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4. If a firm is changing its strategy from an international to a transnational strategy, what are the most important challenges it is likely to face in implementing this change? How can the firm overcome these challenges? 5. "Licensing propriety technology to foreign competitors is the best way to give up a firm's competitive advantage.” Discuss 6. What kind of companies stand to gain the most from entering into strategic alliances with potential competitors? Why? BONUS: Discuss how the need for control over foreign operations varies with the strategy and core competencies of a firm. What are the implications of this for the choice of entry mode? 1. Discuss this statement. "An understanding of the causes and consequences of performance ambiguity is central to the issue of organizational design in multinational . firms." 2. Describe what organizational solutions a transnational firm might adopt to reduce the costs of control? 3. What is the most appropriate organizational architecture for a firm that is competing in an industry where a global strategy is appropriate?
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Running head: INTERNATIONAL BUSINESS

International Business
Institutional Affiliation
Date

1

INTERNATIONAL BUSINESS

2

1. Discuss the statement.” an understanding of the causes and consequences of
performances ambiguity is central to the issue of organizational design in
multinational firms.
In Multinationals firms, performance ambiguity is higher than in any other type of
organization. It is a reason enough why the multinational organizations must make the issue of
its firm design a key issue (Carrigan, 2017). There are different types of organizational designs,
and each has a different level of performances ambiguity. A multinational organization should
figure out the most appropriate design and after that it should try to look at the root problems of
the chosen design and the consequences resulting from the problems. It will help avoid any
surprises.
2. Describe what organizational solutions a transnational firm might adopt to reduce
the cost of control
The use of output and bureaucratic control techniques are the most convenient tools that a
transnational firm can use to reduce cost. Bureaucratic control uses a formal system to help
reduce cost while output control, like the name suggest, is the technique involves comparing the
actual output with the planned output to help determine the problems that have caused the
variation and also ...


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