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.

Author: Kazisho Jugar
Country: Georgia
Language: English (Spanish)
Genre: Career
Published (Last): 9 December 2017
Pages: 366
PDF File Size: 7.27 Mb
ePub File Size: 4.60 Mb
ISBN: 118-9-49852-198-1
Downloads: 68268
Price: Free* [*Free Regsitration Required]
Uploader: Tygogis

Many of the companies involving themselves in exporting and importing of various commodities.

They possess a strong regional identity. These include an organizations headquarters that’s decision-making authority is relatively high.

What is accepted as a permissible way of treating employees in the United States, the home country, may not be acceptable to Chinese employees, in the host country.

It has been introduced by Howard V.


They provide for improved coordination and control. The case of European Silicon Structures illustrates the practice of geocentric organizations. From Wikipedia, the free encyclopedia. The practices and policies of headquarters and of the operating company in the home country become the default standard to which all subsidiaries need to comply. Eorg example, Norway and Spain are both in Europe, but are very different in climate, culture, transport, retail distribution, and so on.

Instead, management selects the person approach suited to foster the companies goals and solve problems worldwide.

One appdoach the most striking trend in business, in recent years, has been growing internationalisation of business. A polycentric approach should only be used within a company in which there is a certain amount of comfort in allowing the host country to make all major decisions, following their own procedures and objectives.

EPG model – Wikipedia

Columbia Journal of World Business 1: Once sufficient information is obtained about national market condition, target segment could be identified on a regional or global basis, and the appropriate strategies developed. November Approach how and when to remove this template message.

The ethnocentric attitude is seen often when home nationals of various countries believe they are superior to, more trustworthy and more reliable than their foreign counterparts. When they look to new markets they rely on what they know and seek similarities with their own country.


In the most extreme views 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.

The main difference of geocentrism compared epr 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. This rprg was last edited on 10 Novemberat 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.


Finally, it tries to balance both global integration and local responsiveness. By using this site, you agree to the Terms of Use and Privacy Policy. It is the overall goal of geocentrism to form a collaborative network between headquarters and subsidiaries; this arrangement should entail a set of universal standards that can thus be used as a guideline when attacking key business decisions.

The EPG model is a framework for a firm to better pinpoint its strategic profile in terms of international business strategy. This perception mitigates the rprg of cultural myopia and is often less expensive to execute when compared to ethnocentricity.

Therefore, knowledge that could be beneficial across all regions is lost, and subsidiaries could be worse off than if they had approac the knowledge. The third and last aspect of the EPG model is the geocentric portion, this notion focuses on a more world-orientated approach to multinational management.

However, there are certain aspects of the business life in which ethnocentrism and polycentrism are more adequate models to follow, but functional smoothness and success in both home and host countries is dependent upon upper managements ability to select individuals who are world orientated as opposed to home or host country centered.

Each of the three elements of the EPG profile is briefly highlighted in the table below, showing the main focus for each element, as well as its correlating function, products, and geography.

In these companies, opportunities outside the home country are ignored. This article is written like a personal reflection, personal essay, or argumentative essay that states a Wikipedia editor’s personal feelings or presents an original argument about a topic.

Geocentric approach may prove more successful in areas such as production and research than in marketing. In this approach a company approafh economic, cultural or political similarities among regions in order to satisfy the similar needs of potential consumers. Although there is great benefit to taking into consideration local preferences in the host country when it comes to international business practices, a polycentric approach has its obstacles erpg implemented. For instance, there is the loss of national sovereignty when one nation is dominated by another — this can lead to a loss in economic and political nationalism.

The major advantages of this Type of orientation is that it entails minimum risk on the part of the firm. Irrespective of the nationality, epgr company tries to seek the best men and the problems are solved globally within the legal and political limits. 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. The trend of more and more internationalisation of business has thrown many challenges to international marketer. Ethnocentric approach will better suit small firms just entering international operations.

He states that businesses and their staff tend to operate in one of four ways:. International marketing is no longer remain only to the traditional technique of producing goods in one country and export to other countries, it includes movement of all factors of production, such as Raw materials, human skills, finance, machinery, technology etc.

Because a strategy based mainly on one of the three elements can mean significantly different costs or benefits to the firm, it is necessary for a firm to carefully analyze how their firm is oriented and make appropriate decisions moving forward.

In contrast, polycentric organizations or managers see each country as unique, and consider that businesses are best run locally. 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. 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.

Such companies do not adapt their products to the needs and wants of other countries where they have operations. These people or companies believe that the home country is superior. There is often ineffective planning due to poor feedback from the international subsidiaries.

International Marketing – EPRG Framework

For example, the standards in which the home country operates are going to be much different from how the host country operates. Organizations that are designed with an ethnocentric focus will portray certain tendencies. Aporoach standards are applied to the evaluation and control e;rg the organization. All articles with dead external links Articles with dead external links from November Use dmy dates from October Wikipedia articles with style issues from November All articles with style issues All articles with links needing disambiguation Articles with links needing disambiguation from September Thus, ensuring efficient use of human resources by building strong culture and informal management channels.