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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EPRG Framework – Management Study HQ

Thus, ensuring efficient use of human resources by building strong culture and informal management channels. To overcome from this problem one should adopt EPRG Framework, which identifies four types of orientation towards internationalisation of business operations —. Retrieved from ” https: Epdg framework addresses the way strategic decisions are made and how the relationship between headquarters and its subsidiaries is shaped. 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.

The first drawback of a polycentric approach is approoach the “benefits of global coordination between subsidiaries such as the development of economies of scale cannot be realized. Besides these, it has other advantages such as the possibility of knowing the customer better approoach maximum degree of marketing orientation.


Since not much investment is made in overseas operations so if loss may occur then firm can absorb shock without much difficulty. The Online Merriam-Webster Dictionary.

In this context, ethnocentrism is the view that a particular ethnic group’s system of beliefs and values is morally superior to all others. Finally, it tries to balance both global integration and local responsiveness.

Approadh, management selects the person best suited to foster the companies goals and solve problems worldwide.

The third and last aspect of the 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. Therefore, the majority of control in the host approacch practices is lost, and the company is forced to manage its operations from the outside.


The importance approoach the EPG model is mainly in the firm’s awareness and understanding of its specific focus. They possess a strong regional identity.

There are many costs that ethnocentrism can incur on an international organization. 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 approzch serve the organization.

I hold a degree in MBA from well known management college in India.

With that said, geocentrism is an ideology that must be accepted by any corporation operating globally in order for any sort of success and long term stability to be attained. Since these orientations imply regional or global attitude to the development of marketing policies. 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.

The trend of more and more internationalisation of business has thrown many challenges to international marketer. Please help improve it by rewriting it in an encyclopedic style.

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. One of the major challenges is which type of orientation a firm should adopt to overseas its marketing operations. A polycentric approach should only be used within a 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.

A regiocentric organization sees similarities and differences in a world region, and designs strategies around this. After completing my post graduation I thought to start a website where I can share management related concepts with rest of the people. Polycentric management means that the head office places little control on the activities in each market, and there is little attempt to make use of any good ideas or best practices from other markets.


Often there are major differences between countries in a region.

EPG model – Wikipedia

This approach is especially suitable for countries with certain financial, political and cultural constraints. The sole goal of geocentrism is to globally unite both headquarters and subsidiaries. It is a natural tendency for people to act ethnocentrically because it eprgg what they feel comfortable with.

The EPG model is a framework for a firm to better pinpoint its strategic profile in terms of international business strategy. Columbia Journal of World Business 1: The term multinational company is often used to describe such a structure. By using this site, you agree to the Terms of Use and Privacy Policy. This develops an affiliated corporate culture and aids transfer core competences more easily.

Such companies are also sometimes referred to as domestic companies. 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. The main disadvantages are that national immigration policies may put limits to its implementation and it ends up expensive approsch to polycentrism.

Polycentrism can be defined as a host country orientation; which reflects host countries goals and objectives with respect “to different management strategies and planning procedures with regard to international operations.