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THE EPG Model

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by

Maxime Brillanceau

on 7 December 2013

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Transcript of THE EPG Model

The
EP(R)G
model

by Howard Von Perlmutter
What is it ?
Ethnocentrism
Geocentrism
Which one do you think is the best model ?
Can those models
be applied in
every countries?
an International Business model including three dimensions
_based on ethnicity
_home country oriented
_world oriented
_adapted for multinational companies
_manager's mobility in many countries
_goal : unify headquarters&subsidiaries
maxime brillanceau
_Ethnocentric
_Polycentric
_Geocentric
(Regiocentric)
“This works at home therefore it must work in your country"
Why ?
Polycentrism
Risks
_bad adaptation with a target country
_poor feedback by the subsidiaries
_only adapted for big brands
_control the subsidiaries
_carry a good image of the brand
_adapt the business plan to each country
_adapt to specific cultures in the world
_expand the culture of the home country
_develop business skills in the target place
_host country orientation
_adaptation to each country
_independance of subsidiaries
Examples
Risks
_more autonomy for the subsidiaries
_lose the control of subsidiaries
_raising of "national interests" and "independance
_lose the image of the brand
Benefits
_feedback = better quality of products&services
_higher global profits
_adaptation in countries and control
$
$
$
$
$
$
$
$
$
$
$
Profits
Image
+
Examples
Examples
ethnocentrism?
polycentrism?
geocentrism?
_ethnocentrism =
or luxury brands


_polycentrism =
food and beverages companies (adaptation to cultures)


_geocentrism =
multinational companies with activities in many countries
"thanks for your attention" :-)
Full transcript