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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This approach appears most appropriate when overseas sales volume is insignificant in comparison to the total sales of the firm.

In this context, ethnocentrism is the view that a particular ethnic group’s system of beliefs and values is morally superior to all others. 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.

EPRG Framework – Management Study HQ

The main disadvantages are that national immigration policies may put limits apprkach its implementation and it ends up expensive compared to polycentrism. 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 in turn could cause a lack of flexibility and local responsiveness. Organizations that are designed with an ethnocentric focus will portray certain tendencies. The major drawback of this mind set is that it results in cultural short-sightedness and does not promote the best and brightest in a firm.

Views Read Edit View history. These people or companies believe that the home country is superior. Eprh there are major differences between countries in a region. To overcome from this problem one should adopt EPRG Framework, which identifies four types of orientation towards internationalisation of business operations —.

EPRG Framework

It has been introduced by Howard V. This develops an affiliated corporate culture and aids transfer core competences more easily. There are no changes in product specification, price and promotion measures between native market and overseas markets. 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 third and last aspect of epfg EPG model is the geocentric portion, this notion focuses on a more world-orientated approach to multinational management.


When they look to new markets they rely on what they know and seek similarities with their own country. Besides these, it has other advantages such as the possibility of knowing the customer better and maximum eprb of marketing orientation. To overcome from this problem one should adopt EPRG Framework, which identifies four types of orientation towards internationalisation of approach operations — Ethnocentrism Polycentrism Regiocentrism Geocentrism.

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.

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 eeprg their work is profitable.

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.

He states that businesses and their staff tend to operate in one of four ways:. These stages are discussed below. 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.

Since these orientations imply regional eprgg global attitude to the development of marketing policies. The term multinational qpproach is often used to describe such a structure. EPG Model is an international business model including three dimensions — ethnocentric, polycentric and geocentric.

While there are many obstacles that will hinder a company’s ability to become geocentric, there are also a handful of forces which will drive them towards this.

They provide for improved coordination and control. Companies should evaluate all legs of the EPG model before implementing a strategy, as all companies differ in international strategy among industry and region. The trend of more and more internationalisation of business has thrown many challenges to international marketer.

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 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.


Geocentric approach may prove more successful in areas such as production and research than in marketing. By using this site, you agree to the Terms of Use and Privacy Policy.

The way businesses and staff view the world is described as international management orientations. 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. 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. In contrast, polycentric organizations or managers see each country as unique, and consider that businesses are best run locally.

Please help improve it by rewriting it in an encyclopedic style. This framework addresses the way strategic decisions are made and how the relationship between headquarters and its subsidiaries is shaped. 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.

I hold a degree in MBA from well known management college in India. Ethnocentric approach will better suit small firms just entering international approaxh. 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 once implemented.

Geocentric approach encourages global marketing. Therefore, the majority of control in the apprach countries practices is lost, and the company is forced to manage its operations from the outside.

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