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Transnational Organizations: Strategic Roadmap Simulation Coursework

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Updated: Jul 24th, 2020


The basic challenges faced by international and transnational organisations include establishment of rules and strategies appropriate for the cultural peculiarities of different nations. In other words, the issue of cultural diversity should be correctly approached. Moreover, the examples of Bharti Airtel Limited shows that it is necessary to cultivate a global mindset before addressing the needs of a foreign market. In addition, proper assessment of resources and changes introduced in the sector of human and financial resources to reach the goal will result in adoption of an effective approach.

Establishing connections with all representatives of the international market including competitors, partners, and potential and already existing customers will make the company’s performance more productive. It is important to address the issues of cultural diversity, use advantages and incentives provided by the market, and conduct a research needed to operate effectively in the market. Besides, cross-border organisations implement different competitive innovations such as price reductions, improvement of budgeting, and investments targeted at the foreign market but the first step that should be taken is the exploration of the market and its peculiarities.

Challenges Faced by Transnational Organizations

As reported by Chernev and Kotler (2009), diversity goals are one of the challenges outlined in the running of the multinational corporations more so in regard to the expansion concerns that are likely to be the aim. Goal implementation is a second factor after setting and the monitoring part is needed to ensure they are implemented properly, which is only made realistic by an effective communication both across and between all levels operational in the organization (Chernev and Kotler, 2009).

For multinational corporations to achieve the diversity goals implementation there must be a reward scheme and a reprimand for the less concerned with goals achievement. As transnational organisations struggle for customers’ satisfaction through improvement of quality and product delivery, some vague demands may not be well understood hence leading to poorly defined and documented product designs. Larson and LaFasto (1999) argue that there should be a clear definition of the organizational operational scope to ensure that the product brought about and documented is addressing the regards of the clients and meets their demands.

According to Saloner, Shepard, and Podolny (2000), business member group conflicts are also one of the challenges. This involves not being at par of the systems analysts, project head, and leader of the business and amongst others the information technology specialist. Larson and LaFasto, (1999) explains being a multinational is not a simple task to handle, the integration of different specialists located at varying areas in not simple either. Due to such a thing organizational expansion and growth is affected big and due to it the conflict that exist should not be allowed to stay. Globalization is also one of the challenges that do face the transnational entities. The myriad of concerns related to environmental perspectives makes it challenging for the managers that do the job across the national boundaries.

Organizational Capabilities Needed

To be able to handle the challenges it requires various organizational capabilities. A project should be a mandate to all employees and customers as culture change in an organization that does run operations globally if not all the subsections work together and realistic plans put brought up is hard to achieve. Zero tolerance policy to the non-compliance should be brought about to catch up with the defaulters. Because of the diversity program, it would be easier for the organization to realize its diverse goals with little resources on commitment (Larson and LaFasto 1999).

The lack of clarity should be brought about by the business analyst effort to come up with a way of complete integration of the costs related to answering the requirements together with investment with the sole aim of making clarifications of the business function compass. Conflict amongst the business groups requires one to define roles and elicit as well as structuring and validating business communication and the requirements of the clients. Globalization needs an effective management of the diverse business environment to be able to pull through with the business venture. The managers have to bring into the business the skills that are related to the betterment of the operating environment for the transnational organization growth and expansion.

Competitive Innovations

Competitive innovation refers to the revolutionary thinking though radical about the likely changes in the products that an organization does produce as well as the processes that they do undertake or rather the organizations themselves. For the transnational organization, some of the most successful competitive innovations involve the usage of the user-centred approaches. This is the incorporation of the product users in the focus groups with the aim of creating loyalty to the output through ensuring the customers will adopt the products themselves. Management tools should also be reinvented to ensure that their impact on innovation is positive and are likely to lead to a competitive advantage. The way the entities have been managing resources allocations and usages as well as the staff portfolio should be changed to give a wider scope for growth and expansion.

A product innovation is also one of the likely areas where the organization can have a competitive advantage (Lewis, 2006). This involves the designing of products that are more satisfying to the clients than the ones already into the market. This if well outlined and implemented would ensure that the transnational organization should be able to enjoy a bigger market share hence realization of more returns. Low cost strategy is also one of the adoptable competitive innovations. This involves producing the same products at a lower cost than it used to be before hence ensuring that their profit margin is widened. A lower cost is positive as opposed to spending more on non-rewarding schemes.

According to Lewis (2006), Management consulting and other variables such as training and good management of the entities projects should also result to a competitive advantage. The entities should come up with some web based and realistic planning of the organization, the management of changes, and other transformations that would ensure a better position is realized. Management consulting should be incorporated into the organization to ensure that it is able to manage its resources well.


Transnational organizations have to embrace client-based policies and product as well as process oriented perspectives in its daily running to ensure that the most competitive innovations are enjoyed. Technological innovations as well as exploration of cultural diversity issues are sure to contribute greatly to the operation of a transnational company in the global market. Implementations of well-documented designs can e beneficial as well as reassessment f financial and human resources.


Chernev, A., and Kotler, P. (2009).Strategic Marketing Management. Miami: Brightstar Media.

Larson, C. E., and LaFasto, F. M. J. (1999). Teamwork: What Must Go Right/What Can Go Wrong. New York: Sage Publications.

Lewis, J. P. (2006). Fundamentals of Project Management.Sydney: AMACOM.

Saloner, G., Shepard, A., and Podolny, J. (2000). Strategic Management. UK: Wiley.

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