DOING BUSINESS INTERNATIONALLY 1
Whengoing international, a company must be ready to face and handle newand unfamiliar challenges. The biggest obstacles that a company canface in a new environment are culture and ethics this may includeamong others language, pricing hardships, norms and values of the newenvironment. In this case, it is imperative to appreciate how theselocal practices can impact a business as well as raise awareness sothat business effectiveness of the company is not hindered.Additionally, in understanding the culture and customs of the newenvironment will help in knowing how they will impact the businesseither positively or negatively (Banutu-Gomez,2014)
Someof the steps to take when going global include to research, learn,understand and respect the cultural norms of the target environment.This is called building a social capital which calls for establishingtrusting relationships with the local stakeholders (Hummel, 2012).Additionally, not forcing the company’s beliefs in the foreignculture as well as learning their language would win the localpeople’s trust consequently giving the company a competitiveadvantage.
Inpreparation to go global, a company should in any way possible try tosecure intellectual capital by managing the global alliances andpartnerships. This will help in avoiding conflicting demands of localstakeholders. This should be done through bridging gaps in thebusiness by employing a management that commands the culturalfundamentals of the foreign country (Kawar,2012).
Inbid to go global, a company needs to have a partner who knows notonly the about the industry or the company’s products but one whohas a clear understanding of the local market. Without the rightpartner or team which has the necessary language and culturalnetworks then the business will be at a disadvantage competitively.
Banutu-Gomez,M. B. (2014). The Role of Culture, Language, and Ethics in GlobalBusiness. EuropeanScientific Journal.
Kawar,T. I. (2012). Cross-cultural differences in management. InternationalJournal of Business and Social Science,3(6).
Hummel,Denise Pirrotti. (May 2012). Understandingthe Importance of Culture in Global Business Retrievedfromhttp://www.oracle.com/us/corporate/profit/archives/opinion/050312-dhummel-1614961.html