about international business approaches (use for management students

1. INTERNATIONALINTERNATIONAL
BUSINESSBUSINESS
APPROSCHESAPPROSCHES
…… SaNket kaNaNi …SaNket kaNaNi …
TY.BBA. -21TY.BBA. -21

2. WHAT ISWHAT IS
INTERNATIONAL BUSINESS ?INTERNATIONAL BUSINESS ?
– The exchange of
goods & services,goods & services,
Resources,Resources,
Knowledge,Knowledge, & Skills,& Skills,
among individuals & businesses
in multiple/two or more
countries.

3. importanceimportance
international businessinternational business
1. Earn foreign exchange
2. Optimum utilization of resources
3. Achieve its objectives
4. To spread business risks
5. Improve organization's efficiency
6. Get benefits from Government
7. Expand and diversify
8. Increase competitive capacity

4. Going International BusinessGoing International Business

5. InternationalInternational
Business ApproachesBusiness Approaches
1. Ethnocentric approach
2. Polycentric approach
3. Re giocentric approach
4. Geocentric approach

6. 1.1. Ethnocentric approachEthnocentric approach
• Under this approach , target market is
own country , Excessive production will
export due to change in customer taste,
preferences
Ex patanjali ayurved & food product they
only focus on the domestic level after
that they sale in global market.

7. Ethnocentric approach
Organization Structure
Managing Director
↓
↓
↓⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻↓⁻⁻⁻⁻⁻⁻⁻⁻⁻↓⁻⁻⁻⁻⁻⁻⁻⁻⁻↓⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻↓
MGR MGR MGR MGR
MGR
R & D FIN PROD HRD
MKTG
↓

8. ↓
Under this approach, the companies
customizes the marketing mix to meet the
taste, performance and needs of the
customers of each international market.
one of the good ex for suitable, its
diamond industry for export in global level
and setting the branch offices.
2. Polycentric Approach

9. Polycentric approach
Organization Structure
Managing Director
↓
→→→→→→→→→ C E O
↓ FOREIGN SUBSIDIARY
↓ SOUTH AFRICA
↓
↓
↓
↓⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻↓⁻⁻⁻⁻⁻⁻⁻⁻⁻↓⁻⁻⁻⁻⁻⁻⁻⁻⁻↓⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻↓
MGR MGR MGR MGR MGR
R & D FIN PROD HRD MKTG

10. 3. Regiocentric
approachUnder this approach, the company operating
successfully in a foreign country thinks of exporting
other neighboring countries of the host country.
At this stage, the concerned subsidiary
considers the regional environment ( such as laws,
culture, policies etc) for formulating the policies &
strategies.

11. Regiocentric approach
Managing Director
↓
→→→ C E O
↓
↓ SOUTH AFRICA
↓ ↓⁻⁻⁻⁻⁻⁻⁻↓⁻⁻⁻⁻⁻⁻⁻⁻↓
↓ Mktg Mktg Mktg
↓ ( Lesotho) ( Kenya) ( Nambia)
↓⁻⁻⁻⁻⁻⁻⁻ ⁻ ↓⁻⁻⁻⁻⁻⁻⁻⁻↓⁻⁻⁻⁻⁻⁻⁻↓⁻⁻⁻⁻⁻⁻⁻⁻↓
MGR MGR MGR MGR MGR

12. 4. Geocentric
approach
• Under this approach, the company
analyses the tastes, preference and needs
of the customers in all foreign markets and
then adopts a standardized marketing mix
for all the foreign markets.

13. • Coca-cola adopted this strategy by selling its
popular soft drink with the same content,
packaging, branding & advertisement themes
worldwide.
• Whirlpool designs a world-washer – small,
stripped-down automatic washing machine for
Mexico, Brazil & India. However, it modified its
product for Indian market to wash the delicate
“sarees”.

14. Geocentric approach
Managing Director
Headquarters India
↓
↓
↓
↓⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻ ↓ ↓⁻⁻⁻⁻⁻⁻⁻ ⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻ ⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻
Subsidiary Subsidiary Subsidiary Subsidiary
India South Africa Kenya Nambia

15. Thank You …