003 Rahul Ujjainwal 005 Rahul Anand 006 2. GEOCENTRICREGIOCENTRIC POLYCENTRIC ETHNOCENTRIC MANAGEMENT ORIENTATIONS The form and substance of a company's response to global markets opportunities depend greatly on managements assumption and beliefs (both conscious and unconscious) about the nature of the world. The worldview of a companys personnel can be described as : 3. Considers foreign market secondary to an extension of domestic market Marketing strategy Extension of domestic strategy to foreign marketFocuses on similarities between home and foreign market Domestic market is superior Ethnocentric Management orientation Home country orientation Perception about market 4. Companies basic objective Profitability Type of governance Top-down Culture - Home country Technology - Mass production HRM practices Overseas operations are managed by people from home country Managerial predisposition - Manager/MNC rely n values &interests of parent company in formulating and implementing strategic plan 5. Overseas operations viewed as secondaryEthnocentric cont. Characteristics & Domestic techniquesprimary means of disposing the surplus production &personnel superior to foreign & All foreign marketing operations are plannedDomestic marketing mix is employed without major modifications
in overseas market most effective in overseas market
& carried out from home base & overseas marketing administered by export department 6. No costMerits & Main focus on domestic market Examples Nissan in 1st years exported cars in US markets, sold cars without change then sold car in Japan No full exploitation of IB opportunities worldwide It easy route to internationalization when foreign market exists with similar domestic characteristics Demerits efforts needed for adaptation/localization 7. Focuses on differences between home countryEach national market is distinctive Polycentric Management orientation Host country orientation Perception about market & foreign country Marketing strategy Localization / adaptation Companies basic objective Public acceptance 8. Type of governance Each local unit sets objectives (bottom up) Culture-Host country Technology - Batch production HRM practices Local nationals are used in key management positions Managerial predisposition MNC tailor strategic plan to meet the need of local culture 9. Subsidiaries are established in overseas marketRecognize importance of inherent differences in overseas markets Polycentric cont. Characteristics & each is independent with own marketing objectives & Local techniquesplans & International marketing organized on country to
country basis with separate marketing strategy for
allpersonnel best suited to deal with local market conditions 10. Adaptation to market cMerits Delay in localization Examples McD (no beef burgers in India)High cost of national responsive marketing mix for each country haracteristics help in better understanding of local needs which will lead to better exploitation of market potentials Demerits 11. Regiocentric Management orientation Regional orientation Perception about market Markets can be differentiated on the basis of common regional characteristics Marketing strategy Trade- off between standardization & localization Companies basic objective Both profitability & public acceptance 12. Type of governance Mutually negotiated between region & its subsidiaries Culture-Regional Technology Flexible manufacturing HRM practices Regional people are developed for key managerial positions anywhere in region Managerial predisposition - MNC use a strategy that addresses both local & regional needs 13. Regions with similarity of marketing characteristics treated as separate market Merits - Advantages of both localizationTreat different regions as different market Characteristics &standardization Demerits Lack of attention to inter regional differences Examples Punjab (paneer products more) Gujarat (sugar more) 14. Geocentric Management orientation Global orientation Perception about market Entire world is a
single market that can be effectively tapped by
standardized marketing strategy Marketing strategy Global standardization Companies basic objective Both profitability & public acceptance Type of governance Mutually negotiated at all level of organization 15. Culture- Global Technology - Flexible manufacturing HRM practices Best people anywhere in the world are developed for key managerial positions everywhere in the world Managerial predisposition - MNC constructs its strategic plan with a global view of operations 16. Standardized marketing mix, to give uniform image of productEntire world is treated as single market Characteristics &Worldwide approach to marketingcompany for global market & Lower costs advantage of paceEconomies of large scale production its operations Merits 17. Uniform /standard marketing mix not guarantees for sure success in every situation Examples MicrosoftNot successful in many cases Demerits & Nokia standardized products world wide