Bartlett, C. A, & Ghoshal S. (1988)

Question 1

Administrative Heritage

Answer 1

The companies existing configuration assets, it’s traditional distribution of responsibility, and its historical norms, values, management style

Question 2

Transnational capability

Answer 2

The ability to manage across national boundaries, retaining global flexibility while achiving global interrogation.

Question 3

Multinational vs Global vs Transnational Models

Answer 3

Multinational: Decentralized federations with independent subsidiaries (e.g Philips)

Global: Centralize hubs with strong headquarters control (e.g Matsushita)

Transnational: A balance between local responsiveness and global Integration (e.g Ericsson)

Question 4

Decentralize Federation

Answer 4

A structure where national subsidiaries operate independently with minimal central control.

Question 5

Centralized Hub

Answer 5

A structure where headquarters retains strong control over international operations, often limiting local autonomy.

Question 6

Transnational organization

Answer 6

A structure that integrates global efficiency with local responsiveness, balancing centralized control and subsidiary autonomy.

Question 7

Importance of multiple linkages

Answer 7

Maintaining strong communication channels between headquarters and subsidiaries to ensure coordination without stifling local responsiveness.

Question 7

Market Mechanisms in Decision Making

Answer 7

Using internal competition and demand-driven system to align R&D with market needs

Question 8

Interdependence of Resources

Answer 8

Creating reciprocal dependencies among subsidiaries to encourage knowledge sharing and integration.

Question 9

Role of Expatriates in Subsidiaries

Answer 9

Using Long term expatriate managers to bridge HQ and local operations, fostering global integration.

Question 10

The Need for Transnational Capabilities

Answer 10

Companies must develop structures that allow them to think globally while acting locally to remain competitive in international markets.

Question 11

According to Barlett and Ghoshal, what is the biggest barrier to implementing a transnational strategy

a) Government regulations

b) The organizational capability to execute the strategy

c) Lack of a clear strategy

Answer 11

b) The Organizational Capability to execute strategy

Question 12

What orgaizational model do Barlett and Ghosal advocate for in multinational companies?

a) A decentralized federation where each subsidiary operates independently

b) A transnational model combining global efficiency with local flexibility

c) A fully centralized hub

Answer 12

b) A transnational model combining global efficiency with local flexibility

Question 13

What is one of the key challenges multinational corporations face, according to Bartlett and Ghoshal?

a) Balancing global integration with local responsiveness

b) Overreliance on a single market

c) Lack of capital investment

Answer 13

a) Balancing global integration with local responsiveness

Question 14

What can “managing responsibility transfer”look like as part of the applied Transnational Model?
A) Making sure marketing, R&D and sales managers coordinate their responsibilities by having regular meetings alternating between hosting them in the headquarter country and countries with subsidiaries.

B) Having one head manager who appoints other managers to take care of divisional responsibilities.

C) Making employees start their career in research, then move to development and later to production taking with them their major projects.

Answer 14

C) Making employees start their career in research, then move to development and later to production taking with them their major projects.

Question 15

What is a key characteristic of Bartlett and Ghoshal’s transnational model?

a.Centralized decision-making at headquarters

b.An integrated network of interdependent units

c.Focus solely on global standardization.

Answer 15

b.An integrated network of interdependent units

Question 16

In the transnational model, how do firms achieve a balance between global efficiency and local responsiveness?

a. By standardizing all product globally

b. Through centralized control of all operations

c. By fostering inter-unit collaborations and knowledge sharing.

Answer 16

c. By fostering inter-unit collaborations and knowledge sharing.

Question 17

According to the Authors, what role do subsidiaries play in a transnational corporation?

a. They act solely as implementers of headquarters strategies

b. They function independently without coordination.

c. They contribute to global competencies and innovation.

Answer 17

c.