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           To develop the business internationally, people apply business strategies. There are three main strategies that are based on different beliefs on how they are going to operate the business. Three main strategies stand for ethnocentric, polycentric and regiocentric.

 

Firstly, ethnocentric organizations keep their headquarters in home country but also operate in several other countries. Sony, Deutsche Bank AG and Merrill Lynch are the example companies. Their management style, decision–making and culture stem from their home country. Advantage of this strategy is that the managers are familiar with company goals, products and procedures. Therefore it is convenient to make an agreement between manager and headquarters. However there are some risks. Companies are not sensitive to the local customs and impose their culture on another, so they might fail to meet the demand of customers.

 

             Secondly, polycentric organizations are not centralised management system. These organizations typically hire local managers and their marketing strategies are tailor-made to fit the country of operation rather than be influenced from the home base. Thus decision making is less influenced from headquarters. For example Nestle, the Swiss company, customize products sold in Europe that are different in their Asia Pacific organizations. Advantage is that companies adapt their products to the needs of the local market. However, there often can be disagreement between managers’ goal and headquarters’ vision causing difficulties with coordinating activities and goals with the parent company.

 

Lastly, some companies apply regiocentric strategy in order to operate more efficiently globally eliminating their structural divisions. For example IBM and Telefonica in Spain adjusted their business to industry or product groups rather than by country. Local managers control decision making, so they can work efficiently with a world-oriented view by using best people and practices. But since headquarters can’t control managers there can be a risk.

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            To develop the  a business internationally, people apply different business strategies. There are three main strategies that are based on different beliefs on how they are going to operate the business businesses. Three main strategies stand for These strategies are ethnocentric, polycentric and regiocentric. (Either use the noun form, ethnocentrism, polycentrism etc or put a noun at the back, "These are ethnocentric ~ strategies.")

 

Firstly, ethnocentric organizations keep their headquarters in their home country but also operate in several other countries. Sony, Deutsche Bank AG and Merrill Lynch are the example some examples of these companies. Their management style, decision–making, and culture stem are from their home country. An Aadvantage of this strategy is that the managers are familiar with the company goals, products and procedures. Therefore it is convenient to make an agreement between the manager and the headquarters. However, there are some risks. Companies are may not be sensitive to the local customs and could impose their culture on another, so they might fail to meet the demands of their customers.

 

            Secondly, polycentric organizations are not centralised centralized management systems. These organizations typically hire local managers and their marketing strategies are tailor-made to fit the country of operation rather than be influenced from by the home base. Thus, decision making is less influenced from by the headquarters. For example, Nestle, the a Swiss company,  customizes products sold in Europe that and are (sold in Europe, which are ) different from the products in their Asia Pacific organizations. Its Aadvantage is that companies adapt their products to the needs of the local market. However, there often can be disagreement between managers’ goal and headquarters’ vision causing difficulties with coordinating activities and goals with the parent company.

 

Lastly, some companies apply a regiocentric strategy in order to operate more efficiently, globally eliminating their structural divisions. For example, IBM and Telefonica in Spain adjusted their businesses to industryies or product groups rather than by countryies. Local managers control decision making, so they can work efficiently with a world-oriented view by using the best people and practices. But since headquarters can’t control managers, there can be a risk.

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