1. The definition of EPRG orientation and its practice in international companies/local companies * ethnocentric (home-country oriented)
An ethnocentric firm views the business from the perspective and values of the home country. Policies and practices are likely to be designed by home-country nationals with little or no variation for international operations. Ethnocentric oriented international companies believe that anything worked at home must also work abroad. For example: Nissan using ethnocentric orientation during its first few years of exporting cars and trucks to the U.S. market. Nissan’s cars were designed for mild Japanese winter, the vehicle were difficult to start in many parts of the U.S. during winter there. In northern Japan many car owners would put blankets over the hoods of their cars. Nissan’s assume that Americans would do the same. * Polycentric (host country-oriented)
In contrast with ethnocentric, a polycentric firm operates according to the principle that each country of operation is different. Polycentric is a highly market-oriented. Each market is considered unique, that’s why the marketing mix, product strategies, pricing strategies etc is different for each country. Example: Citicorp’s financial services around the world operated on a polycentric basis. James Bailey, one Citicorp executive, offered this description of the company: “we were like in a medieval state. There was a king and his court, are they in charge? No. The land barons are who were in charge. King and his court may declare this or that, but the lord barons who went and did their thing to their appointed land.” With that statement we can interpret that even the owner of company in headquarter stating this and that, but each country has some differences, and we should makes some changes in order to make our company succeed in other country. * Regiocentric (regionally-oriented)
Firm treats a region as a...