market strategy and organizational structure
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You realize there's a link between market strategy and organizational structure...so it's time to do more research! Look at three very different global companies. Determine their organizational structure and what market entry strategies each of these companies are currently using. Consider why each company designed its organizational structure to be what it is and why they have chosen to expand internationally in the manner that they have. Is each company's organizational structure and international market expansion plans what you expected them to be?
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This job articulates premises of market strategy and organizational structure.
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There can be three different kind of global marketing strategies with respective organizational structures:
1. A global strategy: Treat the wold as a single market. It is applied where forces for global integration are strong and force for national responsiveness is weak. This is true of consumer electronics market. The structure is more integrated and there are product divisions.
2. A multinational strategy
It treats the world as a portfolio of national opportunities. It is applied where forces for global integration are weak and force for national responsiveness is strong. This is true of branded packaged goods business for example strategy pursued by Unilever or 3M. The organization structure is wholly owned subsidiaries. (See below Table for details) They operate independently.
3. A global strategy standardizes certain core elements and localizes other elements. This is applicable where each nation requires some adaptation. This is applicable to telecommunications. Or may be food industry. They are also known as transnational corporations. Here there is an interdependent structure with matching of synergies and competencies
Strategy will depend on the industry, ...
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