“Think global, act local”. With those words, HSBC Group created themselves one of the most iconic taglines in the business world. But how DO you go about developing a global mindset when your company is looking to go from local to global?

In episode 22 of International Expansion Explained, Jiaran Wang and I took a closer look at how companies can approach this challenge and what it really means to have a global mindset.

Jiaran Wang: A brief intro

Jiaran Wang

Jiaran Wang is the epitome of an international multipassionate woman! Chinese by birth, now living in Austria, Jiaran has many strings to her bow.

She loves catalysing international business growth, & specialises in providing consulting, mentoring and end-to-end services to startups and businesses aiming to expand their reach into the vibrant markets of China and Europe. She’s a mentor and coach as well as having originally studied to be a professional pianist, and has been a TED speaker. 

Jiaran’s fascination with international business was sparked by her unique upbringing. Growing up in China and later studying abroad instilled a deep appreciation for diverse cultures and perspectives. This, coupled with her experience as a professional musician and involvement in the family import-export business, shaped her profound understanding of international dynamics. This diverse background fuels her current mission.

In her business, she leverages her experience in two main ways: Firstly, she guides startups and businesses through their expansion journeys. Secondly, as a mentor, Jiaran uses her experience to support entrepreneurs, artists, and international businesses. Together with a team of experts, she facilitates international expansion for startups of all sizes, providing the necessary expertise to thrive in local markets.

Whenever assistance is needed in navigating cross-border challenges, developing entry plans, or building partnerships, her team is ready to assist. Despite these professional commitments, Jiaran continues to be a dedicated pianist and enjoys teaching students, emphasising the importance of maintaining a well-rounded life.

The Importance of Developing a Global Mindset

So what do we mean with “a global mindset” – it’s easy to say that this is what you need, but firstly we have to define what it is.

Global Mindset is the set of individual qualities, communication skills, and actionable knowledge that empowers those in leadership roles to influence multicultural individuals, groups, and organizations. It’s part personality, part business savvy, part know-how, and is essential for success in our increasingly interconnected and competitive world. 

Thunderbird Global School of Management

A global mindset is the ability to perceive and interpret the world from a broader, more inclusive perspective, going beyond the limitations of your own cultural frame of reference and geographic boundaries. It means being open to new ideas, having a certain flexibility and willingness to adapt, and also having a deep understanding of the cultural, political, and economic factors that shape different markets.

In international business, having a global mindset is really crucial because it allows companies to navigate the complexities of foreign markets, connecting with the customer bases there. This is the basis of building sustainable, globally relevant brands, and after all that’s what most companies are aiming for.

Case Study: Starbucks is an example of adapting to local culture to some extent with their China expansion (although they’ve failed in a few other markets). In China however, the company understood that offering a larger selection of teas, promoting IP collaborations with local streaming series, localising products for local taste and festivals and providing fast WiFi (& clean a/c spaces)as well as local food options would be more of a draw than say a sandwich menu. (They are still not really able to adapt as fast as local competitors though to the evolving demands of China’s consumers!).

On the other hand, adopting a purely local mindset can be limiting meaning that companies that fail to look beyond their domestic markets often miss out on global opportunities. They risk being blindsided by cultural misunderstandings, regulatory challenges, and competitive dynamics that are unfamiliar to them. A company needs to be “instantly recognisable” on the global stage in order to be able to transfer brand equity between markets. If business travellers or tourists in Singapore don’t recognise your brand as the one they enjoyed in Australia, then you’ve failed in your branding mission, however much the locals enjoy your products.

“Know Thyself” – a crucial starting point for going local to global

The ancient Greeks knew what they were talking about… It’s crucial to understand your own cultural biases and assumptions before venturing abroad with your business. By recognising these, you can better understand and respect other cultures. You should always try to take a step back and look at the big picture. What do you want to achieve? What’s your mission? Then you need to align those goals with an international mindset.

It’s also about fostering an attitude of curiosity. Ask questions, seek to understand, and be open to new ways of thinking. The most successful international companies are those that are eager to learn and adapt.

I see a company venturing into a new market as needing to be like a chameleon, adapting to each environment.

Jiaran Wang

This isn’t always an easy process, and it can be both challenging and uncomfortable to face up to your own biases but if you can move through this, you will have a much stronger basis for your international expansion.

Cultivating Cultural Sensitivity

Cultural awareness is at the heart of a global mindset. You have to understand and respect the cultural differences that exist in new markets whilst at the same time recognising how these differences can impact your business interactions. When you’re entering a new market, you must be aware of local customs, traditions, and communication styles. This not only helps in building strong relationships with your local partners and customers but also goes a long way to avoiding costly missteps that can arise from cultural insensitivity.

Code Switching

One practical tool for navigating different cultural environments is code-switching. This is the ability to adapt your communication style to suit different cultural contexts. This concept is essential for business leaders who interact with diverse stakeholders from different backgrounds across the globe. By code-switching, you can build trust, foster collaboration, and ensure that your message is effectively conveyed, regardless of the cultural differences.

Code-switching is like playing a role—when you act as a business person in another culture, with some background knowledge, you’ll behave differently. It helps you understand different perspectives.

It’s also about knowing yourself well. If you understand yourself, it’s easier to recognise when others act differently. You can decide whether to adapt or not, depending on the situation.

For instance in the past, as Head of Sales for an exporting company, I had situations where I would need to switch from a confrontational style on the Balkan one week to a more consensual approach in Taiwan or Vietnam a week later. I’m sure my clients in Asia would have been really shocked if I’d banged on the table and contradicted them really loudly, but it was perfectly acceptable in Serbia, and in fact the only way to make sure my voice was heard.

Case Study

A stark example of cultural insensitivity leading to business failure that I’ve looked at in more detail before is Walmart’s entry into Germany. Walmart applied its American business model in Germany without adequately considering local shopping habits, labour practices, and cultural preferences. The result was a mess…A series of missteps, including enforcing American-style employee cheerleading sessions, which were viewed as strange and uncomfortable by German employees. These cultural blunders contributed to Walmart’s eventual exit from the German market. You can read more about this failure in detail here and sadly there are also many more examples that I could quote.

Having a global mindset is like packing for all kinds of weather. A flexible, open-minded approach allows you to see opportunities that others might miss. I’d say that curiosity, resilience, and cultural sensitivity are essential for anyone looking to succeed internationally.

Jiaran Wang

Developing Flexibility and Adaptability is Key for International Expansion

Flexibility is one of the cornerstones of developing a global mindset, allowing businesses to adjust their strategies to suit the local context while maintaining their overall vision. In practice that means being open to change, whether it’s adapting a product to meet local tastes, adjusting your marketing strategies to align with the regional preferences of your end consumers or navigating regulatory environments that differ from those in your home markets.

This adaptability ties into the concept of growth versus fixed mindsets. A growth mindset — believing that abilities and intelligence can be developed through hard work and learning — fosters adaptability. In contrast, a fixed mindset, which views abilities as static and unchangeable, can hinder a company’s ability to respond to new challenges and opportunities. Businesses with a growth mindset are more likely to embrace change, innovate, and thrive in international markets.

What are your own experiences and biases that might affect your adaptability in new markets?

It’s important to recognise that flexibility often means stepping out of your comfort zone and being willing to unlearn and relearn in response to new environments. By cultivating a growth mindset, you can become more adaptable and better equipped to handle the complexities of global expansion.

Strategic Thinking for International Expansion

Thorough research and understanding of global markets are essential before embarking on any kind of overseas expansion. This involves studying market trends, consumer behaviour, local competition, and regulatory requirements. Without this kind of foundational knowledge, you risk making costly mistakes that could have been avoided with proper preparation. Part of building a global mindset is also therefore the self-awareness that even if you have an in-depth knowledge of Italy, you may not know how to work effectively in Ghana or Ecuador.

Developing strategies that are tailored to specific regions is crucial for your international success. While your company’s core identity should remain consistent as I mentioned above, your detailed approach must be flexible enough to resonate with local audiences. This might involve adjusting your product offerings, pricing strategies, marketing campaigns, or even business models to align with the unique characteristics of each market. When you go from local to global it’s really essential to assess which aspects of your business need to be adjusted and which you need to keep constant (generally your brand values need to stay the same).

Balancing local market demands with global brand consistency is a delicate but necessary task and there is almost always a certain tension in the relationship between global and local teams. You have to find ways to maintain your brand’s global identity while at the same time ensuring that it’s relevant and appealing to local consumers. You can do this by leveraging local insights and expertise and simultaneously staying true to your brand’s core values and vision.

Building a Supportive Network of Relationships

Entering new markets is a really challenging endeavour that requires a strong support system. Having a network of mentors, colleagues, and cultural advisors can provide you with invaluable guidance and insights. Mentorship, in particular, can help business leaders navigate unfamiliar markets, avoid common pitfalls, and accelerate their learning curve – that’s why both Jiaran and I recommend this approach and offer it as a service.

Relationships are everything in many cultures, especially in Asia. It’s not just about closing the deal; it’s about building trust and understanding. That’s why local expertise and cultural sensitivity are so important.

Jiaran Wang

Collaboration with local experts is another critical component of building a supportive network. Local experts possess the in-depth knowledge and experience needed to navigate the complexities of their markets. By partnering with them, you can gain a deeper understanding of local customer needs, regulatory environments, and cultural nuances, but most importantly, you can learn how to build relationships. For example, in Asia, something as simple as accepting an invitation to dinner can be crucial. It’s not just about the food; it’s about the relationships. I’ve seen European clients struggle with this because they don’t realise how important it is & didn’t want to take the time to go for dinner or have a lunch together.

Creating an internal culture that supports global thinking and risk-taking is also vital. This involves fostering an environment where your employees are encouraged to think globally, take calculated risks, and embrace new opportunities.

It’s important to have a supportive environment where making mistakes is okay. In some cultures, making mistakes can make you lose face, but having a safe space allows for growth. It’s crucial to teach this to children as well, so they know it’s okay to make mistakes.

You can recover from mistakes more easily when you have supportive friends, family, or colleagues. This allows you to learn and grow rather than being afraid of making errors.

Continuous Learning and Personal Growth

Continuous learning is key to developing and maintaining a global mindset. This includes staying informed about global trends, learning new languages, and understanding the cultural and economic shifts that impact international markets. Ongoing education helps you as a business leader stay ahead of the curve and remain competitive in the global arena. It means being interested in various aspects of life in your target markets as well as reading and listening to a lot of different sources. Don’t forget to listen to stuff that you don’t agree with – you need to understand a variety of perspectives on the most important issues.

Results of a new landmark study, The Global Mindset Index
(GMI), show that companies which demonstrate a corporate
commitment to intercultural skills achieve superior business
performance.

CultureWizard

Making mistakes is an inevitable part of the learning process, especially in the context of global expansion. As mentioned above, embracing mistakes and learning from them is crucial. When mistakes are viewed as opportunities for growth rather than setbacks, they can lead to valuable insights and improvements. This is something that both Jiaran and I have learnt as musicians: to accept that there is no such thing as perfect and that we can always improve something.

As a leader, you can continue to develop your global mindset over time by actively seeking out new experiences, engaging with unfamiliar cultures, and challenging your own assumptions. This kind of ongoing personal and professional development is essential if you want to stay adaptable, open-minded, and resilient in the face of global challenges.

Watch the full discussion: From Local to Global

You can watch the full discussion with Jiaran here – we covered a lot more topics and details than I can include in this blog post.

If you are interested in learning more about Jiaran and her work, you can find her content here:

Think Global Act Local

In today’s increasingly interconnected world, expanding a business beyond your local borders requires more than just ambition and drive. You have to have a global mindset—a way of thinking that embraces diversity, navigates cross-cultural challenges, and adapts to the complexities of international markets. Consequently, developing this kind of mindset is not just a “nice to have skill” but a necessity for any businesses aiming to succeed on a global scale.

How global is your current attitude? What steps could you take today toward further developing a global mindset? This could involve seeking out new learning opportunities, reading books, listening to podcasts, actively building more international networks, or challenging your existing biases. Comment below and let me know!

Our world is increasingly globalised even if you think you’re just doing business in your local region, so thinking globally and acting locally is not just a strategy for success—it’s a survival strategy. By embracing the complexities and opportunities of international markets though, your business can unlock new possibilities and achieve sustainable growth on a global scale.


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Kathryn

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