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EPRG

Group MembersPoonam Katoch Renu Makhijani Swati Nikalje

MANAGEMENT ORIENTATIONS
The EPRG Concept revolves around the grand fact that any companys response to global market opportunities depend greatly on the managements assumptions & beliefs, as to how it views the new market opportunity, how it plans to enter the foreign market, how it views the culture, preferences of consumers in a foreign market, etc.

ETHNOCENTRIC ORIENTATION
A person who assumes his/her home country superior to the rest of the world is said to have an ethnocentric orientation. It means company personnel see only similarities in markets & assume the products & practices that succeed in the home country will, due to their demonstrated superiority, be successful anywhere.

At some companies, opportunities outside the home country are ignored. Such companies are called domestic companies. Ethnocentric companies that do conduct business outside the home country can be described as international companies. An ethnocentric firm always looks for help from the home country government.

They adhere to the notion that the products that succeed in the home country are superior & therefore can be sold everywhere without adaptation.

In the ethnocentric international company, foreign operators are viewed as being secondary or subordinate to domestic ones. Valuable managerial knowledge & experience in local markets may go unnoticed. For a mfg. firm, ethnocentrism means foreign markets are viewed as a means of disposing of surplus domestic production.

Generally, when the firm is ethnocentric, it looks for foreign markets to sell its currents products and surpluses. There is hardly any or minimal product adaptation for the foreign markets. At times some minor changes are made to suit importing country's legal requirements, like in packaging, the firm may have to comply with statutory declarations.

POLYCENTRIC ORIENTATION
It is the opposite of ethnocentrism.

The term polycentric describes managements belief that each country in which a company does business is unique.
This assumption lays the groundwork for each subsidiary to develop its own unique business & marketing strategies in order to succeed. The term multinational company is often used to describe such a company.

A polycentric firm (P) is one that exports to not just one market but to several markets. It looks for customers in different markets. The difference between and ethnocentric and polycentric firm is the number of foreign markets served and the fact the latter is more actively involved in soliciting foreign buyers .

REGIOCENTRIC ORIENTATION
Management views regions as unique. Management seeks to develop an integrated regional strategy to market products in the particular identified region. Eg. A US company that focuses on the countries included in the NAFTA is a regiocentric orientation. Similarly, a European company that focuses its attention on the Europe is regiocentric.

Here, the firm researches the markets, understands customers and competition in the region and evolves competitive strategies. It may examine several market entry strategies but common ones are joint ventures, or subsidiary operations in the target region. For example, a firm targeting Europe may set up a manufacturing base in one of the European countries to bypass EC's requirements or quota restrictions.

GEOCENTRIC ORIENTATION
The company views the entire world as a potential market. Company strives to develop integrated world market strategies. It views similarities & differences in markets & countries. It seeks to create a global strategy responsive to needs & wants.

These firms evolve strategies to globally maximize their resources. They are not interested in the market shares of just one market but keenly pursue goals of global market leadership. For example, Electrolux (the vacuum cleaner company) has for many years attempted to recruit and develop a group of international managers from diverse countries. These people constitute a mobile base of managers who are used in a variety of facilities as the need arises.

PROS OF EPRG MODEL


The orientation of the dominant senior management group influences and shapes diverse aspects of a multinational enterprise, including strategy, structural design, pricing, resource allocation, and administrative processes.

The study made managers aware that culture was an important aspect to consider in international business affairs.
It started a whole series of studies on culture in the business environment.

The model provides insight in how an international organization evolves in time and what organizational and staffing challenges lay ahead. The EPRG mix can be used to determine how far an organization has internationalized.

CONS OF EPRG MODEL


The model is organisation centred disallowing environmental influences. Its international orientation is measured solely on internal aspects. In the real world these orientations never appear in a pure form. In any organisation some degree of ethnocentricity, polycentricity or geocentricity are present .

Perlmutters organisational development process does not always hold. In certain circumstances, irrespective of the companys size and internationalisation experience, a country-centred strategy, similar to Perlmutters polycentric view, may be the best possible orientation and not a geocentric orientation

THANK YOU!!!

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