GLOBAL STRATEGY: ACHIEVING THE GEOCENTRIC IDEAL

Summary This paper presents the case for a geocentric approach to global strategy formation. It describes the geographic adjustments that are the embodiment of both attack and defence under global competition, and the geographic units that multinationals adopt as their primary organizational units to identify and carry out these adjustments. In addition to actions with local effects, global competitive performance demands actions from these primary units which will have payoffs accruing to other units. The geocentric approach to global strategy endeavours to identify and stimulate these cross‐unit opportunities through collaboration among units and the centre. The consequent needs at unit level for information on the global competitive situation are examined, as well as some common impediments to geocentric collaboration imposed by the design of planning, accounting and reporting systems.