Final answer:
A transnational strategy involves operating in multiple countries and adapting products or services to local markets by tailoring them to suit local tastes and preferences.
Step-by-step explanation:
A transnational strategy refers to a business strategy that involves operating in multiple countries and adapting products or services to local markets. This strategy is characterized by a decentralized decision-making process, where local managers have a significant degree of autonomy in decision-making. The goal of a transnational strategy is to leverage global opportunities while also addressing local customer needs and cultural differences.
For example, a multinational corporation like Coca-Cola uses a transnational strategy by tailoring its products to suit the local tastes and preferences of different countries. In India, the company offers various regional flavors of Coca-Cola, such as Thumbs Up and Limca, to cater to the local market.