INTERNATIONAL MARKETING

Marketing Organization, Implementation, and Control

Abhishek Singh Chauhan (IMM)

The Basic Functions of the Organization

Provides

a route and locus(point) of decision making and coordination Provides a system for reporting and communications Organizational structures are based on the degree of internationalization of the firm
Little or no recognition of international activities Growing International divisions Global organization

Abhishek Singh Chauhan (IMM)

Global Organization Structural Alternatives

Global

product structure area structure

Product divisions are responsible for all manufacture and marketing worldwide.
Global

Geographic divisions are responsible for all manufacture and marketing in respective areas.
Global

function structure
customer structure or hybrid structure

Functional areas are responsible for entire worldwide operations in own area.
Global Mixed

Operation structures are based customer groups.

Abhishek Singh Chauhan (IMM)

Global Product Structure

President

Central Staffs

President, Product Division 1

President, Product Division 2

President, Product Division 3

Brand A

Brand A

Brand C

Brand A

Brand A

Brand C

Domestic President(s) or Sales & Production VPs

Foreign Subsidiary I President

Foreign Subsidiary 2 President

Foreign Subsidiary 3 President

Abhishek Singh Chauhan (IMM)

Global Area Structure

President Central Staffs

Area President 1 Europe

Area President 2 Latin America

Area President 3 North America

Subsidiary President 1 Subsidiary President 2

Subsidiary President n
Abhishek Singh Chauhan (IMM)

Subsidiary President 1 Subsidiary President 2

Subsidiary President n

Subsidiary President 1 Subsidiary President 2

Subsidiary President n

Global Function Structure

President Central Staffs

VP Production Worldwide

VP Sales Worldwide

Subsidiary President 1

Subsidiary President 2

Subsidiary President n

Subsidiary President 1

Subsidiary President 2

Subsidiary President n

Abhishek Singh Chauhan (IMM)

Global Customer Structure

President Central Staffs

VP Customer A Worldwide

VP Customer B Worldwide

Subsidiary President 1

Subsidiary President 2

Subsidiary President n

Subsidiary President 1

Subsidiary President 2

Subsidiary President n

Abhishek Singh Chauhan (IMM)

Global Mixed or Hybrid Structure

President Central Staffs

Area President, Europe

President, Product 1, Worldwide except Europe

President, Product 2, Worldwide except Europe

Subsidiary President 1

Subsidiary President n

Subsidiary President 1

Subsidiary President n

Subsidiary President 1

Subsidiary President n

Abhishek Singh Chauhan (IMM)

Implementation
Organizational

structures provide the frameworks for carrying out marketing decisions. Factors affecting organizational structure and decision making
The degree of involvement in international operations The business(es) in which the firm is engaged The size and importance of the markets The human resources capability of the firm

Abhishek Singh Chauhan (IMM)

Decentralized versus Centralized Structure

The

decentralized structure gives a high degree of autonomy to subsidiaries. The centralized structure has control and strategic decision making concentrated at headquarters. Coordinated Decentralization
Overall corporate strategy is provided from headquarters. Subsidiaries are free to implement it within the range agreed on with headquarters.

Abhishek Singh Chauhan (IMM)

Locus of Decision Making

Where

the real decision making and control is within the organization.

President

VP - Marketing

VP - Sales

VP - Finance

Abhishek Singh Chauhan (IMM)

Networked Global Organization

HQ

HQ

Subsidiary

Subsidiary

Centralized Federation Model

Networked Global Organization Model

Abhishek Singh Chauhan (IMM)

Dimensions of the GLOCAL Approach

A

clearly communicated corporate vision HR management to broaden individual perspectives and develop identification with corporate goals The integration of individual thinking and activities into the corporate agenda
The Not-Invented-Here (NIH) Syndrome

Abhishek Singh Chauhan (IMM)

Promoting Internal Cooperation

Moving

human capital within the organization

Teaching about what a person knows and believes about what it takes to succeed. Developing a boundaryless organizational perspective.

Abhishek Singh Chauhan (IMM)

Intranets
Benefits

Increased productivity Enhanced knowledge capital Facilitated teamwork Incorporation of best practices

Abhishek Singh Chauhan (IMM)

Cultural Control

a socialization process to integrate the employee into the organizations culture and embrace its ideals and values Exercising control
Develop the right control system to reflect the function and the corporate culture.

Abhishek Singh Chauhan (IMM)