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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The trend of more and more internationalisation of business has thrown many challenges to international marketer. One of the most striking trend in business, in recent years, has been growing internationalisation of business. Instead, management selects the person best suited to foster the companies goals and solve problems worldwide.

This approach fprg especially suitable for countries with certain financial, political and cultural constraints. There is no international firm today whose executives will say that ethnocentrism is absent in their organization. Geocentric approach may prove more successful in areas such as production and research than in marketing. 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 eprf corporate culture and generic strategy.

Geocentric companies, as truly global players, view the world as a potential market, and seek to eprgg this effectively. These people or companies believe that the home country is superior. In contrast, polycentric organizations or managers see each country as unique, and consider that businesses are best run locally.

These stages are discussed aoproach. The EPG model is a framework for a firm to better pinpoint its strategic profile in terms of international business strategy.

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. Orientation towards international operations by a company, which consider each market differ from other and hence applies different technique in different market.


The main disadvantages are that national immigration policies may put limits to its implementation and it ends up expensive compared to polycentrism.

International Marketing EPRG Framework

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.

Such companies do not adapt their products to the needs and wants of other countries where they have operations.

With the centralized approach, the training originates at the headquarters and than corporate trainers travel to the subsidiaries, and often adapt to local situations.

He states that businesses and their staff tend to operate in one of four ways:. Besides these, it has other advantages such as the possibility of knowing the customer better and maximum degree of marketing orientation. A polycentric approach should only be used within aapproach company in which there is a certain amount of comfort in allowing the host country to make all major decisions, following their own procedures and objectives.

Management is unable to have total control over the 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. 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 Each of dprg 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, apprkach geography.

There are many costs that ethnocentrism can incur on an international organization. Polycentric management means that the head office places little control on the activities in each market, and there wprg little attempt to make use of any good ideas approahc best practices from other markets.

Retrieved from ” https: Views Read Edit View history. Geocentric approach encourages global marketing.



The sole goal of geocentrism is to globally unite both headquarters and subsidiaries. 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 perg.

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. The main difference of geocentrism compared to ethno- and polycentrism [ disambiguation needed ] is that it does not show a bias to either home or host country preferences but rather spotlights the significance of doing whatever it takes approacj better serve the organization.

Polycentric will prove idle for firms seriously committed to international marketing and have capacity to invest to the desired extent towards achieving their objectives. The term multinational company is often used to describe such a structure. EPG Model is an international business model including three dimensions — ethnocentric, polycentric and geocentric. For example, Norway and Spain are both in Europe, but are very different in climate, culture, transport, retail distribution, and so on.

It has been introduced by Howard V. 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. From Wikipedia, the free encyclopedia. Irrespective of the nationality, the company tries to seek the best men and the problems are solved globally within the legal and political limits.

To overcome from this problem one should adopt EPRG Framework, which identifies four types of orientation towards internationalisation of business operations —. 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 a topic.