Erkki E. Railo : Crossing the Atlantic: the story of Leaf, Inc : my case study of management failures in crossing the Atlantic

Crossing the Atlantic may qualify as a trying test in the art and science of corporate management. In the 1960s American acquisitive invasion to Europe led to founding of some 3,000 new companies. The strength behind included a base of a large home market. Benefits of the Common Market were grasped sooner than by most Europeans. Still, failures occurred in surmounting scale. Reasons being, mostly management oriented. Europeans, in their turn, followed in the opposite direction a decade or two later. Large sums of money were burned. The obstacles were not to be derived from the same, Americans had faced in Europe.

Definite strategy, critical mass, staying power, sufficient war chest are some of the key words to be determined on the planning board. Doctrine of Alfred Chandler, structure following strategy, not the other way round, has to be comprehended and sustained. Longevity of the strategy chosen, is most vital. The size of the market, level of competition, and the complexity of distribution may cause unexpected surprises for those lacking experience of the North American market. Common law, anti-trust legislation, accounting rules, product liability, environmental responsibilities bring additional challenges. No room should be left for internal disputes among the management. Without unanimity, you better stay home.