Global management is about taking your product or business out to the world while being aware of the local needs and cultures in order to increase your chances of success.
Companies have made many botched attempts at opening new markets around the world only to discover that their product doesn’t truly meet the market’s needs or wants. Although tempting to jump into markets like China, doing the proper legwork to understand the cultural differences in attitudes, behaviors, expectations, and values will go a long way.
Distance is created by more than just geography. When looking at your international strategy the CAGE framework will help you navigate potential pitfalls.
What are the different languages? Ethnicities? Religions? Values? Norms?
What is the political landscape? What is the legal system? Currency?
What is the physical distance between countries? Time zones? Climates?
What are the differences between the rich and poor? What is the infrastructure? Natural/financial resources?
Now you can easily put the answers to these questions in a table for reference when planning and sharing your strategy. Accounting for these four areas will save you much trouble down the road as you look to expand your business.