What Is a Transnational Company Example

Most of the company`s strategies are standardized across all regions in order to maintain efficiency and reduce costs as much as possible. In most cases, each of the company`s regional offices will follow a central sales and marketing strategy and work within the parameters defined by the management team. One of the disadvantages of transnational business strategies is that managing a full global presence from a single headquarters is difficult and requires significant scrutiny. A lack of oversight could mean the loss of control of the company`s operations in some countries. Transnational corporations (TNCs) or multinational corporations (MULTINATIONALS) are companies that operate in more than one country. Unilever, McDonalds and Apple are examples of TNCs. Transnational corporations essentially balance global standardization and efficiency with the ability to tailor products, services and marketing to local markets. It was said that transnational corporations “think globally and act locally”. The company`s “policy ofisation”, together with a growing number of local competitors and the isolation of many companies operated by Unilever during the Second World War, created a decentralised organisation of self-sufficient subsidiaries. But the head office also recognized the danger of becoming too decentralized. Without the unileverization of these Indian, Australian, Brazilian and other local managers, the company`s many dispersed entities would not have shared a common corporate culture or vision.

As a result, the allocation of products to the three food units over time began to hinder rather than support Unilever`s progress. The market for low-calorie products has been growing steadily since the 1970s. But until 1988, our low-calorie spreads were in the edible fat group, low-calorie soups were part of foods and beverages, and low-calorie frozen foods were in the frozen food and ice cream group. Transnational corporations can choose where production takes place and often choose countries with low wages and minimum restrictions to reduce costs. However, transnational corporations are often criticized for avoiding higher tax rates, forming monopolies and hurting small businesses in the region. Therefore, management must find strategic ways to make a profit while maintaining a respectable reputation. In 1995, Unilever opened Four Acres, its international management training centre near London. Today, the head office sends 300 to 400 managers from all over the world to this international training ground every year. In addition, in many countries, training is organized on a local basis, sometimes in our own centers (for example, in the city of Megamendung on Java), sometimes in rented facilities.

Coca-Cola operates in more than 200 countries and takes a localization approach that means you can order a “cola”, a “cola” or a “coca” depending on the global market. Each local market has a slightly different message and formula, but they use simplified and universal messages that work independently of the market: happiness, pleasure and sharing. The combination of this standardization with variations in local flavors and packaging is what makes them so successful. In terms of products, the company has improved its position as the new strategic groups are more in tune with the identified needs of consumers. Geographically, we continue to rely on the knowledge of our operating companies to assess the product expertise to be deployed in their local markets. In short, we now have more unity and can also make better use of the many and diverse opportunities that diversity offers. In addition, a transnational business strategy will have a global branding and marketing strategy, but will tailor its campaigns, messages and communications according to the region in which the marketing is disseminated. Transnational companies understand the importance of being sensitive to local culture, language, lifestyles, etc., and therefore ensure that their marketing content is consistent with the local culture and language of that region. Like transnational corporations, multinational corporations have sites or facilities in several countries. The difference is that each acts as a separate entity and does not form the integrated network characteristic of transnational corporations. For example, a group was tasked with strategically planning and monitoring what we call “ice cream snacks.” In this growing market, which requires equally rapid innovation, Unilever sells a number of highly successful products, such as Magnum, Europe`s most popular chocolate ice cream bar.

The strategy team is led by a marketing director from Birds Eye Wall`s in the UK and consists of five additional members, most of whom are marketers, other operating companies in Italy, Germany and the Netherlands. This team works closely with the relevant strategic group at headquarters, but also has the power to implement the strategy itself. In addition, cross-assignments between companies are very important in order to create unity, a common sense of purpose and an understanding of different national cultures and attitudes. These displays can be made in other countries or in all product lines. My own career took me to Colombia and Turkey, where I learned that the use of logic to solve problems, based on my studies at the University of Amsterdam, often did not match the approach of local citizens. For example, while setting up preventive maintenance systems in factories seemed obvious to me, the local attitude was to wait for a machine to break down before deciding what to do…