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EPG model
EPG Model is an international business model including three dimensions – ethnocentric, polycentric and geocentric. It has been introduced by Howard V. Perlmutter within the journal article "The Tortuous Evolution of Multinational Enterprises" in 1969. These three dimensions allow executives to more accurately develop their firm's general strategic profile.〔Barlett et al. (2008) ''Transnational Management: Text, Cases and Readings in Cross-Border Management''. 5th ed. New York: McGraw-Hill.〕 ==Overview== The EPG model is a framework for a firm to better pinpoint its strategic profile in terms of international business strategy. The authors Wind, Douglas and Perlmutter have later extended the model by a fourth dimension, "Regiocentric", creating the "EPRG Model".〔 The importance of the EPG model is mainly in the firm's awareness and understanding of its specific focus. Because a strategy based mainly on one of the three elements can mean significantly different costs or benefits to the firm, it is necessary for a firm to carefully analyze how their firm is oriented and make appropriate decisions moving forward. In performing an EPG analysis, a firm may discover that they are oriented in a direction that is not beneficial to the firm or misaligned with the firm's corporate culture and generic strategy. In this case, it would be important for a firm to re-align its focus in order to ensure that it is correctly representing the firm's focus. Each of the three elements of the EPG profile is briefly highlighted in the table below, showing the main focus for each element, as well as its correlating function, products, and geography.〔
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