Assessing Internationalisation - Bartlett And Ghoshal - Transnational Strategy.

Question 1

Managerial pressure within transnational strategy to

Answer 1

Minimise costs whilst also customising products to meet demands of product market.

Question 2

Main attempt of transnational strategy.

Answer 2

To balance and meet the pressures of being both low cost and responsing to local differences to keep them as competitive as possible.

Question 3

Allows a business to

Answer 3

Persue both goals simultaneously (cost minimisation and responding to local differences).

Question 4

What happens to key skills, knowledge and components?

Answer 4

Developed in regional centres but shared across the global business.

Question 5

Three pressures within the transnational strategy. Effect?

Answer 5

Pressure for centralisation and delivery of customised products. Difficult to maximise economies of scale.

Cost pressures. Redesign products to use identical componenets - but final product is differentiated for different markets.

Question 6

Other strategy to meet two objectives. Why?

Answer 6

Combine a few large scale manufacturing centres in favourable locations and assembly plants in each of their markets.

To allow for customisation to local needs.