Chapter 14 Designing Market-Driven Organizations

Transcription

1 Chapter 14 Designing Market-Driven Organizations Considerations in organizational design Organizational design options Selecting an organizational ational design Global dimensions of organizations 1 MAR608 Considerations in Marketing Organization CONSIDERATIONS IN ORGANIZATION DESIGN Matching structure to strategic goals Extent t of need to alter vertical structures Extent of processtype organizational design Extent of partnering with other organizations Need to integrate value-creating activities around customers Impact of Internet on organizational processes 2 MAR608 1

2 Trends in organization design Traditional structures Organizational design shifts Innovation The knowledge-based worker Managing culture Collaborative working Informal networks Organizational diversity and external relationships 3 MAR608 Alternative Organizational Structures Traditional Hierarchy Functional Structure Process Overlay Process Structure Functional Overlay Horizontal Structure 4 MAR608 2

3 The Challenge of Integration Integration problems Marketing s links to other functional units Additional approaches to effective integration relocation/design of facilities personnel movement reward systems formal procedures social orientation project budgeting 5 MAR608 Illustrative Example: Johnson Controls Executives from marketing and sales meet frequently, collaborate on promotions, take training courses together, make sales calls together, share information freely Customer visits often involve executives from sales, marketing, engineering and design working together Johnson s teamwork philosophy extends to alliances and underpins its product development strategy 6 MAR608 3

4 Illustrative Example: GE s Philosophy One clear message in our approach is the value of the borderless culture which breaks down the horizontal barriers between functions and the vertical barriers between organizational levels. This means that employees are encouraged to collaborate with others and given considerable freedom to turn their creativity into productivity. Source: Robert Nardelli, GE, MAR608 Impact of the Internet on Organization New managerial roles and practices are mandated by the Web fast access to information from any location and remotely accelerated trend towards flatter organizations virtual team-working across geographical and organizational boundaries new approaches to supplier relationship management (SRM) and customer relationship management (CRM) managing and controlling outsourcing of more business processes and activities to specialist suppliers 8 MAR608 4

5 Organizational Design Options Traditional designs Marketing s corporate role New forms of marketing organizations 9 MAR608 Traditional Marketing Organization Designs Functional Matrix TRADITIONAL DESIGNS Product- Focused Market- Focused 10 MAR608 5

6 Product-Focused Structure 11 MAR608 Marketing Organization Based on a Combination of Functions and Products 12 MAR608 6

7 Organizational Transformation Hybrid organization forms Designs linked to value strategy and core capabilities Vital role of data networks Shared information and decision making Source: George S. Day, Aligning the Organization to the Market, in Reflections on the Future of Marketing, Donald R. Lehmann and Katherine E. Jocz, eds. Cambridge, MA: Marketing Science Institute, 1997, MAR608 New Forms of Marketing Organizations New marketing roles/specializations Chief relationship officer, chief knowledge office, chief customer officer Transforming vertical organizations through managing processes New organizational forms networked organizations the marketing coalition company venture marketing organizations 14 MAR608 7

8 The Marketing Coalition Company Source: Ravi S Achrol, Evolution of the Marketing Organization: New Forms for Turbulent Environments, Journal of Marketing, October 1991, MAR608 Selecting an Organization Design Organizing concepts Organizing the sales force 16 MAR608 8

9 Organizing Concepts Centralized Formalized Nonspecialized BUREAUCRATIC Internal (hierarchical) Organization of Activity ORGANIC TRANSACTIONAL External (market) Organization of Activity RELATIONAL Decentralized Nonformalized Specialized 17 MAR608 Organizing the Sales Force Organizing g g multiple sales channels personal selling Internet-based channels telesales direct marketing Coordinating g major account responsibilities Key account management Global account management 18 MAR608 9

10 Marketing Organization Plan Combining Product, Geographic, and Functional Features Source: Philip B Cateora and John L Graham, International Marketing, 12 th ed. (Burr Ridge, IL: McGraw-Hill/Irwin, 2005), MAR608 Global Dimensions of Organizations Issues in organizing global marketing strategies Variations in business functions Organizational considerations Coordination and communication Strategic alliances Executive qualifications 20 MAR608 10

11 Global Marketing Organization Executive Qualifications Strategic Alliances Standardized Versus Customized Strategies GLOBAL ORGANIZING ISSUES Alternative Organization Forms Coordination and Communication Review Question List the trends in organization design and discuss the impact of the internet on organizations. 21 MAR608 11