International Business: Global organization

An organization that will have its branches located in different parts of the world and challenges faces in implementation is what I am going to discuss in this post. To further explain the matter, I will be referring to my global Venture - FAARO Jewelry.

Global expansion of an organization is a tough task. Expanding into a foreign territory without trustable support is another challenge. Strategy formulation and implementation for new global venture is another topic that will need lot more time to go deep into, rather an interesting topic. But today I will focus only basic implementation of business in foreign territory.

When you are planning to expand into global business you need to keep in mind the amount of capital requirements, which can be rather tedious and unexpectedly expensive than predicted. I am not talking about acquiring a foreign business but starting a new branch in a different country. So Capital requirement is key issue here.

Having a trustable party that to continue operations over in the foreign country is an invaluable advantage. If you could pay several visits per month to check on the status and operations of the new business, lack of a trustable party could be not extremely important. But if you can not physically be present at the foreign location it is very important to have a trustable and honest party. For example, at FAARO when we start our jewelry manufacturing facility in SriLanka to extract the low cost Gems and jewelry making talent in SriLanka, my mom taking control over the operations of the facility helped greatly as I could not be physically be there. In my next post I will talk about communication barriers in international business.

Another important thing to plan ahead is government's rules and regulations of the foreign country. Starting a business while abide by to their government regulations is important to maintain the business long time and to avoid unnecessary problems.

Culture and traditions of the new foreign location is another area which most organizations fail to focus on before they implement. When Volkswagen started their Shanghai Branch they were having numerous problems with German and Chinese cultural differences.

Expanding an organization to spread out globally require great deal of planning and due diligence on issues like, requirement of capital, trustable party's presence, Governmental regulations, and culture of the foreign location.