Tag: employee engagement

Training means imparting the knowledge, skills and aptitudes necessary to undertake the required jobs efficiently with a view to developing the worker to his fullest potential. As an organised activity, training is designed to create a change in the thinking and behaviour of people. Training is a two-way and continuous process because there is no end to learning and secondly, a person gets to learn new technology, new patterns etc., continuously.

The training acquaints the employee with the requisite skill, real life situations at the work place and helps him in the faultless accomplishment of the work. Training, thus, involves the development of the manual and mental skills that are necessary for performing a specific work, through instruction, drill and discipline.

“Training is a process by which the attitudes, skills and abilities of employees to perform specific jobs are increased.” Micheal J. Jucious

“Training is the act of increasing the knowledge and skill of an employee for doing a particular job.” Edwin B. Flippo

“Training is the organised procedure by which people learn knowledge and/or skill for a definite purpose.” E. F. L. Breach

Character

• Training helps to perform the role of different sections of em­ployees, the managerial responsibility and the importance of communication and participation.
• Training must be help to create an attitudinal change by creating awareness of the overall process.
• It must enhance skills in organizational and managerial areas
• Proper orientation and training should be given to the new en­trants.
• It must make orient new entrants in the organization to the dis­cipline and culture requirement of the organization.
• An effective training programme should process the following characteristics.
• Training programmes should be chalked out after identifying needs or goals.
• An effective training programme should be flexible.
• It should have relevance to the job requirements.
• It should make due allowance for the differences among the in­dividuals in regard to ability, aptitude, learning capacity, emo­tional make-up, etc.
• Training programmes should be conducted by well qualified and experienced trainers.
• An effective training programme should have the support from top management.
• A good training performance should prepare the trainee mentally before they are imparted any job knowledge or skills.
• Top management can gently influence the quality of training in the organization by the policies it adopts and the extent to which it supports training programmes.
• An effective training programme should be supported by critical appraisal of the outcome of the training efforts.

Purposes:

• Training is necessary to prepare existing employees for higher level jobs (promotion).
• Newly recruited employees require training so as to perform their tasks effectively and efficiently. Instructions, guidance, coaching help them to handle jobs competently without any wastage.
• Existing employees require refresher training so as to keep abreast of the latest developments in the job operations. In the phase of rapid technological changes, this is an absolute necessity.
• Better performing workers are less likely to make operational mistakes. Quality increases may be in relationship to a company product or services or in reference to the intangible organisational employment atmosphere.
• Instruction can help employees increase their level of performance on their present assignment. Increased human performance often directly leads to increased operational productivity and increased company profit.
• Training is necessary when a person moves from one job to another (transfer). After training, the employee can change jobs quickly, improve his performance levels and achieve career goals comfortably.
• Training is necessary to make employees mobile and versatile. They can be placed on various jobs depending on organizational needs.
• Training is needed to bridge the gap between what the employees have and what the job demands. Training is needed to make employees more productive and useful in the long run.
• Organisations that have a good internal educational programme will have to make less drastic manpower changes and adjustments in the event of sudden personnel alterations. When the need arises, organizational vacancies can be more easily staffed from internal sources, if a company initiates and maintains an adequate instructional programme for both its non- supervisory and managerial employees. So, it will help company to fulfil its future personnel needs.
• An endless chain of positive reactions results from a well-planned training programme. Production and product quality may improve, financial incentives may then be increased, there is a boost for internal promotions, less supervisory pressure and base pay rate increases result. Increased morale may be due to many factors but one of them is current state of an organization’s educational endeavour. Thus, it will improve overall organizational climate.
• Training and development programmes foster the initiative and creativity of employees and help to prevent manpower obsolescence, which may be due to age or temperament or motivation or the inability of a person to adapt him to technological changes.
• On a personal basis employees gain individually from their exposure to educational experiences. Again management development programmes seem to give participants a wider awareness, an enlarged skill and enlightened altruistic (kindness) philosophy and enhance personal growth.
• Proper training can help to prevent industrial accidents. A safer work environment leads to more stable mental attitudes on the part of employees. Managerial mental state would also improve if supervisors know that they can better themselves through company designed development programmes. So it improves health and safety.
• Training is needed for employees to gain acceptance from peers, (learning a job quickly and being able to pull their own weight is one of the best ways for them to gain acceptance).

Objectives

To Remain Competitive in the Market:

To tackle the immensely growing competition in the target market, it is important for an employer to increase the productivity of its workers while reducing the cost of production of the products. Training, therefore, aims to bring about efficiency and effectiveness in an organization to enable it to remain competitive in a highly competitive market situation and for the achievement of organizational goals.

To Increase Productivity of Employees:

Training helps in developing the capacities and capabilities of the employees-both new and old, by upgrading their skills and knowledge so that the organization could gainfully avail their services for higher grade professional, technical, sales or production positions from within the organization. In case of new employees, training aims to provide them with basic knowledge and skill they need for an intelligent performance of their specific tasks.

To Change Attitude of the Workers:

Training not only provides new knowledge and job skills to employees, but also brings about a change in their attitude towards fellow workers, supervisor and the organization. It increases job satisfaction among employees and keeps them motivated. It gives them security at the workplace and as a result, labour turnover and absenteeism rates are reduced. It also develops in them self-consciousness and a greater awareness to recognize their responsibilities and contribute their very best to the organization.

To Mitigate the Risk of Accidents:

Trained workers can handle the machines safely. They also know the use of various safety devices in the factory. Thus, they are less prone to industrial accidents.

To Reduce Wastage of Time and Resources:

Training aims at making employees efficient in handling materials, machines and equipment and thus to avoid wastage of time and resources. It also helps in imparting new skills among the workers systematically so that they may learn quickly. If the workers learn through trial and error, they will take a longer time and even then, may not be able to learn right methods of doing work.

To Enable Workers to Adapt Quickly to Changes:

Technology is changing at a fast pace. Technological changes like automation and development of highly mechanized and computer-oriented systems, threaten the survival of dynamic companies by creating new problems, new methods, new procedures, new equipment’s, new jobs, new skills and knowledge, new product and services etc.

In such a situation, the employees may find themselves helpless to adapt to the changes and may feel frustrated and compelled to leave their jobs. Thus, training acts as a continuous process to update the employees in the new methods and procedures and make them efficient in handling advanced technology.

To Provide Growth Opportunities to Existing Employees:

Sometimes, it may not be possible for the management to fill in higher work positions from outside. Under such conditions, the apprenticeship programmes aiming at improving the skills of the present employees come to the aid of the company by make available their requirements of the personnel from within the organization. This reduces the need for recruiting people from outside and also improves the morale of the existing employees.

To Make the Management Effective:

One of the primary objectives of training and development process is to give rise to a new and improved management which is capable of handling the planning and control without any serious problem. Knowledge and experience gathered through training enables them to handle the tough situations and confusing realities, thus opening the way for bigger and better opportunities for business. It can also be used for strengthening values, building teams, improving inter- group’s relations and quality of work life.

Levels of training of the employees:

1. Training to Unskilled Workers:

Unskilled workers require training to acquaint themselves with improved methods of handling their work to reduce the cost of production and do the job in the most economical and efficient way. Such employees are given training on the job itself and the training is imparted either by their immediate superior officers, or foremen.

2. Training to Semi-Skilled Workers:

This category of employees requires training to cope with the requirements of the industry arising out of the adoption of mechanisation and rationalisation. These employees are given training either in the section or department itself, or in segregated training shops, where machines and other facilities are easily available. The training is usually imparted by more proficient workers and it lasts for a few hours or weeks, depending upon the number of operations and speed and accuracy required.

3. Training to Skilled Workers:

Skilled workers are given training through the system of apprenticeship, varying in length up to a period of 5 years. Crafts training is imparted through training centres and the industry itself.

4. Training to Senior and Supervisory Staff:

Since the supervisors form a very important link in the chain of administration, therefore, they need advanced up-to-date training at frequent intervals. The training programmes for the supervisory staff must be specific and tailor-made to fit the need of the undertaking.

They are generally given training in:

(a) Organisation and control of production, maintenance and materials handling at the departmental levels.

(b) Planning, allocation and control of work and personnel.

(c) Planning their own work and allocation of time to their various responsibilities.

(d) Effect of industrial legislation at the departmental level.

(e) Cost factors and costs control.

(f) Accident prevention.

(g) Training of subordinates.

(h) Communication, effective instructing, report-writing.

(i) Handling and settling human/Labour problems.

(j) Leadership for effective working of the undertaking.

5. Training to Other Staff:

5esides the above categories of unskilled, semi-skilled and skilled workers, other employees are also required to be trained; they are computer operators, typists, stenographers, accounts clerks, etc. They need training in their field but such training is usually not provided. Salesmen are also given training about the nature of the products; routine involved in putting through the deal and art of salesmanship, along with the latest knowledge of the products being developed in the organisation.

Advantage

Lesser Supervision:

Well-trained employees have the knowledge about their jobs and equipment’s and can do their work efficiently. Thus, the training reduces the need of supervision to bare minimum.

Improvement in Production and Productivity:

Training helps to improve the efficiency and productivity of employees. Well-trained employees make better use of materials and machinery. Wastage is reduced and as a result quality and quantity of production becomes higher.

Maximum Utilisation of Materials and Machines:

Training teaches the employees the method of doing their job in the best possible manner. They have knowledge of operating machines and equipment’s and handles them properly and methodically. As a result of it, they make the best possible utilisation of materials and machines.

High Morale:

Effective training improves the self-confidence and job satisfaction of employees. Well-trained employees take greater interest in their job and derive a sense of security. By boosting the morale of employees, training helps to reduce absenteeism and improve labour turnover.

Better Chances of Promotion:

As the trained employees have the requisite qualifi­cation and training, they can be promoted to higher grades and position more easily than untrained workers.

Better Safety:

Human error or negligence is the major cause of accidents in the industry. Due to the operational efficiency of the trained workers and the complete knowledge about the working of the plants and machines, chances of accidents are reduced.

Stability and Flexibility in the Organisation:

An enterprise, where trained personnel are available, can expand and grow easily. Its survival is not threatened when a few key personnel are lost because proper replacements are available. Well- trained employees can be transferred from one job to another in order to meet the requirements of other departments. Thus, training also lends flexibility to the organisation.

Steps:

Determine the Target Audience

You need to thoroughly analyze any country that you think should show great potential for your product or service. And, bear in mind that even the big global players, like McDonald’s, have sometimes found it necessary to close down or decrease their presence in some countries. Sometimes companies find there is not sufficient market demand for their offerings or it’s too arduous to comply with burdensome local legislation. So, deciding to jump feet first into a foreign marketplace without proper research is, to put it mildly, highly unadvisable. Big international players such as McDonald’s can absorb the cost of localization blunders, but will you be able to?

People: Understanding Customer Behavior in a Different World

The people you are marketing to and the product that you are marketing go hand in hand. However, we’re leading off with the people because if you don’t first and foremost understand who you are marketing to, you may end up trying to sell them a product they don’t want and probably will never buy.

For example, Best Buy has not found much international success, especially in Europe. While their products were something that their target market wanted overseas, the way in which it was distributed was not well executed based on the way consumers shop in Europe.

Instead of tailoring their stores to fit the preferred mold of Europeans which is smaller shops as opposed to large box stores Best Buy opened up brick and mortars that were much bigger than what Europeans were used to. We’ll get more into how important the ‘place’ is in which you sell your product internationally in a bit.

Product: Altering to Fit the Needs of Your New Market

If you notice that the current offering of your product now won’t play in the new market you want to enter then you can do one of two things:

A) Decide not to sell in that market

B) Change your offering to meet the local demand

Prices: Choosing a Premium or Economy Pricing Strategy

For the most part, if you already have a product or service that is successful in one area of the world, the price point you use won’t vary much in comparison to the competition in that area.  If you have a premium product, it’s likely premium elsewhere. If you have a more affordable, economically-friendly product, it’ll be the same in your new market.

This is for the sake of consistency. It’s difficult to pull off being associated as a more expensive, premium product in one country, and the complete opposite in another. You may even risk bringing down your brand image as a result.

Promotion: Choosing Strategies That Work in This New Environment

Figuring out the most effective methods for marketing your product or service abroad is not that much different than doing it domestically.

Even if you live where you’re promoting your product, you still have to do some additional research to find out where your target audience is and which mediums they frequent.

Positioning: Determining Which Messages Will Resonate with The Market

Positioning is absolutely critical when entering a new market. If your initial positioning fails, an attempt to reposition your product can be costly and is not guaranteed to be successful. This is why it’s important to get it right the first time. A significant part of your positioning will be evident in the messages you relay in marketing campaigns. The messaging should be derived from your unique value proposition (UVP), which should be made up of the following:

Relevancy: How your product solves customers’ problems or improve their lives.

Value: What are the specific benefits.

Differentiation: Why your ideal customers should choose your product over the competition.

Determine Specific Campaigns

Focus on regions where your best audiences are found

Narrow down your focus to specific regions where your business is generating consumer interest and has the best chance of performing well. A great way to do this is by analyzing your website traffic and seeing which countries or cities get the most traffic. This is easily done with Google Analytics. You can also examine your social media following and activity to see which regions have high engagement. Create a shortlist of promising locations and begin by homing in your efforts on these.

Research competitors in each locale

Before launching in any new market, whether it be around the world or around the corner, it is essential to scout out the competition’s products, operations, and marketing efforts. By researching competitors, you may discover that a regional market is saturated, and probably not worth your global marketing investment. You don’t necessarily need to launch all your offerings in every market; rather, competitor research can reveal which products or offerings are missing in a particular region and this can help you decide what to launch and where.

Develop region-based distribution strategies and partnerships 

If you are offering physical products in international markets, you will need to create distribution and shipping operations for each region. This requires researching delivery service providers, estimated shipping costs, and other issues, such as customs and regional tax implications for customers. For companies launching digital or online services or products, like an app, you don’t need to worry about this step. Rather, focus on making sure your online infrastructure can support expected increases in traffic and use.

Localize your branding and campaigns

Once your product or service is ready to be launched, it’s time to focus on adapting your branding and marketing strategy for each region. This will entail the translation and localization of ads, user guides, product descriptions, and more. It may also mean localizing images to better appeal to customers in a specific region. Remember, localization is not just word-for-word translation. It’s capturing the sensibilities and norms of your target audience.  

Be constantly aware of cultural and language differences

This is a touchy subject for any business looking to run global marketing campaigns. It is critical to avoid the pitfalls of advertising mistakes in foreign countries that can lead to bad publicity and a poor brand image. This means keeping up to date with current affairs and cultural events in different regions of the world where your business is active.

For example, running an upbeat ad campaign in a particular country on national Memorial Day is a very bad idea. For business owners who are on top of their global markets, the local cultures can actually provide a wealth of inspiration for clever, catchy ad campaigns. But you do need to stay on top of it constantly to make the most of the different global marketing opportunities.

Global Marketing Campaign Examples

Brands that have an international identity and infrastructure are ripe with amazing global marketing campaign examples. However, that doesn’t mean that small and medium businesses need massive marketing budgets to get their own results in global markets. Use examples like those below as inspiration for the different ways you can create a global marketing campaign to your advantage.

Standardization means an undifferentiated use of the same Marketing Mix (4-7Ps) in all countries. In this case, the firm simply replicates, without any changes, the same strategy in the different markets in which it operates. In general, firms that adopt the standardization strategy are those that are exporting for the first time, or those that focus on cost savings through economies of scale and for whom an adaptation process could result very costly. You can find below some factors that favour standardization:

• Economies of scale: Mass production allows the firm to lower unit production costs by increasing volumes through economies of scale.
• Globalization of the market (consumers/customers): Companies that offer a product whose market is “Global” can offer the same product in multiple countries, catering to a wide range of consumers.
• Transferable competitive advantages: Offering a standard product can provide several competitive advantages. The cost reduction provided by economies of scale allows the firm to introduce competitive pricing. In addition, a standard product ensures quick response times to the market, provides a global standardized image and better control over marketing strategies.

Adaptation means that each country/market has its Marketing Mix. The adaptation strategy is geared towards meeting the needs of the market, planning all business activities with the aim of efficiently meeting the specific needs and respecting the values of local consumers. We can take as an example beer companies. When entering a new market we can see that one country can prefer non-alcoholic beer. The company then has to adapt to the situation and, for instance, decide to produce more beer which results preferable for the chosen country/market. As in the case of the standardization, the adaptation strategy is better suited in the presence of the following factors:

• Differences in local competitive conditions
• Differences between customers/consumers
• Differences in local legal conditions
• High degree of service in the company’s offering

Standardization vs. Adaptation

The first view is the standardization standpoint. According to these authors, supporters of standardization believe that there is a union of cultures with similar environmental and customer demand around the globe. They argue that trade barriers are getting lower and that technological advances and firms are displaying a global orientation in their strategy. As they believe, creating one strategy for the global market and standardizing the marketing mix elements can achieve consistency with customers as well as lower costs. Levitt argues that companies that are managed well have moved away from customizing items to offering globally standardized products that are advanced, functional, reliable and low priced. According to him, companies can achieve long-term success by concentrating on what everyone wants rather than worrying about the particulars of what everyone thinks they might like. 

On the contrary, supporters of the international adaptation approach, emphasize the importance of customization. The fundamental basis of the adaptation school of thought, is that when entering a foreign market one must consider all environmental factors and constraints such as language, climate, race, occupations, education, taste, different laws, cultures, and societies. However, researchers have identified important source of constraints that are difficult to measure such as cultural differences rooted in history, education, religion, values and attitudes, manners and customs, aesthetics as well as differences in taste, needs and wants, economics and legal systems. According to Vrontis and Thrassou supporters of this approach believe that “multinational companies should have to find out how they must adjust an entire marketing strategy and, including how they sell, distribute it, in order to fit new market demands”. It is important to alter the marketing mixed and marketing strategy to suit local tastes, meet special market needs and consumers non-identical requirements.

Advantages and Disadvantages of Standardization

Standardization and international uniformity has many advantages. For one, people can expect the same level of quality of any specific brand anywhere around the world. Standardization also supports positive consumer perceptions of a product. If a company enjoys strong brand identity and a strong reputation, choosing a standardized approach might work to its benefit. Positive word-of-mouth can mean an increase in sales around the globe. Another advantage includes cost reduction that gives economies of scale. Selling large quantities of the same, non-adapted product and buying components in bulk can reduce the cost-per-unit. Other advantages related to economies of scale include improved research and development, marketing operational costs, and lower costs of investment. In addition, standardization is a reasonable strategy at a time where trade barriers are coming down. Finally, following a standardized approach helps companies aim focus on a uniformed marketing mix specifically focusing on one single product, leaving enough room for quality improvement. By emphasizing on one uniformed product, staff can be trained to enhance the quality of the product attracting manufacturers to invest in technology and equipment that can “safeguard the quality of the standardized product offering”.

Standardization, however, poses a number of disadvantages. As mentioned previously, different markets mean different preferences. Selling one unified product lacks uniqueness. This allows competition to gain market share through tailoring their products to meet the need of a specific market/segment. Since different markets have different needs and tastes, by using the standardized approach, companies can become vulnerable. One example is Walmart’s failure in entering global markets. The retail giant faced many challenges when entering foreign markets such as Germany, Brazil, South Korea and Japan as it discovered that its formula for success in the USA (low prices, inventory control and a large collection of merchandise) did not translate to markets with their own discount chains and shoppers with different habits. The biggest problem was that Walmart, a uniquely powerful American enterprise, tried to impose its values around the world. In particular, Walmart’s experience in Germany, where it lost hundreds of millions of dollars since 1998, “has become a sort of template for how not to expand into a country”.

Another disadvantage is that it depends largely upon economies of scale.  Naturally, businesses that are global manufacture in many counties. This can pose a problem since a number of countries implement trade barriers such as the USA and the European Union (Products and International Marketing, n.a). In this case, adaptation is predestined.

Sales promotions have the specific purpose of driving short-term sales of products or services. Because they are highly effective in triggering short-term sales, they play a vital role in most marketing managers’ arsenal of tools to drive demand. As companies expand into international markets, marketers’ usual relies on the same tools that serve them well in the domestic market. However, some sales promotions may not work in foreign markets because of host country differences.

Trade Fair Participation:

Participation in foreign trade fairs is one of the oldest forms of promotion of exports. Success in exports business involves long term approach to marketing. This approach rests on the basic premise of developing long term business relations with the foreign buyers.

Trade fairs provide an opportunity to the exporters to display their products to large number of buyers or their representatives who visit the fair. The participation in the foreign fair can, thus, be a very efficient tool to communicate with the market. It offers tremendous facilities to bring across the message to a large number of buyers than perhaps any other trade promotional tool.

The objectives of trade fair participation are as follows:

• To introduce the concept of the product, i.e., the basic theme of the products.
• To introduce the export firm in the foreign market.
• To introduce the brand of the product or increase the popularity of the existing brand.
• To conduct consumer research on the new product and test it in the market.
• To ensure customer loyalty.
• To look for prospective buyers.

It is generally believed that one can achieve very positive results by participating in a trade fair. But it has been observed that achieving successful results at the trade fair is not guaranteed, it requires lot of planning and handwork. To ensure successful participation is a trade fair, certain conditions need to be satisfied by the exporter. That is to say, he/she should:

• Ensure that the products selected for display are competitive and have been developed keeping in view the requirements of the buyers in that market.
• Define clearly the objectives for participation.
• Select the right fair.
• Prepare the plan for participation in advance including the financial budget.
• Take all possible steps to invite as many visitors to the fair as possible.
• Ensure effective people to handle the visitors at the stand.
• Follow up on the points/queries generated during the fair.
• Plan for repeated participation at the fair, not just once.

Point-of-Purchase Promotion (POP):

The point-of-purchase display is the silent salesman that calls the attention of customer to the product in the hope of initiating buying action. This medium is known by several names such as dealer hopes, dealer aids, dealer displays, merchandising and point-of-sale materials.

The point-of-purchase material may be classed as exterior items or interior items. Exterior items such as signs, banners, pendants, and display are utilized by the retail business like service stations.

On the other hand, interior items are found in store windows, on counters and shelves, and hanging from the ceiling or the walls and on the floor. Most of the point-of-purchase materials are temporary counter cards, dummy packages, cut outs, shelf strips and streamers. But exterior items are permanent store identification signs, clocks, thermometers, floor cabinets, calender’s and racks. The materials of which these are made may be cardboard, metal, plastic, wood, cloths, glass, etc.

The most popular point-of-purchase items are magazines and advertisement, reprints window, banners and streamers decals on windows, doors and mirrors wall posters, racks of wire metal and wood, plaques, merchandise display on counters and floors, display shopping cartons and exhibition displays.

This medium exerts a great influence in the direction of impulse purchase and replacement purchases. Buying stimulus, arises from the nearness of the customer to the actual product. Observe little field and Kirkpatrick. No other medium enjoys such a combination of time, place and atmosphere, at no other time are merchandise, money and mood, so co-operative and harmonious.

To be successful this medium must possess two characteristics. First, the effectiveness and excellence of the item itself, second it must be directed toward the individual shopper. This medium is of great use to the manufacturers, retailers and consumers. Manufacturers use this medium to help persuade retailers to stock new products, to help increase the size of retail orders, to help introduce special offers and help the retailer to trade up some of his customers.

Retailers use this medium to get the attention of the prospects and then to urge them to buy promptly then and there. Exterior items and window display attempt to influence, even to control, sidewalk traffic by converting part of it into floor traffic by keeping passerby from passing by. Interior display tries for a sale be appealing to the impulse of the buyers. Consumers get useful information about problems, solution and satisfaction.

Publicity and Public Relations:

Public relations include a variety of programs designed to improve, maintain or project a company or product image. It encompassed wide variety of communication efforts to contribute a generally favourable attitude towards the organization and its products.

Publicity is not paid for. The tool includes press conferences, speeches, annual reports, events, publications, donations for public cause and sponsorships. Sponsorship is covered here to include that part which is not paid for. For example, Pepsi paid for the sponsorship of the Independence Cup, 1997. But it generated news items in Newspaper, Radio, Television, Sports Magazines, etc.

First part is advertising and the second part is publicity. Not all trade publications. accept product publicity stories but new product editorial coverage may be an excellent way to supplement other promotional programs.

Sales Literature:

Sales literature constitutes non-personal contact to solicit a trial or purchase. The tool includes catalogue, booklets, circular letters, calender’s, leaflets, etc. For this purpose, the advertiser has to identify the customers to whom sales literature would be mailed or given personally. The materials have to be tailored to the characteristics of the target country.

In sales literature it is admissible to include technical information, such as weight, dimension, qualities, etc. Sales literature have to be modified to suit the environment of the foreign market particularly the languages and understood by the residents of the market segment.

EPRG tends to depend on several factors which are as follows:

• Experience gained in the given market
• Size of the firm
• Size of the potential market
• Type of the product and its cultural dependency

Different attitudes towards company’s involvement in international marketing process are called international marketing orientations. EPRG framework was introduced by Wind, Douglas and Perlmutter. This framework addresses the way strategic decisions are made and how the relationship between headquarters and its subsidiaries is shaped.

Perlmutter’s EPRG framework consists of four stages in the international operations evolution. These stages are discussed below.

Ethnocentric Orientation

The practices and policies of headquarters and of the operating company in the home country become the default standard to which all subsidiaries need to comply. Such companies do not adapt their products to the needs and wants of other countries where they have operations. There are no changes in product specification, price and promotion measures between native market and overseas markets.

The general attitude of a company’s senior management team is that nationals from the company’s native country are more capable to drive international activities forward as compared to non-native employees working at its subsidiaries. The exercises, activities and policies of the functioning company in the native country becomes the default standard to which all subsidiaries need to abide by.

The benefit of this mind set is that it overcomes the shortage of qualified managers in the anchoring nations by migrating them from home countries. This develops an affiliated corporate culture and aids transfer core competences more easily. The major drawback of this mind set is that it results in cultural short-sightedness and does not promote the best and brightest in a firm.

Polycentric Orientation

In this approach, a company gives equal importance to every country’s domestic market. Every participating country is treated solely and individual strategies are carried out. This approach is especially suitable for countries with certain financial, political and cultural constraints.

This perception mitigates the chance of cultural myopia and is often less expensive to execute when compared to ethnocentricity. This is because it does not need to send skilled managers out to maintain centralized policies. The major disadvantage of this nature is it can restrict career mobility for both local as well as foreign nationals, neglect headquarters of foreign subsidiaries and it can also bring down the chances of achieving synergy.

This approach lays a strong groundwork for its every subsidiary to develop its unique marketing and business strategies for success and the country’s domestic market is given equal importance. This approach is best suited for the countries with certain constraints on the front of finance, political, and culture.

As there is no need to send the skilled workforce to the other countries to maintain the factor of centralization, this approach is less expensive as compared to the ethnocentric one. However, one disadvantage of this approach is that it can restrict the career mobility of both local and foreign nationals working in the company plus reduces the chances of synergy within the firm as a whole.

Regiocentric Orientation

In this approach a company finds economic, cultural or political similarities among regions in order to satisfy the similar needs of potential consumers. For example, countries like Pakistan, India and Bangladesh are very similar. They possess a strong regional identity.

The cultural and regional identity of India, Pakistan, and Bangladesh is quite similar whereas Norway and Spain that both falls in Europe are very different in terms of culture, climate, and transport amongst other aspects.

Geocentric Orientation

Geocentric approach encourages global marketing. This does not equate superiority with nationality. Irrespective of the nationality, the company tries to seek the best men and the problems are solved globally within the legal and political limits. Thus, ensuring efficient use of human resources by building strong culture and informal management channels.

The main disadvantages are that national immigration policies may put limits to its implementation and it ends up expensive compared to polycentrism. Finally, it tries to balance both global integration and local responsiveness.

The Geocentric approach doesn’t equate nationality with the factor of superiority and the company tries to sell the best of human resources to solve the problems globally within the limits of legal and political factors. This ensures the effective and efficient use of the human resources as a result of building a strong culture and the informal channels of management that facilitates the smooth flow of work processes.

Pros of EPRG Framework

• Easy route to explore international markets with similar domestic features.
• Less expensive as no costs and efforts required for the product adaptation.

Cons of EPRG Framework

• The main focus is always on the domestic market.
• No optimum and exploitation of international human resource opportunities.

The feature areas of your store are the areas of you store that draw attention. Place the right items at key locations and you will most likely see an increase in sales. It’s not just the front display of your store that’s a feature area; there are many ideal spots inside your store.

Locations

The first feature area in your retail store is your entrance area (typically the first 5 to 15 feet of your store). This includes your window displays and what you have at your door. It is in this area that people decompress and switch their thought process from the outside world to the world you’ve created within your store. It is here that customers decide whether your store is worthy of their time, if it’s expensive or not, and what kind of atmosphere you have. If they like what they see and feel, then they’ll venture further. Because the entrance area is where your customers decompress, it is not the best place to put products that you want your customers to focus on…this comes later.

The next feature area is to the right of the entrance area. In the United States, 90 percent of customers will typically look to the right after they’ve decompressed at the entrance. All of this takes seconds, so your feature areas really need to make the right statement and impact. Your wall to the right is often called your ‘power wall,’ as this is the feature area where you give your customers the best impression of your products. Think carefully and highlight key products in this area. You want this area to attract your customers, and in turn create the need to see more.

The next feature area is your aisles/pathway. Place your aisles, tables, and other furnishings in a way as to create a path and flow for your customers. A path allows the customer’s eye to travel throughout your store and it also prompts the customer to walk in certain directions. You can create a flow that is circular or you can group your product displays to allow for free movement. An example of a path is a grocery store that places highly desirable items at the back of the store. This layout makes customers walk through the whole store to get what they want.

Windows

• Can be an important component of the store layout.
• Window displays can help draw customers into the store.

Provide a visual message about:

• The type of merchandise offered in the store.
• the type of image the store wishes to portray.
• Should be tied to the merchandise and other displays in the store

Entrances

• Often referred to as the “decompression zone”.
• Customers are adjusting to the new environment.

Freestanding Displays

Fixtures or mannequins located on aisles designed primarily to attract customers attention and bring them into a department.

End Caps

Displays located at the end of an aisle. Retailers use end caps to display:

• Seasonal
• Temporary
• Promotional Items
• High-Margin Items

Promotional Aisles

A space used to display merchandise that is being promoted. Some stores that use promotional aisles or areas include:

• Walgreens
• CVS
• The Gap

Walls

• Retail floor space is limited.
• Merchandise can be stored on shelving and racks and coordinated with displays, photographs, or graphics featuring the merchandise.

Dressing Rooms

Crucial space in which customers decide whether to make a purchase. Fitting Rooms must be:

• Large
• Clean
• Comfortable

Cash Wraps

Also known as point-of-purchase (POP) counters or checkout areas. Used to display impulse items. Discount and extreme value retailers and category specialists use centralized checkouts at the front of their stores. Department stores have traditionally placed cash wraps off the main aisle within each department