What Is Global Business?
Gone are the days when only large corporations had international presence. Today, businesses, regardless of their size, must expand internationally or can expect to be taken over by more competitive businesses. The transition to global business is not easy and some businesses become a liability to their own organization, lagging behind in development. Others forge ahead overconfidently running the risk of failure. The reality is that global businesses are today's economic fact of life and to survive, each business requires an adaptable international mindset and an expert plan.
Understanding a country's culture and location to expand your business globally can be challenging. Before establishing a new independent international location, you may want to establish a new office as an export division under your current umbrella to get accustomed to the culture and location, and allow your business to show signs of growth. Another option is to open an overseas joint venture in which your overseas partner manufactures products or purchases supplies according to your specifications.
McDonald's fast food chain successfully implements business globally by catering to a market's wants and needs. Its popular American Big Mac is replaced in India with a chicken or lamb Maharaja Mac to accommodate India's majority non-beef eating population. In Germany, McDonald’s serves beer. You can enjoy a Rice Burger in a McDonald's restaurant in Hong Kong where patties of glutinous rice replace burger buns. Its global business strives to satisfy both culture and appetites around the world.
For your business to compete on a global scale, you need to be able to showcase and market your product's advantage. The world markets you select should be those which are relatively on the same economic scale. Your products are the same for each market but you understand and cater to the differing needs and wants. Sony's launch of Qriocity, its video-on-demand service, became competition for Apple's iTunes in Europe when Sony capitalized on Europe's trend in simultaneously connecting television sets to both the Internet and broadcast signals.
To effectively run a global business, the mindset with international capabilities of your organization needs to change from the top down. Hire an international expert to assist with the transition, including international recruitment and training. Personnel with international experience and fluency in the foreign language are requirements to a global business. You will need to provide your staff with incentives for overseas assignments. By embracing the changes of an international mindset, your global business has taken the first step to success of a mission of challenges and excitement.