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About Me

The young protégé, Marketer & Business Scholar www.ekak-hardianto.com

LEADERSHIP

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Leadership

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Leadership is not about hierarchy or title or status: It is about having influence and mastering change. Leadership is not about bragging rights or battles or even the

accumulation of wealth; it’s about connecting and engaging at multiple levels. ….

Leaders can no longer view strategy and execution as abstract concepts, but must realize that both elements are ultimately

about people

The leader’s task is to articulate Beliefs Values Policies Intended geographical scope of activities

Leadership

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Top Management Nationality

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Executives were judged on their ability to identify, nurture, and exploit the organization’s core competencies in the 1990’s

Core competencies must 1. Provide potential access to a wide variety of markets 2. Make a significant contribution to the perceived customer

benefits 3. Be difficult to imitate

Leadership and Core Competence

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NEXT ON Organization

ORGANIZATION

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The goal is to find a structure that: — Enables the company to respond to relevant market environment differences — Ensures the diffusion of corporate knowledge and experience throughout the

entire system Organization’s must balance:

— The value of centralized knowledge and control — The need for individualized response to local

markets

Organization

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Organization

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In global marketing there is not a single best structure Leading-edge global competitors share one key organizational design

characteristic: —Structure is flat and simple

In the 21st century corporations will have to

find new, more creative ways to organize — Must be flexible, efficient, and

responsive to meet the demands of globalizing markets

NEXT ON Int. Organization

Pattern of International Organizational Development

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Organizations vary in: 1. Size 2. Potential of targeted global markets 3. Local management competence

Conflicting pressures may arise

1. For product and technical knowledge 2. Functional area expertise 3. Area and country knowledge

International Division Structure

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NEXT ON Regional Management

International Division Structure

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Four factors that lead to this structure 1. Top management’s commitment to global operations has increased

enough to justify the position 2. Complexity of international operations requires a single

organizational unity 3. The firm has recognized the need for internal specialists to deal with

the demands of global operations 4. Management recognizes the importance of proactively scanning the

global horizon for opportunities and threats

NEXT ON Regional Management

Regional Management Centers

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NEXT ON Geo Division

Regional Management Centers

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NEXT ON Geo Division

This stages manage layer between the country organization & international division headquarter The advantages are: Regional management can probably achieve the best balance of geographic, product, & functional consideration

Geographical and Product Division Structures

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NEXT ON Matrix Design

This stages involves the assignment of operational responsibility for geographic areas of the world to line managers

Geographical and Product Division Structures

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NEXT ON Matrix Design

The product structure works best: 1. When a company product line is

widely diversified, 2. When product go to into variety of

end –use markets, & 3. When a relatively high –

technological capability is required.

Product or business, function, area, and customer know-how are simultaneously focused on the organization’s worldwide marketing objectives

Management must achieve organizational balance that brings together different perspectives and skills to accomplish organizational objectives

The Matrix Design

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NEXT ON Structure & National Origin

The Matrix Design

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These competencies are follows: 1. Geographic knowledge – understanding of economic, social, political, and

governmental market and competitive dimensions 2. Product knowledge and know-how – Product managers that have a

worldwide responsibility can achieve new levels of product competency 3. Functional competence – corporate staff with worldwide responsibility

contributes toward the development of functional competence on a global basis

4. Knowledge of customer or industry and its needs – staff with responsibility for serving industries on a global basis assist organizations in their efforts to penetrate specific customer markets

NEXT ON Structure & National Origin

Compares craft production, mass production, and lean production Craft production meant one worker created one product Mass production gained advantages because one worker could

do far more specialized work do to the moving assembly line Lean production uses less factory space, smaller inventories,

and quality control methods, increased efficiency by 50% over typical mass production

Organizational structure and national origin

(Lean Production: Organizing the Japanese Way)

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Global brand requires a much greater emphasis on integrating the marketing process at a worldwide level for make arrangements on:

1. Global co – ordinations group 2. Strategic planning groups 3. Lead country concept 4. Global brand managers 5. Starburst 6. Cluster organization 7. Strategic alliances, joint venture, mergers, acquisition 8. Network structure

Structuring for Global Brand

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1. Declining profitability and share holder value 2. A charismatic or transformation style of leadership is helpful 3. Those who implement change need a firm grasp on all aspects of the

business 4. A correct balance between long term strategic objective and short

term attention to shareholder value 5. Loose – tight balance 6. Employees need to learn to have behave differently and a learning culture helps to achieve this

Implication for Changing Organizational Structure

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NEXT ON Global Audit

GLOBAL MARKETING MANAGEMENT AUDIT

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Control is defined as the process by which managers ensure that resources are used effectively and efficiently in the accomplishment of organizational objectives

Planning process can be divided into two phases — Strategic planning is selection of product and market

opportunities — Operational planning is the process in which strategic product

or market objectives are translated into specific projects and programs

Global Management Control

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NEXT ON Formal Control

Global Management Control

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figure strategic control and planning

NEXT ON Formal Control

Planning Determines desired sales and profit objectives and projected marketing program expenditures in unit and money terms

Budgeting

Expresses the objectives and expenditures of planning in a formal document

Formal Control Methods

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In preparing a budget or plan, these factors are important.

1. Market Potential – how large is the potential market 2. Competition – what is the level of competition in the market 3. Impact of Substitute Products – are there substitute products

available in the market 4. Process – how are performance objectives determined

Influences on Marketing Budgets

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NEXT ON Marketing Audit

A comprehensive, systematic examination of the marketing environment and company objectives, strategies, programs, policies, and activities

— Tool for evaluating and improving company or business unit operations

Characteristics:

— Formal and systematic — Conducted periodically

The Global Marketing Audit

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The Global Marketing Audit

Classification

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Internal — Conducted in-house — Provides critical understanding of firm and industry, but may lack

objectivity Independent — Conducted by person or firm free of influence from organization being

audited — Provides objectivity but may lack industry expertise

NEXT ON Set Objective

One of the major tasks is data collection, a detailed plan is needed for —gathering —Secondary research —Review of internal documents

Setting Objectives and Scope of the Audit

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1. Meet with company executives and auditor to determine objectives, coverage, depth, data sources, report format, and time period

2. Gather data 3. Prepare and present the report

Conducting the Audit

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1. The marketing environment audit 2. The marketing strategy audit 3. The marketing organization audit 4. The marketing system audit 5. The marketing productivity audit 6. The marketing function audit

Components of a Marketing Audit

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SUMMARY

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1. Get directly into a job outside your home country or into a multi-country headquarters job in a global company

2. Get company experience in an industry that prepares you for promotion to a job with multi-country responsibility or to an assignment outside your home country

Global Marketing Effort

Leading, Organizing, Controlling

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SUMMARY

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