There are two principle ingredients for success in international expansion. The ingredient is associated with process of entering new global markets, i.e. do I have a template in place for making most efficient use of my existing and available resources, and have I set realistic timeframes and budgets for achieving profitability overseas, whatever my market entry program?

But that’s not enough in itself. In fact, that’s only half battle. With globalization as a fact of business life, there is an increasing emphasis on developing an effective international mindset within companies. That means making sure you have an international champion in your firm to build international capabilities top down. It means ensuring that HR and personnel strategies are in place to recruit and retain seasoned internationalists, and making sure these candidates have proven international experience and linguistic capabilities they say they do. It also means training and providing your staff with incentives for overseas assignments. Above all, creation of an international mindset comes through a willingness to learn, adapt and change.

The organizational learning curve is steep when expanding overseas. But if your management team and your teams embrace learning, adapting to new environments, recognizing that mindset and process are two interdependent factors of success, you are already responding well to change, and you have basis for overseas success.

Renarc has just published a booklet called 104 Practical Considerations for International Success and can be downloaded from its website at www.renarc.com The busy executive should treat them as observations, a set of practical tips and a quick reference guide for constant referral at every stage of international expansion process.

So who’s right and who’s wrong? What this case shows is simply how a cultural gulf between two countries can land people in trouble – on both sides, for three simple ingredients: pride, naivety and a failure to do your homework. And in business world, clear parallels can be drawn, where same 3 ingredients can lead to potential disaster, for sometimes even most simple and innocent motives.

There is case of US International Business Development executive, tasked with finding new business in Spain, trying desperately to meet prospects without any success. It was by chance he discovered that breakfast meetings in Spain just weren’t norm. He changed his meeting times, and up went his response rate.

Then there is famous case of Korean firm Kunja Industrial Co. that had a knitting mills subsidiary in west. A European employee innocently “crooked” his “pointing finger”, trying to catch attention of his Korean boss and bring him closer. The employee succeeded in getting attention all right. However, he didn’t succeed in gaining any favors from his boss. In fact he was almost fired. The western finger-moving gesture for asking someone to come closer is considered a vulgar gesture in Korea.

If your business is becoming increasingly international and global in nature, then a sound basis for success overseas starts with following: (i) Respect for how things are done overseas: you are after all in a host country, no matter how ridiculous laws and customs may seem. (ii) Be aware of differences in relation to how things are back home. Don’t ever assume that works best at home will bring you success overseas, and finally (iii) Prepare and train yourself and your people for doing business internationally.