Culture in Organization

Topics: Culture, Globalization, International trade Pages: 3 (947 words) Published: December 10, 2010
What do you see as the main organizational problems that are likely to be associated with implementation of a transnational strategy? The transnational strategy is an international marketing method that "seeks to combine the benefits of global-scale efficiencies with the benefits of local responsiveness" rather than settling for the limitations of either strategy. The transnational strategy also strives for local responsiveness and external flexibility within the foreign subsidiaries at the cost of integration. The transnational strategy creates a mutually dependent relationship between the central hub and foreign subsidiaries, thereby empowering both worlds. The strategy also becomes difficult to implement due to its conflicting nature.

Most firms find it difficult to implement transnational strategy. In the long run, almost all firms want to include some elements of localized decision-making because each country has its own eccentric characteristics. For example, very few people in Japan prefer a computer that includes English-language keyboard. Another example would be how Coca-cola differentiates its ingredients for each country. Consumers in US prefer sweeter coca-cola while Chinese consumers prefer less sugar.

There are several issues associated with implementing transnational strategy. Organizational issues include: Cultural differences, Language barriers, Geographic barriers, technical challenges and sound knowledge of local market. Implementation difficulties include communication issues, trust issues, multiple roles, flexibility and cultural issues, among many others.  For example, with GM, some European operations may need to collaborate with operations in Latin America.  Significant performance ambiguities may occur with transnational strategies.  A way to address these challenges is with a very strong culture and many integrating mechanisms.

I personally believe that handling the technical challenges would be the most critical of all...
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