In order to realize the strongest competitive advantage,firms engaged in worldwide competition must ___________.
A) require that all of their various business units follow the same strategy regardless of location
B) ensure that all business units follow a strategy strictly tailored to their respective locations
C) pursue a strategy that combines the uniformity of a global strategy and the specificity of a multidomestic strategy in order to achieve optimal results
D) attempt to use the strategy that was most successful in their home country

Question

Quizplus · Accepted Answer

A transnational strategy strives to optimize the trade-offs associated with efficiency, local adaptation, and learning. A core tenet of the transnational model is that the assets and capabilities of the firm are dispersed according to the most beneficial location for each activity. Thus, managers avoid the tendency to either concentrate activities in a central location (a global strategy) or disperse them across many locations to enhance adaptation (a multidomestic strategy).

In Order to Realize the Strongest Competitive Advantage,firms Engaged in Worldwide