This document discusses leadership, organization, and control in global marketing. It provides information on different organizational structures that can be used internationally like regional management centers, geographical and product divisions, and matrix designs. It also discusses formal control methods like planning, budgeting, and marketing audits. The goal of organizational structure is to balance centralized knowledge with local responsiveness. Leadership requires articulating core values and strategic vision.

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2. About Me
The young ​ protégé, Marketer & Business Scholar
www.ekak-hardianto.com
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3. LEADERSHIP
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4. Leadership
Leadership is not about hierarchy or title or status:
 It is about having influence and mastering change.
 Leadership is not about bragging rights or battles or even the
accumulation of wealth;
 it’s about connecting and engaging at multiple levels. ….
Leaders can no longer view strategy and
execution as abstract concepts, but must
realize that both elements are ultimately
about people
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5. The leader’s task is to articulate
Beliefs
Values
Policies
Intended geographical scope of activities
Leadership
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6. Top Management Nationality
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7. NEXT ON  Organization
Leadership and Core Competence

Executives were judged on their ability to identify, nurture, and
exploit the organization’s core competencies in the 1990’s

Core competencies must
1. Provide potential access to a wide variety of markets
2. Make a significant contribution to the perceived customer
benefits
3. Be difficult to imitate
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8. ORGANIZATION
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9. Organization
The goal is to find a structure that:
— Enables the company to respond to relevant market environment differences
— Ensures the diffusion of corporate knowledge and experience throughout the
entire system
Organization’s must balance:
— The value of centralized knowledge and control
— The need for individualized response to local
markets
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10. NEXT ON  Int. Organization
Organization


In global marketing there is not a single best structure
Leading-edge global competitors share one key organizational design
characteristic:
—Structure is flat and simple
 In the 21st century corporations will have to
find new, more creative ways to organize
— Must be flexible, efficient, and
responsive to meet the demands of
globalizing markets
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11. Pattern of International Organizational Development
Organizations vary in:
1. Size
2. Potential of targeted global markets
3. Local management competence
Conflicting pressures may arise
1. For product and technical knowledge
2. Functional area expertise
3. Area and country knowledge
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12. NEXT ON  Regional Management
International Division Structure
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13. NEXT ON  Regional Management
International Division Structure
Four factors that lead to this structure
1. Top management’s commitment to global operations has increased
enough to justify the position
2. Complexity of international operations requires a single
organizational unity
3. The firm has recognized the need for internal specialists to deal with
the demands of global operations
4. Management recognizes the importance of proactively scanning the
global horizon for opportunities and threats
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14. NEXT ON  Geo Division
Regional Management Centers
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15. NEXT ON  Geo Division
Regional Management Centers
This stages manage layer
between the country
organization & international
division headquarter
The advantages are:
Regional management can
probably achieve the best
balance of geographic,
product, & functional
consideration
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16. NEXT ON  Matrix Design
Geographical and Product Division Structures
This stages involves the
assignment of operational
responsibility for geographic areas
of the world to line managers
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17. NEXT ON  Matrix Design
Geographical and Product Division Structures
The product structure works best:
1. When a company product line is
widely diversified,
2. When product go to into variety of
end –use markets, &
3. When a relatively high –
technological capability is required.
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18. NEXT ON  Structure &
National Origin
The Matrix Design

Product or business, function, area, and customer know-how are
simultaneously focused on the organization’s worldwide marketing
objectives

Management must achieve organizational balance that brings
together different perspectives and skills to accomplish organizational
objectives
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19. NEXT ON  Structure &
National Origin
The Matrix Design
These competencies are follows:
1. Geographic knowledge – understanding of economic, social, political, and
governmental market and competitive dimensions
2. Product knowledge and know-how – Product managers that have a
worldwide responsibility can achieve new levels of product competency
3. Functional competence – corporate staff with worldwide responsibility
contributes toward the development of functional competence on a global
basis
4. Knowledge of customer or industry and its needs – staff with responsibility
for serving industries on a global basis assist organizations in their efforts
to penetrate specific customer markets
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20. Organizational structure and national origin
(Lean Production: Organizing the Japanese Way)
Compares craft production, mass production, and lean production
 Craft production meant one worker created one product
 Mass production gained advantages because one worker could
do far more specialized work do to the moving assembly line
 Lean production uses less factory space, smaller inventories,
and quality control methods, increased efficiency by 50% over
typical mass production
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21. Structuring for Global Brand
Global brand requires a much greater emphasis on integrating the marketing
process at a worldwide level for make arrangements on:
1.
2.
3.
4.
5.
6.
7.
8.
Global co – ordinations group
Strategic planning groups
Lead country concept
Global brand managers
Starburst
Cluster organization
Strategic alliances, joint venture, mergers, acquisition
Network structure
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22. NEXT ON  Global Audit
Implication for Changing Organizational Structure
1. Declining profitability and share holder value
2. A charismatic or transformation style of leadership is helpful
3. Those who implement change need a firm grasp on all aspects of the
business
4. A correct balance between long term strategic objective and short
term attention to shareholder value
5. Loose – tight balance
6. Employees need to learn to have behave
differently and a learning culture helps to achieve this
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23. GLOBAL MARKETING MANAGEMENT AUDIT
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24. NEXT ON  Formal Control
Global Management Control

Control is defined as the process by which managers ensure that
resources are used effectively and efficiently in the accomplishment
of organizational objectives

Planning process can be divided into two phases
— Strategic planning is selection of product and market
opportunities
— Operational planning is the process in which strategic product
or market objectives are translated into specific projects and
programs
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25. NEXT ON  Formal Control
figure strategic control and planning
Global Management Control
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26. Formal Control Methods
Planning
Determines desired sales and profit objectives and projected marketing
program expenditures in unit and money terms
Budgeting
Expresses the objectives and expenditures
of planning in a formal document
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27. NEXT ON  Marketing Audit
Influences on Marketing Budgets
In preparing a budget or plan, these factors are important.
1. Market Potential – how large is the potential market
2. Competition – what is the level of competition in the market
3. Impact of Substitute Products – are there substitute products
available in the market
4. Process – how are performance objectives determined
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28. The Global Marketing Audit
A comprehensive, systematic examination of the marketing environment
and company objectives, strategies, programs, policies, and activities
— Tool for evaluating and improving company or business unit
operations
Characteristics:
— Formal and systematic
— Conducted periodically
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29. NEXT ON  Set Objective
The Global Marketing Audit
Classification
Internal
— Conducted in-house
— Provides critical understanding of firm and industry, but may lack
objectivity
Independent
— Conducted by person or firm free of influence from organization being
audited
— Provides objectivity but may lack industry expertise
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30. Setting Objectives and Scope of the Audit
One of the major tasks is data collection, a detailed plan is needed for
—gathering
—Secondary research
—Review of internal documents
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31. Conducting the Audit
1. Meet with company executives and auditor to
determine objectives, coverage, depth, data
sources, report format, and time period
2. Gather data
3. Prepare and present the report
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32. Components of a Marketing Audit
1.
2.
3.
4.
5.
6.
The marketing environment audit
The marketing strategy audit
The marketing organization audit
The marketing system audit
The marketing productivity audit
The marketing function audit
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33. SUMMARY
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34. SUMMARY
Global Marketing Effort
Leading, Organizing, Controlling
1. Get directly into a job outside your
home country or into a multicountry headquarters job in a
global company
2. Get company experience in an
industry that prepares you for
promotion to a job with multicountry responsibility or to an
assignment outside your home
country
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35. Thank You
©2010
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