Question

What is a transnational strategy? Identify 3 characteristics of this strategy.

Answer 1

Transnational strategy:

An internationa business structure where the global business activities of a company are coordinated through cooperation between head office, operational divisions and subsidiaries or retail outlets that are located internationally. A transanational strategy is one that provides benefits of centralization provided by a global strategy along with local responsiveness characterstic of a domestic strategy.

Characterstics of transnational strategy:

In this type of strategy, a company develops different capabilities and contributions from various countries and will share them in integrated worldwide operations. To summarize, this is a combination of multi domestic and global strategies and company tries t gain advantage of both. This type of strategy is apt for companies that gain lot of advantages from global integration and requires a great deal of daptation to local markets. Examples of such types of companies are automobiles and pharmaceuticals come under this category.