As companies seek profit opportunities beyond their national borders, they encounter new issues:
· planning,
· resource allocation,
· management control,
· organizational strains,
· complexity,
· culture clashes,
· local competitors.
Just looking at employees, a company must adjust their work environment and culture to match the new country’s preferences. This includes everything from specific (tailoring compensation and benefits for cultural differences) to broad (differentiating employer brand by country).
Many companies struggle transitioning from a centralized, headquarter-centered, standardized approach to a de-centralized, localized, and customized environment; however, they have found that they must “drink the local wine!” So, they attempt to balance local adoption against global scale…or…which organizational elements should be standardized vs. localized.
As your company considers expansion into the global marketplace, can you localize your processes?
