15.4 Deciding on the Global Marketing Organization Flashcards
What are the three main stages in which companies manage their international marketing activities?
Companies manage their international marketing activities through the following stages: establishing an export department, creating an international division, and becoming a global organization.
When is the export department no longer adequate for a firm?
The export department is no longer adequate when a firm’s international sales expand significantly, and the company moves into joint ventures or direct investment.
What are the three ways operating units can be organized within an international division?
Operating units can be organized as geographical organizations with country managers, world product groups responsible for worldwide sales of different product groups, or international subsidiaries responsible for their own sales and profits.
How do global organizations differ from companies with international divisions?
Global organizations do not view themselves as national marketers selling abroad but as global marketers. They plan worldwide manufacturing facilities, marketing policies, financial flows, and logistical systems, and their global operating units report directly to the chief executive or executive committee, not to the head of an international division.
What is the approach of global companies in terms of management recruitment, sourcing components, and investments?
Global companies recruit management from many countries, buy components and supplies where they cost the least, and invest where the expected returns are greatest.
Why do major companies need to become more global to compete?
Major companies need to become more global to compete as foreign companies successfully invade their domestic markets, forcing them to move more aggressively into foreign markets and view the entire world as a single borderless market.
