Question

Describe the differences between an international strategy and a transnational strategy. Why would a business choose one over the other? What are the three challenges in changing from one strategy to another?

Answer 1

Describe the differences between an international strategy and a transnational strategy

• Global strategy aims for centralized management control and standardized, uniform products or services in all countries where they operate.
• transnational strategy aims to control the activities of local-market operating units to achieve integrated and interdependent synergies among the operating units.

Why would a business choose one over the other?

• Depending upon the market a compay wants to aquire, they chose a strategy
• If a company wants synergies in its processes, then it choses transnational strategy
• If a company wants centralized management control in its processes, then it choses international strategy

What are the three challenges in changing from one strategy to another?

1. Creating a new mindset
2. Converting the insight into action
3. Sustaining the change