Dissertation (MA Business Administration)The Purpose of this study was to understand the knowledge transfer from developed nations to local businesses in Tanzania. The objectives of the study were to understand the major business conducted by Bakhressa Group of Companies (BGC), to assess the transfer of knowledge towards production and to identify the challenges face by BGC in adopting knowledge transfer from developed countries. Data collection methods include structured questionnaires, Focus Group Discussion (F-G-D), Key Informative Interviews, and researcher‟s personal field observation. A sample of 50 workers was randomly selected from the Bakhressa companies. Data were analyzed using SPSS 16 computer program. The main findings of the study show that BGC has established different businesses mainly based on industrial production. Some of the products produced are such as pure drinking water, milk, juices and carbonated beverages; also the company is engaged in transportation services through water and road transport of passengers as well as cargo. The knowledge transfer was noted in Bakhressa industries by comparing the production methods which were used few years back to recently methods based on the knowledge and skills of workers, technology imposed in the production process, kind of raw materials used and the use of relevant machines in production. Challenges faced by BGC in the process of knowledge transfer were identified such as less budget set aside to cover the process of knowledge transfer such as seminars and workshops Generally transfer of knowledge in BGC is observed hence it is a continuous processes that has no end because as day goes on new knowledge and technology are identified by developed countries. It is recommended that Management of the industries of BGC should increase the budget on issues relating to knowledge acquisition and awareness to workers on the importance of innovation as a way to penetrating international market, so that the local products can be able to compete in International Market.