Mystic Co.,a Texas-based fashion apparel company with subsidiaries in more than 25 countries across the world,is one of the most recognized brands in the global and domestic markets.In a recent interview with The New York Times,the CEO and spearhead of Mystic Co.,Burt Swager said,"The secret of the company's success is its ability to strike the right balance between centralization and decentralization." Mystic Co.is a firm that successfully pursues a(n)________ business strategy.
A) global
B) transnational
C) home-replication
D) multidomestic
E) international

Question

Quizplus · Accepted Answer

Mystic Co.'s subsidiaries in over 25 countries show that it has a global presence. However, the CEO's statement that the company strikes the right balance between centralization and decentralization suggests that Mystic Co. has a transnational business strategy. Transnational companies maintain a global outlook while allowing subsidiaries to operate autonomously and adapt to local markets. Home-replication and multidomestic strategies do not fit the description provided. International strategy is too broad and does not specify how the company manages its subsidiaries. Therefore, the best choice is B, transnational.

Mystic Co,A Texas-Based Fashion Apparel Company with Subsidiaries in More Than