Discuss a transnational strategy and explain its role in the global market today.
What will be an ideal response?
In essence, firms that pursue a transnational strategy are trying to simultaneously achieve low costs through location economies, economies of scale, and learning effects; differentiate their product offering across geographic markets to account for local differences; and foster a multidirectional flow of skills between different subsidiaries in the firm's global network of operations. As attractive as this may sound in theory, the strategy is not an easy one to pursue because it places conflicting demands on the company. Differentiating the product to respond to local demands in different geographic markets raises costs, which runs counter to the goal of reducing costs. Companies such as 3M and ABB (one of the world's largest engineering conglomerates) have tried to embrace a transnational strategy and found it difficult to implement. How best to implement a transnational strategy is one of the most complex questions that large multinationals are grappling with today. Few, if any, enterprises have perfected this strategic posture.
You might also like to view...
(Appendix) When preparing a schedule for the calculation of cash generated from operating activities under the direct method, an increase in Prepaid Insurance is
a. subtracted from cost of goods sold. b. added to cost of goods sold. c. added to operating expenses. d. subtracted from operating expenses.
Which of the following is true of ASYBL?
a. It stands for Asymmetric Balancing of Production Lines. b. It is used to solve problems related to line balancing. c. It leads to efficiencies in cost management. d. It is used to identify indifference points.
At the ________ level, we may choose to examine issues such as what types of training yield positive outcomes for organizations and trainees (i.e., what works).
A. macro B. resource C. structure D. micro
In the eBay use case study, load ________ helped the company meet its Big Data needs with the extremely fast data handling and application availability requirements
Fill in the blanks with correct word