Dealing with the Complexities of International Expansion: Success at Home Does Not Necessarily Translate Into Success Abroad

It all began very well on my way to the Meridian Hotel in Casablanca. The sky was blue as ever in this sun-drenched North African city. Suddenly, the taxi driver braked hard to avoid hitting a motorcycle. It was too late. After the crash, fortunately all of us unhurt, the motorcyclist got up, yelled at the taxi driver, and sped away. The taxi driver laughed and told me that this was not an uncommon event while driving in Casablanca. After arriving safely at the hotel and concluding a successful meeting, I was reminded that although it can seem dangerous to navigate the sometimes intricate roads of international expansion, the rewards can be well worth the trip. As companies expand their brand internationally, they quickly learn that there are many hurdles that need to be overcome. One of the most humbling realizations is that one's success at home does not necessarily translate into success abroad. While the world is getting smaller due to the global economy and increasing travel and communication, differences in cultural, legal, and local business practices seem to magnify as interactions increase. Before embarking on an international franchise development program, companies need to make a thorough assessment of their domestic operations, their ability to support international operations, and their financial capability to fund a successful international expansion.