In business, regionalization is a business strategy frequently employed by globalized companies to compensate for some of the problems raised by globalization.
Globalization means the transformation of businesses to employ global supply chains and sell in global markets. At its most extreme, this is exemplified by huge multinational corporations such as Apple, Toyota, Diageo, McDonald's, Proctor & Gamble, and LVMH. A major problem for globalized consumer-facing companies, though, is that consumer tastes vary by region.
McDonald's expansion into India is a typical example of how regionalization of a global company works. Cattle are sacred to the Hindu religion which strongly disapproves of slaughtering and eating them; pork is also offensive to Indian Muslims. Thus instead of selling beef hamburgers or pork breakfast sausages in India, McDonald's sells the Maharaja Mac, made with chicken patties, and has extensive vegetarian offerings made in separate meat-free kitchens. Thus is a typical example of regionalization within a globalized company.
Regionalization can also refer to administrative structures, in which corporations, instead of making all decisions in a global headquarters, devolve power to regional managers who can more swiftly respond to changing local conditions.