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* An international marketing plan should optimize the resources committed to company objectives. The organizational plan includes the type of organizational arrangements and management process to be used and the scope and location of responsibility. Because organizations need to reflect a wide range of company-specific characteristics—such as size, level of policy decisions, length of chain of command, staff support, source of natural and personnel resources, degree of control, cultural differences in decision-making styles, centralization, and type or level of marketing involvement—devising a standard organizational structure is difficult. Many ambitious multinational plans meet with less than full success because of confused lines of authority, poor communications, and lack of cooperation between headquarters and subsidiary organizations. Companies are usually structured around one of three alternatives: global product divisions responsible for product sales throughout the world; geographical divisions responsible for all products and functions within a given geographical area; or a matrix organization consisting of either of these arrangements with centralized sales and marketing run by a centralized functional staff, or a combination of area operations and global product management. A company may be organized by product lines but have geographical subdivisions under the product categories. Both may be supplemented by functional staff support. Exhibit 12.4 shows such a combination. Modifications of this basic arrangement are used by a majority of large companies doing business internationally. To the extent that there is a trend, two factors seem to be sought, regardless of the organizational structure: a single locus for direction and control and the creation of a simple line organization that is based on a more decentralized network of local companies. * * Considerations of where decisions will be made, by whom, and by which method constitute a major element o
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