What type of organizational structure fits best with a transnational strategy?

What type of organizational structure fits best with a transnational strategy?

• A. International division
• B. Global matrix
• C. Geographic area structure
• D. Global product division

Answer: (B)

A global matrix structure is particularly well-suited for a transnational strategy because it effectively balances the need for both global efficiency and local responsiveness. In a transnational strategy, organizations strive to leverage both the advantages of global scale and local market adaptability. The global matrix structure allows for dual reporting relationships, where employees report to both product and geographic managers. This facilitates the integration of global products with local market needs, enabling the organization to respond rapidly to changes in various markets while maintaining efficiency in global operations. Furthermore, the matrix structure encourages collaboration and knowledge sharing across different regions and product lines, which is essential for successfully implementing a transnational strategy. Organizations using this structure can foster innovation by bringing diverse perspectives together, ultimately enhancing their competitiveness in the global market.

A global matrix structure is particularly well-suited for a transnational strategy because it effectively balances the need for both global efficiency and local responsiveness. In a transnational strategy, organizations strive to leverage both the advantages of global scale and local market adaptability.

The global matrix structure allows for dual reporting relationships, where employees report to both product and geographic managers. This facilitates the integration of global products with local market needs, enabling the organization to respond rapidly to changes in various markets while maintaining efficiency in global operations.

Furthermore, the matrix structure encourages collaboration and knowledge sharing across different regions and product lines, which is essential for successfully implementing a transnational strategy. Organizations using this structure can foster innovation by bringing diverse perspectives together, ultimately enhancing their competitiveness in the global market.