8/21/2013 Organizing, Planning and Controlling Global Marketing Operations Objectivesof today's discussion are: 1 To describe the patternof international ‘organizational evaluation 1 To give an understanding ofthe different forms ‘of global organization and thelr advantagesand disadvantages '* Tobriefly describe the afferent methodsof control in global marketing and the variables ‘which can affect the control mechanism Functions of an Organization ‘The basic functions of an organization are to provide: ‘A route and locus of decision making, ‘and coordination, ‘© system for reporting and ‘communication. Int'l Marketing Organization Little or no formal organization ‘The types of structures that companies use to manage foreign activities are divided into three categories: ‘Little or no formal organization International division '*Global organizations ‘= Ranges from domestic operations handling sn ‘occasional international transaction on an ad hoc basis to separate export departments ‘In the early stages of int'linvolvement the share of international operationsin the sales land profits ofthe corporationis minor hence ‘ro organizational adjustment takes place. ‘= Transactions are conducted on a case-by-case basis ether by the resident expert or with the help of facitating agents International Di Global Organizations + Contratzsin one any the total respon for ‘rternaearal seb ‘+ ftminates posible bis aalnt operations that exit Iasi avons ae sowed to lnaepedenty seve ‘concentrates on nt expertise formation Nous Eoncernng foreign market opportunities, and authority ‘vari saves 1 best serves swith few products that donot vary ‘nent interme of ter envvonmentl sry, Sravwhen in sotesnd profs are saute signifies cmpbred with rev fe domes dsion, As the organization grows it usualy has an Overseas Subsidiary which reportsto i. Eventually the organization growsin complexity nd extent of operations, which then gives rise to {an international Division structure, with ts own personnel. {As the organization continuesto evolve, the ineernational division may be replaced by 2 varity of Global structures tke a geographical Drodutt function or strategie businessunit (SOU) spproach.8/21/2013 The five basic types of global structure Global Organizations: Product Structure ‘Product structure Area structure ‘¢Functional structure ‘*Customer structure ¢Mixed structure ‘Matrix structure ‘Strategic Business Unit (SBU) + Gives worlwide responsiblity to business units ormarketinga ther prosuctine: ‘+ Provides improved cost efficiency through ‘centralization of manufacturing tecilties, ‘* Providesthe ability to balance the functional Inputs needed by a product nd to react quickly toproductspecine problemsin the marketplace. «© Fragmentsinternational expertise within the ‘firm because cental poo of international ‘experiencenno longer exists, Organization by product or brand ~~ Global Organizations: Product / Brand Structure Here productgroups have global marketing esponsibility Advantages ~flesity icant shortage of aes krowedge “Gnas merietngopportniis Gtieutta coordinate romper incest, erie Global Organizations: Area Structure Organization by Area organized on the basis of geographical ar * Followsthe marketingconceptmost closely because individual areas and markets are given concentratedattention. « Issulted if market conditions with respect to roductacceptance and operating conditions vary dramatically.8/21/2013 Global Organizations: Area Structure Global Organizations: Functional Structure ‘Used by highly marketing oriented organizations with stable products. tama = shin Ee otto pte Fiance pr oa to ‘# Emphasizes the basic tasks of the firm. ‘¢ Works best when both products and customers are relatively few and similar in nature. ‘© A variation of this approach is the use of process as a basis for structure. Organization by Functions Global Organizations: Functional Structure Here executiveson functional areas have global responsibilty. ‘Advantages “good ort wth narrow, homogenous product ine “feed where regional varadons ore at too eat Disease ‘may miss mathe opportunites because of narom focat romper inde: nsrence, financial eres Customer Structure Organization by Customers Customer structure - Operations are structured based on distinct worldwide customer groups.