International Organizations

5,089 views

Published on

When a firm evolves from a domestic entity into a transnational one, the organizational structures too start undergoing changes. The common organization types are Built-in export department and separate export department. There are five basic types of global structures, they include global product structure, global geographic structure, global functional structure, global customer structure and global matrix structure.

For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/ZEcPAc

Published in: Education

International Organizations

  1. 1. Chapter 7International Organization International Marketing Chapter-7 International Organization
  2. 2. ObjectivesWhat are the common organizationaltypesWhat is built-in export departmentWhat is the role of separate exportdepartmentWhat is export sales subsidiaryWhat is international division]What are the global organizational International Marketingstructures Chapter-7 International Organization
  3. 3. IntroductionThere are different organizational structuresfor doing international business.The structure is determined by factors such asthe extent of commitment of the organisationto the international business and the nature ofits international orientation, the size ofinternational business and expansion plans,the number and consistency of product lines,characteristics of the foreign markets etc. International Marketing Chapter-7 International Organization
  4. 4. Built-In Export Department Export organisation is built into the regular domestic system. The built-in export department is suitable under certain conditions, such as when export business is small, the company is new to international marketing, the management philosophy is not oriented towards growth in overseas business, the company resources are limited etc. International Marketing Chapter-7 International Organization
  5. 5. Export Department Structure Fig.7.1 International Marketing Chapter-7 International Organization
  6. 6. Separate Export DepartmentUnlike the built-in department, theseparate export department is essentiallyself-sufficient; and it is well equipped tohandle all the activities connected withthe export business. It is not, therefore,at the mercy of domestic departments.A separate marketing department avoidssome of the problems of the built-indepartment. International Marketing Chapter-7 International Organization
  7. 7. Export Department Structure Fig. 7.2 International Marketing Chapter-7 International Organization
  8. 8. Export Sales SubsidiaryFirms with large export business mayestablish export subsidiary companies anddivorce international marketing activitiesfrom domestic operations because ofcertain advantages associated with it.In terms of internal organization and thespecific activities performed, the salessubsidiary differs very little from aseparate export department. International Marketing Chapter-7 International Organization
  9. 9. International Division An export department or export subsidiary may be suitable for handling large exports but they may not be sufficient for managing the non-exporting international market entry modes. So companies having foreign subsidiaries whose role is not confined to sales alone tend to establish an international division to manage the international business. International Marketing Chapter-7 International Organization
  10. 10. International DivisionStructure Fig. 7.3 International Marketing Chapter-7 International Organization
  11. 11. Global OrganizationalStructures1. Global product structure2. Global geographic structure3. Global functional structure4. Global customer structure5. Global matrix structure International Marketing Chapter-7 International Organization
  12. 12. Global Product Structure Fig. 7.4 International Marketing Chapter-7 International Organization
  13. 13. Global Geographic Structure Fig. 7.5 International Marketing Chapter-7 International Organization
  14. 14. Global Functional Structure Fig. 7.6 International Marketing Chapter-7 International Organization
  15. 15. Global Matrix Structure Fig. 7.7 International Marketing Chapter-7 International Organization
  16. 16. summary Organizational structure tends to undergo changes during different stages of evolution of a domestic firm into a transnational one. The common organizational types are: Built-in export department Separate export department International Marketing Chapter-7 International Organization
  17. 17. Global structures have evolved due togrowth of business and competition on aglobal basis. The basic types of globalstructures include:Global product structureGlobal geographic structureGlobal functional structureGlobal customer structureGlobal matrix structure International Marketing Chapter-7 International Organization

×