in the business team of the host country. You will need to transfer some of your credible business managers to the host country team.
However, they will need certain international business training to operate efficiently in the host country. For this purpose, you can train them through online programs like the General Master of Business Administration Degree program. Such programs allow business professionals to develop sound business skills alongside remaining abreast of transforming business practices. It’ll not only chisel their business acumen but help them understand the differences they must address while managing international business operations.
Local market experts are necessary to give your business a thorough understanding of the local business dynamics. However, having a global business team where the locals excessively dominate the team can undermine your larger business purpose. Your business will start overtly prioritizing the local customs and traditions, and you won’t be able to capitalize on the international notion of your brand properly.
2. Identify the right fit but the willing ones
Forcing international transfer on your existing employees will result in a big mistake. While transferring people from existing teams to international teams is indispensable, you need to be precise while making that choice. You need to identify the right talent from the existing pool so you can assure optimal workplace satisfaction when they work in a foreign land. According to a survey by SeedScientific, more than half of the American workers feel disengaged at work. The leading reason for rising disengagement is a forced decision from higher management against their will. If this dissatisfaction surfaces in an international team, the business will never succeed because there will already be numerous other bottlenecks.
If you choose someone willing to enter a global business team, you can expect better performance outcomes and longer retention. Employee retention is particularly important in international teams. No organization would ever want to lose a valuable human resource that has gained insights into the global business dynamics.
3. Use Expatriation and Inpatriation smartly for training
Expatriation involves moving employees from the native country’s head office to the host country’s local head office. In contrast, inpatriation is the opposite of it. Inpatriation means moving an employee from the regional head office to the native country head office. Both of these employee-rotation policies are extremely useful to strengthen the international teams. Expats take the integral business practices and the soul insight to the host countries and ensure that business operations are compliant. They help the locals to develop better relations with the native country headquarters.
Inpats get international exposure when they visit the native country’s head office while also experiencing the native business practices firsthand. It helps them gain better insights into the true business philosophy they need to replicate in their country. These methods allow the host country and native country to bridge their business operations and follow a holistic business idea with a coherent mission and vision. Both Inpats and Expats become ambassadors for the organization. They propel a positive image and the true essence of the business on both sides.
4. Increase networking with multinationals
There are approximately 60,000 multinational organizations in the world collectively. But local businesses are responsible for around $19 trillion of international trade. Networking with these giants can help your business develop strong global business teams. They already have a firmly established business infrastructure around the world in the countries they are operating. Close association with them can help you quickly unearth the nitty-gritty of international business and pace up your initial traction.
LinkedIn, social media, international symposiums, official platforms like the American Chamber of commerce, and trade partnerships can help you develop these important strategic networks. They will not only help your business on practical grounds but will help you devise better international expansion strategies. All because they have proven experience in this domain.
5. Observe, Reflect, Rebuild
Building global business teams is never a single-shot game since it requires repetitive reconstructions. For this reason, you must keep your eyes open and your mind proactive. You must observe and assimilate the information to produce essential feedback for your global business teams. Successful international business teams are only developed when they go through rigorous rebuilding after every stage of business maturity.
The international business environment is inconsistent, and changes occur frequently. To ensure your global business is in line with the disruptions, you must observe, reflect upon it, and rebuild your teams in a precisely timely manner.
Business is all about profitability. Even social ventures cannot survive in the long run if they do not develop revenue streams. Going international is certainly a great aspect of long-term business viability. However, extensive research and a competent team are required to steer your organization in unchartered territory. So, be vigilant in developing an international business team and don’t overlook the basics.
Azeem Khokhar is a passionate and creative blogger who loves to write on different topics. His writings are focused on prevailing topics and her long-term vision are to empower youth in making their decisions.