chapter 10 marketing organization, implementation, and control

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Chapter 10Marketing Organization, Implementation, and Control


Organizational Structure

• The basic functions of an organization are to provide:• •

• Organizational designs• • • •



• Little or no formal organization•

•

• Transactions are conducted on a case-by-case basis either by the resident expert or with the help of facilitating agents



• International division• Centralizes in one entity the total

responsibility for international activity• With or without separate incorporation

•


Organizational Structure• Concentrates international expertise,

information flows concerning foreign market opportunities, and authority over international activities

• Best serves firms:• •



• Global organizational structures• Six basic types of global structures are

available:• • • • • •



• Product structure• Gives worldwide responsibility to business

units for marketing of their product lines•

• Provides the ability to balance the functional inputs needed by a product and to react quickly to product-specific problems in the marketplace


Organizational Structure• Fragments international expertise within the

firm because a central pool of international experience no longer exists

• Area structure•

•

•



• Functional structure• • Works best when both products and

customers are relatively few and similar in nature

•



• Customer structure •

• Mixed structure• • May occur in a transitionary period after a

merger or an acquisition, or because of a unique market characteristics or product lines


Organizational Structure• In the long term, coordination and control

across such structures become tedious• Matrix structure• Adopted by multinational organizations for

planning, organizing, and controlling interdependent business, critical resources, strategies and geographic regions

•


Organizational Structure• Helps cut through enormous organizational

complexities in making business managers, functional managers, and strategy managers cooperate

• The dual reporting channel easily causes conflict•

•



• Transnational structure•

• Double and conflicting challenge makes the pressures on global operating models more acute•


Implementation

• Locus of decision making• Decentralization:

• Centralization:

• Coordinated decentralization:

• But subsidiaries are free to implement it within the range established in consultation between headquarters and the subsidiaries


Implementation

• Factors affecting structure and decision making• • • • •


Implementation• The human factor in any organization is

critical•

• The networked global organization• Companies that have adopted the approach

have incorporated the following three dimensions into their organizations:•


Implementation• Effective management of human resource tools to

broaden individual perspectives and develop identification with corporate goals

•

• Avoids the problems of duplication of effort, inefficiency, and resistance to ideas developed elsewhere

• Centers of excellence can emerge in three formats:


Implementation

• Promote global internal cooperation• Move intellectual capital within the

organization• •


Implementation• Two-way communication between

headquarters and subsidiaries and between subsidiaries themselves •


Control

• Controls focus on actions to verify and correct actions that differ from established plans

•

• Controls are designed to:• •


Control

• Bureaucratic/formalized control• The elements are:

•


Control• Budgets:

• Plans:

• The budget system is used for four main purposes• • • •


Control

• Cultural control•

• The primary instruments of cultural control are • • •


Control

• Exercising control•


Control• Factors to be kept in mind while designing a

control system:•

•

•

chapter 10 marketing organization, implementation, and control

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