In our present day global competitive environment, any business
– big or small,
that is not thinking and acting strategically is extremely vulnerable. Every
business is exposed to the forces of a rapidly changing competitive
environment, and in the future, small business executives can expect even
greater change and uncertainty.
From sweeping political
changes around the planet, rapid technological advances to more intense
competition, and newly emerging global markets, the business environment has
become more turbulent and challenging to business owners. Although this market
turbulence creates many challenges for small businesses, it also creates
opportunities for those companies that have in place strategies to capitalize
on them.
To remain competitive, small businesses must assume a global posture.
Global effectiveness requires entrepreneurs to be able to leverage workers’
skills and company resources and know-how across borders and cultures across
the world. They also must concentrate on maintaining competitive cost
structures, and a focus on the core of every business – the customer! Although
there are no surefire rules for going global, small businesses that want to
become successful international competitors should observe the following;
1. Develop new products for the world market. Make sure your products
and services measure up to world-class quality standards.
2. Recruit and retain multicultural workers, who can give your
company meaningful insights into the intricacies of global markets.
3.
Train employees to think globally, send them on international
trips, and equip them with state-of-the-art communication gadgets.
4.
Hire local managers to staff foreign offices and branches.
5. If you have never conducted international business, consider
hiring a trade intermediary or finding a local partner to help you.
6. Take time to learn about doing business globally, before jumping
in. Avoiding mistakes is easier and less expensive than cleaning up the results
of a mistake.
7.
Make yourself at home in all of the world’s key markets: North
America, Europe, Africa, and Asia. This triad of regions is forgoing a new
world order in a trade that will dominate global markets for years to come.
8.
Appeal to the similarities within the various regions in which you
operate, but recognize the differences in their specific cultures. Although,
the European Union is a single trading bloc composed of 26 countries, smart
entrepreneurs know that each country has its own cultural uniqueness, and do
not treat almost half-billion people in them as a unified market.
9.
Familiarize yourself with foreign customs and languages;
constantly scan, clip, and build a file on other cultures: their lifestyles,
values, customs, and business practices.
10. “Globalize”. Make global decisions about products, markets, and
management, but allow local employees to make tactical decisions about
packaging, advertising, and service. Always remember that in business, you
can’t have it all, and you can’t know it all. Engaging the strength and opinion
of others for your businesses will go a long way in building a cutting-edge
organization.
11.
Learn to understand your customers from the perspective of their
culture, not your own. Bridge cultural gaps by adapting your business practices
to suit their preferences and customs.
12.
Consider using partners and joint ventures to break into foreign
markets you cannot penetrate on your own.
Companies lacking clear strategies may achieve some success in the
short run, but as soon as competitive conditions stiffen or an unanticipated
threat arises, they usually “hit the wall” and fold. Without a basis of
differentiating itself from a pack of similar competitors, the best a company
can hope for is mediocrity in the market. The goal of developing a strategic
plan is to create for the small company a competitive advantage – the
aggregation of factors that sets a small business apart from its competitors,
and gives it a unique position in the market that is superior to its
competitors.
To be successful, entrepreneurs can no longer do things in the way
they’ve always done them.
Becoming a global entrepreneur requires a different mindset. To be
successful, entrepreneurs must see their companies from a global perspective
and must instill a global culture throughout their companies that permeates
everything the business does. To these entrepreneurs and their companies,
national boundaries are irrelevant; they see the world as a market opportunity.
Learning to think globally may be the first, and most challenging obstacle an
entrepreneur must overcome, on the way to creating a truly global business. The
ability to appreciate, understand and respect the different beliefs, values,
behavior, and business practices of companies and people in different cultures
and countries, is known as Global thinking. Entrepreneurs are expected to “do
their homework” in order to learn about the people, places, business
techniques, potential customers, and culture of the countries in which they
tend to do business.
Going global can be a frightening experience. Most entrepreneurs who
have already made the jump, however, have found that the benefits outweigh the
risks and that their companies are much stronger because of this decision.
The
aforementioned is brought to you, courtesy of National Mail.
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