Cross Cultural Competence in the Global Marketplace Challenges of an International Venture

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Cross Cultural Competence in the Global
MarketplaceChallenges of an International
Venture

• Juan Carlos Latorre
• ALB Chile
• jcl_at_alb.cl

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MOST INTERNATIONAL VENTURES STARTS WHEN

• It is part of your growing plan.
• You have concluded in the economical convenience.
• You have concluded that youll be able to deal
  with the countrys culture.

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A LOOK AT MOST COUNTRIES REAL ESTATE OPERATORS
IDIOSINCRACY
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REAL ESTATE OPERATORS CULTURE ARROUND THE GLOBE

• Countries natural barriers
• Protectionism.
• All too busy.
• Reluctance to change.
• Bureaucracy
• Pride / Distrust

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PROTECTIONISM

• Afraid of competition
• Because most people think that Internationals
  backing and economic support is always bigger
  than local.
• Internationals means less job for nationals.
• To protect, locals will probably create more
  requisites that are more of the same but more
  intrincate.

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ALL TOO BUSY

• All day long in your old routine.
• Never stop to open your mind to new ideas.
• Never get critical in your own issues.
• Will start moving only if others get through it.
• Probably will attend some local education events,
  but international????

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RELUCTANCE TO CHANGE

• Keeping with what I already know and do.
• Routine
• A change will mean more work.
• Will internationals give a try and then leave?
• Youll always insist doing things your way, while
  they will always insist doing things their way.
  CROSS CULTURAL ADAPTATION
• less than 5 of the total worlds population had
  ever left his own country.
• 97 of the worlds population births and dies
  in the same country.

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BUREAUCRACY

• International ventures will have to deal with
  most complex and sophisticated bureaucracy.
• Bureaucracy is something locals can deal with.
• Bureaucracy is something internationals will have
  to fight with.

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Pride / Distrust

• Idiosincracies
• Nationalism (centuries doing the same)
• What are this foreigners going to teach us?
• Local heroes rather than trying new experiences.
• Distrust. Columbus trade of little mirrors for
  gold.

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THE PROFILE OF THE INTERNATIONAL VENTURER
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THE INTERNATIONAL VENTURER PPROFILE

• International Investor profile
• First time friendly and interested.
• Decision made.. Action taken
• Agressivenes
• Adoption of local characteristics

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FIRST TIME FRIENDLY

• Once the International gets to a foreign country
  starts the process of
• Scanning
• Measuring
• Comparing
• Projecting
• Evaluating

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DECISION MADE AND TAKEN

• Decision made decision taken.
• Scratch your way up to the very top.

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AGRESSIVNESS

• Full power to begin
• You have a RR and a deadline
• Will lead in a possible artificial confrontation
  with locals
• Local Competitors will fight back in some cases
  but in most, nothing will happen.

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ADOPTION OF LOCAL CHARACTERISTICS

• You cant win without adopting some Local
  characteristics .
• Your way will become a blending of yours and
  their way.
• Will start to mix and participate in local
  activities.
• Will probably end as an example

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INTERNATIONAL VENTURER RECCOMENDATION

• You will not change the world
• Always try to balance business with each
  countrys idiosincracies and get the most out of
  them in a win-win strategy.
• There is a huge young, unpolluted generation open
  to an international venture. In their hand lies
  the success of any future Intl experience.