Question

Why might a global start-up company be more difficult to manage than a purely domestic company?

Answer 1

Global Start up company will be more difficult to manage that a purely domestic company because -

a)Higher risk because of diversification of regions around the world, which is low in terms in purely domestic company.

b)A more capable team is needed with vast experience in global start up companies, which is not a criteria for purely domestic company.

c)A vast network is to be managed among the suppliers, customers and complements in global Start up firm , which is not easy to handle by any company . This is not the case for purely domestic company.

d)Higher competition is face by Global Start ups because they are up against one of the big domestic companies from different parts of the world.

e)Vast Cultural Challenges are face by global start ups , because every country has its own culture and to enter the market of such countries is a challenge because the taste and preferences of the consumers changes from region to region . In domestic company it is easier for them to know their customer as they are a part of that culture themselves.