Underlying the gateway–hub structure is a basic management principle for worldwide enterprise: Neither local responsiveness nor global integration should be based on ideology. This represents a new model for global corporations based not on the priorities of home, but on the needs of the marketplace and on locating work wherever it can be conducted most efficiently and managed most profitably.
Reprint No. 08102
C.K. Prahalad ([email protected]) is the Paul and Ruth McCracken Distinguished University Professor of Corporate Strategy at the University of Michigan’s Ross School of Business. He is the coauthor, with M.S. Krishnan, of The New Age of Innovation (forthcoming, McGraw-Hill, 2008) and author of The Fortune at the Bottom of the Pyramid (Wharton School Publishing, 2005).
Hrishikesh (Hrishi) Bhattacharyya ([email protected]) was formerly a senior vice president at Unilever with global responsibility for the health and wellness category. He is now a management consultant and also teaches part-time at the Ross School of Business at the University of Michigan and at the London Business School.