BARLETT AND GHOSHAL - TRANSNATIONAL STRATEGY

Question 1

What is the transitional strategy

Answer 1

This is the best of both worlds, as it has the capability to achieve global integration economies of scale at the same time as totally adapting the product for local needs and customers in the market.

Question 2

What happend when cost pressure (global intergrations) is high

Answer 2

When cost pressure (global integration) is high and prosure for local responsiveness is also high.

Question 3

What does the transitional strategy include

Answer 3

Need to adapt products to meet local needs, whilst benefiting from EoS (economies of scale)

Decentralised decisions, such as research and development (R&D) and marketing. Which are then globally known as ‘global learning’

Need for mixture of centralised and decentralised decision making and coordination of separate units

Question 4

What is the aim when using the transitional strategy

Answer 4

You try to get the best of both worlds, you try to get a centralised core of the business which can then be specialised across the globe. And if these anything these subsidiaries learn, that can then be shared with other places and adapted if it fits those needs