Eprg approach 1
- 1. EPRG Approach Aakash Kumar 001 Gaurav Kataria 003 Rahul Ujjainwal 005 Rahul Anand 006
- 2. MANAGEMENT ORIENTATIONS The form and substance of a company's response to global markets opportunities depend greatly on management’s assumption and beliefs (both conscious and unconscious) about the nature of the world. The worldview of a company’s personnel can be described as : ETHNOCENTRIC POLYCENTRIC REGIOCENTRIC GEOCENTRIC
- 3. 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
- 4. 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
- 5. 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 planned & carried out from home base & overseas marketing administered by export department
- 6. 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 then sold car in Japan
- 7. 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
- 8. 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
- 9. 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
- 10. 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)
- 11. 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
- 12. 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
- 13. 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)
- 14. 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 negotiated at all level of organization
- 15. 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
- 16. 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
- 17. 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