Polycentrism Concept

Poly-centrism Concept

Poly centrism approach of doing business internationally is opposite to ethnocentrism approach. In poly centrism approach the local market is given due importance for decision making relating to that market (Local Market). It means each market is independent evaluated for decision making. Characteristics of poly centrism have been explained below;

1.    Value Different Cultures

Poly centrism recognizes the importance of different cultures, and different culture values are incorporated in business strategies and decision making process. In fact new policies are made based on the cultural requirement of local market.

2.    Decentralization

Poly centrism is primarily decentralization concept, and decisions are taken at local level keeping in view the local market conditions. It means local management is empowered to take appropriate decisions under this approach.

3.    Local Research

Local research is conducted for evaluating & understanding the local market & demand.  Such research results are incorporated in business plans of the company. These plans are more realistic in nature.

4.    Total New Market Concept

Overseas market is considered a total new market, and therefore new business plans and policies are required to be framed for new market.

5.    Lack control & Standardization

Poly centrism approach lacks control & standardization within organization. In one organization so may plans and strategies are being implemented. It means it is difficult to set one strategic direction under this approach.

6.    Timely Decisions

Poly centrism concept or strategy of doing business facilitates timely decisions. it means that local management can take all required decision in time, we know that timely decision are critical for cost and damage controls.

Characteristics of Ethnocentrism