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Chapter 18 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004
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Global Marketing ManagementGlobal Marketing Management
Masaaki Kotabe & Kristiaan HelsenMasaaki Kotabe & Kristiaan Helsen Third EditionThird Edition
John Wiley & Sons, Inc., 2004John Wiley & Sons, Inc., 2004
Chapter 18 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004
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Chapter 18Chapter 18
Planning, Organization, and Planning, Organization, and Control of Global Marketing Control of Global Marketing
OperationsOperations
Chapter 18 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004
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Chapter OverviewChapter Overview
1. Global Strategic Marketing Planning1. Global Strategic Marketing Planning2. Key Criteria in Global Organizational2. Key Criteria in Global Organizational Design Design 3. Organizational Design Options3. Organizational Design Options4. Organizing for Global Brand Management4. Organizing for Global Brand Management5. Life Cycle of Organizational Structures5. Life Cycle of Organizational Structures6. To Centralize or Decentralize?6. To Centralize or Decentralize?7. Controlling Global Marketing Efforts7. Controlling Global Marketing Efforts
Chapter 18 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004
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IntroductionIntroduction
The capstone of a company’s global marketing The capstone of a company’s global marketing activities will be its marketing plan.activities will be its marketing plan.
To implement its global plans effectively, a To implement its global plans effectively, a company needs to reflect on the best company needs to reflect on the best organizational setup that enables it to organizational setup that enables it to successfully meet the threats and opportunities successfully meet the threats and opportunities posed by the global marketing arena.posed by the global marketing arena.
Global marketers must confront organizational Global marketers must confront organizational issues such as:issues such as:
Chapter 18 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004
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Introduction (contd.)Introduction (contd.)
(a). What is the proper communication and(a). What is the proper communication and reporting structure?reporting structure?(b). Who within the organization should bear (b). Who within the organization should bear responsibility for each of the functions that need responsibility for each of the functions that need to be carried out?to be carried out?(c). How can an organization leverage the (c). How can an organization leverage the competencies and skills of its individual competencies and skills of its individual subsidiaries?subsidiaries?(d). Where should the decision-making authority (d). Where should the decision-making authority belong for the various areas?belong for the various areas?
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1. Global Strategic Marketing Planning1. Global Strategic Marketing Planning
The content of a The content of a global strategic marketing planglobal strategic marketing plan usually covers four areas:usually covers four areas:
1. Market situation analysis1. Market situation analysis2. Objectives2. Objectives3. Strategies3. Strategies4. Action plans4. Action plans
Bottom-Up versus Top-Down Strategic PlanningBottom-Up versus Top-Down Strategic Planning
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1. Global Strategic Marketing Planning 1. Global Strategic Marketing Planning (contd.)(contd.)
Pitfalls: Marketing plans can go wrong. The top Pitfalls: Marketing plans can go wrong. The top three stumbling blocks arethree stumbling blocks are::
1. Lack of proper information1. Lack of proper information2. Too little emphasis on the development of 2. Too little emphasis on the development of
alternative strategic options alternative strategic options3. Unrealistic strategic objectives3. Unrealistic strategic objectives
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2. Key Criteria in Global Organizational 2. Key Criteria in Global Organizational DesignDesign
Environmental FactorsEnvironmental Factors::– Competitive EnvironmentCompetitive Environment– Rate of Environmental ChangeRate of Environmental Change– Regional Trading BlocsRegional Trading Blocs– Nature of CustomersNature of Customers
Firm-Specific FactorsFirm-Specific Factors::– Strategic Importance of International BusinessStrategic Importance of International Business– Product DiversityProduct Diversity
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2. Key Criteria in Global Organization 2. Key Criteria in Global Organization Design (contd.)Design (contd.)
– Company HeritageCompany Heritage– Quality of Local Managerial SkillsQuality of Local Managerial Skills
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3. Organizational Design Options3. Organizational Design Options International Division StructureInternational Division Structure Global Product Division StructureGlobal Product Division Structure Geographic StructureGeographic Structure
– Country-Based SubsidiariesCountry-Based Subsidiaries– New Role of Country ManagersNew Role of Country Managers: Country : Country
managers of the twenty-first century should managers of the twenty-first century should have the following five profiles:have the following five profiles:» The traderThe trader» The builderThe builder
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3. Organizational Design Options 3. Organizational Design Options (contd.)(contd.)
» The cabinet memberThe cabinet member» The ambassadorThe ambassador» The representativeThe representative
– Regional StructuresRegional Structures: A recent survey done in : A recent survey done in the Pacific region singles out five distinct roles the Pacific region singles out five distinct roles for regional headquarters (RHQs):for regional headquarters (RHQs):» ScoutingScouting» Signaling commitmentSignaling commitment
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3. Organizational Design Options 3. Organizational Design Options (contd.)(contd.)
» CoordinationCoordination» Pooling resourcesPooling resources
Matrix StructureMatrix Structure– The matrix structure explicitly recognizes the The matrix structure explicitly recognizes the
multidimensional nature of global strategic multidimensional nature of global strategic decision making.decision making.
– With a matrix organization, two dimensions are With a matrix organization, two dimensions are integrated into the organization.integrated into the organization.
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3. Organizational Design Options 3. Organizational Design Options (contd.)(contd.)
The Global Network SolutionThe Global Network Solution– The networked global organization is The networked global organization is
sometimes also referred to as a sometimes also referred to as a transnationaltransnational. . – Not a formal structure but a mindsetNot a formal structure but a mindset– In the network model, each national unit can be In the network model, each national unit can be
viewed as a source of ideas, skills, capabilities, viewed as a source of ideas, skills, capabilities, and knowledge that can be harnessed for the and knowledge that can be harnessed for the benefit of the total organization.benefit of the total organization.
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4. Organizing for Global Brand 4. Organizing for Global Brand ManagementManagement
Global Branding CommitteeGlobal Branding Committee– Usually made up of top-line executives from Usually made up of top-line executives from
headquarters, regional, or local offices.headquarters, regional, or local offices. Brand ChampionBrand Champion
– A brand champion is a top-line executive A brand champion is a top-line executive (sometimes a CEO).(sometimes a CEO).
Global Brand Manager: For the global brand Global Brand Manager: For the global brand manager to be effective, the following conditions manager to be effective, the following conditions should hold:should hold:– The top of the organization is committed to The top of the organization is committed to
branding.branding.
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4. Organizing for Global Brand 4. Organizing for Global Brand Management (contd.)Management (contd.)
– There is a solid strategic planning process in There is a solid strategic planning process in place.place.
– Managers see the need to travel to learn about Managers see the need to travel to learn about local management and best practices.local management and best practices.
– There is a system to identify, mentor, and train There is a system to identify, mentor, and train prospects who can fill the role.prospects who can fill the role.
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6. To Centralize or Decentralize?6. To Centralize or Decentralize?
Centralization and DecentralizatonCentralization and Decentralizaton: In practice, : In practice, MNCs are somewhere between these two extremesMNCs are somewhere between these two extremes
Transnational SolutionTransnational Solution: Companies strike a balance : Companies strike a balance between centralization and decentralization.between centralization and decentralization.
FederalismFederalism: Federalism is a way to combine the : Federalism is a way to combine the autonomy of the local units with the benefits of autonomy of the local units with the benefits of coordination. The model has the following coordination. The model has the following characteristics:characteristics:– NoncentralizationNoncentralization
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6. To Centralize or Decentralize? 6. To Centralize or Decentralize? (contd.)(contd.)
– NegotianalismNegotianalism– ConstitutionalismConstitutionalism– TerritorialityTerritoriality– Balance of PowerBalance of Power– AutonomyAutonomy
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7. Controlling Global Marketing Efforts7. Controlling Global Marketing Efforts
– 1. Organizational structure1. Organizational structure– 2. Process2. Process– 3. Incentives3. Incentives– 4. Metrics4. Metrics– 5. Strategy5. Strategy– 6. Networks6. Networks– 7. Culture7. Culture
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7. Controlling Global Marketing Efforts 7. Controlling Global Marketing Efforts (contd.) (contd.)
For a proper structure and strategic coherence, the For a proper structure and strategic coherence, the following pieces of advice are offeredfollowing pieces of advice are offered (see Exhibit (see Exhibit 18-10 & Summary):18-10 & Summary):– Recognize the need for business asymmetryRecognize the need for business asymmetry– Democracy is a must.Democracy is a must.– A shared vision is important.A shared vision is important.– There is a need for a good mix of specialists of There is a need for a good mix of specialists of
three types – country; functional; and business.three types – country; functional; and business.– Moving unit headquarters abroad seldom solves Moving unit headquarters abroad seldom solves
the organization’s problems.the organization’s problems.
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