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1、OrganizingandControllingInternationalMarketingOperationsandPerspectivesfortheFuture Dana NicoletaLascuChapter17 ChapterObjectives Identifythefactorsinthefirm sinternalandexternalenvironmentthatdeterminetheorganizationaldesignbestsuitedforinternationaloperations Describedifferentorganizationaldesigns
2、andofferexamplesofdesignsthatdifferentinternationalfirmshaveadopted Identifyformalandinformalcontrolsnecessarytoensurethatcompanyoperationsareinlinewithcompanygoalsandobjectivesasstatedinthestrategicplan OrganizationalDesignforInternationalOperations ExternalFactors CompetitiveEnvironment Inhighlyco
3、mpetitiveenvironments adecentralizedorganizationisoptimalbecauseitallowsforthemostrapidreactionstocompetitors moves Highflexibilityisessentialtoreacttochangesquickly EnvironmentalStability Incountrieswithunstablepoliticalenvironments companiesmusthaveanorganizationalstructurethatallowsthefirmtoquick
4、lyadapttonewenvironments EnvironmentalSimilaritywiththeHomeCountry Incountriessimilartothefirm shomecountry itisbesttohaveanorganizationthatintegratesoperationsbetweenthehomeandthehostcountries OrganizationalDesignforInternationalOperations ExternalFactors contd CommonRegionalTraitsandRegionalIntegr
5、ation Incountriesthatsharealanguage religion orotherculturalsimilarities companiescanorganizetheiroperationswitharegionalfocus AvailabilityofLocalQualifiedLabor Incountrieswithamplequalifiedlabor companiesshoulddelegatemorecontroltolocaloperations OrganizationalDesignforInternationalOperations FirmF
6、actors Firmswithextensiveinternationalinvolvementaremorelikelytohaveanorganizationalstructurewithregionaldivisions Companiesnotdedicatedtointernationalmarketsaremorelikelytohaveonlyasmallinternationaldepartmentiftheyhaveinternationaloperations Ingeneral companiesarelikelytomaintaintheirorganizationa
7、lstructurewhentheygointernational InternationalDivisionStructure Thefirmhastwomaindivisions DomesticInternationalThistypeofstructureisusedwhenthefirmisprimarilyfocusedondomesticoperations butwithinternationaloperationshavinganimportantstanding atthesamelevelwithallotherdivisions WorldwideRegionalDiv
8、isionStructure Subsidiariesreportdirectlytosingledivisionresponsibleforoperations Operationsofthefirmareseparatedby Geographicalregion orbyCountryBetterequippedtorespondtocountry specificinformationandconditions ProductDivisionStructure Subsidiariesreporttoproductdivision strategicbusinessunit withr
9、esponsibilityforparticularproducts Thisformatwascommonformultinationalcompanieswithdiversifiedportfolios buthasrecentlybeenreplacedbythematrixstructure MatrixStructure Eachoperationalunitreportstobothregion countrymanagersandproductmanagers Takesintoaccountthemultipledimensionsinvolvedininternationa
10、lbusiness Thisformatworksbestforfirmswithglobal aswellaslocalbrands allowingcoordinationofworldwidemarketingactivitieswithfocusonthelocalmarketforlocalbrands ControllingMarketingOperations Challenges Lmunication andevaluationprocesses Externalenvironmentchangingatdifferentrates Controlsarenecessaryt
11、oensurethatinternationalcompanyoperationsfollowthecompany sgoalsandobjectives Controllinginternationaloperationsisacomplextaskthatnecessitatestheuseofappropriateformalandinformalcontrols FormalControls Institutingformalcompanycontrolsinvolvesthefollowingprocedure EstablishingPerformanceStandards Par
12、ametersaredevelopedforevaluatingdimensionsoftheexternalenvironmentforthepurposeofsettingstandardsbasedonthecompany sprojectedmarketpotential MeasuringPerformance Actualperformanceismeasuredbasedontheestablishedstandards AddressingDiscrepancies Discrepanciesbetweenstandardsandperformancearecorrectedb
13、yadjustingunreasonablestandards Alternatively thecompanymayneedtofurtheradaptitsofferingtolocalpreferencesandmeettheneedsofthemarketwithmoreinnovativeproducts InformalControls Companiescanalsouseinformalcontrolstoensurethatthereisafitbetweenstandardsandactualperformance Amongexamplesofinformalcontro
14、lsare Establishingfrequentcontactandacloserelationshipbetweenthehome countryheadquartersandrespectiveregionaloffice Rotatingmanagerstodifferentassignmentstoobtainthemaximumbenefit Trainingtheemployeesandinculcatingamanagementculturethatisconsistentwithcompanygoalsandobjectives InternationalMarketing
15、FuturePerspectives e commerce TheInternetandrelatedtechnologieshaveexpandedtherealmofinternationalmarketinganddramaticallyincreasedaccesstonewmarkets Worldmarketsareexpectedtocontinuetobenefitfromtheexpansioninopportunitiesfacilitatedbye commerce InternationalMarketingFuturePerspectives Population A
16、stheworldpopulationgrows therewillbesignificantchangesintheconsumptionandproductionprocesses includingconcernsaboutpollutionandshortageofrawmaterialsandenvironmentalpollution Inemergingmarkets consumersaregivingupbicyclesandrapidlyadoptingscootersasameansoftransportation Theseconsumersareexpectedtotradescootersforautomobilesinthenearfuture InternationalMarketingFuturePerspectives IntegratedMarketingCommunications Integratedmarketingcommunicationsaregoingtobestandardforbothinternationalconsumerpr
