International Strategies (IS)• Firms choose one or both of two basic type of IS: Business level and/or corporate level• International business-level strategy – Follows generic strategies of cost-leadership, differentiation, focused or broad• International corporate-level strategy – Home country usually most important source of competitive advantage • Resources … What is transnational strategy?A coordinated approach to internationalization in which the firm strives to be more responsive to local needs while retaining suffcient central control of operations to ensure efficiency and learning. adaptive ? a. localization Answer: TRUE Diff: 2 Learning Outcome: Describe the process of selecting and developing an international business strategy Skill: Concept Objective: 5 AACSB: Analytical thinking A) wholly owned subsidiary B) franchising C) joint-venture D) licensing Firms pursuing a transnational strategy focus on simultaneously attaining location and experience curve economies, local responsiveness, and global learning some decisions are centralized and others are decentralized the need for coordination and cost of control is high an array of formal and informal integrating mechanism are used a strong culture is encouraged … The need for coordination is lowest in firms pursuing a localization strategy, is higher in international companies, higher still in global companies, and highest of all in transnational companies. A) transnational structure B) decentralized federation Further, the transnational strategy combines the major strengths of both multi-domestic and global strategies … There is a very high level of performance ambiguity in firms pursuing a _____ strategy compared to firms pursuing other strategies. Firms pursuing a localization strategy are primarily concerned with local responsiveness. global ? They combine domestic and global strategies, using a central control structure to manage all operating units as an integrated global company. Global standardization strategy enables firms to provide products adapted to each local context. Multidomestic Strategy. It enables firms to gain scale economies as well as location due to the increase in sales in global volume. ? A firm using a transnational strategy seeks a middle ground between a multidomestic strategy and a global strategy. Firms pursuing a _____ strategy orient themselves toward maximizing responsiveness to local market conditions. Based on the definition provided by Zwass, V. (1998) on what transnational strategy means, an organization which applies transnational strategy is focused both on its domestic/local and the global strategies. Headquarters maintains control over most decisions, the need for integrating mechanisms is high, and strong organizational cultures are encouraged. ... MNEs that aim to combine the advantages of global integration and local adaptation are pursuing a … strategy. Is it pursuing a global strategy, a multi-domestic strategy, an international strategy, or a transnational strategy? internal rules and … A transnational business, on the other hand, invests in the countries where it operates. 【单选题】Firms pursuing a transnational strategy: 【判断题】Centralization gives top-level managers the power and authority to be able to bring about needed major organizational changes. 65) Strategic alliances fall within the _____ governance option for firms pursuing international strategies. What action distinguishes firms pursuing a transnational business strategy from firms using business strategies. A firm pursuing a(n) _____ will have a strong incentive to decentralize decision-making. It also helps transfer distinguishing competences and skills. striking a balance between centralization and decentralization Unilever, which decides when to centralize and when to decentralize depending on the products and the local markets is an example of a ______ company. Some decisions are centralized and others are decentralized, coordination needs are high, and an array of formal and informal integrating mechanisms are used. A) global standardization: B) localization: C) transnational: D) international: 16: For a firm to be successful, the firm's strategy must be consistent with the environment in which the firm … True ? FALSE Difficulty: Medium 22. databases ? Quiz on Chapter 11 - International Strategies, created by Strategy IO on 12/11/2016. Strategic changes come in many forms for the modern company. Its aim is to maximize local responsiveness but also to gain benefits from global integration. The strategies in the local or domestic … Firms pursuing a global strategy focus on reaping the cost reductions that come from experience curve effects and location economies 12. 【判断题】Centralization gives top-level managers the power and authority to … Firms using the international business strategy are mainly exporters and importers. Mondelez Pursuing A Transnational Strategy. A _____ strategy makes sense where there are efficient operations and where local responsiveness needs are nonexistent or can be neutralized. (p. 503) Over the decade, between 50 and 80 percent of all FDI inflows have been in the form of mergers and acquisitions. Slide 14-42 Environment, Strategy, Architecture, and Performance. Understanding the importance of a corporate strategy is a no brainer. 89) Organizational challenges are comparatively more difficult for the firm pursuing a transnational strategy than for the firm pursuing an international strategy. This term generally applies to the methods and structures that allow a firm to initiate and maintain functions in foreign countries while preserving central coordination at one specific location. Personal control is a type of control that tends to be most widely used in large firms… ? The home country may hold many different competences and it is only right to share it with other countries as well. With transnational strategies, firms focus on simultaneously attaining location and experience … This involves a simultaneous focus on reducing costs, transferring skills and products and boosting local responsiveness. 503) Firms pursuing global standardization or transnational strategies tend to prefer joint- venture arrangements over wholly owned subsidiaries. Firms pursuing global standardization or transnational strategies tend to prefer _____ arrangements. A. localization strategy B. transnational strategy C. global standardization strategy D. international strategy A. localization strategy 6 In firms pursuing a(n) _____, some operating decisions are relatively centralized, while others are relatively decentralized. Multidomestic firms extensively customize both their product offering and their marketing strategy to match different national conditions. why firms might want to pursue a strategic alliance strategy QUESTIONS 9 1. A solid corporate strategy narrows the focus of your organization and lays the groundwork for growth and development. One reason why firms might want to pursue a strategic alliance strategy is to exploit economies of scale. As such, it can adapt to local markets and may be quite aggressive about responding to … Operations become more complex within transnational companies. Does this mean that a firm pursuing an alliance strategy to exploit economies of scale […] Building on prior works in "context-embedded" research, this paper incorporates an MNC's strategic context into the analysis of its HR needs and identifies four new research directions that will help advance the academic study of IHRM and its contribution to practice, particularly for firms pursuing a global or transnational strategy. 【单选题】Firms pursuing a transnational strategy: 【单选题】Firms pursuing a global standardization strategy: 【单选题】Global learning based on the multidirectional transfer of skills between subsidiaries and the corporate center is a central feature of a firm pursuing a(n) _____ strategy. Definition: A transnational strategy is a set of planned actions defined by a company to have operations in markets abroad. Firms pursuing a multidomestic strategy orient themselves toward achieving maximum local responsiveness. Transnational business. Every … Many industries are now so competitive that firms must adopt a transnational strategy. Just as the transnational strategy is a combination or hybrid strategy between global and multidomestic strategies, the organizational structure of firms pursuing transnational strategies is a structure that draws on characteristics of the … We also demonstrate how business models, rather than firms (Devinney et al., 2000, Fan et al., 2012, Kobrin, 1991, Martinez and Jarillo, 1991, Roth and Morrison, 1992, Taggart, 1997) and functions (Kim et al., 2003), can be applied as the unit of analysis to understand how firms may balance global integration and local responsiveness when pursuing a transnational strategy… Throughout the 1970s and 80s, many of the firms pursuing a global strategy were very successful (Ghoshal and Bartlett, 1998). Structure follows strategy, implying that a transnational strategy must have an appropriate structure in order to implement the strategy. transnational ? Getting it right is the challenge. Even though this seems impossible, it is actually perfectly doable when taking the whole value chain into considerations. Global strategy: the organisation treats the world as largely one market and one source of supply with little local variation. Exploiting economies of scale should reduce a firm’s costs. For a firm … A) corporate B) market C) intermediate market D) hierarchical 66) In a _____, strategic and operational decisions are delegated to divisions/country companies. Are there any other forms of global strategy? matrix; Tacit organizational knowledge is embedded in ? They also tend to establish a complete set of value creation activities--including production, marketing, … Here the pay issues for expatiates can become particularly complex, as allowance must be made for home country norms, host country costs and expectations, and … It could be a new vertical focus, new leadership style, or innovative product pivot. Importantly, competitive advantage is developed largely on a global basis. https://yourbusiness.azcentral.com/transnational-business-strategy-27176.html For example, large fast-food chains such as McDonald’s and Kentucky Fried Chicken (KFC) rely on the same brand names and the same … In firms pursuing a(an) _____ strategy, headquarters typically maintains centralized control over the firm's core competency, and while they require a complex organization, it is not the most complex. (p. 503) A clear advantage of greenfield investments … TRUE Difficulty: Medium 23. Individual’s skills and know how ? A. global standardization strategy … 【单选题】_____ refers to giving a person in each subunit responsibility for coordinating with another subunit on a regular basis. In a rapidly globalizing environment, they A(n) _____ strategy offers competitive advantage to the firm facing pressures for global integration and local … Firms pursuing global standardization or transnational strategies most often use a geocentric approach to staffing, where the best individuals (regardless of nationality) are chosen fill positions in any country. The transnational company has characteristics of both the global and multidomestic firm. Firms—that pursue an international strategy—have valuable core competencies that host- country competitors do not possess and face minimal pressures for … In addition it simultaneously lowers … Firms pursuing a transnational strategy focus on simultaneously attaining location and experience curve economies, local responsiveness, and global learning. Firms pursuing a global standardization strategy focus on the realization of location and experience curve economies. The rationale and significance of each … Such a firm tries to balance the desire for efficiency with the need to adjust to local preferences within various countries. Implementing such a strategy may not … Transnational companies often try to create economies of scale more … Building on prior works in “context-embedded” research, this paper incorporates an MNC’s strategic context into the analysis of its HR needs and identifies four new research directions that will help advance the academic study of IHRM and its contribution to practice, particularly for firms pursuing a global or transnational strategy. There are many benefits for pursuing a transnational strategy.