Chapter 14: Global Organization and Leadership:
Managing the Global Marketing Effort
Learning Objectives
• Identify the characteristics of great companies
• Discuss global organizational design issues
• Differentiate between the types of organizational structures
• Describe the factors that affect organizational structure
• Describe the stages of organizational development
• Discuss global marketing control practices
Chapter Overview
To respond to the opportunities and threats in the global marketing environment, a firm
must have a global vision and strategy. Leaders must have the vision, in addition to the
technical resources, to build global competencies. In organizing the global marketing
effort, a structure that enables the company to respond to relevant differences in
international market environments and enables the company to extend valuable corporate
knowledge is the goal. A balance between autonomy and integration must be established.
Within this organization, firms must establish core competencies to be competitive. For
global marketing control practices to be effective, differences from purely domestic
control must be recognized and implemented in planning and control practices.
Lecture Outline
I. Great Companies Think Differently (p. 380)
II. Organization (p. 382)
a. International Division Structure
b. Regional Management Centers
c. Geographic Structure
d. Global Product Division Structure
e. The Integrated Structure
f. Relationship Among Structure, Foreign Product Diversification, and Size
g. Organizational Structure and National Origin
h. The Myth of the Ideal Organization Structure
III. Impact of Emerging Markets on Global Structure (p. 396)
IV. Global Marketing Audit (p. 396)
a. The Global Marketing Audit Defined
i. Setting Objectives and Scope of the Audit
1. Gathering Data
2. Analyzing the Data
3. Preparing and Presenting the Report
ii. Problems, Pitfall, and Potential of the Global Marketing Audit
1. Report Presentation
b. Planning and Budgeting
c. Evaluating Performance
d. Influences on Marketing Plans and Budgets
i. Market Potential
ii. Competition
iii. Impact of Substitute Products
iv. Process
v. Share of Market
vi. Informal Control Methods
V. Summary (p. 403)
Tables and Figures
Figure 14-1 Function Corporate Structure, Domestic Corporate Staff
Orientation, Preinternational Division (p. 384)
Figure 14-2 Divisional Corporate Structure, Oriented Product Division Staff,
Preinternational Division (p. 385)
Figure 14-3 Functional Corporate Structure, Domestic Corporate Staff
Orientation, International Division (p. 386)
Figure 14-4 Divisional Corporate Structure, Domestically Oriented Corporate
Staff, domestically Oriented Product Division, International
Division (p. 387)
Figure 14-5 Functional Corporate Structure, Domestic Corporate Staff
Orientation, International Division, Area Divisions (p. 388)
Figure 14-6 Divisional Corporate Structure, Domestically Oriented Corporate
Staff, International Division, Area Subdivision (p. 389)
Figure 14-7 Single Product Division or Business Company (p. 390)
Figure 14-8 Multi Divisional or Multi Product Division Corporate Structure
with World Corporate Staff Orientation (p. 391)
Figure 14-9 The Integrated Structure (p. 392)
Figure 14-10 The Relationship Among Structure, Foreign Product
Diversification, and Size Abroad (p. 393)
Figure 14-11 Relationship of Strategic Control and Planning (p. 400)