Global Marketing Management, 5e
1
Chapter 17
Planning, Organization,
and Control of Global
Marketing Operations
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 17
Chapter Overview
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1. Global Strategic Marketing Planning
2. Key Criteria in Global Organizational
Design
3. Organizational Design Options
4. Organizing for Global Brand Management
5. Life Cycle of Organizational Structures
6. Control of Global Marketing Efforts
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 17
Introduction
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

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.
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 17
Introduction
4

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?
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 17
1. Global Strategic Marketing Planning
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
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
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 17
1. Global Strategic Marketing Planning
6
Marketing plans can go wrong!
The top stumbling blocks are:
1. Lack of proper information
2. Too little emphasis on the development of
alternative strategic options
3. Unrealistic strategic objectives
4. External factors can also interfere.
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 17
2. Key Criteria in Global Organizational
Design
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
Environmental Factors
 Competitive
Environment
 Rate of Environmental Change
 Regional Trading Blocs
 Nature of Customers
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 17
2. Key Criteria in Global Organizational
Design
8

Firm-Specific Factors
 Strategic
Importance of International Business
 Product Diversity
 Company Heritage
 Quality of Local Managerial Skills
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 17
3. Organizational Design Options
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

International Division Structure
Global Product Division Structure
(See Exhibit 17-1.)
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 17
Exhibit 17-1: Organizational Structure of John
Deere of a Global Product Structure
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Copyright (c) 2007 John Wiley & Sons, Inc.
Chapter 18
3. Organizational Design Options
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
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)
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 17
Exhibit 17-2: The Coca-Cola Company:
Example of a Geographic Structure
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Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 17
Exhibit 17-3: Job Description of Japan
Country Manager at Twitter
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Copyright (c) 2007 John Wiley & Sons, Inc.
Chapter 18
3. Organizational Design Options
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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 (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.


Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 17
Exhibit 17-4: Nestlé’s Organizational Setup
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Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 17
3. Organizational Design Options
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
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.)
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 17
Exhibit 17-5: Guidelines on Global Virtual
Teamwork
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Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 17
4. Organizing for Global Brand Management
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
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).
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 17
4. Organizing for Global Brand
Management
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
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
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 17
5. Life Cycle of Organization Structures
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
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.
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 17
5. Life Cycle of Organization Structures
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


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.
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 17
Exhibit 17-6: Stopford-Wells International
Structural Stage Model
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Copyright (c) 2007 John Wiley & Sons, Inc.
Chapter 18
6. Control of Global Marketing Efforts
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
Formal (“Bureaucratic”) Control Systems
 Establishing
 Behavior
Standards (Metrics)
and outcome-based
 Measuring
and Evaluating Performance
 Analyzing and Correcting Deviations
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 17
6. Control of Global Marketing Efforts
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
Informal Control Methods
 Corporate
 Clan
Culture:
cultures and market cultures
 To
shape a shared vision, cultural values should have
three properties:
 Clarity
 Continuity
 Consistency
 Human
Resource Development
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 17
6. Control of Global Marketing Efforts
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
“Soft” versus “Hard” Levers
There are seven management tools or levers that
companies can use to resolve the global/local
tradeoffs:
1.
 2.
 3.
 4.
 5.
 6.
 7.

Organizational structure
Process
Incentives
Metrics
Strategy
Networks
Culture
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 17
6. Control of Global Marketing Efforts
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
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.
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 17