Which type of global business strategy is characterized by a strong central management core with a considerable dispersal of power?

The transnational strategy is characterized by a strong central management core that balances global efficiencies with local responsiveness. This approach allows a company to centralize certain operations for efficiency while also distributing significant decision-making authority to local branches. This empowers local subsidiaries to adapt strategies and operations according to the unique demands and conditions of their markets.

By employing a transnational strategy, companies can take advantage of both global and local market strengths. They can benefit from economies of scale and centralized control for core functions, while also being agile and responsive to local customer preferences, regulatory environments, and cultural differences.

This dual focus on central efficiency and local adaptation sets the transnational strategy apart from other business strategies that may lean more heavily toward either centralization or decentralization. For example, a domestic exporter primarily focuses on exporting products but maintains centralized control without significant local adaptations, whereas a multinational strategy may decentralize many functions with autonomy for local subsidiaries but lacks the strong central oversight characteristic of a transnational approach.