EPRG- Orientation

Lecture By : Vaishali Sharma MBA- MIB

EPRG MATRIX
The manner in which an

organization addresses the management of its diversity on the firm approach to International Business.
Heenan

ETNOCENTRIC POLYCENTRIC REGIOCENTRIC

& Perlmutter identified four Orientations that MNC

GEOCENTRIC

ETHNOCENTRIC
The domestic companies view foreign markets as an extension to

domestic 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 market are developed in the Home office , utilizing policies & procedures identical to those employed in the domestic market.

 Today

Ethnocentrism is one of the biggest internal threats a company faces.

It is predominantly a home country orientation.

POLYCENTRIC
As the company belong to recognize the importance of inherent

differences 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.

 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.

Example
-Mc Aaloo Tiki Burger

- Maharaja Mac
- Panner salsa

--

REGIOCENTRIC
A Regiocentric company views different regions and different

markets. 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.

.

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.

Characteristics features
Management Orientation

Ethnocentrism
-Home country Orientation

Polycentrism
Host country orientation

Regiocentrism
Regional orientation

Geocentrism
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.

Characteristics

features

Ethnocentrism
-No cost & effort of localisation

Polycentrism

Regiocentrism
- Some of the advantages of both the localisation & standardisation strategies.

Geocentrism
- Standardisation will not be successful in many cases.

Merits

- Adaption to the market characteristics which -An easy route to helps better internationalisation exploitation of the when foreign markets market potentials. /niches exist with characteristics similar to domestic market.

Demerits

Limits the scope of exploitation of the international business opportunities.

-High costs of adaption - Delays associated with adaption

-Neglect of intraregional differences in the business environment.

- Standardisation will not be successful in many cases.