Chapter 10 Marketing Organization, Implementation, and Control

1. Chapter 10 Marketing Organization, Implementation, and Control

2. Organizational Structure • The basic functions of an organization are to provide: • Organizational designs

3. Organizational Structure • 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

4. Organizational Structure • International division • Centralizes in one entity the total responsibility for international activity • With or without separate incorporation

5. Organizational Structure • Concentrates international expertise, information flows concerning foreign market opportunities, and authority over international activities • Best serves firms:

6. Organizational Structure • Global organizational structures • Six basic types of global structures are available:

7. Organizational Structure • 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

8. Organizational Structure • Fragments international expertise within the firm because a central pool of international experience no longer exists • Area structure

9. Organizational Structure • Functional structure • Works best when both products and customers are relatively few and similar in nature

10. Organizational Structure • 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

11. 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

12. 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

13. Organizational Structure • Transnational structure • Double and conflicting challenge makes the pressures on global operating models more acute

14. 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

15. Implementation • Factors affecting structure and decision making

16. 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:

17. 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:

18. Implementation • Promote global internal cooperation • Move intellectual capital within the organization

19. Implementation • Two-way communication between headquarters and subsidiaries and between subsidiaries themselves

20. Control • Controls focus on actions to verify and correct actions that differ from established plans • Controls are designed to:

21. Control • Bureaucratic/formalized control • The elements are:

22. Control • Budgets: • Plans: • The budget system is used for four main purposes

23. Control • Cultural control • The primary instruments of cultural control are

24. Control • Exercising control

25. Control • Factors to be kept in mind while designing a control system: