Implementation of Transnational Strategy Research Paper

Implementation of Transnational Strategy - Research Paper Example With all its advantages to the organization, a transnational strategy has numerous problems with the organization. These challenges may include; Culture diversity; Global businesses have a market in different foreign countries worldwide. Meeting the needs of these various foreign countries is a challenge because different cultures come with different preferences. Operating with a single strategy, for example, marketing will be a challenge because one cannot advertise something like pork to Muslims (Simon Harris, 2010).Unexpected additional costs; It is better for a subsidiary to manage its expenses and activities than the head office to do the same.Different locations will have different expenses and legal requirements and there it is always difficult to budget for all subsidiaries at once without considering their business environments. Political influences; Global businesses will involve exposure to different political environments. The political environment will determine the succ ess of the strategy. In the case of unfair political interventions in various markets, the strategy fails but when the political influence favors the global business, the strategy implementation succeeds.Communication barriers; Global business involves communicating the business values and strategies. There is a need for a fundamental communication language and understanding of the foreign languages.  Subsidiary managers, for example, need to be trained to understand the languages in the countries they are representing their company