|
 The 3 Non Negotiables of International Expansion
19 Jan 2010
The majority of Australian businesses who venture overseas fail, due to one reason: They are not prepared well enough for the task.
Before embarking on an international expansion program ask yourself this question: Does my business address the three non-negotiables of successful international expansion?
Successful international expansion can be a rewarding and extremely profitable venture. However, poorly planned or inadequately managed international expansion programs can cause an organisation much financial and emotional distress. Many organisations, both large and small, have seen their international forays unexpectedly drain domestic cash flows and consume valuable management time and effort.
Before executing on an international growth agenda it is crucial that the business meets DC Strategy's three non-negotiables:
1. Strong cash flow and profitability: The international component of a business should in no way subsidise the performance of the domestic parent. In the majority of successful expansion programs the domestic parent is in a profitable and sustainable position that can absorb the investment requirements for international growth.
2. Domestic market strength: Has the majority of the growth in the domestic market been captured? In many instances capital is better invested generating growth in a local market, where every dollar of revenue generates a high net return than the same dollar invested offshore.
3. Dedicated management resource: Even the best planning can fall over during implementation. Successful international ventures require focus and consistent execution; and a dedicated senior resource will provide the best opportunity for success.
Before you consider international expansion ask yourself the above three questions. Are you ready for the next step? International expansion is not an overnight process - talk to DC Strategy today to ensure your success.
Amit Mehta
Amit Mehta is a Consultant at DC Strategy.
DC Strategy is the region's leading specialist consulting and legal firm. Our specialist teams in Strategy, Franchising, International and Legal have developed the networks and brands of many of the region's most successful businesses. Contact Amit Mehta at amit.mehta@dcstrategy.com
© DC Strategy
<< Back
|
