Companies around the world are looking for safe and sustainable investments. Their business growth in their home countries is challenged by security, economic and social crisis. The direct reaction was and still looking for investment opportunities in other countries. They start what we call head hunting approach to find an opportunity by only looking to risk factor as the most important factor in their decision. Most of these investments fail or do not achieve their goals due to the following facts:
- Ignorance of the economic and business challenges in the new country
- Ignorance of the market driven factors
- And the most important, not having such expansion linked to their own strategy.
The structure, process and resources of the company will fail to fulfil the market needs of the new country or give enough support to such investments. Each department or business unit already set their strategic objectives and decision of going outside or reallocating resources was taken outside the strategic plan. Even if they approve it, they normally forget to strategies their decision by revising the strategy plan, and endorse new critical success factors to it.
In addition to that, the mind-set of human resources shall be addressed with creative change management programs that will enable them to blend with new business environment and implement the famous statement: if you are in Rome, act like Romans.