International Business and International Marketing

Chapter 16 : Leading, Organizing and Controlling

Chapter Summary

Management of a global marketing organization is a complex task. It requires detailed planning, organizing and controlling. Global organizations must organize their structures in such a way, that they can maintain some flexibility. As environmental conditions will vary from country to country, a standard set of policies or strategies cannot be used by all subsidiaries.

It is also important for global marketing organizations to plan their structures so that all resources are fully utilized. A global company has to closely monitor the performance of its subsidiaries. This is called controlling. The degree to which a parent company controls a subsidiary depends on several factors such as the size and performance of the subsidiary, the nature of the product, the stability and diversity of the environment in which it is functioning and the parent company’s management philosophy.

The global company can use either formal control methods or informal control methods or a combination to effectively manage its global operations. A global company has to evaluate the performance of all regional centers or subsidiaries and suggest improvements so that they remain competitive at all times.

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