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Case study- Regio-centric approach

Case study- Regio-centric approach

by NILIMA HOSSAIN . -
Number of replies: 1

The adaptive approach that Indian multinational company, such as, Alpha, followed previously would be a polycentric approach. Polycentric is the approach where, nationals of a country are hired for managerial positions because they know the culture and the market of their country better than foreigners or expatriates.

According to Alpha's recruitment policy, the company hires local employees for all of its positions. Moreover, the company prefers to hire local managers because they have good knowledge about the local market and the environment.

However, Alpha may adopt Regio-centric approach for its companies. The managers work well in all the neighboring countries within the geographic region of the business. The nationals of host country can better influence the decision of managers at headquarters with respect to the entire region.