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4 Steps to a Successful International Expansion

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Doing business internationally is not only a trivial thing nowadays but is also a must for many entrepreneurs who want to go further and develop their venture. With a number of benefits that the business internationalization offers, opening a company in another country is a challenge to take that, however, strongly pays off in the future. But in business, like everywhere else, going to another country means stepping into an unknown land, which is unpredictable and might pose a variety of hazards. However, if you go there prepared, this should not be a problem. The main thing to remember is to look for solutions right away, rather than merely for the problems that might expect you in another and not-so-well-known country.

Main Ingredients of the International Business Campaign

Obviously, you always have to take certain challenges prepared, especially those that imply the investment of time, effort, and money. In business, there’s almost no room for improvisation. You must have a plan for every aspect of your expansion, from the legal and internal business matter to the marketing campaign, PR, and other communication with your customers, including the post-sell service and user experience. Here are the four basic points to consider whenever venturing into a foreign land.

  1. Doing deep research and acquiring local partners. In order to open your business in another country, you must know it extremely well, as if you were born and lived there your entire life. You must know at least the legal framework of the country in general, how the business is done there, how tough is the competition, what consumers prefer, how the media communicates, and so on. While without being actually born or at least living in that country for a decent number of years, it is impossible to become familiar with the country like that, you can get as close to that as possible. One of the top reasonable recommendations for the international expansion you’ll hear today is, perhaps, acquiring the local partners for your business. Those could be anybody, from co-directors to employees or external partners such as suppliers or retailers.
  2. Dealing with the formal matter. After you research everything, make sure to have all formalities done strictly right. That mostly relates to the legal and tax aspects. Ensure that you have all the needed documents and licenses in place and that all of them are valid and properly translated. Address the specialists, use only the best professional translation services for such purposes. This will largely save you time and unnecessary costs caused by possible delays as your business might be frozen while the legal matter is settled. In most cases, you’ll not be welcomed by the competitors and regulative organs in another country, so make sure to settle as safely as possible while doing business internationally.
  3. When dealing with marketing, don’t just translate, localize. While working with the formal things for the internal purposes of your business translation is a must and may be enough. Yet, when it comes to communication with your potential audience, doing a mere translation of your products and marketing campaign may be a serious oversight. For your customers to understand what you’re trying to give them, you must adapt your product to their worldview and cultural background. That’s what the localization is about and for the start, you can use this localization service to understand the idea. The true localization professionals will guide you through the whole process and explain how and why everything is done.
  4. Develop a double strategy. While you might have everything considered very well and be as prepared as you can only be, there’s still room for the exit strategy. Regardless of how prepared you are, there’s always a chance that something will not work out. That won’t make you a bad entrepreneur or mean that you should not expand internationally in the future. This will essentially mean that you’ve managed to get the experience in this area, which will allow you to do better on your future try. Yet, retreating smoothly is better, of course.

Looking Further

Just as you might use the tips for your ventures in the nearest future, you can use your experience garnered during this venture to look even further. Regardless of the result, experience always grants you a heads-up and the ability to look one step further even when you encounter a yet unfamiliar situation. As you shouldn’t underestimate all the aspects of other country economies ’ entry, you must not underestimate your resources and, more importantly, your potential. As you go international, remember to be brave and always try to predict your own movements one step ahead.

Having a long-lasting career in researching and writing about the new trends in work, education, traveling, and modern lifestyle, Henry McDowell never misses a thing if he finds it interesting and relevant. Writing mostly from his experiences, Henry always manages to find something undiscovered even in the subjects already familiar to him. Every Henry’s article is like another heartbeat of this world that you certainly should not miss out on.

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Finance

New ways of thinking and working are necessary to reap blockchain benefits in capital markets

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The World Economic Forum today released Digital Assets, Distributed Ledger Technology, and the Future of Capital Markets. Across the capital markets ecosystem, institutions are facing a combination of intensified competitive dynamics and accelerating technology advancements, presenting opportunities and challenges both to incumbents and new entrants. Although DLT is not a panacea, the report underlines how it can positively impact costs, market liquidity and balance sheet capacity while reducing the complexity, opacity and fragmentation of capital markets.

Written in partnership with the Boston Consulting Group (BCG), the report is based on nearly 200 interviews and eight global workshops with capital market incumbent players, new entrants, regulators and governments. It presents use cases from equity markets, debt markets, securitized products, derivatives, securities financing and asset management.

DLT can address real challenges and inefficiencies in some markets by providing a trusted, shared source of truth between market participants. However, the future is uncertain as there is no agreed path for market-wide adoption. What’s more, as institutions still decide where to invest, varying strategies create tensions.

The report calls for a balance between innovation and market safeguards through standardization, the breaking down of silos and regulatory engagement. According to the authors, fundamentally transforming markets will require new ways of thinking and working across the industry.

“Following several years of intense hype, examples of use cases where inefficiencies and challenges are being solved with blockchain are starting to emerge across capital markets,” said Matthew Blake, Head of the Future of Financial Services, World Economic Forum. “With the future for blockchain in financial services still being defined, a nuanced look at the opportunities this technology offers right now is particularly important for the financial services industry.”

“Distributed ledger technology has come of age as it begins to enhance efficiencies, reduce operating costs and create new business models in capital markets, but the use cases and solutions are respective to each asset class,” said Kaj Burchardi, Managing Director, BCG Platinion. “Whilst this makes sense from a commercial perspective, it has led to a complex patchwork of initiatives. For capital markets to unilaterally adopt DLT, they will require cross-institutional alignment to realize the game-changing market opportunities it can offer.”

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Russian Nornickel signed a deal with UK chemicals giant Johnson Matthey

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Russian Nornickel, the world’s largest metal producer has signed a deal with Johnson Matthey (JM) on long-term supply of critical metals for their battery materials production in Finland.

The Finnish government is actively developing production sites for battery components. Finnish budget for 2021 includes additional funding of EUR 300 million for Finnish Minerals Group to promote investments for the production of precursor and cathode active materials used in lithium-ion batteries in Finland.

Earlier in April Nornickel announced plans to ramp up sustainable nickel and cobalt production at its refinery in Finland — NN Harjavalta — in response to the growing European demand for high quality and responsibly sourced metals for the EV industry. NN Harjavalta’s product range will be playing an important role in satisfying Johnson Matthey’s requirements for its precursor and cathode active materials production in Finland as well as for its existing factory in Poland.

Johnson Matthey announced the development in Finland of its second commercial plant with a nameplate capacity of 30 kt of ultra-high energy density cathode materials required by EV producers. The factory will be powered solely by renewable energy and incorporate an innovative effluent treatment solution.

Nornickel and Johnson Matthey have also signed a memorandum of understanding to explore options to further extend metal supply in the future. The parties also intend to collaborate in other important parts of the battery materials value chain, including new metal dissolution technology, circular economy opportunities, and tokenization of the supply chain using blockchain technology. Implementation of token-based smart contracts allows combining metal deliveries with complete provenance as well as ESG credentials including carbon footprint to ensure the unprecedented level of responsible sourcing.

The deal will allow the Russian and British company to define joint sustainable development initiatives.

“We are delighted for this opportunity to develop our business together with Johnson Matthey — a new important player in the Finnish battery materials ecosystem — and help the company expand on the European EV market. Our memorandum should enable us to identify mutually beneficial sustainability initiatives that support the ambition of achieving the most sustainable battery materials value chain in Europe,” commented Vladimir Potanin, President of Norilsk Nickel.

Earlier, Norilsk Nickel signed a letter of intent to establish a battery recycling cluster in Harjavalta, Finland, to serve the electric vehicle market in partnership with Finnish energy company Fortum and German world’s leading chemical company BASF. This will successfully complete the “closed loop” recycling cycle for critical metals present in used batteries.

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Bangladesh Economy Shows Early Signs of Recovery Amid Uncertainties

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Bangladesh’s economy is showing  nascent signs of recovery backed by a rebound in exports, strong remittance inflows, and the ongoing vaccination program, says a new World Bank report, “Bangladesh Development Update- Moving Forward: Connectivity and Logistics to strengthen Competitiveness,” launched today.

After being severely affected by the COVID 19 pandemic—which slowed growth and for the first time in two decades reversed the poverty reduction trend—the economy is recovering gradually.

Over the first half of FY21, factories reopened and exports rebounded. However, the economy faces elevated risks in the context of the ongoing COVID-19 pandemic.

In Dhaka and Chittagong, the country’s two largest cities, recent surveys pointed to a recovery in the labor market in the first half of FY21. With gradual restoration of livelihoods, food security in poor and slum areas improved. In Chittagong, the percentage of adults working had returned to pre-COVID levels by February 2021.  

Despite the uncertainty created by COVID-19, the outlook for Bangladesh’s economy is positive. Much of the pace of recovery will depend on how fast mass vaccination can be achieved,” said Mercy Miyang Tembon, World Bank Country Director for Bangladesh and Bhutan. “The World Bank will support a resilient recovery, helping Bangladesh achieve green, smart, and inclusive growth.”

In FY21, growth will be supported by a recovery in manufacturing as export demand strengthens, a rebound in construction supported by accelerating public investment, and robust service sector growth as the vaccination campaign progress. inflation is projected to remain close to Bangladesh Bank’s 5.5 percent target, and the fiscal deficit is projected to remain at 6 percent of GDP.

Risks to the outlook remain elevated. A fragile global economic recovery could dampen demand for RMG products and limit job opportunities for migrant workers. The COVID-19 pandemic has exacerbated financial sector risks stemming from nonperforming loans and weaknesses in bank governance and risk management.

Improving logistics performance could help accelerate the recovery and improve competitiveness. The report outlines opportunities to modernize the logistics system to ensure business continuity and build resilience. This can be achieved through a system-wide strategy to increase logistics efficiency; improve the quality, capacity, and management of infrastructure; improve the quality and integration of logistics services; and, achieve a seamless integration of regional logistics services. 

“The COVID-19 pandemic has led to an unpreceded global recession,” said Bernard Haven, World Bank Senior Economist, and co-author of the report. “Protecting households affected by the pandemic remains an urgent priority, while structural reforms can help accelerate the recovery.”

The Bangladesh Development Update is a companion piece to the South Asia Economic Focus, a twice-a-year World Bank report that examines economic developments and prospects in the South Asia Region, and analyzes policy challenges faced by countries. The Spring 2021 edition titled South Asia Vaccinates, launched on March 31, 2021, shows that economic activity in South Asia is bouncing back, but growth is uneven, recovery remains fragile, and the economic outlook is precarious. The report also focuses on the different dimensions of vaccine deployment and provides a cost-benefit analysis of vaccination in the region. 

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