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PIERCY
8/e
McGraw-Hill/Irwin
14-2
Chapter
Fourteen
Designing
Market-Driven
Organizations
McGraw-Hill/Irwin
14-3
Considerations in
organizational design
Organizational design
options
Selecting an organizational
design
Global dimensions of
organizations
14-4
Considerations in Marketing
Organization
Matching structure
to strategic goals
Extent of need to
alter vertical
structures
CONSIDERATIONS
IN ORGANIZATION
DESIGN
14-5
Alternative Organizational
Structures
Traditional
Hierarchy
Process
Overlay
Functional
Structure
Process
Structure
Functional
Overlay
Horizontal
Structure
14-6
The Challenge of
Integration
Integration problems
Marketings links to other
functional units
Additional approaches to
effective integration
relocation/design of facilities
personnel movement
reward systems
formal procedures
social orientation
project budgeting
14-7
Illustrative Example:
Johnson Controls
14-8
Illustrative
Example: GEs
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, 1993
14-9
14-10
Organizational
Design Options
Traditional designs
Marketings corporate role
New forms of marketing
organizations
14-11
Traditional Marketing
Organization Designs
Functional
Matrix
TRADITIONAL
DESIGNS
MarketFocused
ProductFocused
14-12
Product-Focused
Structure
Marketing Organization
Based on a Combination of
Functions and Products
14-13
Organizational
Transformation
14-14
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, 67-93.
New Forms of
Marketing
Organization
New marketing roles
Transforming vertical
organizations through
managing processes
New organizational forms
networked organizations
the marketing coalition company
venture marketing organizations
14-15
Source: Ravi S Achrol, Evolution of the Marketing Organization: New Forms for Turbulent
Environments, Journal of Marketing, October 1991, 88.
14-16
14-17
Selecting an
Organization Design
Organizing concepts
Organizing the sales force
14-18
Organizing Concepts
Centralized
Formalized
Nonspecialized
BUREAUCRATIC
TRANSACTIONAL
Internal
(hierarchical)
Organization
of Activity
External
(market)
Organization
of Activity
ORGANIC
RELATIONAL
Decentralized
Nonformalized
Specialized
14-19
personal selling
Internet-based channels
telesales
direct marketing
14-20
Global Dimensions of
Organizations
Coordination and
communication
Strategic alliances
Executive qualifications
14-21
Source: Philip B Cateora and John L Graham, International Marketing, 12th ed.
(Burr Ridge, IL: McGraw-Hill/Irwin, 2005), 336.
14-22
Executive
Qualifications
Standardized
Versus
Customized
Strategies
Alternative
Organization
Forms
GLOBAL
ORGANIZING
ISSUES
Strategic
Alliances
Coordination
and
Communication