What 70% of Leaders Get Wrong About Global Expansion
Ebrahim Ismail
Grew multiple brands to 100M+| Global Entrepreneur | Visionary Leader | CEO, Next Capital Real Estate| Let's Connect for Growth
The World is Changing—Is Your Leadership?
Did you know that 70% of global business ventures fail due to cultural misunderstandings? According to Harvard Business Review, cross-cultural differences are among the top reasons why international business deals fall apart. As businesses expand into new markets, understanding cultural nuances becomes essential for success. This is something I experienced firsthand, which forced me to rethink how I lead my teams in different parts of the world.
Embracing Cultural Sensitivity
When I first expanded our beverage company beyond South Africa, I quickly realized that leadership in one country doesn’t automatically translate to another. In South Africa, a direct, results-driven leadership style worked well. However, in Dubai and other markets like Turkey and across Africa, I encountered entirely different business cultures. In Turkey, trust-building and long conversations over tea are key to business relationships. In Dubai, professionalism and presentation are paramount.
It became clear that I needed to adapt, and that’s when I developed a leadership framework centered on cultural sensitivity.
The way you communicate with your team or clients can vary dramatically between cultures. In some regions, a direct approach is appreciated, while in others, it can come across as too aggressive. McKinsey found that culturally adaptive leaders are 75% more likely to succeed in diverse environments. I saw this when working with international distributors. I shifted from direct sales-driven conversations to more relationship-focused dialogues, which built trust and opened new markets for us.
In many cultures, especially in the Middle East, business is built on personal relationships rather than just transactions. In Dubai, I learned that building trust and open communication were critical. It wasn’t about making a quick sale but creating long-term partnerships. This approach allowed us to introduce new products and win over local partners, helping us compete with larger international brands.
No one understands a market better than local leaders. When expanding into new regions, I delegated more responsibility to local teams. This improved decision-making and helped the business scale faster while respecting local customs and demands. Empowering local leaders fosters a sense of ownership and builds a cohesive team, no matter the region.
While cultural sensitivity is vital, having scalable systems ensures business continuity across regions. We standardized processes like quality control and customer service but left room for local adaptation. In South Africa, our customer service was more transactional, while in Dubai, it focused on building long-term relationships. These systems allowed us to succeed in both markets without compromising on quality.
Results: A Unified, Culturally Adaptable Business
By combining cultural sensitivity with scalable systems, we achieved remarkable results. Our apple-flavored beverage didn’t just succeed in South Africa—it outperformed the world’s No. 1 cola in certain Middle Eastern markets. This success wasn’t just about the product; it was about understanding the market, building trust, and leading with respect for local cultures.
As a business professional, you may face similar challenges when expanding into new markets or managing diverse teams.
Here are some common pain points and their solutions:
Cultural misunderstandings: Miscommunication across cultures can lead to failed deals or demotivated teams.
Solution? Adapt your communication style and build relationships first.
Lack of local market knowledge: Relying solely on your experience in one market can lead to missteps in another.
Solution? Empower local leadership and trust their insights.
Difficulty scaling: Expanding globally often leads to inefficiencies.
Solution? Implement scalable systems that leave room for cultural adaptation.
Leadership across cultures and markets isn’t about having all the answers—it’s about being adaptable, open-minded, and empowering your teams to thrive. If you’re ready to lead your business into new markets or manage a diverse team, start by focusing on cultural sensitivity and scalable systems. It’s the key to long-term success in today’s globalized world.
If you’d like to learn more about leading across cultures or need advice on expanding your business into new markets, let’s connect. Follow me for more leadership insights!