Overseas expansion requires that the head office in Japan and local bases located overseas fulfill their respective roles appropriately. It is no exaggeration to say that the success or failure of this division of roles will affect the success or failure of overseas expansion. Let’s take a look at each role and how to divide up the roles required for overseas expansion.
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Clarifying the division of roles in overseas expansion
When expanding overseas, it is important to clarify the division of roles between the domestic head office and overseas bases. Each person understands his or her role and acts accordingly, and the business proceeds smoothly.
Unlike domestic branches, overseas branches are physically and mentally distant from the head office. The social, economic, and market conditions differ from those in Japan, and the pace of change is rapid. These distant headquarters in Japan and overseas sites need to play roles suited to their respective environments and skills.
When expanding overseas, if the division of roles between the domestic head office and overseas bases is unclear or if they do not understand their positions, there is a risk that their respective positions will be confused. Similar problems can occur between headquarters and branches in Japan and between departments within the company. However, as I mentioned earlier, the scale of the problem is incalculable because the overseas bases are all far apart.
If the division of labor with the head office in Japan does not work well, employees working at overseas bases or locally hired employees may lose motivation or misunderstand the business scheme. This will result in a shrinking of international business and even a potential exit. Overseas expansion, which often involves massive investment of funds, sometimes jeopardizes the management of the head office. It is important to fully understand each role when you think about expanding overseas.
Role of the head office
The role of the head office in overseas expansion is to increase its human resource supply function. In order to expand overseas, it is necessary to send employees overseas and inspect them regularly. By appropriately supplying and managing such human resources, we will make our overseas bases more comfortable to work for.
Labor management and physical and mental health management are also important tasks. Damage to physical and mental health is common in unfamiliar areas overseas. Therefore, it is an important role to pay attention to whether there is any difficulty or trouble in living in the local area.
*Main players are the locals,
The role of the head office in overseas expansion is basically to support. The head office must understand that the local base is the main player. When we develop overseas business mainly at the head office, we end up in a “The head office gives instructions, and the local people just listen to what they say.” situation. Under these circumstances, local voices are not sufficiently heard, and business opportunities lag behind, and local dissatisfaction is growing.
*Support is fast
In other countries, the slow decision-making of Japanese companies can be a risk of missing business opportunities. The head office also needs to take prompt action regarding overseas business. Support local employees by responding quickly and flexibly to requests for necessary support such as budget and human resources.
*For mental health and health management
Overseas expansion provides a great opportunity not only for companies but also for local employees. On the other hand, it also creates a tension between the head office and local employees, and there is a tendency for stress to accumulate due to unfamiliar life overseas. For this reason, the head office must always pay attention to the mental health and physical condition of employees stationed overseas, and pay attention to ensuring that they receive appropriate checkups at home and abroad.
*regular inspection
When overseas bases start in earnest, head office should send employees to visit them regularly to check the current situation. We provide necessary support and information so that we do not leave it to local photographs or impose instructions without knowing the local situation. It is also important to set up interviews with local staff and local employees to listen to their opinions.
Reference:
Japan Institute for Labour Policy and Training “Development of Overseas Operations and the Role of Domestic Headquarters”
Roles of Overseas Bases
Overseas bases are not only a foothold for companies to expand overseas, but also a place where they can play an active role as the front line of business. We need to protect our overseas business by cooperating with the head office, not by following the instructions of the head office, but by not leaving the head office’s philosophy and brand behind. At our overseas offices, we can feel firsthand the local market and social conditions that our head office does not know. It is important for us to share this information with the head office and actively offer proposals to seize business opportunities.
*Local staff are quick to provide information
It is important for local employees to actively communicate with local suppliers, suppliers and other companies in the same industry in order to obtain useful information. We will share this information with the head office in an accurate and speedy manner so that we can explore the next step. Overseas business and social conditions are changing rapidly, and prompt responses are required.
*Local staff actively seek practical solutions
Local expats are the only people who see the live market, where information about local trends and preferences is available. Information is collected and shared with the head office, from which countermeasures are proposed and strategies are formulated.
Summary
In order to expand overseas, the head office and overseas bases must recognize their respective roles and cooperate to advance business without encroaching on each other’s territories. It is important for the head office to listen to the opinions of local people, provide information and strategies that are available only at overseas sites in a flexible and speedy manner, and seek necessary support.
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X-HUB TOKYO
Webマガジン編集部
企業の海外進出に関する
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