Transnational Organization : A Transnational Strategy, And Why?

There are many businesses that have expanded their business internationally in order to benefit in some sort of way rather it revenue or a better market for their product. In this thesis, I will research a multination company and its international strategy over the last 10 years. I will elaborate on it international orientation and rather it etho-, poly-, or geocentric. I than explain why the company decided on expanding to the chosen locations. Then I will clarify if they had core capability to succeed in those markets, along with its

At the Global Breakthrough and Expansion phase, expansion to new markets and increased pres-ence to existing markets continues with globalization degree 25-50% and sales in three continents (Gabrielsson & Gabrielsson, 2009b). As the firm matures and with the new fear of losing overseas markets, they establish their own sales office in the form of foreign direct investment in addition to relying on exports and partners (Hashimoto 2011, p.27). With the drive to achieve global break-through, firms will start to take on distant and challenging new markets thus coming across difficul-ties in cultural, legal, and localization aspects (Rönkkö et al., 2008).

Transnational organizations also have flexible and ever-changing structures. Their managers incorporate innovation and strategies for the corporation as a whole. Unification and coordination goals are achieved by corporate culture, shared values, vision, and management style. It offers a high level of differentiation, while ensuring that a global organization can coordinate activities and transfer knowledge across various functional areas and geographies (Daft, 2010).

International business meshes across multiple domains most notably market entry strategies and sociocultural variances. Factoring in those two critical aspects and giving them the right amount of attention is the separating line between success and failure. Terralumen, Blue Ridge, and Delta are all successful companies; However, by not observing the basic requirements of

I feel that transnational cooperation’s have had a large impact on globalisation. A transnational corporation (Multinational Corporation) TNC is a corporation or enterprise that manages production establishments or delivers services in at least two countries such as Coca Cola and Nike. Very large multinationals have budgets that exceed those of many countries. Multinational corporations can have a powerful influence in international relations and local economies and play an important role in globalisation. I feel that the economy is the most significant motivating force

British grocery and general merchandise retailer Tesco PLC had announced they were to depart from their international operations within Japan and the United States markets, Tesco had stated that they were to end of such operations due it being unprofitable (Reuters, 2013). This paper seeks out to critically analyse and address the factors which had led to Tesco’s failure in the Japanese and United States market. To aid in justifying the influences in Tesco’s departure relevant international business literature will be evaluated for the suggested reasons for the exit. Furthermore, Part (B) of the paper seeks out to discuss the management of transnational businesses , a range of theories concerning the internationalisation of firms will be compared and contrasted, for instance the explanations presented by Vernon, Johnson and Dunning will aid towards the reasons for the internationalisation process of emerging market multinationals.

The companies have become a key parameter, especially in the global economy. The size of global companies closely correlated with the decrease of vulnerabilities, with higher resistance to economic shocks occurred along the time and with their bigger chances of success in certain markets. Companies aim not only to optimize their size, but also to strengthen the global production networks, affording them a better competitive position, in a mighty competitive environment and under the pressure of quick development of the technological environment. The size of an organization has become a barrier that stops its entry into the sector, higher than profitability, which explains why some corporations have focused, in recent times, more on strengthening their position abroad, although their economic performance does not justify this endeavor. The process of economic globalization is both a resultant of the increasing activity of multinational organizations and a cause of their increasingly stronger internationally affirmation. However, global organizations activity is much more intense in the developed countries; their impact on the developing countries must not be neglected. Global organizations have a few main features that individualize them from all other forms of companies known so far:

The benefits of a transnational strategy is that it offers benefits of both local responsiveness and global integration, enables the transfer and sharing of resources and capabilities across borders, and provides the benefits of flexible coordination. Through the acquisition, Southern Company will receive the human resources of the acquisition. This is crucial towards keeping a pulse of this new market – the new employees will have expertise on Mexico’s political, ecological, socioeconomic, technological, legal, and economic landscapes. By implementing a transnational strategy, in association with a divisional structure, this new subsidiary can make judgement calls based on local precedent, which can be much more preventative than an organizational protocol. In addition, it also brings trust to the locals that the company they are working for has their best interest in mind. Lastly, a transnational strategy will align with Southern Company’s culture – locals know more about environment to work safest, people trust those they already know, people work best when they trust management and feel safe, and people are more committed to a company that is committed to

A transnational company is a corporation that is registered and operates in more than one country at the same time (West's Encyclopedia of American La., n.d.). A transnational corporation has its headquarters in one country and operates wholly or partially owned subsidiaries in one other, or many other countries. Some companies will outsource a portion or sometimes all of their Information Technology (IT) functions to a foreign country for a verity of reason. Companies that move a portion of their operations, such as IT, need to investigate the

The goals of UNAIDS which is a joint program of the United Nations, are to reduce the sexual transmission of HIV/AIDs, prevent HIV among drug users, eliminate new cases of HIV in children, to reach some 15 million living with HIV with antiretroviral drugs, avoid tuberculosis deaths, close the resource gap, eliminate gender inequalities, eliminate stigma and discrimination, and to eliminate violence towards women and girls (www.UNAIDs.org). With so many objectives and goals, UNAIDS has a number of cosponsors. These cosponsors and their objectives are as follows:

Globally-integrated firms also do not suffer the financial drain of trying to be 'all things to all people' on a country-by-country basis: their strategies are effective in a wide variety of environments even though they do adapt locally to specific market needs. "Global integration expectations are

For Trans-National Corporations to be more globally advantageous, they must provide jobs to people and invoke a positive change through close connections with local governments and their economic ability to fund education, health and infrastructure. Their efforts to improve the world should not be a watershed and an attempt to fabricate a false image when in actual fact, the Corporations ar exploiting valuable and natural resources. This can be enforced through stricter international policies and educating the employees to increase their awareness of social corporate responsibilities and human

This chapter gives an insight on international strategy and how innovation plays a critical role for Multinational Enterprise

Transnational operations provide companies a way to establish activities that add value to its business. These activities include various world markets with national similarities as well as national differences. A strategic management plan should enhance the company’s global vision, sometimes with a modified effect for local markets. Transnational IT operations offer companies many advantages, but with these rewards also come drawbacks.

When you think of Harley-Davidson, you think of an all-American male riding on the open roads of the United States. It is an iconic American brand and well known to exude confidence and “cool”. However, with a vibrant history in the American culture, Harley-Davidson soon reached a point where they needed to expand their company. They needed to globalize their version of “American adventure” and sell that to the rest of the world, and they were able to do so by insourcing, outsourcing, exporting, and global sourcing. “International business is done by global sourcing, import/export, licensing, and franchising” (Schemerhorn). By encompassing all of these details into their financial plans, Harley-Davidson was able to encompass globalization.