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The term global must be made and delivered local by Professor Lynch refers to the organisation adapting their business operations towards their target market. Organisations may be influenced to adapt products or services due to external factors such as governmental and economical or internal factors.
Within the food industry, adapting products to suit consumer tastes enhances an organisations attractiveness in new countries. With McDonalds expanding from an American organisation to worldwide, the products they served in the US are not always well received in other countries. This could be to cultural tastes and products used such as type of meat. To therefore leverage their influence in a new region, McDonalds had to adapt its products.
Hollsensen details that using the ERPG framework, there are four strategic orientations an organisation can use when diversifying in to newer markets;
Ethnocentric: the home country is superior and the needs of the home country are most relevant
Polycentric: each country is unique and should therefore be targeted in a different way
Regiocentric: the world consists of regions
Geocentric: the world is getting smaller and smaller. (Hollsensen, 2016: 20).
By using these four orientations, organisations such as McDonalds are able to design competitive marketing strategies.
Regiocentric is the approach that McDonalds have taken by tailoring their approach to the products they provide. Upadhyay confirms that through globalization and internationalization, McDonalds was able to develop marketing strategies, while at the same time customizing them for different regions in accordance to the cultural and national variations in order to serve specific target markets (Upadhyay, 2015)
Do you agree with the above categorisation?