Which of the following actions distinguishes firms pursuing a transnational business strategy from firms using other business strategies?
A) responding to local challenges and opportunities quickly
B) exerting strong control over its subsidiaries
C) striking a balance between centralization and decentralization
D) responding to global challenges and opportunities quickly
E) standardizing product offerings to achieve economies of scale

Question

Quizplus · Accepted Answer

The transnational business strategy is characterized by a balance between centralization and decentralization. This means that decision-making power is dispersed among different levels of the organization while still maintaining some degree of central control. This allows the firm to respond to local challenges and opportunities quickly while maintaining a consistent global strategy. The other options are not unique to transnational strategy as other business strategies also aim to respond to both global and local challenges, exert control over subsidiaries, and achieve economies of scale through standardization.

Which of the Following Actions Distinguishes Firms Pursuing a Transnational