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mgt4190discussion8 - 3 What is a transnational organization...

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1. What variables need to be considered in designing organizational structures for international operations? The major variables which have to be considered are the firm's strategy, size, and appropriate technology as well as the environment in those parts of the world in which the firm operates. Additional variables include geographic dispersion, differences in time, language, cultural attitudes and business practices. 2. What does it mean for an MNC to 'be global and act local', please provide examples. “Think local”, means fitting business models and approaches to the local reality with respect for the local culture and norms, with sensitivity to the local political context and with appreciation for the roles that the Chinese government expects MNCs to play. Act global” — that is, they must ensure that their behavior in China is in line with their behavior around the world.
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Unformatted text preview: 3. What is a transnational organization? Transnational capability is the ability to manage across national boundaries, retaining local flexibility while achieving global integration. Transnational organization is adaptation to all environmental situations and achieving flexibility by capitalizing on knowledge flows and two-way communication throughout the organization. 4. What are the implications of the relative centralization of authority and decision-making at headquarters versus local country units and subsidiaries? 5. What are the different types of Control Mechanisms employed in MNC operations? The two types of Control Mechanisms employed in MNC operations are Direct Coordinating Mechanism and Indirect Coordinating Mechanisms: include sales quotas, budgets, and other financial tools....
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