EPRG Approach

Aakash Kumar
001
Gaurav Kataria
003
Rahul Ujjainwal
005

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 :
ETHNOCENTRIC
POLYCENTRIC
REGIOCENTRIC

Ethnocentric
Management orientation Home country
orientation
Perception about market
Domestic market is superior
Focuses on similarities between home and
foreign market
Considers foreign market secondary to an
extension of domestic market
Marketing strategy Extension of
domestic strategy to foreign market

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

Ethnocentric

cont.

Characteristics
Overseas operations viewed as secondary
& primary means of disposing the surplus
production
Domestic techniques &personnel superior
to foreign & most effective in overseas
market
Domestic marketing mix is employed
without major modifications in overseas
market
All foreign marketing operations are

Merits
No cost & efforts needed for
adaptation/localization
It easy route to internationalization when
foreign market exists with similar domestic
characteristics
Demerits
No full exploitation of IB opportunities
worldwide
Main focus on domestic market
Examples Nissan in 1st years exported cars
in US markets, sold cars without change

Polycentric
Management orientation Host
country orientation
Perception about market
Each national market is distinctive
Focuses on differences between
home country & foreign country
Marketing strategy Localization /
adaptation
Companies basic objective Public
acceptance

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

Polycentric cont.
Characteristics
Recognize importance of inherent
differences in overseas markets
Subsidiaries are established in overseas
market & each is independent with own
marketing objectives & plans
Local techniques & personnel best
suited to deal with local market conditions
International marketing organized on
country to country basis with separate
marketing strategy for all

Merits
Adaptation to market characteristics help in
better understanding of local needs which
will lead to better exploitation of market
potentials
Demerits
High cost of national responsive marketing
mix for each country
Delay in localization
Examples McD (no beef burgers in India)

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

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

Characteristics
Treat different regions as different market
Regions with similarity of marketing
characteristics treated as separate market
Merits - Advantages of both localization
&standardization
Demerits Lack of attention to inter
regional differences
Examples Punjab (paneer products more)
Gujarat (sugar more)

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

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

Characteristics
Entire world is treated as single market
Standardized marketing mix, to give
uniform image of product &company for
global market
Worldwide approach to marketing & its
operations
Merits
Economies of large scale production
Lower costs advantage of pace

Demerits
Not successful in many cases
Uniform /standard marketing mix not
guarantees for sure success in every
situation
Examples Microsoft & Nokia standardized
products world wide