Clarity, relevance, distinctiveness, and consistency are factors that influence the ________ multiplier of the brand value chain. Because a strategy based mainly on one of the three elements can mean significantly different costs or benefits to the firm, it is necessary for a firm to carefully analyze how their firm is oriented and make appropriate decisions moving forward. ", Perlmutter V.H., Heenan A.D. "How multinational should your top managers be? [3] Lastly is that the "treating of each market as unique may lead to the duplication of facilities. This argument can be justified by mentioning the case study of Disneyland Co. There is cultural diversity in all countries and this affects the functioning of the organization in that particular country. Adaptation strategy implemented at extreme scale may compromise core competitive advantage of a global brand causing disparity of image of the company. According to BrandAsset Valuator model, esteem and knowledge, the two pillars of brand equity together create brand ________, a "report card" on past performance and a current indicator of current value. An act of kindness, such as opening the door for an elderly man, illustrates conforming to ________, Elements of social control in everyday life include shame, guilt, and ________. In its focus on bottom-line financial value, the ________ approach often overlooks the "option value" of brands and their potential to affect future revenues and costs. ", personal reflection, personal essay, or argumentative essay, Learn how and when to remove this template message, "The Tortuous Evolution of the multinational corporation", https://en.wikipedia.org/w/index.php?title=EPG_model&oldid=1055021817, Articles with dead external links from November 2011, Wikipedia articles with style issues from November 2011, Creative Commons Attribution-ShareAlike License 3.0, Based on preference for employees from the company's home country, Based on preference for host country nationals (HCN). There are a few other drawbacks to the polycentric approach which may restrict a multinational company from completely realizing its full potential in the host country. c. passing cultural patterns form one generation to another. In other words, global businesses pursuing standardisation strategy are able to respond to changes in individual markets to a lesser extent compared to local businesses or businesses using adaptation strategy. In this approach, organisations have local people are recruited at senior positions. It has been introduced by Howard V. Perlmutter within the journal article "The Tortuous Evolution of Multinational Enterprises" in 1969. Home standards are applied to the evaluation and control of the organization. Which theoretical approach states that the stability of U.S. society rests on core values shared by most people? On the other hand, adaptation strategy can be applied in order to address differences associated with each individual market; however, adaptation comes for an extra cost and this fact may compromise price competitiveness of relevant products and services. 24, Issue 3, 2012, Chung, H.F. (2009) Structure of marketing decision-making and International Marketing standardisation strategies European Journal of Marketing Vol.43, Issue: 5, 2009, Chung, H.F., Wang, C.L. They possess a strong regional identity. Which theoretical approach gives an evolutionary explanation of why the sexual "double standard" is found around the world? Various dimensions of IHRM are best conceptualized by Morgan. Each of the three elements of the EPG profile is briefly highlighted in the table below, showing the main focus for each element, as well as its correlating function, products, and geography. These dimensions not only affect International Human Resources Management individually but have interplay and influence IHRM functioning. Companies should evaluate all legs of the EPG model before implementing a strategy, as all companies differ in international strategy among industry and region. Study with Quizlet and memorize flashcards containing terms like The United States is the most _____ of all cultures. This will help in reducing expatriate failure. However, there are certain aspects of the business life in which ethnocentrism and polycentrism are more adequate models to follow, but functional smoothness and success in both home and host countries is dependent upon upper managements ability to select individuals who are world orientated as opposed to home or host country centered.[2]. Organisational factors relate to organisational culture, type of ownership, the degree of international experience and the share of revenue from international markets (Theodosiou and Leonidou, 2003). (2011) McDonalds the innovator The Economist, June 16, 2011 edition, Theodosiou, M. & Leonidou, L.C. International HR managers must pay focused attention while designing the remuneration package of the expatriate. The challenge for marketers in building a strong brand is ________. With respect to the brand building pyramid, the branding objective of developing deep, broad brand awareness corresponds to which of the following "building block levels"? [2] Ethnocentric attitudes are often expressed in determining the managerial process at home and overseas. When a firm uses an established brand to introduce a new product, it is called a brand ________. Regiocentric staffing is a lot like polycentric staffing in that host-country nationals staff each foreign subsidiary to a high degree. High level of effectiveness of monitoring the outcome of marketing communications also contributes to efficiency of standardisation strategy (Chung et al., 2012). It has been introduced by Howard V. Perlmutter within the journal article "The Tortuous Evolution of Multinational Enterprises" in 1969. Approaches. In other words, standardisation and adaptation strategies do not have to be mutually exclusive; however, an adequate level of balance needs to be maintained between the two. The United States is the most ________ of all cultures. Along with advantages discussed above, there are certain drawbacks of adaptation strategy. Which of the following is a defensive criterion for choosing brand elements? Electronics World Inc. paid out $22.4 million in total common dividends and reported$144.7 million of retained earnings at year-end. If a consumer who is trying to decide between alternatives believes that a particular brand delivers acceptable product performance and can be shortlisted, she is in the ________ level of the BrandDynamics Pyramid. As a part of human culture, religion is an example of _____. [6], Polycentrism is one of the three legs in the EPG framework that "identifies one of the attitudes or orientations toward internationalization that is associated with successive stages in the evolution of international operations"[7], Polycentrism can be defined as a host country orientation; which reflects host countries goals and objectives with respect "to different management strategies and planning procedures with regard to international operations. Apart from being high-end, Louboutin footwear signifies power in elite social circles. d. some cultural elements change more quickly than others, A good example of cultural lag is ________, a. gaining the ability to modify genetic patterns in humans before understanding the possible social consequences of doing so. \begin{matrix} The Relationship of Policy to Strategy. The authors of the present review were charged with determining whether these practices are supported by scientific evidence. The decision making is highly decentralised and local management takes all decisions. International companies must strive to achieve the appropriate balance between global and local HR systems and practices. It may lead to the confusion between the regional objectives and the global objectives. [2] This is evident in the sense that upper management does not hire or delegate responsibility to an individual because they best exemplify the host or home countries opinions. Mark is most likely experiencing brand ________. Modern businesses are granted with vast opportunities in terms of revenue maximisation through entering new markets. According to the BrandAsset Valuator model, strong new brands show ________. An investor in Treasury securities expects inflation to be risk-free rate is 1.95% and that this rate will remain constant. Adaptation strategy usually eliminates the chances of benefiting from the economies of scale. Using the centralized approach can cause inefficient staffing problems in the organization, this is because the employed staff will incur high financial costs to the global business as they have to pay for the transfer costs of the staff coming from the home country to overseas. For example, Red Bull can in North American market is designed in red, silver and blue colours. Furthermore, the practice of standardisation in marketing practices also benefits from the concept of world consumer (Hallgren et al., 2012), according to which increasing forces of globalisation and role of media, and frequent travelling at the global scale have fuelled harmonisation of values and lifestyles across the borders. Generally, such companies believe and follow homegrown talent strategy. \text{Project X} & \text{- \$ 1000} & \text{ \$ 110} & \text{- \$ 300} & \text{\$ 430}\\ Adaptation relates to McDonalds marketing strategy as well. Aromas Inc. introduced a new line of shower gels. Such organisations are very matured in their management structure, processes and systems. Based on preference for those best suited to the job wherever they are from. the perception sent from the headquarters towards HR also helps determine how HR is viewed locally. [2], Organizations that are designed with an ethnocentric focus will portray certain tendencies. The strategy of adaptation proves to be effective for mass consumption of products in general, and grocery products in particular as the level of cultural sensitivity towards such types of products tend to be high. [2] The first and most obvious of these is competition, if one company is to enter a new country or market it forces rivals to do the same in order to maintain pace. What are they? Comment on why the average interest rate during the 2-year period differs from the 1-year interest rate expected for Year 2. The main difference of geocentrism compared to ethno- and polycentrism is that it does not show a bias to either home or host country preferences but rather spotlights the significance of doing whatever it takes to better serve the organization. The IT-enabled integrated systems like ERPs have made it possible to achieve the above-stated objectives in a very smooth manner. We and our partners use cookies to Store and/or access information on a device. In Ethnocentric approach, management believes that the approach of the parent company in managing things is the tried and tested practice and it should be followed in all units of the organization in different countries. The first drawback of a polycentric approach is that the "benefits of global coordination between subsidiaries such as the development of economies of scale cannot be realized. \text{Project Y} & \text{- \$ 1000} & \text{\$ 1100} & \text{\$ 90} & \text{\$ 55}\\ ", According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps. "[7] Under a polycentric perspective, a company's management team believes that in international business practices local preferences and techniques are usually found most appropriate to deal with the local market conditions. It is very difficult to maintain consistency in the HR planning in all the subsidiaries. For example, the standards in which the home country operates are going to be much different from how the host country operates. From Ethnocentric to Geocentric Orientation: In the 1950s and 1960s, MNCs adopted an ethnocentric outlook; that is, the orientation of the foreign operation was based on that of the parent company. To implement such a strategy they need local knowledge and indepth understanding of the way of working in that country. The consent submitted will only be used for data processing originating from this website. Which of these steps would address or answer the question "Does this brand offer something better than the others? From a marketing management perspective, which of the following brand equity drivers is most applicable in the given scenario? (2016 Pearson Global Edition Kotler_1292092629_mech.indd 1 17/03/15 8:41 PM Marketing Management 15 Global Edition Philip Kotler Northwestern University Kevin .. to the business from marketing activities and programs, as well as addressing broader concerns and their legal, ethical, social, and This essay represents a critical analysis of standardisation vs. adaptation ininternational marketing in the twenty first century. c. change in one cultural pattern is usually linked to changes in others. Which of the following levels of the BrandDynamics Pyramid pertains to consumer's needs? In this approach, a company gives equal importance to every countrys domestic market. For example, integrated marketing communication processes of a leading consumer electronics company Apple, are highly standardised and this is partially caused by the fact that its products such as IPhone, IPad and personal computers do satisfy the same types of customer needs t toregardless of the geographical location. $$ It is the next step after recruitment and selection. Development theory is a collection of theories about how desirable change in society is best achieved. By using this website, you agree with our Cookies Policy. The big list of academic theories, postulates, hypotheses, etc. To keep them motivated appropriate and justified performance appraisals should be conducted. In this case, it would be important for a firm to re-align its focus in order to ensure that it is correctly representing the firm's focus. Use this policy to determine whether the regiocentric, ethnocentric or polycentric approach suits best. Collectively, they are used in the movie industry to. 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. This does not equate superiority with nationality. It is the process of re-entry into the home country. Every participating country is treated solely and individual strategies are carried out. There has to be a fit between the management approach and the culture of the host country. [2], There is no international firm today whose executives will say that ethnocentrism is absent in their organization. They are provided with pre-departure training before they depart for the host country. What was the net income? If consumers can easily recall and recognize a brand element, the brand element is said to be ________. [6] This also could bring inefficiency to the business if the new staff is not able to fit in and be culturally compatible in their newly situated location. When entering new market, decisions need to be taken by strategic level management about the extent of standardisation in relation to each individual component of the marketing mix. [2] Such decisions include the management and start-up of new plants, ideas of how to market a product to a new consumer base, and product alterations. "[7] This is very accurate in several aspects of the products delivery including pricing, customer service and well-being, market research, and channels of distribution. "[7] Management usually loses coordination of its international subsidiaries usually because they are forced to operate independently of one another, and establish separate objectives and plans which meet the host countries criteria. Approach, a company gives equal importance to Multinational Enterprises partners use data for making a prediction of future needs! 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