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EPRG Framework: Orientations Explained

The EPRG framework addresses how strategic decisions are made and the relationship between headquarters and subsidiaries. It consists of four stages: 1. Ethnocentric orientation where headquarters standards are imposed on all subsidiaries without adaptation. 2. Polycentric orientation where each country is treated individually with separate strategies. 3. Geocentric orientation where the best talent is sought globally within legal limits to build an efficient organization. 4. Regiocentric orientation where regions are grouped based on similarities to satisfy consumer needs through regional strategies.

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338 views13 pages

EPRG Framework: Orientations Explained

The EPRG framework addresses how strategic decisions are made and the relationship between headquarters and subsidiaries. It consists of four stages: 1. Ethnocentric orientation where headquarters standards are imposed on all subsidiaries without adaptation. 2. Polycentric orientation where each country is treated individually with separate strategies. 3. Geocentric orientation where the best talent is sought globally within legal limits to build an efficient organization. 4. Regiocentric orientation where regions are grouped based on similarities to satisfy consumer needs through regional strategies.

Uploaded by

kshitij
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We take content rights seriously. If you suspect this is your content, claim it here.
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EPRG

ETHNOCENTRIC, POLYCENTRIC, REGIOCENTRIC,


GEOCENTRIC

BY,
POOJA MUDALIAR
WHAT IS EPRG FRAMEWORK?

• EPRG framework was


introduced by Wind, Douglas
and Perlmutter. This
framework addresses the way
strategic decisions are made
and how the relationship
between headquarters and its
subsidiaries is shaped.
DO YOU KNOW?

• Perlmutter’s EPRG framework consists of four stages in the


international operations evolution.
• ETHNOCENTRIC ORIENTATION

• The practices and policies of headquarters and of the operating


company in the home country become the default standard to
which all subsidiaries need to comply. Such companies do not
adapt their products to the needs and wants of other countries
where they have operations. There are no changes in product
specification, price and promotion measures between native
market and overseas markets.
• Example: Nissan in 1st years exported cars in US markets, sold
cars without change then sold cars in japan.
• REGIOCENTRIC ORIENTATION

• In this approach a company finds economic, cultural or political


similarities among regions in order to satisfy the similar needs
of potential consumers. For example, countries like Pakistan,
India and Bangladesh are very similar. They possess a strong
regional identity
• Example: Punjab (paneer products more) Gujrat (sugar more)
• GEOCENTRIC ORIENTATION

• Geocentric approach encourages global marketing. This does


not equate superiority with nationality. Irrespective of the
nationality, the company tries to seek the best men and the
problems are solved globally within the legal and political
limits. Thus, ensuring efficient use of human resources by
building strong culture and informal management channels.
• Example: Microsoft & Nokia standardized products world wide
• POLYCENTRIC ORIENTATION

• In this approach, a company gives equal importance to every


country’s domestic market. Every participating country is
treated solely and individual strategies are carried out. This
approach is especially suitable for countries with certain
financial, political and cultural constraints.
• Example: Mc Donald (no beef burgers in India)

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