Transnational Organizations

Challenges Faced by Transnational Organizations

Organizations of a transnational nature have to manage a lot of crucial areas simultaneously. It includes their power and strengths to adopt global competency, national awareness and knowledge development and growth on a worldwide basis. To be a successful global organization, they have to create a balance in their approaches and targets. They have to maintain an extreme level of strategic freedom and corporate autonomy to subsidiaries, acquire a complete grasp and control on making strategic decisions and the flow of information (Ghimire, 2011)..

Global Integration

This kind of integration implies on the significance of the needed control over main resources and strategic operations. This control in turn adds value in their supply chain in the context of global perspective. Smart logistics are imperative to win the competition in the market. While operating globally, you have to face immense competition from all sides. The cycle of the product should cost you less but provides you with ample profits and hitting your set targets (Pries, 2002).

Brand Image

Brand image becomes mandatory to make you desirable in the markets. Consumers will see what you make them see you. It does not matter to them how. Organizations, especially transnational companies, are utilizing large part of their resources for improving the image of their brand. They even have brand managers who with their team aim to attain the consumer awareness about your brand. Companies now use various international and celebrities to endorse their brands.

Communication Flow

Communication is the hub of smooth execution of planned strategic formulas. It becomes quite challenging for the transnational organizations to ensure the needed communication. Diversity makes things difficult, yet, not impossible. Today organizations even have crisis management teams solely to deal with communication problems. Diversified workforce may have different perceptions and attitudes. You have to bring them to work collectively to achieve shared goals and targets, in short the vision of the company (Pries, 2002).

Knowledge Management

Acquiring the needed knowledge in a highly competitive market is again a challenge. Employees want a package for the growth and development. Dissatisfaction is hard to remove when there are many opportunities floating in the market. However, the current recession has changed the situation little, but employees with competency and expertise are still desirable and cash their terms of working well. Responsibility for hiring and retention requires quality attention (Ghimire, 2011).

Local Acuity and Responsiveness Global

Organizations have to go extra miles to adjust in the context of the local cultures in which they are operating. It includes your ability to render prompt and needed responses at the time of crisis or any sudden change (positive or negative). You have to make quick decisions while keeping your visions and resources in the mind. For instance, if making of certain equipments is calculated as cheap, they you have to decide on infrastructure to plan and execute actions.

Normative Integration

It implies on understanding the social aspects of the country you are operating in. Social acceptance adds value to your brand. You have to understand native values, attitudes and ...