Factors To Consider

Successful International Businesses

Introduction

There are many factors that influence the success of a business internationally. A few factors that I found to be important are outsourcing, communication, culture, government regulations, innovation, organization and social corporate responsibility. By focusing on these factors, it can help make your business that much stronger in succeeding in the competitve international world.

Outsourcing

Outsourcing plays a big part in businesses being internationally successful because if they can sell their products or services to foreign consumers, they do not have to rely on domestic consumers. Two companies in Canada; TransCanada and Outsourced Construction Services are examples of companies who are very successful. Though TransCanada has not conducted business internationally, they do so all across Canada. Outsourced Construction Services on the other hand has worked all across Canada and on a few in-home construction projects in the United States. "With more than 25 years of experience in managing both national and international projects" (OutsourcedConstructionServices). John Owen is the President of Outsourced Construction Services and has years of experience holding positions including: Construction Manager, Senior Project Manager, Contracts Manager, and many more. He has the experience of working with construction companies internationally. These companies agree on outsourcing as being an important role in their success. They outsource from employees leaving their local areas for the job to outsourcing their equipment and materials to complete tasks. For example, TransCanada sends their construction workers and management team around Canada to complete construction tasks. Outsourced Construction Services also does the same including taking workers and management teams over to the United States on home construction projects. Being able to outsource, of course, gives businesses the opportunity to expand their business, gain reputation, and acknowledgement. Companies can raise their chances of success by outsourcing because it provides them with more consumers to sell products to and that of course leads to more profit which all companies strive for.

Communication

Being able to communicate effectively in foreign places is extremely important if a company plans to expand their business internationally. Understanding that not all people can speak some of the most highly spoken languages around the world such as English, companies need to be able to communicate fluently with foreign consumers. Englewood Construction Management is a company who believes in strong communication with their business partners. They are a company who focuses on building retail stores. They have worked on many projects in Canada, the United States, and are hoping to expand further. "Make sure you ask about your retail contractor’s capabilities to communicate effectively with you or if translators are needed (and who will pay for that expense)" (EnglewoodConstructionManagement). They emphasize communication because if there is a lack of communication, the operation may not go as smoothly as necessary. For example, McDonald is another successful international company who translate their advertisements to communicate with people within different countries around the world. Though McDonald's is in the food industry, they also rely on communication as being a big factor in success. "This proved to be a major issue for management as the communication barrier was of great intensity especially that between McDonald's and the Indian public. To address this issue, at least eight languages were used for national launches"(Dess, Lumpkin & Eisner, 2008). Majority of the population in India are illiterate and so hearing advertisements in a language they understand will inform them better than an English advertisement would. Employees at McDonald's can also speak a variety of different languages, and English to better help customers with taking orders. A language barrier could even cause a business not to do something the consumer wants correctly or there can be a misunderstanding of tasks to complete, costs and etc. It is significant to have a way of communicating with your business partners by speaking the same language or having a translator to understand and explain to one another what is being said. This will benefit you to perform your job in foreign countries precisely.

Culture

Conducting business on a global basis requires a good understanding of different cultures. Something may work in one country but might not work well in another. To some degree, not understanding a culture may even lead to unintentional insult that resists business deals from occurring. When conducting business in other countries, learning simple gestures or business ethics which your future business partner may follow is a sign of respect. Some cultures may respond or act to situations differently then where the company originated from is not use to. They have to be patient and understand that it is not always a negative impression but just their way of responding. In the International HR Forum article it said, "When George Bush gave Chinese Premier Li Peng a gift of cowboy boots embroidered with the American and Chinese flags, was it an appropriate gift? In China, the soles of the feet are considered to be the lowliest part of the body and gifts of footwear, no less embossed with the nations’ respective flag, was a significant miss on the part of administration protocol experts” (Hummel, 2010) This is an example of how the prior President of the United States unintentionally insulted Premier Li Peng. George Bush should have understood the Chinese culture before giving a gift. This mistake can happen in any business in any industry over anything which makes it extremely important to understand the culture to make good impressions. Learning and adapting to different cultures can improve potential international success for industries like retail trade, manufacturing, construction, and more. Not understanding the culture of people can ruin business deals and friendships between people, government, and consumers. The government and business companies may not have as many successful business deals because they cannot "respect" the opposite party. Though it could have been a misunderstanding, the understanding of a culture could make or break a deal.

Government Regulations

When conducting international business, it is important to remember that not all country's have the same laws and regulations towards everything. Once you are in a foreign country, it is crucial to understand the rules and laws of that country. These laws and regulations can impact the success of your business. Depending on the type of business you are developing internationally, different laws may affect you more than others. For example, if you are a company in the food industry, you may not be allowed to serve certain meats due to religious beliefs in a country. "No person shall have in his or her possession the flesh of agricultural cattle slaughtered outside Delhi” (Lahiri, 2011). In this case, you would have to find an alternative and if it was not possible then you may not be able to operate successfully within that country, and eventually shut down. For a construction company, the government may charge many fees for the company to build on land. In Canada, before building anything on a piece of land, you must go through the government and pay for the registration, licensing, and taxes. Foreigners cannot come to Canada and start building a store without going through these government laws. It is important to make sure you understand the laws of the foreign country to restrain from any troubles with the government. Government regulations have a major impact on businesses because without following the law, your business may struggle to reach international success. Businesses have to work harder in ensuring that they meet the law requirements before starting and operating in a foreign country. This will reduce their chances of failing and losing money.

Innovation

All successful businesses say that it is important to constantly innovate, it is a key factor to their success. To be internationally successful, it is crucial to always innovate to be better than your competitors. In all industries, innovation is highly mentioned when companies are asked on how they reached their success. "New ideas are necessary to spur growth in any successful corporation. To complement Panasonic’s internal innovation goals, the Venture Group sources venture-backed start-ups with compelling technologies that align with Panasonics innovation strategies” (Panasonic). For Panasonic, an electronic company in the technology industry, is a globally sold brand. They sell headphones, radios, TV’s and much more. They create products that people want by innovating and creating a better product in comparison to the competition. By innovating, Panasonic is able to keep a competitive advantage internationally. Innovation is a significant factor which affects businesses. It makes the world of business much harder to compete in because there is always another company innovating to be better than you. Businesses always need to look to improve in order to be successful in anything they do.

Organization

Being able to organize and manage your business in all aspects can improve your success globally. It keeps businesses at the top of their game to always do better. It will improve their goals and push them to the next level of international success. ”Global expansion requires careful planning and involves more than establishing a legal entity or a registered office” (Goetjen, 2013). If a company in any industry is well organized and has outstanding business management skills, they can be extremely successful in operating their company. If a company has too much confusion within the organization, they will not be able to operate at their best which can harm their attempt at being successful internationally. All jobs consist of good organization no matter which industry. It is the key to productivity and success. Organization affects many parties in different ways including the government and businesses. Governments have to organize their duties or they will struggle to operate a country successfully. Governments do a lot of international business with other countries and to stay organized is a top priority. Businesses have to be well organized as well. They need to have a clear organized plan of reaching their mission, dealing with finance, and their employees in order for them to reach their goals of success.

Corporate Social Responsibility

For a country to be internationally successful, they need to demonstrate good corporate social responsibility in the company. To go to a foreign country and just simply operate a business is risky, but when you treat employees right and look out for those individuals needs, it is beneficial. Helping out in a community or donating funds to a charity in a foreign country convinces citizens, workers, and businesses to work or conduct business deals with you. People realizing that you are there to not only operate a business for profit but to help them in their communities and giving back gains respect and positive reputation. Citizens want to work for companies like this because of the way they treat their employees. "We always strive to be better tomorrow than we are today. This, more than anything, speaks to who McDonald is as a company. The overarching goal of our sustainability efforts is focused on continuous improvement through our four focus areas: supply chain, environmental responsibility, employee experience, and the community" (McDonalds). They involve themselves in communities in foreign countries they operate in. Corporate Social Responsibility has a significant impact in the government and in business. The government needs to definitely participate with the communities and concerns of people. Businesses need to ensure safe working environments, treating employees fairly, helping the community and more.

Conclusion

International business plays a huge part in our Canadian Economy. Multiple steps must be taken in order to succeed in a business, along with dedication and commitment. Successful businesses always need to constantly innovate and expand within the factors mentioned to be internationally successful in many industries.

Appendices


Name: Amar Singh
Date: October 2nd, 2013

Business Name: TransCanada
Industry: Construction

Topic: Outsourcing
Subtopic: Public Relations
Title of Article:"TransCanada's Southern Keystone XL leg to be Completed Soon"

Link:

http://ca.reuters.com/article/businessNews/idCABRE9910M120131002

Source Name: Reuters Canada
Type of Source: Newspaper
Date of Source: August 8th, 2013

1. The 700,000 barrel per day pipeline will carry crude oil from Cushing, Oklahoma, delivery point of the U.S. crude oil future contract, to the Gulf Coast

2. The line fill is expected to draw a significant volume of oil stocks from the Cushing storage hub, traders said


3. The decision on building the northern leg of Keystone XL, which would carry crude from the Canadian oil sands to Cushing, is not expected to be made in Washington until next year



Amar Singh

Business Name: Warrior Group
Industry: Construction
Date: Oct 9th, 2013

Topic: Outsourcing
Subtopic: Public Relations
Title of Article:How A Texas Construction Company Stays Competitive in a Changing Economy

Link:
http://warriorconstruction.com/

Source Name: Reuters Canada
Type of Source: Online Article
Date of Source: July 10th, 2012

1. Warrior Group provides construction services for public and private sector clients across the United States

2.Our projects range from 300,000+ square foot new construction to occupied renovations of school facilities


3. Within the construction industry, Warrior Group has raised awareness of PMC and changed the perception of modular, demonstrating how prefabrication and the application of modern manufacturing techniques is the future of construction. Today, more and more architects and engineers are looking for ways to use modularization and prefabrication in new buildings.




Name: Amar Singh
Date: May 18, 2011

Business Name: Englewood
Industry: Construction

Topic: How to be successfully intnationally in the construction industry
Subtopic: Public Relations
Title of Article: "Observations and Conversations about Commercial Construction"

Link: http://commercialconstructionblog.com/commercial-construction-checklist-to-successful-international-retail-projects/

Source Name: Englewood Construction Management
Type of Source: Online Article
Date of Source: Oct 23rd, 2013

1. Designs must reach municipality's requirements.

2. Timezones play a major factor. Need technologies that can allow you to communicate when doing construction internationally because of the different time zones like Skype.

3. Language barriers is another issue that must be determined on how to communicate with what ever country your doing contruction with or for. Without communication, it would make the job much harder to understand what is exactly wanted.



Name: Amar Singh
Date: December 11th, 2013

Business Name:
Industry: Construction

Topic: Outsourcing
Subtopic: Public Relations
Title of Article:"Great Wall Builders"

Link: http://www.economist.com/news/business/21565244-chinese-firms-are-new-challengers-global-construction-business-great-wall-builders

Source Name: The Economist
Type of Source: Newspaper
Date of Source: Oct 27th, 2012


1.Julian Bu of Jefferies, an investment bank, says their main advantage, low labour costs, is little help in places where they cannot bring lots of Chinese workers over.

2. Lower down the league, though, firms from Brazil, India and Turkey are also venturing beyond their home turf, especially to places like the Gulf, where oil and gas money is fuelling a building boom

3.The important thing is not to chase market share: it is better to be fifth or sixth in a particular market and still make money. That is a lesson many rich-world construction firms learned the hard way.



Name: Amar Singh
Date: Dec 22, 2013

Business Name: Outsourcing Construction Services
Industry: Construction

Topic:
Subtopic: Public Relations

Link:
http://www.outsourcedconstruction.com/content/current-activities

Source Name: Official Site
Type of Source: Site
Date of Source: May 10th, 2012

1. Work on in-home construction.

2. Emphasizes outsourcing as being a important role in the companies success.

3. Organization is a huge role that also impacts how efficient they can be.




Name: Amar Singh
Date: December 22, 2013

Business Name: Desara
Industry: Construction

Topic: Construction Culture
Subtopic: Public Relations
Title of Article: " The Importance of Culture when Conducting International Business"

Link:
http://desaragroup.com/2013/03/20/the-importance-of-culture-when-conducting-business-overseas/

Source Name: The Desara Group
Type of Source: Site
Date of Source: August 8th, 2013


1. Discusses the importance of on how understanding different perspectives of culture is effective in international construction success.

2. Talks about different hand gestures and what is meant by them.

3. Construction companies need to realize that not all countries use the same materials for construction so they need to adapt to that.




Name: Amar Singh
Date: December 23rd, 2013

Business Name: Nasdaq
Industry: Construction

Topic:
Subtopic: Public Relations
Title of Article:"Hill International to Manage Construction of Three Transportation Projects in Southern California"

Link:

http://www.nasdaq.com/press-release/hill-international-to-manage-construction-of-three-transportation-projects-in-southern-california-20140108-00391#ixzz2qKUtDnob

Source Name:
Type of Source: Article
Date of Source: November 18th, 2013


1. 4,000 employees in 100 offices worldwide, provides program management, project management, construction management, construction claims and other consulting services primarily to the buildings, transportation, environmental, energy and industrial markets.

2. They are the global leader in managing construction risk.

3. Engineering News-Record magazine recently ranked Hill as the 9th largest construction management firm in the United States.




References

1) "TransCanada's Southern Keystone XL Leg to Be Completed Soon: Report." | Business| Reuters. 02 Oct. 2013. Web. 13 Jan. 2014. http://ca.reuters.com/article/businessNews/idCABRE9910M120131002.

2) "LATEST NEWS." Welcome to Warrior Construction. Web. 13 Jan. 2014. <http://warriorconstruction.com/>.

3) "Observations and Conversations about Commercial Construction, Development and Management." Web. 13 Jan. 2014. <http://commercialconstruction.com/commercial-construction-checklist-to-successful-international-retail-projects/>.

4) The Economist. The Economist Newspaper, Web. 13 Jan. 2014. <http://www.economist.com/news/business/>.

5) "Current Activities." Welcome to Outsourced Construction Services. Web. 13 Jan. 2014. <http://www.outsourcedconstruction.com/content/current-activities>.

6) "The Importance of Culture When Conducting Business Overseas." DESARAGroupcom. Web. 13 Jan. 2014. <http://desaragroup.com/2013/03/20/the-importance-of-culture-when-conducting-business-overseas/>.

7) "Hill International to Manage Construction of Three Transportation Projects in Southern California." NASDAQ.com. Web. 13 Jan. 2014. <http://www.nasdaq.com/press-release/hill-international-to-manage-construction-of-three-transportation-projects-in-southern-california-20140108-00391>.

8) "About Us." Panasonic Ventures, Web. 13 Jan. 2014. <http://www.panasonicventures.com/about-us.php>.

9) "Can Restaurants in India Legally Serve Beef?" India Real Time RSS. Web. 13 Jan. 2014. <http://blogs.wsj.com/indiarealtime/2012/05/21/is-it-legal-for-restaurants-in-india-to-serve-beef/>.

10) "International Franchising." AboutMcDonalds.com. Web. 13 Jan. 2014. <http://www.aboutmcdonalds.com/mcd/franchising/international_franchising.html>.

11) "Supportive Information and Links Reader Rating: 5.00." Government of Canada, Industry Canada, National Capital Region, Office of the Deputy Minister, Senior Associate Deputy Minister, Strategic Policy Sector, Strategic Policy Branch. Web. 13 Jan. 2014. <http://www.ic.gc.ca/eic/site/csr-rse.nsf/eng/h_rs00018.html>.

12) "Why Culture Is Important In International Business." Universal Consensus WHY CULTURE IS IMPORTANT IN INTERNATIONAL BUSINESS Comments. Web. 13 Jan. 2014. <http://www.universalconsensus.com/2009/12/02/why-culture-is-important-in-international-business/>.