There are four types of strategic orientations of global firms. In an ethnocentric orientation firm, the company look to the parent organization to determine its decision making. This is a type of orientation that is found in many companies in the fashion industry (Pearce & Robinson, 2011). Although fashion trends can vary from one country to the next most designers like for their clothing to remain cohesive. Even in using an ethnocentric orientation its important for the company to understand the cultural background of their employees and more importantly the customers they serve (Hedges, 2015).
Another orientation strategy is the polycentric orientation. In this orientation the company looks to the culture of the country to determine what strategy should be used to determine the decision-making process (Pearce & Robinson, 2011). Many companies have started to structure their strategy process around the competitive environment (Directions, 2009). In using this orientation adapting to cultural trends is a way of preparing for the competition. This can be seen in companies that deal with electronics as they often gear themselves towards what the customer desires and this varies from country to country.
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