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Lecture By

: Vaishali Sharma

MBA- MIB

EPRG- Orientation

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EPRG MATRIX

The manner in which anorganization addresses the

management of its diversity

on the firm approach to

International Business.

Heenan & Perlmutter

identified four Orientations

that MNC

ETNOCENTRIC

POLYCENTRIC

REGIOCENTRIC

GEOCENTRIC

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ETHNOCENTRIC

The domestic companies view foreign markets as an extension todomestic markets.

In the Ethnocentric company, overseas operations are viewed as

secondary to domestic operations & primarily as a means of disposing of surplus domestic production.

The top management views domestic techniques & personnel as

superior to foreign & also as the most effective in overseas marketare developed in the Home office , utilizing policies & procedures

identical to those employed in the domestic market.

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Today Ethnocentrism is one of the biggest internal threats acompany faces.

It is predominantly a home country orientation.

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POLYCENTRIC

As the company belong to recognize the importance of inherentdifferences in overseas markets, a polycentric attitude emerges.

the prevalent philosophy at this stage is that local personnel &

techniques are best suited to deal with local market conditions.

Subsidiaries are established in overseas markets and each

subsidiary operates independently of the others & establishes its

own marketing objectives and plans.

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It is a Multinational orientation.

Thrust is put on local laws, custom & culture & great care is taken

to understand the local way of doing business.

It is then adaption of the business strategies to the local conditions.

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Example

-Mc Aaloo Tiki

Burger

- Maharaja Mac

- Panner salsa

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REGIOCENTRIC

A Regiocentric company views different regions and differentmarkets. A particular region with certain important common

marketing characteristics regarded as a single market, ignoring

national boundaries.

Strategy integration , organizational approach & product policy

tend to be implemented at regional level.

.

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GEOCENTRIC

A geocentric company views the entire world as a single market &develops standardized marketing mix, projecting a uniform image

of the company & its products , for the global market.

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Characteristics

features Ethnocentrism Polycentrism Regiocentrism Geocentrism

Management

Orientation

-Home country

Orientation

Host country orientation Regional orientation Global orientation

Perception of the Market -Domestic market is

Superior.

-Focus on the similarities

between the Home &foreign markets

-Foreign markets are

extensions of Domestic

market.

- Each national market is

distinctive

- Focus on the differences

between the Home &Foreign markets

- Markets can be

differentiated &

delineated on the basis of

common regional

characteristics.

-The entire world is a

single market that can be

effectively tapped by a

standardised marketing

strategy.

Marketing strategies -Extension of domestic

strategy to foreign

markets.

- Localisation -Trade-off between

localization &

standardisation.

- Global standardisation.

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Characteristics

features Ethnocentrism Polycentrism Regiocentrism Geocentrism

Merits-No cost & effort of

localisation

-An easy route to

internationalisation

when foreign markets

/niches exist with

characteristics similarto domestic market.

- Adaption to the

market

characteristics which

helps better

exploitation of the

market potentials.

- Some of the

advantages of both

the localisation &

standardisation

strategies.

- Standardisation will

not be successful in

many cases.

Demerits Limits the scope ofexploitation of the

international businessopportunities.

-High costs of

adaption

- Delays associated

with adaption

-Neglect of

intraregional

differences in thebusiness

environment.

- Standardisation will

not be successful in

many cases.