Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


The challenge of expanding nationally for a global company

Company case-study: The challenge of expanding nationally for a global company

Most successful companies choose to expand nationally before going down the international road. Lisa Bentley- co-founder of KiwiOz Childcare, an Auckland-based international nanny recruitment company- is doing the exact opposite and the process brings on more challenges than one might expect. So what are the real differences between going global and expanding local?

Location, location, location

When all the lights turn green and you start the process of expanding, choosing the location of your new business is key. When KiwiOz started in 2002 in the UK, opening an office in Auckland in 2009 was a natural choice. The demand for Kiwi Nannies from London families was high so it was logical to have an office that would provide the UK one with a steady stream of candidates. And with the resources now in place in Auckland, it made sense to also offer the nannying services for local families.

This time the objective is quite different as the main goal is to expand the national service, not to provide more international candidates for the UK or Sydney office (opened in 2011). Lisa’s analysis of the situation was that “A lot of (her) Auckland clients also work from Wellington so there was a natural pull there. Christchurch has had a tough few years and Queenstown is a small market so Wellington seemed the best fit for (them) as a business”.

Even though you are staying within New-Zealand and your customers and suppliers are probably the same in your new chosen location, their needs might be different. Deep knowledge and understanding of your customer-base should be the motivation behind the decision making process, and not assumptions. These could be more easily made when growing within your own country.

The backoffice/ working processes

When opening a company internationally, you expect the working culture to be different, maybe even the working processes. So you do your research, you try to adapt and adjust before and even after the launch, so it all works out well for your employees and for yourself. Moving from a New-Zealand town to another, the working culture is expected to be the same. However, you should beware that, the people you will hire will be different and the team cohesion might also be different. And even though you probably want and need your processes streamlined with other existing offices, your new staff may react differently to them or even adjust them to suit their own needs and more importantly their customers need. From Lisa’s perspective it is vital “to ensure that you are accessible for your new team leader for the first year so they can run things by you as they go to ensure you are putting the best foot forward in your new market”

The expectations

Once you have done your research, picked a location and staffed your new offices, the hardest part then starts: making it work. The expectations when opening a new branch of your business abroad or in your country may not be the same. When taking your business overseas, you expect that it would take time to build a customer base, to get the word out there that you are in business. On the plus side, because you are new to the market, there are no expectations and you are setting the standards from a blank canvas.

When expending to another New-Zealand city, even though you are new to the market and need to build that customer base, it is very likely that some, and depending on your trade maybe many, customers may have heard from you and have already formed an opinion about your business.; good or bad.

So you either have to live-up to the expectation and try to make sure the inevitable hiccups you will have at the start go by seamlessly, or break potential negative assumptions. Which can be a hard task to complete. Fortunately, KiwiOz is in the first position, being New-Zealand’s most referred nanny agency and having just been named finalist of the Westpac Auckland Business Award in the Customer Service category for the second year running in Auckland. Lisa certainly seems to have done her homework so there is every chance that KiwiOz will have the same success in Wellington that it enjoys in Auckland.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news