Definition of Transnational Strategy

The transnational strategy is a framework on a strategic and tactical level when a company plans to expand its business in foreign markets with a decentralized local office abroad. A company established foreign offices to expand its sales or reduce its manufacturing cost. All activities or decisions are coordinated with the headquarter located in any country. The firm size, business model, and organizational complexity define the relationship among different offices as well as the control with the central office.


Companies with the transnational strategy adopt the same technology and policies to keep aligned on the organizational goal. Different countries have different guidelines for business operations and respective offices have to abide by the local rules.

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