1. Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 CHAPTER SEVENTEEN ORGANIZING FOR GLOBAL MARKETING

2. Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide 17 - 1 ORGANIZATIONAL STRUCTURE n EXPORT DEPARTMENT n INTERNATIONAL DIVISION n GROGRAPHICAL/REGIONAL STRUCTURE n GLOBAL PRODUCTS DIVISION n MATRIX ORGANIZATION n TRANSNATIONAL ORGANIZATION n HORIZONTAL NETWORKS

3. Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide 17 - 2 EXPORT DEPARTMENT STRUCTURE President Central staff MarketingExportProduction R & DFinance Export staff PlanningPersonnel Country 1 Representatives Country 2 Representatives Country 3 Representatives

4. Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide 17 - 3 EXPORT DEPARTMENT STRUCTURE INTERNATIONAL DIVISION STRUCTURE Executive Vice President Domestic Executive Vice President International Division Staff Country 1. Sub. GM Country 2. Sub. GM Country 3. Sub. GM Subsidiary staff Marketing Logistics Manufac- turing Product B Division Product A Division Corporate Staff President Note: Sub. GM = subsidiary general manager

5. Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide 17 - 4 EXPORT DEPARTMENT STRUCTURE REGIONAL STRUCTURE Executive Vice President Domestic Market Executive Vice President Western Europe Executive Vice President Latin America President Corporate staff UK sub. GM Germany sub. GM Scandinavia sub. GM Note: Sub. GM = subsidiary general manager

6. Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide 17 - 5 EXPORT DEPARTMENT STRUCTURE GLOBAL PRODUCT STRUCTURE Product 1 division Executive Vice President Product 2 division Executive Vice President Product 3 division Executive Vice President President Corporate staff Home country sales manager Country 1 sales subsidiary Country 2 sales subsidiary Home country plant Brazil plant Maylasia plant Japan plant ManufacturingSales

7. Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide 17 - 6 EXPORT DEPARTMENT STRUCTURE HONDA’S GLOBAL MATRIX STRUCTURE Subsidiaries (manufacturing, sales, R & D) Motorcycle headquarters Automobile headquarters Power product headquarters Regional headquarters Europe, Middle & Near East, Africa (Reading, UK) Regional headquarters Americas (Los Angeles) Regional headquarters Asia & Oceania (Tokyo, Bangkok) Regional headquarters Japan (Tokyo) Honda Motor Co., Ltd. Honda R&D (Tokyo) Source: Osamu Iida, Executive Vice President, Honda North America

8. Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide 17 - 7 EXPORT DEPARTMENT STRUCTURE INTEGRATED NETWORK: THE TRANSNATIONAL STRUCTURE Distributed specialized resources and capabilities Complex process of coordination and cooperation in an environment of shared decision making Large flows of components, products, resources, people and information among interdependent units Source: Reprinted by permission of Harvard Business School Press. From Managing Across Borders: The Transnational Solution by Christopher A. Bartlett and Sumatra Goshal, Boston, MA, p.89. Copyright 1989 by the President and Fellows of Harvard College, all rights reserved.

9. Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide 17 - 8 GLOBAL MARKETING DIRECTORS n PROFIT ACCOUNTABILITY FOR INDIVIDUAL LINES OF BUSINESS AND MAJOR PRODUCT LINES n COORDINATION OF ALL FUNCTIONS AFFECTING THESE INES n STRATEGIC PLANNING, BUDGETING, AND IMPLEMENTATION WITH FUNCTIONS AND REGIONS n DESIGN, CREATION, AND MAINTENANCE OF GLOBAL MARKETING SYSTEMS n PARTICIPATION IN PERFORMANCE EVALUATION OF FUNCTIONAL AND REGIONAL MANAGERS

10. Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide 17 - 9 MANAGEMENT SYSTEMS n INFORMAL COORDINATION n PEOPLE SKILLS n COORDINATING COMMITTEES n COORDINATING STAFF

11. Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide 17 - 10 CORPORATE CULTURE n BUILD A STRONG CORPORATE CULTURE GLOBALLY n BUILD A COMMON TECHNICAL OR PROFESSIONAL CULTURE n BUILD STRONG FINANCIAL AND PLANNING SYTEMS n REMEMBER GLOBAL BRAND IDENTITY!!

12. Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide 17 - 11 THE EXPATRIATE MANAGER n BE A HIGH-LEVEL CONTACT WITH EXISTING CUSTOMERS, PROSPECTS, AND SUPPLIERS IN THE LOCAL MARKET. n BE A CHAMPION FOR THE LOCAL OFFICE AT HEADQUARTERS. n PROVIDE LINKAGES WITH THE FIRM’S OTHER OFFICES IN THE WORLDWIDE NETWORK OF THE FIRM.

13. Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide 17 - 12 NECESSARY SKILLS n INTERNAL FOCUS n GOVERNMENT RELATIONS n CORPORATE PERSPECTIVE n ENTREPRENEURIAL TEAM PLAYER n ABILITY TO WEAR MANY HATS

14. Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide 17 - 13 CONFLICT RESOLUTION PRACTICES 1.Let local managers retain local brands and marketing budgets 2.Solicit country managers’ input for new product development 3.Give country managers lead roles in global teams 4.Provide international transfers for country managers 5.Involve country managers in the formulation of the global marketing strategy.