Seminar is9 putting the managerial philosophies to the test post student
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Transcript of 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?