Exporting, a structural approach - The Perlmutter theory and the process of internationalization

6 important questions on Exporting, a structural approach - The Perlmutter theory and the process of internationalization

According to Perlmutter there are four types of company, each with a distinct culture of internationalization:

  1. The ethnocentric company              -   (richtend op thuisland)
  2. The polycentric company                 -   (uitgaande van internationale handel)
  3. The regionally centred company   -   (uitgaande van internationale handel)
  4. The Geocentric company                  -    (wereldwijde benadering)

How does Perlmutter see the entire process of internationalization?

As a developing, learning process in which the management's attitude towards other cultures plays an especially important part.

What is the marketing policy?

It is an elaboration of the commercial business function.
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What does the choice of routes to internationalization - either via advantages in costs (global marketing) or through adjustment of market requirements (glocal marketing) -  depends on?

The degree to which a company operates in international marketsThe type of company (industrial, service sector or consumer products)The marketing strategy

What are the main motives for internationalization?

  1. Company's objectives
    - Interest in continuity (spreading sales risk)
    - Positive profit expectations in foreign markets
    - Growth (diversification on the basis of Ansoff's growth model)

  2. Growth in turnover
    - Domestic market is too small

  3. Human resources

  4. Considerations concerning following customers that have gone abroad

  5. Situational considerations (macro motive)

  6. Considerations of competition (macro/ micro motive)

According to Kotler, what are the characteristics of a SBU?

  • It is active in one market or in a number of closely related markets
  • It competes with a clearly defined group of competitors
  • It has its own manager, who is responsible for strategic planning and who has his own responsibility in respect of profit
  • It is active in a number of closely related international markets (regions) or in a clearly foreign market

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