Obstacles Faced by International Companies
Doing business in different countries seems like an exciting venture. However, one has to be ready to counter the many obstacles that come with the process. International companies often face barriers when dealing with employees, customers, and business partners in foreign cultures.
Employees of an international company are both asset and a challenge. Global companies find it hard to achieve recruitment and development of talents. There are various cultural and language differences that the company has to overcome, but this is not easy because most international companies lack HR personnel in the satellite offices. An effective success factor here is identifying an onboard intervention for the overseas employees. Effective management of employees leads to enhanced production, fewer risks, and it gives the employees a great experience.
Variations in culture and language are the main obstacles that international companies face when dealing with customers. According to Cletus et al,. (2018), the center of an effective strategy of any international business is good communication. Nevertheless, it is a real challenge in communicating with customers across cultures. Other than the language barrier, non-verbal communication is also a significant challenge that can break international businesses.’
The main obstacles that international companies face when dealing with business partners in foreign cultures is building trust. This concept may be either task-based or relationship-based. For example, when forming a partnership in China, the best way in which one can build good relationships is by spending a good time eating and drinking together. Building a good relationship is a way of setting aside cultural differences. However, in the US, business partners tend not to eat often or drink together, as it helps in avoiding embarrassing situations.
In conclusion, taking a business to an international level is a worthy endeavor. However, there are challenges associated with it. For someone intending to make his or her business global, it is appropriate to plan on how to address the major hurdles that the company has to overcome to be successful in the oversea countries.
Reference
Cletus, H. E., Mahmood, N. A., Umar, A., & Ibrahim, A. D. (2018). Prospects and challenges of workplace diversity in modern day organizations: A critical review. HOLISTICA–Journal of Business and Public Administration, 9(2), 35-52.