Question

Relish is a large fast-food chain that operates in many countries. As there are several competitors in the fast-food sector, the company has been facing intense pressures for achieving low-cost structures. The company also faces the task of customizing its product line as there are significant differences in tastes and preferences among customers in different geographic locations. In order to achieve both low costs and product differentiation, the company should aim to pursue a __________ strategy.

A) divestment
B) downsizing
C) transnational
D) localization
E) global standardization

Answer 1

Answer: Option (C)

Step-by-step explanation:

The transnational strategy refers to the international organization structure under which an organization's business activities tends to be coordinated via other cooperation and the interdependence in between the head office, international subsidiaries and operational divisions or other retail outlets. Transnational strategy tends to offer centralization benefits which are provided through global strategy alongside local characteristic of the domestic strategies.