global marketing management, 5e chapter 17copyright (c) 2009 john wiley & sons, inc. 1 chapter...
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Global Marketing Management, 5e
Chapter 17Copyright (c) 2009 John Wiley & Sons, Inc.
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Chapter 17
Planning, Organization, and Control of Global Marketing Operations
Chapter Overview
1. Global Strategic Marketing Planning2. Key Criteria in Global Organizational Design 3. Organizational Design Options4. Organizing for Global Brand Management5. Life Cycle of Organizational Structures6. Control of Global Marketing Efforts
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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.
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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?
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1. Global Strategic Marketing Planning
The content of a global strategic marketing plan usually covers four areas:
1. Market situation analysis2. Objectives3. Strategies4. Action plans
Bottom-Up versus Top-Down Strategic Planning
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1. Global Strategic Marketing Planning
Marketing plans can go wrong!
The top stumbling blocks are:1. Lack of proper information2. Too little emphasis on the development of alternative strategic options3. Unrealistic strategic objectives4. External factors can also interfere.
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2. Key Criteria in Global Organizational Design
Environmental Factors Competitive Environment Rate of Environmental Change Regional Trading Blocs Nature of Customers
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2. Key Criteria in Global Organizational Design
Firm-Specific Factors Strategic Importance of International
Business Product Diversity Company Heritage Quality of Local Managerial Skills
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3. Organizational Design Options
International Division Structure Global Product Division Structure
(See Exhibit 17-1.)
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Exhibit 17-1: Organizational Structure of John Deere of a Global Product Structure
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3. Organizational Design Options
Geographic Structure (Exhibit 17-2) 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)
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Exhibit 17-2: The Coca-Cola Company: Example of a Geographic Structure
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Exhibit 17-3: Job Description of Japan Country Manager at Twitter
3. Organizational Design Options
Regional StructuresA 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 17-4) The matrix structure explicitly recognizes the
multidimensional nature of global strategic decision making.
With a matrix organization, two dimensions are integrated into the organization.
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Exhibit 17-4: Nestlé’s Organizational Setup
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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 17-5.)
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Exhibit 17-5: Guidelines on Global Virtual Teamwork
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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).
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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
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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.
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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.
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Exhibit 17-6: Stopford-Wells International Structural Stage Model
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
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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:ClarityContinuityConsistency
Human Resource Development
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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
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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.
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