International-Business-Dr-R-Chandran-E-book

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International Business- Dr. R. Chandran
1. Ethnocentric: Such multinationals concentrate more on their place
of origin. Since they understand their own socio-cultural background
it is easy for them to succeed in their home country. Instead of taking
high risks in other countries they first succeed in their home country
and then slowly more abroad with few changes in the product and
mode of functioning. Mitsukoshi Super Market practices ethnic touch
of Japan in its malls wherever it operates.
2. Regio-centric: Few multinationals focus their activities only in a
particular region like South East Asia or the Gulf region. There are
certain practices that are uniform in nature in a specific region, and
hence they succeed. A region covers many nations; hence the
organization operates in all parts of the region to get the title
‘multinational’. “Continent”, the French super market chain has an
influence in the whole of Indian ocean rim countries.
3. Continental: There are multinationals that are very successful in
particular continent for their specific product ranges. The cost of
storing and warehousing can be brought down if the product is
distributed in the whole continent. There are hundreds of
multinationals doing exceedingly well only in Europe, but are not able
to face cross-cultural challenges in other continents. Therefore, they
remain as continental multinationals. TESCO serves the whole
European continent by understanding the need of every European
community.
4. Polycentric: The majority of multinationals have to simultaneously
enter different countries. It is not possible to adopts a ‘wait and watch’
policy to enter different countries and commence operations. Once a
company invests in an innovation, it has to spread its activities
everywhere, otherwise it will lose the opportunity, and competitors
will step in to get the business. Therefore, companies like Proctor &
Gamble, Unilever, Sony, Electrolux, Henkel and Colgate-Palmolive
are present in almost every part of the world.
5. Trans-national: Multinational like Hewlett Packard has set up subhead
quarters close to the subsidiaries for easy accessibility. The subheadquarters
are located in Singapore or Hong Kong but the main
office remains in California. The trans-national multinationals sole
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