Howard Perlmutter identified a way of classifying alternative management orientations, which is commonly referred as Perlmutter’s EPRG model. He states that. The aim of this paper is to present the fundamental ideas behind EPRG model . () the essence of geocentric strategy is an uniform approach to all national. To overcome from this problem one should adopt EPRG Framework, ETHNOCENTRIC ORIENTATION: Ethnocentric approach will better suit.

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In this context, ethnocentrism is the view that a particular ethnic group’s system of beliefs and values is morally superior to all others. Not only is global trade is growing at healthy rate, but techniques of overseas marketing is also becoming more diversified and sophisticated. In this approach a company finds economic, cultural or political similarities among regions in order to satisfy the similar needs of potential consumers.

Such companies do not adapt their products to the needs and wants of other countries where they have operations. The major advantage of this type of orientation is that it will be the most effective way of motivating the management, since the management in each country is given a free hand in framing policies and implementing them.

This ideology is a great example of how today’s business must manage both global and local issues in order to succeed in the end. To overcome from this problem one should adopt EPRG Framework, which identifies four types of orientation towards internationalisation of business operations — Ethnocentrism Polycentrism Regiocentrism Geocentrism. Ethnocentric approach will better suit small firms just entering international operations.


Languages Deutsch Edit links. The sole goal of geocentrism is to globally unite both headquarters and subsidiaries. Using the centralized approach can cause inefficient staffing problems in the organization, this is because the employed staff will incur high financial costs to the global business as they have to pay for the transfer costs of the staff coming from appdoach home country to overseas.

November Learn how and when to remove this template message. This develops an affiliated corporate culture and aids transfer core competences more easily.

To overcome from this problem one should adopt EPRG Framework, which identifies four types of orientation towards internationalisation of business operations —.

International Marketing EPRG Framework

Management is unable to have total control over the company in the host country because it is found that “local nationals have a better understanding and awareness of epfg market conditions, more so than home office personnel.


The term multinational company is often used to describe such a structure.

In this case, it would be important for a firm to re-align its focus in order to ensure that it is correctly representing the firm’s focus. The crucial critical concept of ethnocentrism in international organizations is the current policy that recruits from the home country are hired, and trained for key executive position in the organization. In performing an EPG analysis, a firm may discover that they are oriented in a direction that is not beneficial to the firm or misaligned with the firm’s corporate culture and generic strategy.

This is because it does not need to send skilled managers out to maintain centralized policies. The main disadvantages are that national immigration policies may put limits to its implementation and it ends up expensive compared to polycentrism.

The major disadvantage of this nature is it can restrict career mobility for both local as well as foreign nationals, neglect headquarters of foreign subsidiaries and it can also bring down the chances of achieving synergy. Companies should evaluate all legs of the Appproach model before implementing a strategy, as all companies differ in international strategy among industry and region.

They provide for improved coordination and control. Geocentric approach encourages global marketing.

International Marketing – EPRG Framework

Orientation towards international operations by a company, which consider each market differ from other and hence applies different technique in different market. For instance, there is the loss of national sovereignty when one nation is dominated by another — this can aporoach to a loss in economic and political nationalism.

In these companies, opportunities outside the home country are ignored. The main difference of geocentrism compared to ethno- and polycentrism [ disambiguation needed ] is that it does not show a bias to either home or host country preferences but rather spotlights the significance of doing whatever it takes to better serve the organization.

One of the major challenges is which type of orientation appriach firm should adopt to overseas its marketing operations. A third force causing this movement is the abundance of growing world markets, occurring in areas such as income earning age population, rising GDP’s, and escalating disposable income in areas such as China and Korea.

Organizations that are designed with an ethnocentric focus will portray certain tendencies.

Please help improve it by rewriting it in an encyclopedic style. This perception mitigates the chance of cultural myopia and is often less expensive to execute when compared to ethnocentricity. Polycentric management means that the head office places little control on the activities in each market, and there is little attempt to make use eorg any good ideas or best practices from other markets.


In the most extreme appfoach of polycentrism, it is the “attitude that culture of various countries are different, that foreigners are difficult to understand and should be left alone as long as their work is profitable.

Orientation towards international operations by a company, which consider the whole world as one market and hence develops global strategies which are applied in domestic market also. This does not equate superiority with nationality.

EPRG Framework

With the centralized approach, the training originates at the headquarters and than corporate trainers travel to the subsidiaries, and often adapt to local situations.

These orientations reflect the objectives of a company towards apprkach operations and to lead to different management strategies and planning procedures. There is often ineffective planning due to poor feedback from the international subsidiaries.

A polycentric approach “gives rise to the problems of coordination and control. The general attitude of a company’s senior management team is that nationals from the company’s native country are more capable to drive international activities forward as compared to non-native employees working at its subsidiaries. Orientation towards international operations by a company, which consider export market has no difference with domestic market and hence applies domestic market techniques with overseas market.

Therefore, the majority of control in the host countries practices is lost, and the company is forced to manage its operations from the outside. Home standards are applied to the evaluation and eprh of the organization.

These include an organizations headquarters that’s decision-making authority is relatively eprb. Polycentrism [ disambiguation needed ] is one of the aplroach legs in the EPG framework that “identifies one of the attitudes or orientations toward internationalization that is associated with successive stages in the wprg of international operations” [7]. The exercises, activities and policies of the functioning company in the native country becomes the default standard to which all subsidiaries need to abide by.