Question

Considering the facts about Kazakhstan, pleasediscuss which staffing strategy – according to theEPRG Model by Perlmutter – would be the mostsuitable for Kazakhstan. Please justify your answer.Comment on advantages and disadvantages of your decision

Answer 1

EPRG Model: Ethnocentric, Polycentric, Regiocentric, Geocentric

Ethnocentric- The companies adopting this way believe that home country is superior in nature and that they tend to seek similarities with that of home country when they dwell for opportunities in international market. Mostly, they wouldn't adapt their products to the needs and wants of other countries where they have operations.

Polycentric- This approach sees a country as exclusive and consider that the business run in local markets is the best strategy. The headquarters will have a little control. They believe in uniqueness in every market.

Regiocentric- This approach studies the similarities and differences in the world and its various operating regions, designs the strategies accordingly. The management tries to figure out the economic, social, cultural and political similarities between the naive areas and the overseas region, satisfy the similar needs and demands of the potential customers.

Geocentric- This approach displays the act and strategy of 'think Global, act Local' They view the entire world as their potential market and take effective and efficient steps to satisfy the needs and the demands of the customers.

Facts about Kazhakhstan:

There are low number of qualified managers and this is not attractive for qualified employees. Local candidate lacks international experiences and there are less options for mobility. The labor market for specalists is quite small. The education system is of major concern.

The strategy to be followed in such scenario is Geocentric approach. This is a unique approach as mentioned above. This recognizes each part with unique contribution and unique competence. The business can be worldwide-integrated where nationality is less important than the ability.

Advantages:

*Local talent can be well utilized

*There will be stability in performances

*There can be a maximal benefit of sharing the resources

*People will develop a global view of working and contribution

Disadvantages:

*Training local workforce is a difficult task

*Low host labor market

*The cost becomes high