What is global business development?
Global business development refers to establishing and managing relationships with companies abroad in order to develop new products or services while improving international competitiveness. According to Fintalent’s Global business development consultants, these efforts may include exploring markets and identifying potential customers, opportunities, and partnerships that can bring economic and social benefit.
The term may also include the recognition of language, cultural, technical and other barriers that may impede successful business relationships as well as ways to overcome them. Global business development is sometimes a part of an overall company management strategy that involves outsourcing parts of operations to countries where costs are lower.
Global business development deals with making connections with people from other countries in order to benefit from new markets or access resources needed for production. It can be thought of as a type of networking that involves developing a global network of people who you want to network with regularly.
Global business development is not a new concept. It has been around since the 19th century, when industrialists started using it in order to create large-scale global networks and to exploit new markets at an accelerated rate by working with local entrepreneurs.
Today, this type of skill is more important than ever before because things have changed dramatically – even more so in the last 10 years (compared to previous decades). The information age has brought about profound changes for everyone; for us as individuals, it’s changed our lives and our work environment in many ways. The Internet means we can now reach people from all over the world, and collaborate with them on new ideas.
There’s no denying that globalization is here to stay – even if we wanted to turn back the clock, it’s simply not possible. We now live in a world where opportunities are everywhere. The sheer size of the rapidly growing developing world means that there are hundreds of millions of people who have potential access to wealth and resources – resources that could benefit all of us.
There are three main components you will need to familiarize yourself with before developing your global strategy: the macro economy, microeconomics, and the culture you plan to operate within. It’s important that you understand each of these components before developing your strategy so that you can make informed decisions moving forward. Understanding the macro economy refers to knowing how the world impacts your company – the trade policies, state of foreign relations, and climate in which your company operates. Understanding microeconomics is understanding how it works in context of your organization – market structure, financial services/commodities available to consumers/businesses and data surrounding them. The final piece is understanding the cultural dynamic between domestic and international businesses.
With a solid understanding of each component, you can work with your team to create a global business development strategy that makes sense. Some of the questions you may ask yourself as part of this process are whether or not it’s best to contract with a company that is based in the country where you plan to sell, whether or not you should have one office for each region in which you do business and whether or not it’s important to hold meetings natively. When devising your global strategy, you need to consider the options available to you and decide if they will help your organization succeed.
When conducting business internationally, you will encounter a great deal of bureaucracy which can be very confusing. You may need to apply for an export license or register your company in the region in which you plan to do business. The World Bank provides a list of all the basic requirements for doing business globally, and explains the potential risks involved with doing so as well.
4 Ways to Understand Global Business Development
The four ways to understand global business development outlined here can help you make the right decision.
Strategy 1: Understand The Macro Economy: The global economy is influential on your company because it relates directly to what kind of products and services your organization produces and sells. There are three major aspects that influence the global economy: trade, foreign relations and climate. Trade deals allow for maximum market penetration when you’re accepted into international markets. The foreign relations of a country can have a direct effect on business deals because many countries have political issues that may prevent you from entering. Climate has an indirect influence on your global strategy because it affects the amount of time it takes to design and implement your plan. The variables in the global economy need to be taken into account when planning for international growth, but they should not be the deciding factor.
Strategy 2: Understand The Microeconomy: The microeconomy refers to what kind of products you want to sell and where you want to sell them. It’s important to consider the market structure and financial services that are available in your industry. Business structures can be very different in different parts of the world and financial services can be extremely expensive. Knowing which products and markets need to be developed and how to address them will help you decide how to conduct your global business development strategy.
Strategy 3: Understand The Cultural Dynamics: The culture of a country needs to be assessed when developing a global business strategy because it can have a direct effect on how consumers view your products. If you want your products sold internationally, there needs to be a recognition of the cultural differences that may exist between the two countries or even within one country. The four ways of understanding global business development outlined here can help you understand the cultural dynamics that may exist between a country and your business and how you should react to them.
Strategy 4: Understand The Macro Economy: Understanding the macro economy is important when conducting international business because it impacts the products and services you produce at home and how they are marketed internationally. You also need to understand which countries your products or services appeal to as well as what kind of contracts you should pursue with non-North American companies in order to gain access to foreign markets.
When you are deciding which strategy to use for global business development, you want to make sure that your company has the right environment and market structure to help it succeed. Each strategy has its strengths and weaknesses and each one should be approached with an open mind. These four ways to understand the global business development process can help executives get a better understanding of how they can expand their operations into foreign markets.