What are the basic components of the structural framework of transnational network? Provide an example of a transnational company
answer-
transnational network is the newest form of international organization arrangement which helps TNCs to take advantage of global economies of scale and also meet the local demand of customers.It is like a hybrid international strategy of global and multidomestic strategies, the organizational structure of firms pursuing transnational strategies is a structure that draws on characteristics of the worldwide geographic structure and the worldwide product divisional structure .
the basic components of the structural framework of transnational network are-
Dispersed subunits - these Are the subsidiaries located anywhere in the world where they can benefit the company . they are responsible for getting advantage of low cost factors and gaining new information on technology and market trends.
Specialized operations - these Are the operations that subunits can specialize, whether it is in product line, research areas, or marketing areas. specializations builds on the diffusion of subunits by trapping local expertise or other resources anywhere and everywhere in the company’s subsidiaries.
Interdependent Relationships - Must exist to manage the dispersed and specialized subunits, and units share information and resources continuously. To do this, transnational usually build communication systems based on the latest technology
the example of such TNC is Unilever and Nestle which are big brands having many sub brands under it and make products according to local needs of customers while making the global standards same.
What are the basic components of the structural framework of transnational network? Provide an example of...
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