This document discusses the strategy formulation process and issues around decentralization vs centralization of decision-making in global organizations. It outlines the three stages of strategy formulation: identifying company missions and goals, identifying core competencies, and formulating strategies. It then discusses the benefits and costs of decentralizing decision-making to local managers, including allowing for effective use of local knowledge but also potential agency problems and lack of coordination between divisions. Overall, decentralization is beneficial when expertise is local, but the CEO must also manage interdependencies between divisions.