2. How will this company deal with any cultural shifts that might be needed as a result?
A potential risk associated with an expansion outside the country is unexpected financial impact due to lack diligence. Other risks include operational inefficiencies caused by integrating new companies into existing businesses, as well as compliance concerns related to regulations or taxation. Benefits can be increased market share, new customer bases and markets, economies of scale and cost savings, product and service diversification, improved management capability or capacity, or access to new markets.
It is crucial to assess the impact of an expansion on culture when evaluating a potential external growth. Understanding how to integrate different teams in a merger of two companies is essential. It is also important to identify areas of improvement regarding communication styles and ways to create trust between departments in order for this integration process be successful. Last but not least, having measures in place for successfully recognizing each team’s contributions towards achieving shared goals should also be taken into account when addressing this issue.