1.

EPRG Approach Aakash Kumar 001 Gaurav Kataria

003 Rahul Ujjainwal 005 Rahul Anand 006
2. GEOCENTRICREGIOCENTRIC POLYCENTRIC
ETHNOCENTRIC MANAGEMENT ORIENTATIONS The
form and substance of a company's response to global
markets opportunities depend greatly on
managements assumption and beliefs (both conscious
and unconscious) about the nature of the world. The
worldview of a companys personnel can be described
as :
3. Considers foreign market secondary to an extension
of domestic market Marketing strategy Extension of
domestic strategy to foreign marketFocuses on
similarities between home and foreign market
Domestic market is superior Ethnocentric
Management orientation Home country orientation
Perception about market
4. Companies basic objective Profitability Type of
governance Top-down Culture - Home country
Technology - Mass production HRM practices Overseas
operations are managed by people from home country
Managerial predisposition - Manager/MNC rely n values
&interests of parent company in formulating and
implementing strategic plan
5. Overseas operations viewed as
secondaryEthnocentric cont. Characteristics &
Domestic techniquesprimary means of disposing the
surplus production &personnel superior to foreign & All
foreign marketing operations are plannedDomestic
marketing mix is employed without major modifications

in overseas market most effective in overseas market

& carried out from home base & overseas marketing
administered by export department
6. No costMerits & Main focus on domestic market
Examples Nissan in 1st years exported cars in US
markets, sold cars without change then sold car in
Japan No full exploitation of IB opportunities
worldwide It easy route to internationalization when
foreign market exists with similar domestic
characteristics Demerits efforts needed for
adaptation/localization
7. Focuses on differences between home countryEach
national market is distinctive Polycentric Management
orientation Host country orientation Perception about
market & foreign country Marketing strategy
Localization / adaptation Companies basic objective
Public acceptance
8. Type of governance Each local unit sets objectives
(bottom up) Culture-Host country Technology - Batch
production HRM practices Local nationals are used in
key management positions Managerial predisposition MNC tailor strategic plan to meet the need of local
culture
9. Subsidiaries are established in overseas
marketRecognize importance of inherent differences
in overseas markets Polycentric cont.
Characteristics & each is independent with own
marketing objectives & Local techniquesplans &
International marketing organized on country to

country basis with separate marketing strategy for

allpersonnel best suited to deal with local market
conditions
10. Adaptation to market cMerits Delay in
localization Examples McD (no beef burgers in
India)High cost of national responsive marketing mix
for each country haracteristics help in better
understanding of local needs which will lead to better
exploitation of market potentials Demerits
11. Regiocentric Management orientation Regional
orientation Perception about market Markets can be
differentiated on the basis of common regional
characteristics Marketing strategy Trade- off between
standardization & localization Companies basic
objective Both profitability & public acceptance
12. Type of governance Mutually negotiated between
region & its subsidiaries Culture-Regional Technology Flexible manufacturing HRM practices Regional people
are developed for key managerial positions anywhere in
region Managerial predisposition - MNC use a strategy
that addresses both local & regional needs
13. Regions with similarity of marketing characteristics
treated as separate market Merits - Advantages of both
localizationTreat different regions as different market
Characteristics &standardization Demerits Lack of
attention to inter regional differences Examples Punjab
(paneer products more) Gujarat (sugar more)
14. Geocentric Management orientation Global
orientation Perception about market Entire world is a

single market that can be effectively tapped by

standardized marketing strategy Marketing strategy
Global standardization Companies basic objective
Both profitability & public acceptance Type of
governance Mutually negotiated at all level of
organization
15. Culture- Global Technology - Flexible manufacturing
HRM practices Best people anywhere in the world are
developed for key managerial positions everywhere in
the world Managerial predisposition - MNC constructs
its strategic plan with a global view of operations
16. Standardized marketing mix, to give uniform image
of productEntire world is treated as single market
Characteristics &Worldwide approach to
marketingcompany for global market & Lower costs
advantage of paceEconomies of large scale
production its operations Merits
17. Uniform /standard marketing mix not guarantees for
sure success in every situation Examples MicrosoftNot
successful in many cases Demerits & Nokia
standardized products world wide