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Ethnocentric organizations which are based on preference of cultural dominance of the mother organization. They apply the management system coming from the culture of the country where the mother organization (headquarters) is located. The main characteristic features of this type of organizations lay in the facts that (Pražská, 1997 in Pošvář, 2007):

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  organization chooses markets and countries where a high level of adjustment to the local conditions and consumption habits will not be necessary,
  
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  selected field of business is dependent on the needs of the mother organization and the goal of the business is profits repatriation to the country of the mother organization,
  
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  autonomy of the daughter organizations (branches) is low, key functions are taken by the people from the mother organization,
  
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  local employees are requested to adjust to the culture, management, and style of leadership of the mother organization.
  

The ethnocentric organization eases creating a unified image, multiple use of know-how, fast introduction of production (activity), guarantees management quality, eases communication with the mother organization, etc. Complications can arise from the language barriers. Ethnocentric behaviour can be often identified in the case of Japanese, American, and European organizations entering a less developed country.

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   Polycentric organizations which respect plurality of cultures. These are organizations oriented on adjustment to the local conditions. Their characteristic features are:
   
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     organization accepts local markets and chooses such products and technologies which should represent the needs and demands of local markets for which the products are aimed,
     
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     business profits are usually invested in the country where they were achieved
     
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     local branches (daughter companies) have a high autonomy in decision- making when setting and reaching local goals, and these goals have a key importance in strategic decision-making of the headquarters,
     
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     managerial positions in the branches are occupied by the local employees, who better know the market demands, and the social, cultural, and consumption habits of customers.
     

Polycentric organizations enable to think globally, and do business locally“ using the creative activity of the local employees, and to gain competitive advantages in local and world markets. Certain danger for the mother organizations can be the separative tendencies of the branches.

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