1. Organising for international marketing
Factors affecting organisational design
organisation by product or brand/Matrix organisations
Guidelines for the organisation
Factors influencing the international organisation
Centralisation v decentralisation
The impact of business culture
Human resource implications
Expatriate managers

2. Factors affecting organisational design Jeannet and Hennessey (1994)
Corporate goals
Mission
Objectives
Strategies
Jeannet and
Hennessey (1994)
External
forces
Internal
influences
Organisation
design
Geographic
distance
Types of
customer
Govt. regulations
Percentage
of sales
Diversity of
markets
Human resources
Flexibility
Management style
Structural basis
Focus on decision

3. E.g. Organisation by product or brand

4. Area 1 Area 2 Area 3 Matrix Organisation
Product Manager A
Product Manager B
Product Manager C
Matrix Organisation
Unity of command is sacrificed to co-ordination across business functions.
E.g. people reporting to both product managers and area bosses.

5. Guidelines to the organisation
Concerns:
the division of labour
the allocation of responsibilities
delegation/power/authority

6. There must be:
a clear chain of command
everyone must know who to report to/who reports to whom
responsibility must be matched with authority
few levels of authority
the span of control should not be too great
the structure must be flexible

7. Factors influencing international marketing organisation
Size of the firm
number of foreign countries involved
level of involvement
firm’s objectives for its foreign business
firm’s experience in international business
the value and variety of its products
the nature of the marketing task

8. Centralisation v decentralisation
I.e. the global division of labour or specialisation by subsidiary?
advantages of centralisation?
better for planning
better co-ordination
optimum use of resources
disadvantages of centralisation
poor motivation amongst subsidiary staff due to too much control
misunderstandings and delays in communication

9. The impact of business culture
Influenced by:
the organisation’s founder
the organisation’s history
leadership and management style
original structure and systems
the industry itself e.g. ‘Silicon Valley’ and software

10. Human resource implications - expatriates v locals?
Think global and act local
Local managers could lead to loss of control
Is there such a thing as a global manager, if so is he/she available?

11. Expatriate managers (reverse for local managers)
Advantages
where there are poor educational opportunities
where senior managers believe expatriates are better
where there is control at the top.
Disadvantages
they cost more! E.g. relocation
growth in dual career households
culture shock
substantial training programme