Networks of Networks

Networks of Networks

            Most of the successful business organization today exists as networks of networks. Such networks of networks include transactional corporations. Transactional corporations are corporations that operate in multiple countries at the same time. Such corporations have become the most powerful political and economic entities across the globe. It is worthwhile to note that there are transnational corporations that are powerful than some national states. However, most of the transnational corporations have got limited geographical scope as far as sales are concerned. This paper reviews the networks of networks articles.

The two analytical studies am going to develop are human subjects and the integrity of the data collected.

Human Subjects

In most of the cases, human subjects can be analyzed in terms of quantitative. In search engines such as the Google and Yahoo, they are measured in terms of the number of traffic that flows into them.  The more the traffic flows on a site the more the achievements, and vice versa. Human traffic can be generated by ensuring that the data portrayed follows the right protocol, and is of high quality.

Integrity of the data collected

Data is the main controlling feature in networks. It’s the leeway to any communication. For any effective information between two parties, there has to be data transferred and interpreted well by both parties. The study of data integration can be classified as qualitative analysis. This is because data has to be of high quality for ease of understanding.

For the research paper, I used sample collection, extraction and saving as analytical methods in the studies.

The purpose of the study is to analyze the impact of transnational corporations on regional level of networks to networks.

Transnational corporations operate on regional level.  Thus, regional elements have become vital in terms of product offering or strategic decision making and implementation. Regional approaches in establishment of transnational corporations have been described as global strategy. Before a prospective company in a particular country deciding on whether or not to expand its business operation across the region, the company requires to come up with a clear global strategy (Verbeke & Rugman, 2004). The global strategy should include outlining the main business objectives clearly, outlining the competitive objectives clearly and setting the scope to which the business will operate as well as the strategy of establishing the geographical units.

However, there are several challenges that face transnational corporations, such challenges include. Customer requirements, social, economical and political differences may affect the business units in various countries directly or indirectly (Whitaker, 2010). Customer requirements differ across different countries. This depends on several factors such as economic development as well as cultural preferences. The products that customers like in one country where the corporation has established its branch is not what customers in other countries prefer. Therefore, a comprehensive research should be carried out to establish the taste and preferences of different customers in different countries. The outcomes of such a research can be used in designing a sustainable product that will satisfy the needs and wants of various clients. In addition, the social, economic as well as political factors also affect the transnational corporation in one way or the other.  The social setup present in a particular country determines the products and services to be consumed. For example, if majority of the population in a particular country are the youths. The company should design most of the products targeting the youths. The gross domestic product of a particular country determines the performance of a particular business unit located in a particular country. If the gross domestic product of a particular country is high the economic performance of the business unit is also expected to be high.

Finally, the political factors also determine the success or failure of a transnational corporation (Verbeke & Rugman, 2004). Political leaders design political acts that govern business transactions. Some of these acts affect regional business transactions. Some of the acts may be designed to hider establishment of particular business. In this case higher import and export duty tax may be put in place as part of political act to limit transaction of particular business.

The annual world investment reports ranks the top 100 transnational corporations in terms of assets, sales as well as employment base (Laura et al, 2009). The top 20 transnational corporations operate in the countries which are members of the European Union. However, 9 of the top 20 transnational corporations operate in the triad region market. Such transnational corporations include Vodafone, Suez, Nokia, Philips electronics, Nortel networks, Volvo etc.

There are only 3 out of 20 transnational corporations that have a balanced distribution of their sales across the triad region (Laa & Zhou, 2005). These transnational corporations include Nokia with 25 % sales in America, 49% sales in Europe as well as 26% sales in Asia and pacific region. The second firm is Philips electronics with 28.7 % in United States of America, 21.5% sales in Asia pacific, 6.8% sales in other parts of the world and 43% sales in Canada. Thirdly, LVMH has got 26% sales in America, 36% sales in Europe, 32% sales in Asia as well as 6% sales in the rest of world.

Despite the above transnational corporation having achieved global corporate success they have got a along way to go in implementing competitive strategies. This is because there are a lot of competitors who are coming up with advanced competitive strategies (Whitaker, 2010). However, some of these competitors are from other region but they are using unethical competition. In this case the unethical competition includes developing of counterfeited products which are sold at relatively cheaper price than that of the original competitor. For example, there are a lot of counterfeited Nokia phones in the market today which are sold at relatively cheap prices as compared to that of the original phones.

Large retail corporations are more home region based in contrast to manufacturing transnational’s Verbeke & Rugman, 2004). For example Wal-Mart has got 4,414 stores worldwide of which 3,244 are in the United States, 196 are located in Canada and 551 are located in Mexico and the other 423 are found in international markets.

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