1. 16. Planning, Organization, and Control of Global Marketing Operations

2. Chapter Overview Global Strategic Marketing Planning
Key Criteria in Global Organizational Design
Organizational Design Options
Organizing for Global Brand Management
Life Cycle of Organizational Structures
Control of Global Marketing Efforts

3. Introduction
The capstone of a company’s global marketing activities will be its marketing plan.
To implement its global plans effectively, a company needs to reflect on the best organizational setup that enables it to successfully meet the threats and opportunities posed by the global marketing arena.

4. Introduction
Global marketers must confront organizational issues such as:
What is the proper communication and reporting structure?
Who within the organization should bear responsibility for each of the functions?
How can a company leverage the competencies of its subsidiaries?
Where should decision-making authority reside for various areas?

5. 1. Global Strategic Marketing Planning
The content of a global strategic marketing plan usually covers four areas:
Market situation analysis
Objectives
Strategies
Action plans
Bottom-Up versus Top-Down Strategic Planning

6. 1. Global Strategic Marketing Planning
Marketing plans can go wrong!
The top stumbling blocks are:
Lack of proper information
Too little emphasis on the development of alternative strategic options
Unrealistic strategic objectives
Failure to separate short/long-term plans.
Lack of framework to identify strengths/weaknesses

7. 2. Key Criteria in Global Organizational Design
Environmental Factors
Competitive Environment
Rate of Environmental Change
Regional Trading Blocs
Nature of Customers

8. 2. Key Criteria in Global Organizational Design
Firm-Specific Factors
Strategic Importance of International Business
Product Diversity
Company Heritage
Quality of Local Managerial Skills

9. 3. Organizational Design Options
International Division Structure
Global Product Division Structure
(See Exhibit 16-1.)

10. Exhibit 16-1: Organizational Structure of John Deere of a Global Product Structure

11. 3. Organizational Design Options
Geographic Structure (Exhibit 16-2)
Country-Based Subsidiaries
New Role of Country Managers: Country managers of the twenty-first century should have the following five profiles:
The trader
The builder
The cabinet member
The ambassador
The representative
The country prince (country manager and product champion)

12. Exhibit 16-2: Heinz Company: Example of a Geographic Structure

13. Exhibit 16-3: Job Description of Japan Country Manager at Twitter

14. 3. Organizational Design Options
Regional Structures
A recent survey done in the Pacific region singles out five distinct roles for regional headquarters (RHQs):
Scouting
Strategic simulation
Signaling commitment
Coordination
Pooling resources
Matrix Structure (Exhibit 16-4)
The matrix structure explicitly recognizes the multidimensional nature of global strategic decision making.
With a matrix organization, two dimensions are integrated into the organization.

15. Exhibit 16-4: Nestlé’s Organizational Setup

16. 3. Organizational Design Options
The Global Network Solution
The networked global organization is sometimes also referred to as a transnational.
Examples: Asea-Brown Boveri (ABB), Toyota
In the network model, each national unit can be viewed as a source of ideas, skills, capabilities, and knowledge that can be harnessed for the benefit of the total organization
(See Exhibit 16-5.)

17. Exhibit 16-5: Guidelines on Global Virtual Teamwork

18. 4. Organizing for Global Brand Management
Global Branding Committee
Usually made up of top-line executives from headquarters, regional, or local offices.
Brand Champion
A brand champion is a top-line executive (sometimes a CEO).

19. 4. Organizing for Global Brand Management
For global brand managers to be effective:
The top of the organization is committed to branding.
There is a solid strategic planning process in place.
Managers see the need to travel to learn about local management and best practices.
There is a system to identify, mentor, and train prospects who can fill the role.
Informal, Ad-hoc Branding Meetings

20. 5. Life Cycle of Organization Structures
Companies need to adapt organizations
existing structures too rigid or complex
environmental changes
managers learn new skills
new senior management brought in.
Successful restructuring takes time, planning and resources.
Fundamental cultural change often needed.

21. 5. Life Cycle of Organization Structures
Several management theorists attempted to devise the “right” fit between the MNC’s environment (internal and external) and the organization.
Present research argues that flexibility and sustaining the right management process are more important than pursuing the proper organizational structure.
Country and regional managers must look at strategic issues from multiple perspectives—a “glocal” mindset.

22. Exhibit 16-6: Stopford-Wells International Structural Stages Model

23. 6. Control of Global Marketing Efforts
Formal (“Bureaucratic”) Control Systems
Establishing Standards (Metrics)
Behavior and outcome-based
Measuring and Evaluating Performance
Analyzing and Correcting Deviations

24. 6. Control of Global Marketing Efforts
Informal Control Methods
Corporate Culture:
Clan cultures and market cultures
To shape a shared vision, cultural values should have three properties:
Clarity
Continuity
Consistency
Human Resource Development

25. 6. Control of Global Marketing Efforts
“Soft” versus “Hard” Levers There are seven management tools or levers that companies can use to resolve the global/local tradeoffs:
1. Organizational structure
2. Process
3. Incentives
4. Metrics
5. Strategy
6. Networks
7. Culture

26. 6. Control of Global Marketing Efforts
Advice for Strategic Coherence
Recognize the need for business asymmetry
Democracy is a must.
A shared vision is important.
There is a need for a good mix of specialists of three types – country, functional, and business.
Moving unit headquarters abroad seldom solves the organization’s problems.