Want to expand overseas? Make sure your management team is worth exporting

Companies entering foreign markets should aim to build a diverse leadership group that embraces best global practices

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Leadership programmes establishing best practice and promoting a cohesive corporate ethos are essential for companies expanding into new foreign markets. Photo: SCMP Handout

Published: 10:46am, 9 Sep 2017Updated: 10:46am, 9 Sep 2017

Many of Asia’s corporations are expanding their brands overseas. From Alibaba and Tencent leveraging their internet, social media and payments capabilities to invest in and grow businesses outside China, to Malaysia’s Grab expanding its ride-hailing capabilities in Southeast Asia, companies are broadening their reach.

Cross-border investment isn’t new. Cross-border promotion of a brand is relatively new for China and increasingly diverse for Japan. Obviously, Japanese car and technology brands such as Toyota, Sony and Honda are already global household names. And China has a few trailblazers: Lenovo and Haier spring to mind. Expect Southeast Asian companies to increasingly spread their wings.

That is the question any company looking to expand must ask itself. Can our corporate culture be applied elsewhere? And can it be inclusive?

This goes beyond Chinese companies investing in Africa to supplement manufacturing operations back in the mainland or to gain access to natural resources. And it goes beyond Japanese companies looking for investment opportunities outside their own borders because they have already saturated their market.

When I speak to executives at mid-sized companies across sectors in both countries, increasingly I hear them speak about their aspirations of a global footprint and brand recognition. Thanks to digital enablers that make entry to market more feasible and level the playing field to a degree, executives see this aspiration as possible.

Social media and connectivity may have also contributed to the outlook. The world is at our fingertips; we are immediately connected to friends and family globally, so why can’t we be even more connected from a business perspective?

Toyota Hilux pick-up trucks bound for shipment sit parked at the Nagoya Port in Japan. Toyota is an obvious Asian success story in terms of its global footprint. Photo: Bloomberg

There are obvious external hurdles: anti-globalisation/protectionist political stances are visibly on the rise in many nations, leading to increased regulatory requirements for some industries. But there are also internal hurdles that management teams need to overcome.

And the number one issue is management itself. Whether your aspiration is expanding your brand into a new country or acquiring overseas businesses and exporting your expertise, you ultimately should export your management structure, as well.