The Tortuous Evolution of the Multinational Corporation

Topics: Earth, Ethnocentrism, Polycentrism Pages: 3 (486 words) Published: May 9, 2013
The tortuous Evolution of the Multinational Corporation

3 State of Mind Attitudes
•  ETHNOCENTRIC - Home Country Attitudes •  POLYCNTRIC - Host Country Oriented •  GENOCENTRIC - World Oriented

3 State of Mind Attitudes
Ethnocentric – Home Oriented
–  Home Nationals are superior, more trust worthy and more reliable than any foreigners in over seas headquarters or subsidiaries –  The performance criteria for men and products are “Home made” –  Advise/Council flows from headquarters to subsidiaries. –  “This works at home, therefore it must work in your country” attitude. –  Men of home nationality are recruited and trained for key positions everywhere in the world.

3 State of Mind Attitudes
Plolycentric – Host Country Oriented
–  Host cultures are different and that foreigners are difficult to understand –  Locals know what is best for them –  Use a top local executive, strong , trustworthy with an understanding of how the host government works. –  Little understanding of how things are being done as long as they earn profit. –  Assume that since people are different standards of performance, initiatives and training methods must be different. –  No local manager can aspire to a senior position at the headquarters.

3 State of Mind Attitudes
Geocentric – World Oriented
–  No equate superiority with nationality –  Seek the best men regardless of nationality to solve the company's problems anywhere in the world. –  Subsidiaries are a good citizen of the host nation and contribute to benefits such as: •  Increasing supply of hard currency •  New skills •  Knowledge of advanced technology

–  World wide approach in both headquarters and subsidiaries –  Geocentric approach –  Bring the best man in the world regardless of nationality

The EPG Profile
•  A firm's profile can be drawn in ethnocentric, polycentric and geocentric dimensions •  A degree of ethnocentrism, polycentrism and geocentrism can be established by product, function and...
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