1. Marketing Organization, Implementation, and Control
Chapter 19
Marketing Organization, Implementation, and Control

2. Organizational Structure
Provides a route of decision making and coordination along with a system for reporting and communication.
Basic organizational international organizational design include three categories for structure development:
Little or no formal organization for international activities.
International division.
Global organization.

3. Global Organization Structural Alternatives
Global product structure
Product divisions are responsible for all manufacture and marketing worldwide.
Global area structure
Geographic divisions are responsible for all manufacture and marketing in respective areas.
Global function structure
Functional areas are responsible for entire worldwide operations in own area.
Global customer structure
Operation structures are based customer groups.
Mixed or hybrid structure

4. Evolution of International Structures
High
Global Matrix
Worldwide Product Division
Alternative Paths of Development
International Division
Area Division
Low
Low
High
Foreign Sales as a Percentage of Total Sales
SOURCE: From Christopher A. Bartlett, “Building and Managing the Transnational: The New Organizational Challenge,” in Competition in Global Industries, Michael E. Porter, ed. (Boston: Harvard Business School Press, 1986), 368. Reprinted by permission of Harvard Business School from Competition in Global Industries, Michael E. Porter, ed. Boston: 1986, p Copyright by the President and Fellows of Harvard College.

5. 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.

6. 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.

7. Levels of Coordination
Central Control
Central Direction
Central Coordination
Coordinating mechanisms
Informal cooperation
National autonomy
DESCRIPTION
No national structures
Central functional heads have line authority over national functions
Central staff functions in coordinating role
Formal committees and systems
Functional meetings; exchange of information
No coordination between decentralized units; which may even compete in export markets
Level 5 = highest; Level 0 = lowest. Most commonly found levels are 1-4.

8. 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.

9. Networked Global Organization
Decentralized Federation Model
Networked Global Model HQ
Subsidiary HQ
Subsidiary
SOURCE:Thomas Gross, Ernie Turner, and Lars Cederholm, “Building Teams for Global Operations,” Management Review, June 1987,34.

10. 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 “boundary-less” organizational perspective.

11. Intranets Benefits Increased productivity Enhanced knowledge capital
Facilitated teamwork
Incorporation of best practices

12. Roles for Country Organizations
Strategic Importance of Local Market
High
Low
Strategic
Leader
Contributor
High
Competence
of Local
Organization
Black
Hole
Implementor
Low
SOURCE: Reprinted with permission of Harvard Business Review. An exhibit from “Tap Your Subsidiaries for Global Reach,” by Christopher A. Bartlett and Sumantra Ghoshal, 64 (November/December 1986), 90 Copyright 1986 by the President and Fellows of Harvard College; all rights reserved.

13. Control
Comparison of Bureaucratic and Cultural Control Mechanisms
Type of Control
The instruments and processes needed to influence behavior and performance of members to meet goals.
SOURCES: Peter J. Kidger, “Management Structure in Multinational Enterprises: Responding to Globalization,” Employee Relations, August 2001, 69-85: and B. R. Baliga and Alfred M. Jaeger, “Multinational Corporations: Control Systems and Delegation Issues,” Journal of International Business Studies 15 (Fall 1984): 28.

14. Budgets and Planning Systems
Budgets are short-term guidelines.
Plans are formalized long-range programs.
Purposes of the budget system
Allocation of funds among subsidiaries.
Planning and coordination of global production capacity and supplies.
Subsidiary performance evaluation.
Communication and information exchange between subsidiaries, product organizations, and corporate headquarters.

15. Cultural Control
“… a socialization process to integrate the employee into the organization’s culture and embrace its ideals and values”.
Exercising control
Develop the “right” control system to reflect the function and the corporate culture.

16. Exercising Control Control system design considerations
The cost of establishing and maintaining it.
The costs of trade-off with the benefits to be gained from it.
The business environment in which it will function.