ECONOMICS PROJECT
1. Imperatives for Market-Driven Strategy
2. Markets and Competitive Space
3. Strategic Market Segmentation
4. Strategic C...
Chapter 14
Designing
Market-Driven
Organizations
DESIGNING MARKET-DRIVEN
ORGANIZATIONS
 Trends in organization design
 Organizing for market-driven strategy
 Marketing ...
DESIGNING MARKET-DRIVEN
ORGANIZATIONS
 Procter and Gamble
Global restructuring to improve innovation and
competitiveness...
TRENDS IN ORGANIZATION
DESIGN (1(
 The New Organization
Traditional structures
Centralized, vertical, “command and cont...
ORGANIZATION COSTS
 Cadbury Schweppes - world’s largest confectionery
business
 Restructuring at cost of $900 million
 ...
TRENDS IN ORGANIZATION
DESIGN (2(
 Managing organizational processesManaging organizational processes
 Organizational ag...
Alternative Organizational
StructuresTraditional
Hierarchy
Functional
Structure
Process
Overlay
Functional
Overlay
Process...
PROCESS-BASED
ORGANIZATIONAL STRUCTURE
Processes that define value
e.g. knowledge management, CRM
Processes that create va...
THE TOYOTA WAY
 Pillar I
Challenge
Kaizen - continuous improvement
Genchi Genbutsu - go and see for yourself
 Pillar ...
THE MYSPACE GENERATION
 Lives online - social networking sites are a way
of life
 Children of the baby boomers
 Ambitio...
ORGANIZING FOR MARKET-DRIVEN
STRATEGY (1(
Strategic marketing and organization
structure
Aligning the organization with th...
CUSTOMER-BASED FRONT-END
ORGANIZATION
Senior Management
Back-end Units Customer-based
Front-end Units
Product customers So...
ORGANIZING FOR MARKET-DRIVEN
STRATEGY (2(
 Marketing functions versus marketing processes
 Marketing as cross-functional...
MARKETING DEPARTMENTS
 Centralization versus decentralization
 Integration or diffusion
 Contingencies for organizing
...
TRANSACTIONALBUREAUCRATIC
ORGANIC RELATIONAL
Centralized
Formalized
No specialized
Internal
(hierarchical)
Organization
of...
STRUCTURING MARKETING
RESOURCES (1(
 Structuring issues
 Functional organizational design
 Product-focused design
Prod...
TRADITIONAL
DESIGNS
Functional
Matrix Product-
Focused
Market-
Focused
Traditional Marketing Organization
Designs
PRODUCT-FOCUSED STRUCTURE
MARKETING ORGANIZATION BASED ON A
COMBINATION OF FUNCTIONS AND PRODUCTS
STRUCTURING MARKETING
RESOURCES (2(
 New marketing roles
 New marketing specializations
 Venture marketing organization...
NEW ORGANIZATIONAL STRUCTURE
FOR MARKETING
Vice President
of Marketing
Director of
Product
Management
Chief
Customer
Offic...
THE MARKETING COALITION
COMPANY
ORGANIZING FOR GLOBAL
MARKETING AND GLOBAL
CUSTOMERS
Organizing for global marketing
strategies
Business functions
Organ...
GLOBAL ACCOUNT MANAGEMENT
AT MICROSOFT
 Single executive/team in charge of single customer
and all global needs
 Restric...
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Economic's project (presentation of chapter 12 submitted by usama shehzad sr i-s)

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Economic's project (presentation of chapter 12 submitted by usama shehzad sr i-s)

  1. 1. ECONOMICS PROJECT
  2. 2. 1. Imperatives for Market-Driven Strategy 2. Markets and Competitive Space 3. Strategic Market Segmentation 4. Strategic Customer Relationship Management 5. Capabilities for Learning about Customers and Markets 6. Market Targeting and Strategic Positioning 7. Strategic Relationships 8. Innovation and New Product Strategy 9. Strategic Brand Management 10. Value Chain Strategy 11. Pricing Strategy 12. Promotion, Advertising and Sales Promotion Strategies 13. Sales Force, Internet, and Direct Marketing Strategies 14. Designing Market-Driven Organizations 15. Marketing Strategy Implementation And Control Strategic Marketing
  3. 3. Chapter 14 Designing Market-Driven Organizations
  4. 4. DESIGNING MARKET-DRIVEN ORGANIZATIONS  Trends in organization design  Organizing for market-driven strategy  Marketing departments  Structuring marketing resources  Organizing for global marketing and global customers
  5. 5. DESIGNING MARKET-DRIVEN ORGANIZATIONS  Procter and Gamble Global restructuring to improve innovation and competitiveness Global business units for products and market development units to tackle local market issues Change agents appointed to work across business units Virtual innovation teams work through intranet Organization design supports clear strategies so all business disciplines can work together
  6. 6. TRENDS IN ORGANIZATION DESIGN (1(  The New Organization Traditional structures Centralized, vertical, “command and control” Organizational design shifts Innovation The knowledge-based worker Managing culture Collaborative working Informal networks Organizational diversity and external relationships
  7. 7. ORGANIZATION COSTS  Cadbury Schweppes - world’s largest confectionery business  Restructuring at cost of $900 million  Organizational structure has become too complex with too many overlaps  Organizational costs account for 20% of turnover - compared to 12% at competitors  Reorganization is central to regaining competitiveness
  8. 8. TRENDS IN ORGANIZATION DESIGN (2(  Managing organizational processesManaging organizational processes  Organizational agility and flexibilityOrganizational agility and flexibility ZaraZara ToyotaToyota  Employee motivationEmployee motivation ““MySpace GenerationMySpace Generation”
  9. 9. Alternative Organizational StructuresTraditional Hierarchy Functional Structure Process Overlay Functional Overlay Process Structure Horizontal Structure
  10. 10. PROCESS-BASED ORGANIZATIONAL STRUCTURE Processes that define value e.g. knowledge management, CRM Processes that create value e.g. new product development, innovation Processes that deliver value e.g. logistics, customer service, value chain relationships Specialist resource groups support process Managers e.g. functional departments, business units, external collaborators Process Leadership Resource Group Leadership Coordination mechanisms to link process and resource leadership
  11. 11. THE TOYOTA WAY  Pillar I Challenge Kaizen - continuous improvement Genchi Genbutsu - go and see for yourself  Pillar II Respect Teamwork  EM2 - Everything Matters Exponentially
  12. 12. THE MYSPACE GENERATION  Lives online - social networking sites are a way of life  Children of the baby boomers  Ambitious, demanding and question everything  Work/life balance is very important  Expected to be the highest maintenance workforce in history and the most high- performing  “You raised them, now manage them”
  13. 13. ORGANIZING FOR MARKET-DRIVEN STRATEGY (1( Strategic marketing and organization structure Aligning the organization with the market Informal lateral integration Integrating mechanisms Full customer alignment
  14. 14. CUSTOMER-BASED FRONT-END ORGANIZATION Senior Management Back-end Units Customer-based Front-end Units Product customers Solutions customers Internal linkages Shared planning and metrics Mediation from the centre
  15. 15. ORGANIZING FOR MARKET-DRIVEN STRATEGY (2(  Marketing functions versus marketing processes  Marketing as cross-functional process The challenge of integration Marketing’s links to other functions Finance/accounting Operations Sales R&D Customer service Human resource management Approaches to achieving effective integration
  16. 16. MARKETING DEPARTMENTS  Centralization versus decentralization  Integration or diffusion  Contingencies for organizing  Evaluating organizational designs
  17. 17. TRANSACTIONALBUREAUCRATIC ORGANIC RELATIONAL Centralized Formalized No specialized Internal (hierarchical) Organization of Activity External (market) Organization of Activity Decentralized No formalized Specialized Organizing Concepts
  18. 18. STRUCTURING MARKETING RESOURCES (1(  Structuring issues  Functional organizational design  Product-focused design Product/brand management Category management Venture teams New product teams  Market-focused design  Matrix design
  19. 19. TRADITIONAL DESIGNS Functional Matrix Product- Focused Market- Focused Traditional Marketing Organization Designs
  20. 20. PRODUCT-FOCUSED STRUCTURE
  21. 21. MARKETING ORGANIZATION BASED ON A COMBINATION OF FUNCTIONS AND PRODUCTS
  22. 22. STRUCTURING MARKETING RESOURCES (2(  New marketing roles  New marketing specializations  Venture marketing organizations  Partnering with other organizations  Networked organizations
  23. 23. NEW ORGANIZATIONAL STRUCTURE FOR MARKETING Vice President of Marketing Director of Product Management Chief Customer Officer Customer Service Customer Database Marketing Research
  24. 24. THE MARKETING COALITION COMPANY
  25. 25. ORGANIZING FOR GLOBAL MARKETING AND GLOBAL CUSTOMERS Organizing for global marketing strategies Business functions Organizational issues Coordination and communication Organizing for global customers The growth in global retailers Global account management structures
  26. 26. GLOBAL ACCOUNT MANAGEMENT AT MICROSOFT  Single executive/team in charge of single customer and all global needs  Restricted to customers by revenue size but also willingness/ability to partner  Senior managers encouraged to develop relationships with senior managers at global accounts  Global business managers work across business units, functions and organizations

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