The specific organizational configuration depicted in Exhibit 11.9 is a global matrix
structure. Firms tend to use it to pursue a transnational strategy, in which the firm combines
the benefits of a multidomestic strategy (high local responsiveness) with those of a
global-standardization strategy (lowest cost position attainable). In a global matrix structure,
the geographic divisions are charged with local responsiveness and learning. At the
same time, each SBU is charged with driving down costs through economies of scale and
other efficiencies. A global matrix structure also allows the firm to feed local learning back
to different SBUs and thus diffuse it throughout the organization.