1. Planning, Organization, and Control of Global Marketing Operations
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
To Centralize or Decentralize?
Controlling Global Marketing Efforts

2. 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.

3. Introduction
Global marketers must confront organizational issues such as:
(a). What is the proper communication and
reporting structure?
(b). Who within the organization should bear responsibility for each of the functions that need to be carried out?
(c). How can an organization leverage the competencies and skills of its individual subsidiaries?
(d). Where should the decision-making authority belong for the various areas?

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

5. 1. Global Strategic Marketing Planning
Pitfalls: Marketing plans can go wrong. The top three stumbling blocks are:
1. Lack of proper information
2. Too little emphasis on the development of alternative strategic options
3. Unrealistic strategic objectives
….. external factors can also interfere.

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

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

8. 3. Organizational Design Options
International Division Structure
Global Product Division Structure (see Exhibit
18-2)

9. 3. Organizational Design Options
Geographic Structure (see Exhibit 18-3)
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)

10. 3. Organizational Design Options

11. 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 (see Exhibit 18-4)
The matrix structure explicitly recognizes the multidimensional nature of global strategic decision making.
With a matrix organization, two dimensions are integrated into the organization.

12. 3. Organizational Design Options

13. 3. Organizational Design Options
The Global Network Solution (see Exhibit 18-5)
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.

14. 3. Organizational Design Options

15. 3. Organizational Design Options

16. 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).

17. 4. Organizing for Global Brand Management
Global Brand Manager: For the global brand manager to be effective, the following conditions should hold:
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

18. 5. Life Cycle of Organization Structures
Companies need to adapt their organization for a variety of possible reasons- existing structures may have become too rigid or complex, environmental changes, managers learn new skills or new senior management is brought in.
Successful restructuring take time, planning and resources. Often requires a fundamental cultural change.

19. 5. Life Cycle of Organization Structures
Several management theorists have made an attempt to come up with the “right” fit between the MNC’s environment (internal and external) and the organization.
One of the major popular schemas is the stages model developed by Stopford & Wells (see Exhibit 18-7). The schema shows the relationship between the organizational structure, foreign product diversity, and the importance of foreign sales to the company (as a share of total sales).

20. 5. Life Cycle of Organization Structures
Glocal Mind-Set: Country and regional managers must look at strategic issues from multiple perspectives.

21. 6. Centralization or Decentralization?
Centralization and Consolidations: In practice, MNCs are somewhere between these two extremes.
Transnational Solution: Companies strike a balance between centralization and decentralization.

22. 6. Centralization or Decentralization?
Federalism: Federalism is a way to combine the autonomy of the local units with the benefits of coordination. The model has the following characteristics:
Non-centralization
Negotianalism
Constitutionalism
Territoriality
Balance of Power
Autonomy

23. 6. Centralization or Decentralization?

24. 6. Centralization or Decentralization?

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

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

27. 7. Controlling 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

28. 7. Controlling Global Marketing Efforts
For a proper structure and strategic coherence, the following pieces of advice are offered (see Summary and Exhibit 18-10):
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.

29. 7. Controlling Global Marketing Efforts