The Dutch-based electrical and consumer electronics multinational,Philips,has transferred the headquarters for several of its global business away from the Netherlands.In terms of Bartlett and Ghoshal's typology of multinational strategies,this represents a transition from:
A)A "centralized hub" to a "decentralized federation"
B)A "centralized hub" to a "transnational"
C)A "decentralized federation" to a "transnational"
D)A "coordinated federation" to a "decentralized federation"

Question

Quizplus · Accepted Answer

The transition from the headquarters being in the Netherlands (a decentralized federation) to being spread out globally (several business headquarters) represents a move towards a transnational strategy according to Bartlett and Ghoshal's typology. A transnational strategy seeks to balance global integration with local responsiveness, which is achieved through a decentralized network of business units operating in different regions.

The Dutch-Based Electrical and Consumer Electronics Multinational,Philips,has Transferred the Headquarters