Question

We talked about Ethnocentric, Polycentric, Regiocentric and Geocentric approaches to management in class. Discuss these 4 approaches as if you were Adidas executive hiring staff for a production facility in China. Which approach would you recommend and why?

Answer 1

Ethnocentric-

This is a group of  people or company who believe that their home country is superior. When they look to new markets they depend on what they know and try to find similarities with their own country. Foreign subsidiaries or offices in international markets are seen as less able and less important compared to the head office. Basically, these companies make few adaptations to their products and undertake little research in the international markets.

Here opportunities outside the home country are generally not taken into consideration .This kind of companies are also called as domestic companies

Polycentric-

In polycentric organizations each country is considerd as unique,and also that businesses are best run locally. Polycentric management means that the head office has some control on the activities in each market. And strive to make use of any good ideas or best practices from other markets

However  polycentric management usually bleive or assumes that each country in which a company does business is unique. This states the groundwork for each subsidiary to develop its unique business and marketing strategies in order to succeed.

Regiocentric-

A regiocentric organization is a group of people who see similarities and differences in a world region, and designs strategies on the basis of these.

For example- India and Bangladesh are both in south Asia , but are very different in climate, culture, transport, retail distribution, and so on.

Geocentric-

Geocentric organizations are truly global players.

They view the world as a potential market, and try to serve them effectively. Geocentric management can identify the similarities and differences between the home country and the international markets. It blends ethnocentric and polycentric .In other words it displays the think global act local ideology in an overview.

if i were Adidas executive hiring staff for a production facility in China i would prefer regiocentric Management because it see similarities and differences in a world region, and designs strategies on the basis of these.