PROCESS OF INTERNALIZATION AND INTERNATIONAL BUSINESS APPROACHES

• INTERNATIONAL BUSINESS 2
  NET COMMERCE/MANAGEMENT
• PROCESS OF INTERNATIONALIZATION
• APPROACHES TO INTERNATIONAL BUSINESS
• INTERNATIONAL BUSINESS APPROACHES

1. ETHNOCENTRIC APPROACH ( HOME COUNTRY ORIENTATION)
2. POLYCENTRIC APPROACH ( HOST COUNTRY APPROACH)
3. REGIONCENTRIC APPROACH
4. GEOCENTRIC APPROACH ( WORLD ORIENTATION)

• ETHNOCENTRIC APPROACH
   ( HOME COUNTRY)

1. IN THE ETHNOCENTRIC COMPANY,OVERSEAS OPERATIONS ARE VIEWED AS SECONDARY TO DOMESTIC OPERATIONS
2. PRIMARY AS MEANS OF DISPOSING SURPLUS DOMESTIC PRODUCT
3. CONTINUE THE EXPORTS TO THE FOREIGN COUNTRIES AND VIEW S THE FOREIGN MARKETS F AS AN EXTENSION TO THE DOMESTIC MARKET JUST LIKE A NEW REGION
4. APPROPRIATE FOR SMALL COMPANY

• POLYCENTRIC APPROACH
  ( HOST COUNTRY ORIENTATION)

1. POLYCENTRISM IS MULTINATIONAL ORIENTATION
2. PHILOSOPHY AT THIS STAGE IS THAT LOCAL PERSONNEL AND TECHNIQUES ARE BEST SUITED TO DEAL WITH LOCAL MARKET CONDITIONS
3. SUBSIDARIES ARE ESTABLISHED IN OVERSEAS
4. EACH SUBSIDIARY OPERATES INDEPENDENTLY OF THE OTHER AND ESTABLISH ITS OWN MARKETING OBJECTIVES AND PLANS
5. APPOINT THE KEY PERSONNEL FROM THE HOME COUNTRY AND REST FROM THE HOST COUNTRY
6. ADAPTION OF THE BUSINESS STRATEGY TO THE LOCAL CONDITION

• REGIONCENTRIC APPROACH

1. VIEWS DIFFERENT REGIONS AS DIFFERENT MARKETS
2. A PARTICULAR REGION WITH CERTAIN  IMPORTANT COMMON CHARACTERISTICS REGARDED AS SINGLE MARKET
3. FOREIGN SUBSIDIARY CONSIDERS THE REGIONAL ENVIRONMENT AND MARKETS PRODUCT MORE OR LESS THE SAME BUT DIFFERENT MARKETING STRATEGIES

• GEOCENTRIC APPROACH
  ( WORLD ORIENTATION)

1. VIEWS THE ENTIRE WORLD AS A SINGLE MARKET AND DEVELOP STANDARDIZED MARKETING MIX AND PROJECTING A UNIFORM IMAGE OF THE COMPANY AND ITS PRODUCTS FOR THE GLOBAL MARKET
2. ENTIRE WORLD IS JUST LIKE A SINGLE COUNTRY FOR THE COMPANY
3. SELECT THE EMPLOYEES FROM THE ENTIRE GLOBE AND OPERATE WITH A NUMBER OF SUBSIDIARIES
4. THE HEAD QUARTER COORDINATES THE ACTIVITIES OF THE SUBSIDIARIES
5. EACH SUBSIDIARY FUNCTION LIKE AND INDEPENDENT AND AUTONOMOUS COMPANY

• PROCESS OF INTERNATIONALIZATION
• DOMESTIC COMPANY

1. LIMIT THEIR OPERATION,MISSION AND VISIONS TO NATIONAL POLITICAL BOUNDARIES
2. FOCUS IS CONFINED TO :
3. DOMESTIC MARKET OPPORTUNITIES
4. DOMESTIC SUPPLIES
5. DOMESTIC FINANCIAL COMPANIES
6. DOMESTIC CUSTOMERS
7. STRATEGIES  FORMULATED ON THE BASIS OF DOMESTIC ENVIRONMENT
8. NEVER THINK OF ENTERING GLOBALLY,THINKS OF EXPANSION AND DIVERSIFICATION

• INTERNATIONAL COMPANY

1. NOW DOMESTIC COMPANY WHICH GROW BEYOND THEIR PRODUCTION/DOMESTIC MARKETING CAPACITIES,THINK OF INTERNATIONALIZATION
2. REMAIN ETHNOCENTRIC OR DOMESTIC COUNTRY ORIENTED
3. THE FOCUS OF THESE COMPANIES IS DOMESTIC BUT EXTENDS THE WINGS TO THE FOREIGN COUNTRIES
4. SELECT THE STRATEGY OF LOCATING THE BRANCH IN THE FOREIGN MARKET AND EXTENDS THE SAME DOMESTIC OPERATIONS INTO FOREIGN MARKETS
5. EXTENSION OF THEIR DOMESTIC PRODUCER,PRICE,PROMOTION AND OTHER BUSINESS PRACTICES TO THE FOREIGN MARKET

• MULTINATIONAL COMPANY

1. TURN INTO MULTINATIONAL COMPANIES WHEN THEY START RESPONDING TO THE SPECIFIC NEEDS OF ALL DIFFERENT COUNTRY MARKET REGARDING PRODUCT/PRICE/PROMOTION
2. ALSO REFERRED TO MULTI DOMESTIC
3.  FORMULATION OF DIFFERENT MULTI DOMESTIC STRATEGIES
4. ORIENTATION SHIFT TO ETHNOCENTRIC TO POLYCENTRIC
5. IN POLY CENTRIC ORIENTATION THE OFFICES/BRANCHES/SUBSIDARIES OF A MULTINATIONAL COMPANY WORK LIKE DOMESTIC COUNTRY IN EACH COUNTRY

• GLOBAL COMPANY

1. WHICH HAS EITHER GLOBAL MARKETING STRATEGY OR GLOBAL STRATEGY
2. EITHER PRODUCES IN HOME COUNTRY OR IN SINGLE COUNTRY AND FOCUSES ON MARKETING THESE PRODUCTS GLOBALLY OR PRODUCES THE PRODUCTS GLOBALLY AND FOCUSES ON MARKETING THESE PRODUCTS DOMESTICALLY

• TRANSNATIONAL COMPANY
• IS ONE WHO PRODUCES,MARKETS,INVESTS AND OPERATE ACROSS THE WORLD
• INTEGRATED GLOBAL ENTERPRISE THAT LINKS GLOBAL RESOURCES WITH GLOBAL MARKETS AT PROFITS
• NO PURE TRANSNATIONAL BUT MOST OF THE TRANSNATIONAL COMPANIES SATISFY MANY FEATURES OF GLOBAL CORPORATION
• GEOCENTRIC IN ITS ORIENTATION
• COMPANY THINK GLOBALLY AND ACT LOCALLY
• ADOPTS GLOBAL STRATEGY BUT ALLOWS VALUE ADDITION TO THE CUSTOMER OF DOMESTIC COUNTRY
• TRANSNATIONAL COMPANY COLLECT THE DATA AND INFORMATION WORLD WIDE
• THE VISION AND ASPIRATIONS OF TRANSNATIONAL COMPANIES ARE GLOBAL,GLOBAL MARKETS,GLOBAL CUSTOMERS AND GROW AHEAD OF OTHER GLOBAL/TRANSNATIONAL COMPANIES
• THE KEY OPERATIONS ARE GLOBALIZED LIKE RESEARCH AND DEVELOPMENT,PRODUCT DEVELOPMENT,PLACING KEY HUMAN RESOURCES,PROCUREMENT
• CREATE THE GLOBAL BRAND THROUGH EXTENDING THE PRODUCT TO THE NEW MARKET