Stages of International Orientation - Ethnocentric, Polycentric, Geocentric and Regio-centric

Stages of International Orientation - Ethnocentric, Polycentric, Geocentric and Regio-centric

1. INTERNATIONAL ORIENTATION Presented by Ankitha S H 2 nd M.Com U n d e r t h e G u i dance o f M i s s R a m y a S . K . F a c u lty M ember , D e p t o f P G S t u dies i n Commerce G . F . G . C . W . H o l e n arasipura

2. CONTENTS :- Introduction Meaning Stages of international orientation Conclusion Bibliography

3. INTRODUCTION:- International business approaches or orientation are similar to the stages of internationalization or globalization. The degree and nature of involvement in international business or the international orientation of companies vary widely The analysis provided by Douglaswind and Perlmutter advocated approaches of international business within the framework of the modified EPRG scheme is helpful in understanding the levels of involvement of firms in international business .

4. Meaning:- EPRG model it is a framework created in 1969.it is designed to be used in an internationalization process of business and mainly addresses how companies view international management organizations. According to EPRG framework or the EPRG model there are four management approaches that an organization can be take to get more involved in international business substantially.

5. Stages of international orientation :- Douglaswind and Perlmutter EPRG framework consists of 4 stages in the international operations evaluation. These stages are discussed below Ethnocentric Orientation Polycentric Orientation Geocentric Orientation Regiocentric Orientation

6. 1. Ethnocentric orientation:- The domestic companies formulate their strategies ,their products design and their operations towards the national markets,customers and competitors The excessive production more than the demand for the product, either due to competition or due to changes in customer preferences push the company to export the excessive production to foreign countries. The company exports the same product designed for domestic markets to foreign countries. No international investment is required.

7. 2. Polycentric orientation:- The company establishes a foreign subsidiary company and decentralizes all the operations and delegate decision making authority to its executives. In fact, the company appoints executives and personnel including a chief executive who reports directly to the managing director of the company. Company appoints the key personnel from the home country and all vacancies are filled by the people of the host country. The polycentric approach mostly focuses on the conditions of the host country in policy formulation, strategy implementation and operations.

8. 3.Regiocentric orientation:- The company after operating successfully in a foreign country thinks of exporting to the neighboring countries of the host country . At this stage, the foreign subsidiary consider the regional environment for formulating policies and strategies. It Markets or less than same product designed under polycentric approach in other countries of the region, but with different market strategies.

9. 4.Geocentric orientation:- Under this approach, the entire world is just like a single country for the company. They select the employees from the entire globe and operate with a number of subsidiaries. The headquarters coordinate the activities of the subsidiaries. Each subsidiary functions like an independent and autonomous company in formulating policies, strategies, product design, human resources policies, operations etc…

10. Conclusion:- International orientation involves producing different products in order to satisfy the customers of different countries. Organizations give freedom to the subsidiary to take marketing mix decisions suitable for the particular market conditions.

11. Bibliography:- International orientation and its stages(Retrieved from ) 1. https://www.scribd . com 2. https://marketing 91.com (Date:-24/11/2021)

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