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Leadership,,

and CorporateSocial

Global Marketing

Global EditionChapter 17

1

Chapter topics: Leadership that integrates

global efficiency, localrespons veness, an everageinto global vision and strategy

Organizationa structures

Lean production Corporate social responsibility

Marketing control process

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he leaders task is to articulate:

Intended geographical scope of activities

Values

Policies

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Top ManagementNationality, 2011

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Leadership and CoreCompetence

Executives were judged on their ability to, ,organizations core competencies in the1990s as o osed to the focus onreorganization in the 1980s

Core competencies must: rov e po en a access o a w e

variety of markets perceived customer benefits

Be difficult to imitate

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Organizing for GlobalMarketing

The goal is to find a structure that: Enables the company to respond to relevant

market environment differences

nsures t e us on o corporate now e ge anexperience throughout the entire system

rgan za ons mus a ance:

The value of centralized knowledge and control he need for individualized response to local

markets

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Organizing for GlobalMarketing

In global marketing there is not a single best

s ruc ure Leading-edge global competitors share one

key organizational design characteristic:

Structure is flat and simple

In the 21st century corporations will have tofind new more creative wa s to or anize

Must be flexible, efficient, and responsive to meetthe demands of globalizing markets

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Patterns of InternationalOrganizational Development

Organizations vary in:

Size Potential of targeted global markets

Local management competence

For product and technical knowledge

Area and country knowledge

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International DivisionStructure

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International DivisionStructure

Four factors that lead to this structure

operations has increased enough to justify theposition

Complexity of international operations requires asingle organizational unity

specialists to deal with the demands of global

operations Management recognizes the importance of

proactively scanning the global horizon for

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Geographical and ProductDivision Structures

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Product or business, function, area, and

cus omer now- ow are s mu aneous yfocused on the organizations worldwidemar e ng o ec ves

Management must achieve organizationalbalance that brings together differentperspectives and skills to accomplish

organizational objectives

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Geo ra hic knowled e understandin ofeconomic, social, political, andovernmental market and com etitive

dimensions

- product managers that have a worldwide

product competency

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Functional competence corporate staff withwor w e respons ty contr utes towarthe development of functional competence ona g o a as s

Knowledge of customer or industry and itsneeds staff with responsibility for serving

industries on a global basis assistorganizations in their efforts to penetratespecific customer markets

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17-15Reporting responsibility Coordination

Reln. btw Structure, Foreignro . vers cat on ze

Grid or Matrix

Foreign ProductDiversification (%)

10

Boundary

Stage II

International Area Divisions

0

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50

Size Abroad (as % of Total Size)

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Implications for ChangingOrganizational Structure

1. Declining profitability & shareholder value

are reater motivators of chan e thanincreasing economic turbulence

. leadership

.

grasp on all aspects of the business4. Correct a ance etween ong-term strategic

objectives & short-term attention to

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s are o er va ue

Implications for ChangingOrganizational Structure

5. Loose-ti ht balance6. Employees need to learn to behave

7. Knowing when the strategic imperative

8. Loose organizational structure requireun ers an ng o measure o success

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Lean Production: Organizingthe Japanese Way

Compares craft production, mass production, and

Craft production meant one worker created

Mass production gained advantages becauseone worker could do far more s ecialized workdue to the moving assembly line

Lean production uses less factory space,

smaller inventories, and quality controlmethods; increased efficiency by 50% over

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typica mass pro uction

Mass Production vs. ToyotaProduction System

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Todays CEO must be a proactivesteward of the firm

Stakeholders: managers, employees,, ,

Secondary stakeholders: general businesscommun ty, oca commun ty groups, annongovernmental organizations (NGOs)

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Corporate SocialResponsibility

An obli ation to ursue oals andpractices that are in the best interest

Many companies create a formal Codeof Ethics that summarize core

ideolo ies cor orate values andexpectations

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Corporate SocialResponsibility

99 Social responsibility marketingSocial responsibility marketing

Understand broader concerns & ethical,

environmental, legal & social context of

ar e ers o cons er ro e ey p ay n soc awelfare

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Social ResponsibilityMarketing

Are firms that satisfy consumer wants acting inest ong-run interests o consumers & society?

ast oo s tasty ut un ea t y

Convenient packaging leads to waste

Satisfy consumers, but hurt health & environment

9Added healthier items (salads)

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How do CEOs decide what is in the best

n eres o soc e y Bangladeshi children lost garment industry jobs

a er e rea ene ra e sanc ons, an echildren were worse off

conditions in its factories

-reasons including labor practices, resulting insocial re ercussions in communities it serves

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Source of Conflict inGlobal CSR

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A comprehensive, systematic & periodic

examination of a companys marketing, , , ,policies, & activities which is conducted with theobjective of identifying existing & potential

action to improve a companys performance A meeting between the company executives &

auditor to agree on objectives, coverage, depth,data sources, report format & time period for theaudit

Gather data Analyze data

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repare presen e repor

What do we want to achieve?(goal setting)

(performance measurement)

Why is it happening?erformance dia nosis

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(corrective action)

Annual plan control

ro a y con ro

Efficiency control

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