The Biggest Challenges of Managing Companies Overseas in 2021

The Biggest Challenges of Managing Companies Overseas in 2021

International businesses often face significant challenges. Especially during the pandemic, companies with a network of international branches are struggling with the impact. They may face cultural, political and legal challenges among others and are forced to deal with leading a large organisation safely through the pandemic. 

These uncontrollable challenges are solved by experts who specialise in risk advisory management and assist international companies when confronted with difficult circumstances. The way these challenges are solved by external providers if often very effective and impressive.

Top 5 challenges of managing companies overseas in 2021

Setting up the right structure Companies Overseas

A company that is growing quickly and is highly profitable may be ready to expand internationally. But does the current structure within the company support the expansion? Will new branches be able to communicate well with headquarters to ensure that things remain organised?

Laws and regulations

How can a company make sure that it complies with all of the laws and regulations of the country they are planning to do business in? If they fail to do so, there may be serious consequences, including large fines or imprisonment. Laws and regulations regarding employees, business practices, trade, taxes and many other areas need to be followed.

Understanding the market

Experts will analyse the market for the company before a new branch is opened and determine if the customer base is different from the current one. It is not uncommon that a demographic is very different and brands need to adapt to regional needs. Often, translations are necessary and product descriptions, websites, text on products, legal texts and agreements, packaging and other items need to be translated. This is best done by professional translators who understand how to appeal to the demographic that the business is targeting. 


Accounting is another area that needs to follow local laws, regulations, international standards and business practices. It can be a challenge to keep an overview of financial records across many different international branches. Working with a different currency is a part of this challenge. Many firms rely on experienced providers who are familiar with practices in a certain country. 


How much should your products or services cost? Will the profit margin be similar or significantly less to what is generated in the country in which the headquarters are based in? The way that the pricing is determined depends on the local market and the average price of similar products. 

Setting up a branch is essentially setting up a whole new business and starting from scratch. Everything needs to be reviewed, from the products to the pricing, the accounting, local laws and regulations and the structure of the business. 


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