Realising global ambitions with local knowledge

Companies need to understand their overseas customers and the context in which they are working better.

Andrew Cahn
Chief Executive
UK Trade & Investment

Think global, act local is hardly a new idea but many firms have yet to strike the right balance between local autonomy and central control.

Andrew Palmer
Report editor
Economist Intelligence Unit

By Anna Rooke, OurWorld Editor

The majority of business executives from multinational firms admit they do not understand customers in their overseas markets as well as those in their home markets.

However, giving more control to local managers in overseas markets could help to improve customer knowledge and business performance.

These are the findings of new research by the Economist Intelligence Unit, commissioned by UK Trade & Investment, which interviewed 298 executives from around the world.

High quality local staff a priority

The report ‘Global dreams, local realities’ reveals that the most important consideration in giving more independence to overseas operations is the quality of local management.

“Companies need to understand their overseas customers and the context in which they are working better,” comments Andrew Cahn, UK Trade & Investment’s chief executive.

“Identifying good quality local staff and management is crucial in achieving this,” he explains.

A growing concern

The report finds that 25% of the companies in the survey employ more than half their staff outside of their home country, while 33% generate more than half their revenue abroad.

This deficit in customer understanding therefore matters more and more says the report.

“Think global, act local is hardly a new idea but many firms have yet to strike the right balance between local autonomy and central control,” says Andrew Palmer, the report’s editor.