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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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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 Polycentric will prove idle for firms seriously committed to international marketing and have capacity to invest to the desired extent towards achieving their objectives.

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 eprb and host countries is dependent upon upper managements ability to select individuals who are world orientated as opposed to home or host country centered.

By using this site, you agree to the Terms of Use and Privacy Policy. Polycentrism [ disambiguation needed ] is one of the three legs in the EPG framework that “identifies one of the attitudes or orientations toward internationalization that is associated with successive stages in the evolution of international operations” [7].

Please help improve it by rewriting it in an encyclopedic style. For example, countries like Pakistan, India and Bangladesh are very similar. Such companies do not adapt their products to the needs and wants of other countries where they have operations.

Management is unable to have total control over erpg company in the host country because it is found that “local nationals have a better understanding and awareness of national market conditions, more so than home office personnel. Such companies are also sometimes referred to as domestic companies. The practices and approacy of headquarters and of the operating company in the home country become the default standard to which all subsidiaries need to comply.


International Marketing – EPRG Framework

Overseas subsidiaries or offices in international markets are seen as less able and less important than the head office.

Polycentrism can be defined as a host country orientation; which reflects host countries goals and objectives with respect “to different management strategies and planning procedures with regard to international operations. There is no international firm today whose executives will say that ethnocentrism is absent in their organization. Retrieved from ” https: It has been introduced by Howard V. Views Read Edit View history.

EPG model – Wikipedia

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. Geocentric approach encourages global marketing.

ap;roach This approach appears most appropriate when overseas sales volume is insignificant in comparison to the total sales of the firm. These include an organizations headquarters that’s decision-making authority is relatively high. The most effective way to enforce geocentrism is with a formal reward system that encourages both subsidiary and headquarters managers to work for global goals rather than just defending home country values.

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.

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. Columbia Journal of World Business 1: For example, Norway and Spain are both in Europe, but are very different in xpproach, culture, transport, retail distribution, and so on. 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 perg topic.

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. They possess a strong regional identity. For example, the standards in which the home country operates are going to fprg much different from how the host country operates. It is a natural tendency for people to act ethnocentrically because it is what they feel comfortable with.

A polycentric approach “gives rise to the problems of coordination and control. Circumstance under which EPRG should be employed. The trend of more and more internationalisation of business has thrown many challenges to spproach marketer.

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International Marketing EPRG Framework

Since not much investment is made in overseas operations so if loss may occur then firm can absorb shock without much difficulty. They provide for improved coordination and control. This develops an affiliated corporate culture and aids transfer core competences more easily. The Online Merriam-Webster Dictionary. 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.


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.

After completing my post graduation I thought to start a website where I can share management related concepts with rest of the people. The importance of the EPG model is mainly in the firm’s awareness and understanding of its specific focus.

Not only is global trade is growing at healthy rate, but techniques of overseas marketing is also becoming more diversified and sophisticated. Ethnocentric approach will better suit small firms just entering international operations. In contrast, polycentric organizations or managers see each country as unique, and consider that businesses are best run locally. It is the overall approachh 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.

These orientations reflect the objectives of a company towards international operations and to lead to different management strategies and planning procedures. There are a few other drawbacks to the polycentric approach which may restrict a multinational company from erg realizing its full potential in the host country. Orientation towards international operations by a company, which recognises the common approac in countries belonging to a particular geographical region and hence applies the same strategy approacg all the countries in a particular region.

Every participating country is treated solely and individual strategies are carried out.