It’s a given today that big companies need to look for global opportunities. Yet one-third of the top 10pc of companies among 20,000 studied by Christian Stadler of Warwick Business School conduct almost no international business. That’s because few companies have the management capabilities to succeed overseas, Stadler writes on HBR.org.

Companies that expanded domestically had an average return on assets of 1pc after five years and 2.4pc after 10, with 53pc exceeding 3pc; but those selling abroad had an average ROA of minus 1pc as long as five years later. It takes 10 years to reach a modest 1pc, and only 40pc of companies turn in more than 3pc.

(Source: HBR.org)

Published in Dawn, Economic & Business, April 20th , 2015

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