Which orientation allows a parent company to combine its preferences with those of its international units?

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Study for the UCF MAN6721 Applied Strategy and Business Policy Exam. Use flashcards and multiple choice questions with hints and explanations. Ace your test!

The geocentric orientation is characterized by a holistic approach that integrates the perspectives and practices of both the parent company and its international units. This orientation focuses on finding the best solutions globally, rather than simply applying the home country’s practices or adapting to the specific needs of each foreign market.

In a geocentric framework, the parent organization recognizes that different markets might have unique characteristics, but it also values the strengths and experiences of its international units. This allows for a blend of strategies that leverage the core competencies of the parent while also adapting to local demands. It promotes a sense of global citizenship among employees, uniting the company’s culture across geographically dispersed operations.

By contrast, the other orientations, such as ethnocentric, polycentric, and regiocentric, tend to either prioritize the home country’s practices, focus on local responsiveness with less attention to the overall corporate strategy, or limit thinking to a regional grouping. As such, they do not promote the same level of integration and cooperation in aligning preferences and strategies across various international units as the geocentric orientation does.