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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What is accepted as a permissible way of treating employees in the United States, the home spproach, may not be acceptable to Chinese employees, in the host country.


Not only is global trade is growing at healthy rate, but techniques of overseas marketing is also becoming more diversified and sophisticated.

Home standards are applied to the evaluation and control of the organization. Columbia Journal of World Business 1: There are no changes in approoach specification, price and promotion measures between native market and overseas markets.

There are many costs that ethnocentrism can incur on an international organization. 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. To overcome from this problem one should adopt EPRG Framework, which wprg four types of orientation towards internationalisation of business operations —.

The practices and policies of headquarters and of the operating company in the home country become the default standard to which all subsidiaries need to comply. By using this epry, you agree to the Terms of Use and Privacy Policy.

The case of European Silicon Structures illustrates the practice of epry organizations. Geocentric approach encourages global marketing.

Appraoch page was last edited on 10 Novemberat This ideology is a great example of how today’s business must manage both global and local issues in order to succeed in the end. One of the most striking trend in business, in recent eprf, has been growing internationalisation of business. This is because it does not need to send skilled managers out to maintain centralized policies.

These policies entail high cost. 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 first drawback of a polycentric approach is that the “benefits of global coordination between subsidiaries such as the development of economies of scale cannot be realized.

In this approach a company finds economic, cultural or political similarities among regions in order to satisfy the similar needs of potential consumers. Ethnocentric approach will better suit small firms just entering international operations. One of the major challenges is apprlach type of orientation a firm should adopt to overseas its marketing operations. Such companies are also sometimes referred to as domestic companies.

Geocentric approach may prove more successful in areas such as production and research than in marketing. I hold a degree in MBA from well approcah management college in India. Many of the companies involving themselves in exporting and importing of various commodities.

International Marketing EPRG Framework

Retrieved from ” https: A regiocentric organization sees similarities and differences in a world region, and designs strategies around this. Orientation towards international operations by a company, which consider export market has no difference with domestic market and hence applies approacu market techniques with overseas market. 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.

After completing my post graduation I thought to start a website where I can share management related concepts with rest of the people. This approach appears most appropriate when overseas sales volume is insignificant in comparison to the total sales of the firm.


It is a natural tendency for people to act ethnocentrically because eprv is what they feel comfortable with. 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. Circumstance under which EPRG should be employed.

With the centralized approach, the training originates at the headquarters and approoach corporate trainers travel to the subsidiaries, and approsch adapt to local situations. These orientations reflect the objectives of a company towards international operations and to lead to different approacy strategies and planning procedures. For example, Norway and Spain are both in Europe, but are very different in climate, culture, transport, retail distribution, and so on. 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 as their work is profitable.


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.

Often 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 — Ethnocentrism Polycentrism Regiocentrism Geocentrism. Please help improve it by rewriting it in an encyclopedic style. 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 to better serve the organization.

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.

EPRG Framework

For example, the standards in which the home country operates are going to be much different from how the host country operates. 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. Orientation towards international operations by a company, which consider each market differ from other and hence applies different technique in different market.

In these companies, opportunities outside the home country are ignored. The general attitude of a company’s senior management team is that nationals from the company’s native country are more capable to drive international activities forward as compared to non-native employees working at its subsidiaries.