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Global Business Management IB (MNB3702)
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TABLE OF CONTENTS
1 INTRODUCTION...................................................................................................... 2
Multinational enterprises (MNEs) typically employ diverse strategies to gain a competitive
advantage in the global marketplace within the realm of international business. Transsion is a
telecommunications corporation that retails a variety of mobile phone brands, including Infix and
Itel. The origin of this entity can be traced back to China, and it currently functions within the
borders of South Africa as its host nation. This essay will primarily centre on the operational
planning of Transsion, encompassing knowledge management, human resource management,
and marketing mix strategies that can enhance Transsion's positioning in the market. Additionally,
the financial challenges that Transsion is currently encountering in South Africa will also be
discussed.
2 OPERATIONAL PLANNING
2.1 KNOWLEDGE MANAGEMENT
The term "knowledge management" refers to the organisational components, procedures, and
mechanisms that facilitate the cultivation, utilisation, and dissemination of knowledge (Ode &
Ayavoo, 2020). The cooperation between internal and external teams is frequently imperative for
research and development endeavours. However, it is crucial to handle it with caution to prevent
disputes concerning intellectual property ownership. Numerous multinational enterprises (MNEs),
including Transsion, intentionally engage in innovation endeavours overseas with the objective of
accessing local knowledge. This approach is not only geared towards adapting to local demands
but also towards leveraging resources for the MNE's global operations. Multinational enterprises
(MNEs) are inherently intertwined with various local contexts, both domestically and abroad, due
to their operations in multiple host countries (Edwards, 2022). The global landscape offers
extensive prospects for knowledge acquisition and generation, however, the intricacies of
knowledge administration in this multifaceted milieu are equally extensive.
Transsion is a prominent multinational enterprise that employs the transnational strategy. The
transnational strategy endeavours to achieve cost efficiency while maintaining local
responsiveness, thereby seeking to optimise the benefits of both approaches. In multinational
enterprises that implement a localization strategy, the majority of knowledge sharing occurs
among subsidiaries, with minimal knowledge dissemination across units (Oliva & Kotabe, 2019).
At the outset, the establishment of the subsidiary may involve a transfer of knowledge from the
headquarters. However, subsequently, the subsidiary acquires an independent identity and
generates knowledge that is most effective in addressing the demands of the local markets. The
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