The Implications for Business Ethnocentrism naturally comes with doing business, both locally and internationally. This model served as the predominant cosmological system in many ancient civilizations such as ancient Greece including the noteworthy systems of Aristotle see Aristotelian physics and Ptolemy. Ethnocentrism is the fallacy that your country betters other countries. This policy is best used when companies want to keep hiring cost low. These standards are to ensure performance and product quality. They saw Egypt as the centre of the world.
Organizations have several choices in structuring their international operations according to Perlmutter 1969. Words: 1119 - Pages: 5. This in turn could cause a lack of flexibility and local responsiveness. Chapter 4 What is meant by the idea of economic freedom? Therefore, when a company assumes a polycentric orientation, it adapts its products, marketing and support functions for each country it operates in. Finally, some non-market dissertations are presented, on how geocentrism can evolve and some threats to the public interest are sketched. The strategy of the organization is characterized by three factors: ethnocentrism, polycentrism and geocentrism. There certainly is an ethnocentric approach in international business.
You can generally break employees working in a foreign facility or office of an international company into three categories. Ethnocentrism: The belief that one ethnic group or nation usually the one of the speaker is superior to others and that itsvalues and actions are superior. A company with an ethnocentric predisposition allows the values and the interests of the original company to guide the strategic decisions. Ethnocentrism occurs when a specific culture judges all other cultures against their own values, such as in language, customs and religion. Forward thinking organizations have this perspective and show this; by the way, employees are hired, promoted and compensated.
As a result, costs and profits are generated in slightly different ways, depending on the mentioned. Words: 5142 - Pages: 21. They get taken advantage of every day. Antoinette is Ken's executive secretary in France, but unlike Ken, she's a citizen of France and is considered a host-country national. The ethnocentric attitude is found in many companies that have many nationalities and culture groups working together. Everyone should be perfectly proud of their identity. Moreover, some attention is drawn on the evolution from one orientation to another.
Businesses with a polycentric orientation adopt the belief that every country is unique and needs a different approach to match cultural and societal norms. Ethnocentricity also contributes to racism, stereotypes, and prejudice. The report evaluates the use of a regiocentric method for an international start-up… primary models of international marketing that address the marketing mix include ethnocentric, geocentric and polycentric. Gayle and her team may fill some positions with people that are not citizens of the country where they will be employed. Traces of this sense of European ethnocentrism are still evident today. Ancient Greek, ancient Roman and medieval philosophers usually combined the geocentric model with a spherical Earth. So, while developing the operations and marketing strategies, these would be similar across the regions, and it is done based on the analysis of the entire region, and not only by concentrating on individual countries.
Words: 268 - Pages: 2. Getting back to the early era of colonies, we do find excuses for becoming global super powers. In this context, ethnocentrism is the view that a particular ethnic group's system of beliefs and values is morally superior to all others. The foreign subsidiaries are not given autonomy or power to make strategic decisions and are even managed by expatriates from the home country. Advertisements Definition: Regiocentric Orientation Regiocentric Orientation is an approach adopted by a firm wherein it adopts a marketing strategy across a group of countries, which have been grouped on the basis of their market characteristics; i. But what standards were they using to make that judgment? People who believe that every culture has something to offer and no culture is inferior to another are often at risk of looking down at people who think their cultures are better; people from the very cultures supposedly non-ethnocentric people celebrate.
A firm should take into consideration one, the immigration policy and whether or not they are able to recruit from certain countries, two, if the area they wish to be located in has workers who are capable for the job. Business organizations will resource for their overseas assignments in the future through polycentric staffing strategies. Global Marketing: Geocentric orientation Domestic marketing: A company marketing only within its national boundaries only has to consider domestic competition. If they were to need to choose a different one they should chose. Justifications of recommendations 12 9. In this part we will examine the connection between this approaches and staffing practices as well as the advantages and disadvantages of this differents approaches. Ethnocentric staffing presents advantages and disadvantages.
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. They also have a strong sense of pride, vanity, and superiority about their ethnic or cultural group. The vast majority of the world's population resides outside of the United States, making expansion to other countries highly attractive for U. Ethnocentric approach is a staffing policy that is used in companies that has primarily international strategic orientation. They are:Horizontally integrated multinational corporations. This model aims to identify the orientation of the organization.
As stated previously this is because different markets, regions, and countries require distinctive ways of approaching them. European Imperialism Imperialism, the practice of taking over other lands, was heavily practiced by Europe starting in the sixteenth century. Clearly, strategies and management style which are involved in international and global businesses must be adjusted in order to operate successfully Deresky, 2014, 18. Recent Examples on the Web The people of Refugio have a strong, ethnocentric identity and a grit and determination born of being raised in harder times than these. The firm's subsidiaries are thus neither satellites nor independent city states, but parts of a whole whose focus is on worldwide objectives as well as local objectives, each part making its unique contribution with its unique competence. Words: 350 - Pages: 2. Clearly, this practice is related to problems of both racism and prejudice.
However, the driving factor for most companies is the sales potential. There are many costs that ethnocentrism can incur on an international organization. It is the overall goal of geocentrism to form a collaborative network between headquarters and subsidiaries; this arrangement should entail a set of universal standards that can thus be used as a guideline when attacking key business decisions. What key factors should a firm consider before adopting one of these approaches? In common law systems, the decision made by a high court cannot be overridden by a lower court, the decision of the higher court is a binding precedent; where as in Civil law, there is no such thing as binding precedent. They like to concentrate on the job at hand and take time commitments very seriously.