Answer :

There are various issues that an organization may run across when implementing a transnational strategy.

What are the problems an organisation might face while implementing transnational strategy?

A transnational strategy is a strategy used by businesses to increase their operations and presence in international markets. The primary features of a transnational strategy are that coordination is centralized and that there is some degree of product and service customization and adaptation to the target market. There are various issues that the corporation may run across while implementing this strategy. The following are some of the most crucial issues:

  • Communication difficulties
  • Cultural issues
  • Regulatory and technical obstacles
  • Insufficient market knowledge
  • Information distortion
  • Lack of organizational oversight in the operations abroad
  • Establishing positive relationships with foreign entities is difficult.
  • Doubling up on resources

A transnational strategy offers incentives to pursue it even if it may be extremely difficult to implement. For instance, minimizing costs, expanding markets that result in greater demand, increasing resources, and utilizing some tax incentives.

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