Changing Strategies from International to Transnational
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If a firm is changing its strategy from an international to a transnational strategy, what are the most important challenges it is likely to face in implementing this stratgey?
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The solution discusses changing strategies from international to a transnational strategy.
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A transnational strategy represents the latest thinking of global operations for organizations. Unlike international operations, transnational strategies involve a full integration of the various branches owned by the organization. There is a blurring between the various branches as they become greater integrated, with no one particular headquarter or branch controlling operations. The benefits of a transnational strategy are that it facilitates greater innovation, efficiency, and responsiveness to a changing external environment. There is a greater 'pooling' of resources between all subsidiaries and branches. A good example of a transnational organization today would be Philips NV, which operates all its branches as one combined interrelated unit. However, ...
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