Your Guide for a Successful Global Business Expansion

The Importance of Leadership in Global Business Expansion

“One of the most critical qualities is self-awareness. Successful leaders must be able to assess how their actions and words resonate in different cultural contexts.”

In our podcast, from Allyson’s experience leading global teams she emphasised that self-awareness is one of the most important qualities for a successful global business expansion. When you enter new markets, you must research and adapt to new cultures.

Allyson believes great leaders can check themselves and understand how their actions and words are perceived in different cultural contexts. The ability to adapt is critical, especially when stepping out of your comfort zone and into a new environment, or as Allyson puts it: “Out of the fishbowl and into a different fishbowl.”

Allyson shared some of the key qualities a leader needs to successfully drive global business expansion:

• Self-awareness
• Adapt and remain open to learning
• Be a good listener
• Find the balance between global consistency and local adaptability

A key part of your global business expansion strategy will involve hiring employees in new markets. It is important to be aware that managing teams across different regions can be challenging. That’s why it is crucial you understand the importance of cultural difference, even when speaking the same language, meanings can differ.

Humility also plays a huge role when hiring in new markets as part of your global business expansion plans. Being open to learning and embracing new perspectives is key. For example, when asked by non-British people about driving on the “wrong side of the road,” Allyson pointed out how they’re seeing it from a different perspective. What seems “wrong” to one culture may be completely normal to another.

“A big mistake when leading a global business expansion strategy, is the assumption that one approach fits all markets. Leaders must recognise and embrace cultural differences.”

Find the Common Strands of Culture when Doing Business in New Markets

A common issue Allyson shared that many make in their global business expansion plans, is when companies impose a ‘one-size-fits-all’ approach, assuming a strategy or policy created in one market will work everywhere. This often leads to failure because it overlooks local differences and needs. Instead, the “both-and” mindset encourages you to think global, but act local.

If you are tasked with leading a global business expansion strategy, recognise that you can empower team members in other regions, markets and cultures if you adapt locally.

“The best way for leaders to find the common strands of culture when executing their global business expansion plans, is to integrate the best of global and local. You can do this by finding out how you do business globally, verses how people do business locally, and find the best of both”.

Finding the common strands of culture is difficult when leading a global business expansion strategy. That’s why trying to incorporate the ‘both and’ mindset is important. The ‘both-and’ mindset means embracing both global consistency and local adaptation rather than choosing one over the other, so the intrinsic movement between countries, offices and teams of people, can be brought together under one global vision.

How to Plan for a Successful Global Business Expansion

“Give your international pursuit enough oxygen to be able to decide that it’s viable.”

When executing a global business expansion plan, Allyson explained, that too often, companies stop their funding if profitability isn’t achieved within 18 months however, global business expansion requires a longer-term commitment.

In our full conversation with Allyson Stewart-Allen on ‘The Global Talk’ podcast, Allyson provided three top tips for planning your global business expansion plan, including:

• Give your global business expansion plan the investment and funding it needs in order to grow
• Do your homework and figure out what needs to be localised and what can stay the same
• Treat your expansion plan as a core business strategy, not just a temporary project.

“There really are no shortcuts when it comes to global business expansion. You’ve got to do the work, immerse yourself in your target country, observe people and really understand how they use or misuse your service or your product.”

Complete Market Research for Your Global Business Expansion

When executing a global business expansion plan, Allyson explained, that too often, companies stop their funding if profitability isn’t achieved within 18 months however, global business expansion requires a longer-term commitment.

When researching new markets for your global business expansion plans, ask yourself, what is it you’re trying to solve with your product or service? What are your business goals? What do you need to know about that market?

Market research is fundamental to global business expansion. If you go into new markets with assumptions and hunches rather than having data, you’re not going to do well.

If you’re struggling with instigating or understanding where to start when it comes to market research for your global business expansion, Allyson shared some top tips to help you get started:

• Complete desk research
• Use your web browser and input keywords around your product or competitors
• Use AI tools
• Find the key players in your target country operating within your industry
• Buy market research reports to increase understanding on the industry or target audience
• Organise phone calls and interviews with trade publication or trade associations in your target country
• Use your network, speak to peers and other leaders executing global business expansion plans
• Speak to associations you’re a member of for global business expansion support

“No one should be afraid of global business expansion, just do it! Start with a quick browser search, you’ll be surprised at how much information comes back on the topic.”

Market research doesn’t need to be expensive. While some options may involve price points, there are plenty of low-cost options that can give you some valuable starting points. The most important part is starting the process in your target country, even with basic research, you’ll be able to form a hypothesis and test it as you go!

Need help forming your global business expansion research? Access Workwell Global’s example of a Market Research Checklist for the US.

Access Checklist

How to Build a Global Brand

“Be really clear about what you can tweak in your global business expansion strategy in other countries, but what has to stay core is essential, don’t assume that what works at home works everywhere!”

As Alyson stated in the full episode of ‘The Global Talk’ podcast, building a global brand requires finding a balance between global consistency and local relevance. Planning and research are essential to successfully navigating this challenge.

Allyson highlighted Nestlé’s KitKat as a great example of this balance. In the UK, we know KitKat as a classic four-finger wafer chocolate bar with a red and white foil-lined wrapper. However, in Japan, KitKat has been embraced as a gift item, often given for celebrations like passing exams or weddings. The packaging even includes a space for a personalised message, making it a unique and thoughtful gift.

On top of that, KitKat offers localised flavours in Asian markets, such as wasabi, green tea, and plum. While the core product remains consistent, the brand adapts its flavours and packaging to better suit local preferences.

This brand tailoring its global business expansion strategy per country is an important lesson for other businesses planning to build a global brand. You must research your target market per country and customer demographics, and tailor your approach based on findings.

The 80/20 Rule

In our full interview, Allyson advised following the 80/20 rule when building a global brand. What does the 80/20 rule mean?

• 80% of your brand’s offering and the value proposition should remain the same across all markets.
• 20% of your brand can be localised.

An example of the 80/20 rule, is allowing local teams to adjust the flavours or packaging of a brand that suits a new market’s customers preferences, that will be your 20%. Your 20% is what can be flexible, adaptive and localised, based on the market, culture, or trends. For example, localised campaigns, different platforms for social activity, packaging and pricing but ensure to stay under your brand guidelines and values. However, the core elements of your brand, such as the logo or product name and key messaging should stay the same, representing the 80% of this rule.

Strengthen your Resonance in Markets

“Ella’s Kitchen learnt that preferences can be completely different across markets, things like packaging colour and brand name really matters. So, don’t assume that what works at home, works everywhere”

When you’re expanding your business internationally, local knowledge is the answer to cultural intelligence and strengthening your resonance in a new market.

Building local resonance is crucial for businesses when in new markets. Local resonance refers to how well your product or brand connects in different markets. Having local resonance helps you connect with the unique cultural differences and understanding local preferences, allows recruitment agencies to attract the right talent.

In our full interview above, Allyson is reminded of a story she heard from the founder of the baby food company Ella’s Kitchen.

They learnt that American babies don’t like fish and their market research didn’t flag that this was the case. In result of this, they pulled the fish meal for babies from the US market, because it wasn’t selling.

Allyson’s story, teaches us three important points to think about when you’re building a global brand:

1. Get local boots on the ground

Sometimes market research is not enough! Market research can miss important local details. If you are a business looking to expand into new international markets, dive deeper to understand local work culture, and look to get boots on the ground quickly, to truly understand what works locally. See how Workwell Global’s Employer of Record solution can help you engage and payroll on your behalf in your new market.

2. Customise your market approach

Tailor your market approach but keep your value proposition the same when planning for global business expansion. Strategies should be customised for each market whether that is packaging or branding, ensure to install the 80/20 rule but keep your core values in line.

3. Be adaptable in new markets

When executing a global business expansion plan, Allyson emphasised the importance of adaptability. Being adaptable is key, be prepared to adjust based on local feedback, relevance and results.

A successful global business expansion means understanding local cultures and preferences, as Allyson’s story with Ella’s Kitchen shows. For businesses, building local resonance is key to attracting the right talent. Tailor your approach, stick to your core values, and remain adaptable to local feedback to succeed in new markets.

Final Advice for a Successful Global Business Expansion

In our conversation, Allyson shared one final piece of advice for companies considering global business expansion.

“Don’t be afraid! See global business expansion as a fantastic commercial opportunity and a personal opportunity for you, to learn a lot. It opens your eyes to the world, and why wouldn’t you want to do that?”

Create the Right Culture for Your Global Business

As shared earlier, Allyson emphasised understanding culture differences as key advice for a successful global business expansion.

“Create a culture that tolerates experimentation and encourages it”

When looking at success factors for global business expansion, Allyson shared the importance of creating the right culture. She commented that during the course of global business expansion, it’s okay to make mistakes. If you’re not making mistakes, you’re not learning. It is important to create a culture that is supportive, that is going to fit and is interested in sharing learning that comes out of the global business expansion experience.

“If the goal is global business expansion, the journey is just as important as the goal”

The journey of global business expansion can teach you a lot. The insights and lessons learnt from the journey, whether they’re good or bad, can help refine strategies, improve processes, and help make your expansion plan effective for future goals.

Allyson advised that you see global business expansion as a valuable commercial and personal opportunity. Expanding into new markets offers a huge opportunity for business growth, revenue and new cultural learnings. So, what are you waiting for?

Ready for a Successful Global Business Expansion?

If you found Allyson’s tips interesting, you can catch up on the full podcast episode here  or get in touch with her directly, [email protected].

A key part of your global business expansion strategy that Workwell Global can help you with, is global hiring. Whether that’s hiring your first sales team member to build out your offering and demand in a new market, or an entire office. Our mission is to help you hire whoever, wherever in the world via our Employer of Record solution!

Disclaimer: The information provided here does not, and is not intended to, constitute legal advice. Instead, the information and content available are for general informational purposes only.