Do you want to be the head of a small company or do you want to be the leader of one of the multinational ventures more recognized?
Multinational enterprises have had at their command people who want to see the whole world flooded with their creation and who have gathered all the necessary characteristics to achieve it.
The first multinational company.
The first record of a multinational company dates back to the year 1555, where the Muscovy Trading Company, founded in London; he had in his possession the monopoly of trade between England and Russia.
Currently there are many multinationals such as McDonalds, Coca Cola, Shell, HSBC, to name a few.
On the part of Latin America we find giants such as Cemex, Bimbo, Petrobras, etc.
The path that these companies had to travel to invade different countries and take the “multinational” medal was different. However, they share common factors that allowed them to achieve their goals.
For seventies a specific series of characteristics must be met. Which They are not factors external to the company. Like the specific economy of the country, the increase in income, the gross domestic product or the growth of the middle class.
On the contrary, are internal factors of the company.
It is clear that factors such as competition and changing market conditions, in the countries you want to enter; they play an important role.
But his experience with more than 100 global companies shows the need to comply with the following 7 characteristics if we want to be the creators of large multinational enterprises.
Characteristics of multinational enterprises.
- Attitude: They prioritize the global expansion of the business.
- Fitness: They have the knowledge and skills necessary to succeed abroad.
- Magnitude: They can align the scope and magnitude of new opportunities with their goals and capabilities.
- Latitude: They adapt their marketing practices and policies with new opportunities.
- Rectitude: Their political and legal practices are flexible and adaptable abroad, but they do not lose their corporate compliance.
- Accuracy: The corporate culture tolerates financial ambiguities and corporate uncertainties.
- Fortress: Commitment to global initiatives even in times of setbacks.
How to get these features.
Seventudes has surveyed more than 300 professionals who are experts in multinational expansion.
77% of those surveyed, belonging to firms that have effectively achieved expansion, claim to comply with the 7 characteristics; leveraging on the following behaviors:
- Constant staff training.
- Clarifying the objectives and the “deal breakers” before starting.
- Constantly analyzing international initiatives.
- Sensitizing stakeholders regarding cultural differences.
- Evaluating the competition practices of the foreign country to ensure that it can compete.
- Analyze the strategic objectives against the financial ones.
- Avoiding “crucifying” those who have failed initiatives.
Each of these behaviors will take different times to implement. However, they assure that any investment of time and/or money will bear fruit.
On average, those surveyed who failed to meet the goal of reaching international soil met 41% of the 7 characteristics.
This shows a wide margin of preparation with respect to those who did achieve the objective.
There is no limit to what men and women in a free market with free companies can achieve when they are free to pursue their dreams – Jack Kemp.
Conclusion.
Expanding your business to other borders is possible. No matter how complicated it seems.
If you focus on the features we saw above, and how to get them; you will mitigate risks and increase your chances of achieving it 🙂
And remember, if you are really interested in creating your own business, you can purchase our book “How to create a company while working: Discover how to manage your time, manage your money and motivate yourself while creating a company and working for another” , where you will find all the information you need to found your own company, without having to leave your job.
