INTERNATIONAL

BUSINESS
APPROSCHES
… SaNket kaNaNi …
TY.BBA. -21
 WHAT IS
INTERNATIONAL BUSINESS ?

– The exchange of

goods & services,

Resources,
Knowledge, & Skills,
among individuals & businesses

in multiple/two or more
countries.
 importance
international business
1. Earn foreign exchange

2. Optimum utilization of resources

3. Achieve its objectives

4. To spread business risks

5. Improve organization's efficiency

6. Get benefits from Government

7. Expand and diversify

8. Increase competitive capacity

Going International Business
 International
Business Approaches

1. Ethnocentric approach

2. Polycentric approach

3. Re giocentric approach

4. Geocentric approach
 1. Ethnocentric approach

• Under this approach , target market is

own country , Excessive production will

export due to change in customer taste,

preferences

Ex patanjali ayurved & food product they

only focus on the domestic level after
that they sale in global market.
 Ethnocentric approach
Organization Structure

Managing Director
↓
↓
↓⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻↓⁻⁻⁻⁻⁻⁻⁻⁻⁻↓⁻⁻⁻⁻⁻⁻⁻⁻⁻↓⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻↓
MGR MGR MGR MGR
MGR
R & D FIN PROD HRD
MKTG

↓
 2. Polycentric Approach

Under this approach, the companies

customizes the
↓
marketing mix to meet the
taste, performance and needs of the
customers of each international market.

one of the good ex for suitable, its

diamond industry for export in global level
and setting the branch offices.
 Polycentric approach
Organization Structure

Managing Director
↓
→→→→→→→→→ CEO
↓ FOREIGN SUBSIDIARY
↓ SOUTH AFRICA
↓
↓
↓
↓⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻↓⁻⁻⁻⁻⁻⁻⁻⁻⁻↓⁻⁻⁻⁻⁻⁻⁻⁻⁻↓⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻↓
MGR MGR MGR MGR MGR

R&D FIN PROD HRD MKTG

 3. Regiocentric
approach
Under this approach, the company operating

successfully in a foreign country thinks of exporting

other neighboring countries of the host country.

At this stage, the concerned subsidiary

considers the regional environment ( such as laws,

culture, policies etc) for formulating the policies &

strategies.
Regiocentric approach
Managing Director
↓
→→→ CEO
↓
↓ SOUTH AFRICA
↓ ↓⁻⁻⁻⁻⁻⁻⁻↓⁻⁻⁻⁻⁻⁻⁻⁻↓

↓ Mktg Mktg Mktg

↓ ( Lesotho) ( Kenya) ( Nambia)

↓⁻⁻⁻⁻⁻⁻⁻ ⁻ ↓⁻⁻⁻⁻⁻⁻⁻⁻↓⁻⁻⁻⁻⁻⁻⁻↓⁻⁻⁻⁻⁻⁻⁻⁻↓
MGR MGR MGR MGR MGR
 4. Geocentric
approach
• Under this approach, the company
analyses the tastes, preference and needs
of the customers in all foreign markets and
then adopts a standardized marketing mix
for all the foreign markets.
• Coca-cola adopted this strategy by selling its
popular soft drink with the same content,
packaging, branding & advertisement themes
worldwide.

• Whirlpool designs a world-washer – small,

stripped-down automatic washing machine for
Mexico, Brazil & India. However, it modified its
product for Indian market to wash the delicate
“sarees”.
 Geocentric approach

Managing Director
Headquarters India
↓
↓
↓
↓⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻ ↓⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻ ↓⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻
Subsidiary Subsidiary Subsidiary Subsidiary

India South Africa Kenya Nambia

Thank You …