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Transcript of Organizational Designs
3 Categories of Organizational
Design Based on the Degree
Little or No Formal Organization
Domestic operations assume responsibility
for international marketing activities.
As international demand grows, a change in organizational structure will take place through the introduction of an export department.
IT & Logistics
Research and Development
Domestic operation focuses on local engagements
Separate international division
is established to cater foreign market
Central Corporate: finance, legal, IT, administration
President & Management Board
Global Organization Structure
This type of division focuses on various approaches:
Mixed or Hybrid Structure
Gives worldwide responsibility to strategic business units for the marketing of their product lines.
- Firm is organized on the basis of geographical areas.
- This approach follows the marketing concept most closely because individual areas and markets are given concentrated attention.
- Companies that use this alternative typically have relatively narrow product lines with similar end uses and end users.
- Most simple from the administrative viewpoint of all the approaches because it emphasizes the basic tasks of the firm.
- Works best when both products and customers are relatively few and similar in nature.
- Utilized when customer groups are dramatically different.
ex: Consumers vs. Businesses vs. Governments
- Thus, the product may be the same, but the buying processes
of the various customer groups may differ.
Many multinational corporations adopt this structure in an attempt to facilitate planning,
organizing, and controlling interdependent businesses, critical resources, strategies, and geographic regions.
Business is driven by a worldwide business unit and implemented by a geographic unit.
The geographical units serve as the “glue” between autonomous product operations.