Tasha Haight

Professor Shapero
International Management
October 22, 2014
Volkswagens Comeback
Volkswagens customer-oriented structure most closely resembles the transnational
network structure. Volkswagen combines global integration with national responsiveness
(Volkswagens Comeback 308) putting it in the transnational category of last chapters chart, so
it makes sense that it would have a transnational network structure. Although like the global area
division structure, which allows the firm to reduce cost per unit and offer a very competitive
price (Global Area Division 325) for similarly made products in different regions, such as
almost all key regions Volkswagen has sold to (Volkswagens Comeback 306), the
transnational network structure focuses much more on the customer, as it is customer-oriented
instead of matrix-structured.
This structure can be beneficial entry into new markets by providing what the customer
wants at a decent price, ensuring a good customer base. However, the extremely complex
structure created with a transnational network could easily hinder the process of expansion.
Transnational networks are convoluted integrations of business functions and communications
where decisions are made at the local level, but each grouping informs headquarters and
sometimes each other (Transnational Network Structures 328). Communication reaching the top
and vice versa could cause some major problems within the company, especially during periods
of expansion, but the local level communication ensures stability in the country with a strong
customer base.
This transnational networking structure also leads to joint ventures and alliances easier
than a matrix system. With a transnational network, companies may join on and continue their
activity in a country just as the local portions of the main company would do, but with more
expertise since they are from that country. It would help the local business run more smoothly
making the whole global operation run more smoothly as well.