The world is shrinking. Is your business
growing to keep up? In an increasingly global market, education is becoming the business owner’s first line of
defense against — literally — a world of
competition.
“Change doesn’t happen unless you really accept it and have a buy-in by key decision makers that the international market
does play a role in our future,” says Sheb
True, director of the International Centre in
Coles College of Business at Kennesaw
State University.
Smart Business spoke to True about
some of the changes required of American
businesses looking to expand their markets overseas.
Can a mid-sized company compete in a global market?
It’s become easier and more affordable to
find more markets around the world. It
doesn’t mean that changes won’t be
required, but you can find a similar want or
need in a market that has demographics
that match your target profile. For mid-sized players to play in a bigger space or to
compete in a global world, they can also
find partners.
More and more companies around the
world are going to try to come from other
countries into our market, as well as gain
strength elsewhere, so eventually you’re
going to have to look to external markets.
Growth is the top priority of most companies — it’s just a natural part of being in
business. But even if it’s not your particular
goal, that growth will find you when other
companies start to creep toward your market. Consumers are being served much
more by companies that are more global,
so if you’re just focusing on a local market,
you could lose your target market to companies that are going international.
What kinds of changes will a company face?
First I think it requires an attitude shift. If
you go into a new market thinking you’re
not going to change anything, that’s the
biggest mistake you can make — the next
mistake is thinking you have to change
everything.
Education is the next step. That doesn’t necessarily mean a formal education, in
terms of getting an international business
degree or taking courses. It’s really just
about learning about the process. In the
end, business is business, but there are
logistics and processes there, and there’s
education required for understanding different cultures that you’re going to deal
with and how business is conducted in that
environment. That doesn’t mean just
exchanging business cards, but also understanding how consumers and employees
think in other markets.
It doesn’t mean there’s a 100 percent
change required, but you have to apply a
global marketing concept. You need to
look for similarities in consumers and in
how business is conducted. Stick with
what’s worked. Then identify those key
things that are different and that require a
different approach or a different mind set
and change or adapt to those as necessary.
How can business owners gain insight into
international markets?
Basic reading is important, as well as just
starting to become more aware. Reading
about your industry in a different market
— from publications like The Economist to
The Wall Street Journal international editions to trade publications that are focused
on your industry in another environment.
Get involved with the U.S. Department of
Commerce for trade and the American
Chamber of Commerce. They put on seminars and have educational materials. Most
nations are promoting trade in their countries, so they often provide literature.
Universities are important resources for
their faculties and international centers of
excellence, as well as the partnerships they
develop with organizations around the
world. There are also a number of organizations in Atlanta that provide people a
means of interacting in that international
space here in the U.S. Simply get involved
with and network with those organizations
that are there to promote and facilitate
international commerce. Obviously the
next step is to get involved with your target
countries.
Finally, there are consulting companies
that can help facilitate the process.
Because, in terms of logistics, a lot of the
process is outsourced as a mid-sized company. You’re getting import-export consultants or companies to help with certain
needs. Really what mid-sized companies
need to worry about is their strategy and
the buy-in.
What industries do you see as really integrating into the global mindset?
They’re all getting there. Accounting is a
great example. It has always been something that is very unique from country to
country and the rules are significantly different in every market, but the big accounting players are very global. There is this relatively new development in the accounting
world called XBRL. It is basically paving
the way toward a global template of financial reporting. College students are beginning to train for this. With companies thinking more globally, your financial documentation should support a global perspective
as the integration of all the functions of
business come together in a global environment.
SHEB TRUE is the director of the International Centre at Coles
College of Business at Kennesaw State University. Reach him at
[email protected] or (770) 423-6076.
