International Marketing: Analysis of Global Organizational Structures

This report provides a comprehensive overview of various organizational structures employed in international marketing. It delves into four primary designs: global product, global area, global functional, and global customer structures. The report explains the characteristics, advantages, and disadvantages of each structure, illustrating their application with real-world examples such as Samsung, Bertelsmann AG, British Airways, Eastman Kodak, and Bridgestone Corporation. It analyzes how companies select specific organizational structures based on factors like product lines, market strategies, and customer focus. The report examines the implications of each design on aspects like cost efficiency, innovation, coordination, and resource allocation, offering valuable insights into the strategic choices companies make to succeed in the global market. The report concludes by emphasizing the importance of selecting an organizational structure that aligns with a company's overall goals and operational requirements.

RUNNING HEAD: INTERNATIONAL MARKETING
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International Marketing

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Table of Contents
Introduction................................................................................................................................1
Types of the organizational cultural...........................................................................................2
Global product design.............................................................................................................3
Global area design..................................................................................................................4
Global functional design.........................................................................................................5
Global Customer design.........................................................................................................6
Conclusion..................................................................................................................................6
Bibliography...............................................................................................................................7

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Introduction
As per the research of the researchers, it has been found that various individuals say
that this organization is one of the most successful organizations because of their effective
mission or the company is dealing with the product, which has a high demand in the market
(Jones, 2013).
But the most common fact is that the company become successful just because of
their organizational structure, which helps them in dealing with the competitors.
An organizational structure can be defined as the system that is used to show the
hierarchy in the organization, which can help the company in determining the success in the
market.
After the formation of the organizational structure, the company operates on it to
execute their goals.
There are many types of organizational structures. There is a global product
organizational structure, functional organizational cultural, and customer organizational
cultural, and global area design organizational structure (Mendenhall, 2012).
This organizational structure comes with various disadvantages and advantages,
which help the company in the success at certain points in their life cycles.
Gill Corkindale stated his views in the Harvard business review that the poor
organizational structure and design results in a befuddling bog of logical inconsistencies:
perplexity inside jobs, an absence of coordination among capacities, inability to share
thoughts, and moderate basic leadership bring chiefs superfluous intricacy, stress, and strife.

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The top management of the organization faces various problems very often, or worse pass
them off as the challenge to face them and develop the various opportunities. Hierarchical
structures can be tall, as there are various levels between section level workers and the
leaders of the organization. Hierarchical structures can likewise be genuinely at various level,
as there are just a few levels isolating the base from the top.
Contingent upon the objectives, pay structure, and division of work, which an
individual may relate more to one structure than another structure.
Ultimately is very important for the company to choose the best organizational culture
in order to be successful in the market (Lasserre, 2017).
This paper will be going to give the outline of the four organizational culture and the
company that uses it and various reasons why the company selected particular organizational
culture based on the product and services, which is marketed.
Types of organizational cultural
Company's international division is fully restraint in favor of the global organizational
design as the form moves from the domestic to international sale in a motive of becoming a
multinational corporation. An international design enables the company to integrate the four
types of knowledge such as (Srinivasan, 2011).
 Area
 Product
 Functional
 Customers

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A firm will normally choose one of four basic worldwide association structures (product,
area, functional, or customer) depending upon its circumstance in the market, its firm-
explicit points of interest, and its administrative way of thinking. Every plan types regularly
stress one kind of learning (zone, item, as well as practical), and along these lines mirrors an
organization weighting of the significance of each (Ashkenas, 2015).
Global product design
The most common type of the organizational structure is global product design, which
assigns the duties for a particular product or product group to the distinct operating division,
and structure in the firm. This type of organizational structure is very much beneficial for the
company who have a diverse product line or the product line that is sold in the market
diversely.
The firm has two option either the firm take on a M-form design (multidivisional) if
the product is related and if the product is not related then the company opt for the H-form
design (holding company) (Yang, 2015).
For example, Unilever used M from design whereas the Shougang Corporation used
H form.
Such a structure is very compelling in completing item adjustments in order to meet
quickly changing client needs in assorted markets. It empowers close coordination between
the mechanical and promoting parts of different markets in perspective on the distinctions in
item life cycles in these business sectors, for example, if there should be an occurrence of
customer hardware, for example, TV, music players, and so forth.
The Samsung Company is based on this organizational design. Samsung has a product
type of divisional organizational structure.

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This structure type utilizes item arrangement as the reason for figuring out which
assets and business activities have a place with specific divisions, for example, the
organization's Device Solutions division. Auxiliary assistance adds to the viability of
actualizing Samsung's conventional competitive technique and concentrated methodologies
for development (MBA knowledge base, 2019).
Global area design
The second most popular form of the organizational structure is global are design.
This design is mainly particularly appropriate for the company, which has polycentric or
multi-domestic business philosophies.
The organizational structure is strictly used by the company whose product does not
transfer well among all the regions.
The global area design is additionally proper for firms whose technique is advertising
driven as opposed to dependent on assembling efficiencies, mechanical development, or the
notoriety of its image name items. The structure additionally enables a firm to create skill
about the neighborhood to advertise and adjust its product mix and products accordingly
(Vitali, 2011).
There are a few disadvantages to the worldwide zone structure:
To start with, the firm may forfeit cost efficiencies that could be accomplished
through worldwide generation since the structure accentuates the necessities of the territory
advertise.
Second, innovation dispersion is moderated since advancements may not be received
over the association.

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Third, assets are copied since every region division has its very own practical pros,
and at times, generation offices.
At long last, coordination crosswise over zones is costly and worldwide item
arranging is debilitated under this plan.
The Bertelsmann AG and Cadbury-Schweppes PLC use this organizational structure
for their product to become successful worldwide for the reason which is stated above.
Global functional design
In this type of organizational structure, an organization creates various department
and sections that have responsibility worldwide for the common organizational function and
goal. The company, which opts for this particular organizational design, have relatively
narrow or similar product lines. This design can also be known as U-form design (unity)
(Toussaint, 2016).
This organizational structure calls to form various departments or the divisions such
as finance, operations, marketing, research and development, and human resource
management.
This organizational structure is used by British Airways to deal with competitors in
the international market. The global design has a various advantage, which helps the British
Airways to deal with the competitors. First, the firm has a right to develop and transfer the
expertise with each and every functional area.
Secondly, the highly centralized control can be maintained by over the functional
operation, which helps the company y to deal effectively with the various operations.
Third, global functional design helps in focusing on the vital functions of the
company by which efficiency can be maintained between the various functions.

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All the things have both the sides, this design has an advantage so it also has various
disadvantages.
This organizational design can only be adopted by those firm which has relatively few
customers and products, and in this criteria, British airways fix.
It cannot help in promoting and developing the coordination among the various
divisions. It also results in the duplication of resources among the managers (Eldridge,
2011).
Global Customer design
This organizational structure is a benefit for the company who want to serve different
customers and a group of customers with particular needs and requirement calling for special
expertise or consideration.
This type of global organizational structure is adopted by the Eastman Kodak and
Bridgestone Corporation.
The text notes that both Eastman Kodak and Bridgestone Corporation use this design.
The company uses global customer design because it allows the company to use a different
technique of the marketing to target globe customers and worldwide markets and it also
allows the company to identify how well it is achieving within individual sectors (Galbraith,
2011).
This design is much better as this does not result in the duplication of the resources,
however, the coordination between the sectors and decision is quite difficult for the company
to develop.

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Conclusion
It can be concluded from the above analysis that, various types of organizational
structure has been adopted by the various companies to enhance their product and services in
the international market with the competitors. The company adopts the organizational
structure based on their culture and the criteria of the global organizational structure. This
organizational structure helps in adopting more and more innovation worldwide just to
eliminating the formality that could slow down development in a practical structure. With
respect to the negatives, the structure could be confounding and badly arranged if everybody
included conceding to how the structure ought to be sorted out.

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Bibliography
Ashkenas, R. U. (2015). The Boundaryless Organization.: Breaking the Chains of
Organizational Structure. . John Wiley & Sons.
Eldridge, D. J. (2011). Impacts of shrub encroachment on ecosystem structure and
functioning: towards a global synthesis. Ecology letters, 709-722.
Galbraith, J. R. (2011). Designing the customer-centric organization: A guide to strategy,
structure, and process. . John Wiley & Sons.
Jones, G. R. (2013). Organizational theory, design, and change. . Upper Saddle River: NJ:
Pearson.
Lasserre, P. (2017). Global strategic management. Macmillan International Higher
Education.
MBA knowledge base. (2019). Global Product Division Structure of MNE’s. Retrieved from
mbaknol: https://www.mbaknol.com/international-business/global-product-division-
structure-of-mnes/
Mendenhall, M. E. (2012). Defining the “global” in global leadership. Journal of World
Businesa, 493-503.
Srinivasan, A. (2011). Local balancing influences global structure in social networks.
Proceedings of the National Academy of Sciences, 1751-1752.
Toussaint, A. C. (2016). Global functional diversity of freshwater fish is concentrated in the
Neotropics while functional vulnerability is widespread., . Scientific reports.
Vitali, S. G. (2011). The network of global corporate control. .

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Yang, Q. K. (2015). Identifying and managing coordination complexity in global product
development project. . International Journal of Project Management, 1464-1475.