Cindy King's International Business Blog » outsourcing

Global Or International Business?

Cindy King — Mon, 02 Mar 2009 15:00:22 +0000

International Business Development Strategy

There are words I prefer to avoid. Branding is one. There is just too much diversity in personal definitions when you talk to people from different cultures. Today on Twitter, I asked readers to give me their thoughts on another term I like to avoid using. Here is what I asked:

Do you see a difference between the term “international business” and the term “global business”? If so, what is it?

There were a few answers I had to share with you:

@DR4WARD – Domestic country doing business in neighboring country is international business. Competing on world chessboard is global.
@deanmeistr - “Global” sounds more trendy i.e. includes “3rd world” nations automatically, international sounds old-style IMHO.
@Lenticular_Girl – In media “global” is generic, and overused. The word “global” is going to become as useless as “green” soon in marcomm.
@SirGrenville – My view is that Global represents a business proposition which is truly that. International any single/multiple transaction.
@andyatkinskruge – My 2 cents – global and international often imply English-world – you need multinational / multilingual to break that paradigm

These answers are interesting. I think they are all “correct”.

But why did I ask the question in the first place?

Is The Difference Important?

I often talk to people that have different definitions or conceptions of what an international business is. These differences are so inbred, that I often find myself totally avoiding the words “international business” to avoid miscommunication.

People contact me because they want to develop their international business. The miscommunication problems are usually centered around the word “business”. To me a business has a structure. At the very minimum there is buying and selling carried out within a defined structure and with certain processes.

You cannot say you have an international business until you have a clearly defined structure to carry out your buying and selling.

What Is Global?

With internet, there is an additional monkey wrench. Everyone tends to think they have an international company just because they say they are willing to sell to people abroad. Often this means that the people abroad have to come looking for them too. all to often there is no business, just a bright shiny desire to sell abroad.

This is where two people can think they are speaking about the same thing, when in fact they are not. The problem gets more complicated when people say that global business and international business is the same thing. In a general conversation this can be true, to some extent. But it is not true when you are talking about international business.

My Definition Of International Business

I tend to use two different definitions for the term “international business”, depending on what I am talking about.

General meaning – Any business that has international clients – buyers and sellers located in different countries.
Specific meaning – To differentiate from an export company, an international company takes country-specific marketing and sales actions to sell their products in different countries.

And because of the difficulties I have in communicating with some clients, I try my best to avoid the term “global business”. The term “global business” just opens a can of worms.

Differences In Communication

In reality, I can use whatever definition I want to for “international business”, and I will always have a communication issue to deal with if the other person does not understand my definition.

This also goes for you and your definition of the term “international business”.

Be sure others understand, and continue to understand your definition of international business.

In my experience, it is also wise not to interchange your use the term “global business” and “international business”. In fact I do not even use the term “global business” with anyone I speak to about “international business”. The word “global” can trigger different definitions and change the discussion.

The question of vocabulary may seem like an innocent one. There are dictionaries after all. The truth is that vocabulary does make a big difference in how others understand you. In different countries, words can take on slightly different meanings. Yes, even when you speak in English.

Participate in the March Cross Cultural Communication Challenge and learn more ways to improve your cross-cultural communication.

Are You Outsourcing Too Much?

Cindy King — Thu, 24 Jul 2008 23:00:46 +0000

International Business Development Strategy

Sure the 4 hour work week is the buzz today. But two recent articles on outsourcing made me wonder just how much outsourcing is too much for our own good.

Not only could you lose your own job value if you throw away important elements of your future job, but you could also be giving a great marketing advantage away to the businesses who are better at knowing when to outsource or not.

These articles show there are companies that outsource their valuable assets before they realize just what they are losing. Job markets change.

Marketers Unwilling To Dive Into Web Marketing

According to BusinessFeet, British business managers ignoring ‘vital’ website content management

A quick look at the job listings on the web, and it is easy to see a trend in North American companies very interested in hiring “Geek Marketers’.

It makes you wonder where the British market will evolve differently or not. Will all of the “older” traditional marketers lose jobs to “younger” geek marketers. If so, I believe companies will lose the value and experience of the traditional marketers.

Yet Another Example Of Losing The Human Touch

I have written before about the trials companies go through to find the right way to outsource international customer service and the cultural differences in expectations. The question of outsourcing valuable human touches was also brought up on the Online Marketer Blog recently.

This is a business decision I see many companies around me faced with. It always seems to be a black and white, yes or no question. Money, or rather, savings in money, pulling more weight.

Is The Expense Of Foreign Travel Stopping You From Getting International Clients?

Cindy King — Tue, 22 Apr 2008 06:00:14 +0000

International Business Development Strategy

Some businesses never establish an active international business development strategy because they think they will need face to face meetings with their prospects before any international sales come through.

It’s true; in the past some sales people reacted to an international customer inquiry by immediately scheduling a meeting, and then hopping on a plane.

Yes, face to face sales negotiations are important in establishing real client relationships.

In many cultures and in some industries it is the only way you can do business.

But times have changed a lot.

E-business is leaving traces of new negotiation practices all over the world. Even in cultures with strong face to face negotiation practices.

There are now many industries across a variety of cultures where international sales negotiations can take place without any foreign travel. And in many cases, business negotiations can take place with less foreign travel than in the past.

All companies worldwide are sensitive to economic competitiveness. Internet and good international telecommunication practices are affecting traditional cultural business negotiation habits in many countries.

Brick and mortar businesses are finding more and more instances where they can make international sales without travel. Prospects are more willing to do at least part of the sales negotiations by phone, by email, and by teleconference.

There will always be times when you will need to meet your prospects in person. But in today’s marketplace most businesses should not consider international travel a necessity for international sales.

At the very least, there is often a greater cultural acceptance of better foreign meeting planning.

Coordinating mutual travel schedules to coincide at industry events, for example, cuts costs and saves time for both parties.

Sales companies use yearly road trips combined with a regular communication strategy to keep costs down. You can do more through various telecommunications than you expect.

Don’t automatically assume that you need to travel to get international clients. And if you do feel your business needs foreign travel, improve your cross cultural communication skills to optimize the various communication channels available. Your foreign travel budget will drop drastically.

More In These Get International Clients Business Guides:

Copyright Cindy King 2006-2010 - International Business Blog

Is The Expense Of Foreign Travel Stopping You From Getting International Clients?

Small Businesses Need To Take Action To Uncover International Business Opportunities

Cindy King — Sat, 26 Jan 2008 14:56:57 +0000

International Business Development Strategy

Small businesses complicate their efforts in trying to uncover international business opportunities. Their own personal actions have far more impact on their success than relying on translators and looking for foreign joint venture partners.

The small actions you can take at home will have more immediate impact on your international business development than the services you can buy. Why is this? The more interaction you have in learning more about your foreign markets, the more you will be able to equate your acquired market knowledge with the products and services you sell.

Yes, you will probably end up needing the services from your target market. But the knowledge you can acquire from the countries where you would like to grow your business is priceless.

Sure translations are important. Adapting your sales materials to for a perfect cultural fit is important. But if you can start off from where you are, with what you have, you will learn a lot more in the process and you will make a better choice when seeking to get those foreign services.

Actions : If you already have some international clients or prospects :

- Develop those contacts further, so that you can learn more about those clients. – Call them up.
- Find the appropriate person to speak with.
- Talk to him.
- Ask him if he liked your products and why.
- Ask how he finds your products different to what he can buy locally.
- Ask him if he knows anyone else locally who could benefit from your product.

Actions : If you do not already have international clients and don’t know where to start:

- Which market do you think your product might sell well in?
- Or is there an international market that really attracts you?
- Choose a country and start researching.
- Google your competition in that country.
- Use Google Advance Search to set the country.
- Use automatic website translation software to read online.
- Get a feel for the market.
- Then pick up your phone, call your embassy in that country.
- Are there any other associations in that country for professionals from your country living there?
- Get on the phone and start talking to people.
- If you feel you are not getting anywhere, change your conversation style.
- Ask different questions.

You need to know as much as possible about each specific foreign market. Start off slowly, one country at a time. Make a concentrated effort to understand everyone’s opinion. You will begin to see a path to take.

Next Step

Once you have a basic understanding of your foreign market. Create a localized website, in your target country. Start with a mirror image of your main website.

You will need to adapt your communication to local cultures. Ask for local market feedback. Depending on your target market you may be able to do this in your own language.

You may want to set up a landing page with a survey for locals in their own language. It would probably be a mistake to translate your entire main website before getting feedback from your target market. Keep any translations to a minimum in the first stage.

Think of the actions you can take to build relationships with these foreign clients. Do not be afraid of language barriers. Simply present yourself truthfully and show your eagerness to learn how to do business in their culture.

When people see your willingness to meet them on their territory, they will notice you. The more action you take, the more you will be visible and the faster you will open your new international markets.

More In These Get International Clients Business Guides:

Copyright Cindy King 2006-2010 - International Business Blog

Small Businesses Need To Take Action To Uncover International Business Opportunities

Cindy King's International Business Blog » outsourcing

Global Or International Business?

Is The Difference Important?

What Is Global?

My Definition Of International Business

Differences In Communication

More On International Business Development Strategy:

More In These Get International Clients Business Guides:

Are You Outsourcing Too Much?

Marketers Unwilling To Dive Into Web Marketing

Yet Another Example Of Losing The Human Touch

More On International Business Development Strategy:

More In These Get International Clients Business Guides:

Is The Expense Of Foreign Travel Stopping You From Getting International Clients?

More On International Business Development Strategy:

More In These Get International Clients Business Guides:

Small Businesses Need To Take Action To Uncover International Business Opportunities

Next Step

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