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Organization structure is the formal and informal framework within which people work to achieve organizational objectives. Designing and implementing a suitable organization structure is necessary for the implementation of marketing strategy. Aspects like internal and external organizations, vertical structure, horizontal relationships, speed of response, managing the operating environment, etc. are the major considerations to be made in the design of a marketing organization. The options that are available for designing the marketing organization can be grouped into traditional structures and new forms. Traditional structures include functional, product, market, and matrix organizations. A functionally organized structure is organized on the basis of various functions like marketing, production, research and development, and finance. In product organization, structure is determined by the type and number of products that the organization has. Market organization is organized into geographical units that report to a central corporate headquarters. A combination or matrix organization is a combination of the functional and product forms of organization.
The matrix structure helps in achieving the advantages of each of these organizational structures. Types of matrix structures include functional matrix, project matrix, and balanced matrix structures.
In selecting an organization design, the factors that are to be considered include the market and environmental situation, organizational characteristics, and the marketing strategy generally adopted by the organization. Implementation of the marketing strategy is affected to a great extent by how the marketing activities are organized. There are basically four kinds of organizing concepts typically used in marketing - bureaucratic, transactional, corporate, and relational. The environmental condition also influences the structure adopted by the organization. Organizations operating in global environments have to design the structure keeping in mind the market conditions in which they operate. Global organization restructuring involves steps like identifying the need for restructuring, integration of organizational functions, and identifying the most effective structure. Multinational organizations go in for various structures like domestic organization, volume expansion, resource acquisition, and international division.
Considerations in Organization Design
Internal and External Organizations
Speed of Response
Managing the Operating Environment
Organizational Design Options
Traditional Marketing Organizations
New Forms of Marketing Organizations
Selecting an Organization Design
Organizing Marketing Activities and Structure
Marketing Environment and Structure
Innovativeness and Structure
Global Dimensions of Organizations
Considerations in Global Organizations
Types of Global Organization Structures