EPG Model

The EPRG model is a well-founded by Howard V. Perlmutter model of strategy development of international companies. It is particularly concerned with the question of whether the corporate culture and strategy of the parent country shall be adapted or imposed on the countries of the various subsidiaries.

It can be distinguished between the extremes of a polycentric, ie region-specific and centralized, unified global organization structure four strategies:

• Ethno Centric:

The seed culture is transferred to all subsidiaries whose key positions are preferably occupied by members of the parent country. Business decisions are made by the parent company and not or only slightly regionally adapted.

• Polycentric

Subsidiaries enjoy a certain independence, deal predominantly domestic executives and adapt their activities to the regional conditions.

• Regio Centric

Strategies, behavior and employee pool of subsidiaries in certain regions unified (eg continents ).

• Geocentric

The different national markets in which the organization operates will be integrated in accordance with the company's global strategy and individual differences. Staff is used worldwide based on performance, without regard to nationality.