Foreign Business Units: The Key to Success Lies in Local Management
" Business success depends on strategy, team, and processes –
and how successfully we connect them."
International Expansion: The Key to Success Lies in Local Management
When a company succeeds in its home market, international expansion often seems like the natural next step. However, this step brings several challenges, particularly in managing local operations.
A critical decision is choosing between working through foreign partners and establishing a local sales unit.
The latter often requires a strong local leader – a role that can either be the key to your success or a major obstacle.
While some companies initially rely on a frequently traveling representative from headquarters, this often leads to misalignment with local client needs.
Hiring a local representative or unit leader is far more effective.
Yet, this choice is not without risks.
I have seen several international units fail to achieve growth comparable to that of the headquarters.
If core operations remain profitable, underperforming units may spend years consuming resources without delivering results.
The reason?
Often, it's a failed selection of the local leader.
Adapting to a new market takes time, but when progress stalls, it's time to act.
Timely leadership change can quickly turn an underperforming unit into a successful one.
Additionally, headquarters must provide adequate support to ensure success.
Open dialogue between stakeholders is key to making the right decisions.
Time is the most valuable resource in business.
Delaying the resolution of these challenges can be costly.
To succeed in international expansion, companies must assess, decide, and act decisively.
With the right local management and strategic support, international expansion can unlock incredible opportunities.
Let’s not allow poor decisions or delays to hinder global growth.
The clock is ticking.