tnc is when a buisness company expands
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When a company expand its business in different parts of the world it looses its identity. Loosing the identity does not indicate the loosing of its value for exapmle, NESTLE is not a Swiss company, it is a world companyin a place where there is no boundary. It becomes a global market where MNC's grow into TNC With the constant merger and acquisitions across borders , there is a constant influx of culture, values and a fluid identity.
MNC'S and TNC'S are fundamentally different.MNC's adopt to the local environment, so there are endless variations in the product, scope and in the market segments. Ultimately the environment is supreme.
On the otherhand, the TNC's they control their own business environment. They do not adopt normally and they establish a linkage with the local milieu.
Global companies produce standard products and TNC produce the local product but with local variations.There should be a high degree of local learning to make a company TNC.The point is not the knowledge gained in any particular market, but the knowledge gained and transferred accross different location in the world.
TNC's transfer learning from headquarter to subsidiaries and subsidiaries again transfer learning to the head quarter. So, it is a reciprocal relation based on either control mechanisms or informal relationships with trust. Strategy Flowdiagram of TNC:
RESOURCES CAPACITY CORE COMPETENCE LEARNING NETWORK GROWTH OF AUXILLIARIES TNC
61.16.159.218 15:30, 17 December 2006 (UTC)A.B. Asraful Haque Barbhuiya,SIMS-Gaziabad. email- ab_asraf@yahoo.co.in