What strategy balances global efficiency and local responsiveness?
Comprehensive and Detailed Explanatio n:
The Transnational strategy is designed to combine global integration (efficiency) with local responsiveness. Organizations using this model operate with a decentralized structure that empowers local units while also standardizing core functions globally to maintain synergy and competitive advantage.
GPHR Study Guide Extract -- Strategic Global Human Resources / Global Organizational Structures:
''A transnational model aims to simultaneously achieve global efficiency and local responsiveness. It incorporates elements of centralization for cost and quality consistency, while also allowing subsidiaries the flexibility to adapt to local markets.''
This approach differs from multinational (focused more on local autonomy) and global (focused on standardization over localization).
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