The Iran war could accelerate the rise of the ‘poly-national’ company

In today’s CEO Daily: Diane Brady on companies’ push to regionalize amid conflict.

The big leadership story: Iran war raises energy prices and cyber threats, with taxpayers footing the bill.

The markets: A sea of red as the Iranian conflict escalates, with no end in sight.

Plus: All the news and watercooler chat from Fortune.

Good morning. Will the attacks on Iran accelerate the push to decentralize global companies? This year’s Edelman Trust Barometer referenced the rise of the “poly-national”—a corporate structure that invests in long-term local relationships, compartmentalizing everything from talent to supply chains in individual countries. To stay ahead in a world that’s shifted from globalization to national interests, the argument goes, companies must “operate as a network of businesses with a U.S. center, but a local face.”

It’s a variation of a strategy long deployed by consumer-facing global giants like Coca-Cola and Procter & Gamble, which prioritize global experience in their leaders and connect strong regional operations. HSBC regionalized its operations at the start of last year, splitting its operations between “Eastern Markets” and “Western Markets.” And years of heightened tensions and tariff wars with China have long forced companies to alter what Singapore Prime Minister Lawrence Wong called the “invented in California; made in China” strategy that helped firms like Apple to........

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