Lessons Learned
Multinational companies have ventured increasingly into Asian emerging markets for the last 30+ years, some meeting their Waterloo, others claiming success and paving the way for best practices.
Whether the undertaking is market entry strategy, equity joint venture, global procurement or local distribution and market penetration, foreign companies have largely defined modern business management practices in the fast-growing and changing Emerging Market environments.
In our work with foreign companies in Asian emerging markets, we have guided them on their learning journey and helped them recognize the need to adapt corporate standards to local requirements.
And while most companies are quick to extract hard facts in terms of financial results, the less obvious learnings reveal that critical “soft” management skills ultimately make the difference between success and failure.
From China to India, we have identified common key success factors including:
• Clear, focused, and consistent business strategy and objectives
• Realistic business plan and profitability targets
• Permanent local presence, long term commitment
• Active talent management and retention
• Strong government relations and corporate citizenship
• Open, trusting, and close communication between local management and HQ