seminar is9 putting the managerial philosophies to the test post student

Seminar: Putting the managerial philosophies to the test

Topic Number: 9

Industry Studies 1

Overview

The way strategy is developed and implemented globally is very dependent on the type of managerial philosophy that is adopted.

In this seminar, we will put this to the test through the development of a marketing strategy using each of the philosophies. There are 3 core managerial philosophies we will look at; ethnocentric, polycentric and geocentric.

We will evaluate how the execution of the campaign would be entirely different depending on each of the managerial philosophies adopted.

3

• Be able to apply each of the 3 managerial philosophies in a live environment

• Determine the strengths and weaknesses of each of the approaches

• Critically evaluate the appropriateness and effectiveness of each in different scenarios

• Demonstrate an ability to present and critique key arguments amongst your peers

Learning outcomes of this seminar

4

The Task

Consider you work for the Coca-Cola Company

headquartered in the USA. You are a marketing manager that is

responsible for implementing a global marketing campaign for the latest energy soft drink into the Middle

East.

Each group is tasked with choosing a different managerial philosophy. Your

task is to evaluate the implementation of adopting the philosophy on the marketing mix

(4Ps). In addition, discuss the implications and consequences of the

approach for the company as a whole.

Structure for the session

You will have 30 minutes to discuss the implications

We will have a debrief at the

end of each 15 minutes to hear your thoughts on each area

Feel free to ask questions but please do not have separate conversations ‘we are all in

this together’!

An Ethnocentric Approach

An Ethnocentric Approach

Ethnocentrism is judging another culture solely by the values and standards of one's

own culture.

Ethnocentric individuals judge other groups relative to their own ethnic group or culture,

especially with concern for language, behavior, customs, and religion. These ethnic distinctions and subdivisions serve to define

each ethnicity's unique cultural identity.

Ethnocentrism may be overt or subtle, and while it is considered a natural proclivity of

human psychology, it has developed a generally negative connotation. (Wikipedia,

2014)

Implications on 4Ps: Product

No consideration

for host country tastes

Adhere to home country

regulatory requirements

Packaging suited to

home country

Implications on 4Ps: Price

No consideration

for host country

affordability

Revenues go back to the

home country

Price the same as

home country

Implications on 4Ps: Place

Use same distribution channels as

home country

No consideration

to host country

consumer preferences

No consideration given to local

physical distribution challenges

Implications on 4Ps: Promotion

Same message and creative as

home country

Minor adjustments

to local preferences

and language etc.

Minimal adaption

A Polycentric Approach

A Polycentric ApproachPolycentrism can be defined as a host country orientation;

which reflects host countries goals and objectives with respect “to different management strategies and planning

procedures with regard to international operations.”

Under a polycentric perspective, a company’s management team believes that in international business

practices local preferences and techniques are usually found most appropriate to deal with the local market

conditions.

In the most extreme views of polycentrism, it is the “attitude that culture of various countries are different, that foreigners are difficult to understand and should be left alone as long as their work is profitable.” (Wikipedia,

2014)

Implications on 4Ps: Product

Complete adaption of product to

host country tastes and

preferences

Adhere to host country regulatory

requirements

Packaging suited to host

country

Implications on 4Ps: Price

Consideration for host country

affordability

Revenues remain in

host country

Price completely

different from home country

Implications on 4Ps: Place

Tailor distribution

to host country

Consideration to host country

consumer preferences

Consideration given to local

physical distribution challenges

Implications on 4Ps: Promotion

Tailored message and

creative in host country

Major adjustments

to local preferences

and language etc.

Complete adaption

A GeocentricApproach

A Geocentric Approach

The sole goal of geocentrism is to globally unite both headquarters and subsidiaries.

The firms 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.

Furthermore, geocentrism boils down to product differentiation, diversifying functions in the sense that

different markets require dissimilar behavior, and lastly geographic location. (Wikipedia, 2014)

Implications on 4Ps: Product

Most fitting product to meet both

the local and global needs

Adheres to all the

regulations in the home and host country

Packaging meets the

needs of both

Implications on 4Ps: Price

Price adapted where

required

Revenues split

proportionally

Pricing to suit home and

host country

Implications on 4Ps: Place

Distribution based on optimal

channels

Consideration to host country

consumer preferences

Consideration given to local

physical distribution challenges

Implications on 4Ps: Promotion

Message that transcends

the home/host

country

Adjustments made for

local preferences

and language etc.

Some adaption

whilst maintaining efficiencies

Any questions?