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2. International BusinessMarketingStrategy PlanningFinance The important question is how to manage them 3. Management control and organization You cant manage what you cant measure 4. Controlling and Organization ofInternational Business By Arpit amar International marketing-2011 5. ContentsOrganization of businessArchitecture and structure of organizationPrinciples of controllingImportance of controllingLevels of controllingFactors affecting controllingSteps in controllingHow to control international marketingHow control and organization relates to marketing IM@ 2011 6. Principles of organization The organization of international business refers to the integrated function of formal organization structure, coordination, control system, processes, culture and people. -Charles W.L. Hill Three factors in organization Division of the organization into subunits Decision-making responsibilities (centralized vs. decentralized) The establishment of integrating mechanisms to coordinate the activities. IM@ 2011 7. Architecture of organizationPeople Internal bodyparts oforganizationExampleprocessstructureSiemensculturesystemIM@ 2011 8. Structure of organization External bodyadjustments Vertical of differentiation organization Horizontal differentiation Integrating mechanism IM@ 2011 9. Vertical differentiationThe location of Centralizationdecision making responsibilities with in the structure oforganization DecentralizationIM@ 2011 10. Horizontal differentiation FunctionHow theorganizationdecides to divide Types of business its various departments oractivities intosub units Geographical area IM@ 2011 11. Integrating mechanismDirect contactsHow the Teams FormalorganizationMatrix structuresdevelops various mechanism to coordinate and integrate between Knowledge networkInformal different sub units Information transmissionIM@ 2011 12. Principles of controllingControl refers to the task of ensuring that activities are producing the desired resultsand is limited to monitoring the outcome of activities, reviewing feedbackinformation about this outcome, and if necessary, taking corrective actions". - Reevesand WoodwardFeatures of ControllingOne can control future happenings but not what has happened.Every manager in an organization has to perform the control function.Control is a continuous process IM@ 2011 13. Why is it important? Helps in PerformanceEfficiency in decisionevaluation operation makingEstablish Monitoring ofsuperior- process and subordinateplanning relation IM@ 2011 14. Levels of controlling Strategic control Organization Operationscontrolcontrol How theinternational How the How thebusinessinternationalinternationalformulates andbusiness designbusiness focusachieves itsacts in response on operatingstrategic goals to changes insystems in anorganization organization andenvironmentits subsidiariesIM@ 2011 15. StrategicOrganizationOperationcontrol controlcontrol examplesexamples examplesMarket entry Finance and cost regulation Production analysisEnvironmentCredit rating checksCost factorsProfitability analysis Consulting andSupply and logisticsInnovation and communicationregulationdevelopment Promotion and advertising Auditing and inspectionProduct mixlegal regulations Time managementCompetitor analysisUniformity to standards Storage and transport IM@ 2011 16. Factors affecting controllingDomestic values and practices Communication systems DistanceEnvironmental differences Environmental stability Subsidiary performanceQuality of international operationsIM@ 2011 17. Steps in controlling Establishing control Taking CorrectiveChangestandards measures standard ChangeExample-deviationBanking industryMaintainstatus Quo Measuring theComparison of performance performanceIM@ 2011 18. How to control international marketing operationsBreak even analysis- total revenue and total costFinancial analysis - cash flow analysis, ratio analysis, monitoring capital expenditureReturn on investment(ROI)- on fixed asset, working capital ,analyzing risk takingManagement audit- efficiency evaluation by experts of plans, policies, systems and proceduresManagement information system- data collection and processing to manager, delegation and controlPerformance evaluation techniques- benchmarking for processes and competitor, balance score cardIM@ 2011 19. How controlling and organization affects international marketingStrategicIf organization is Applemarketingcentralized control LuxemburgIf organization is Operations levelbased Dedecentralizedmarketing controlbeersIf marketingOrganizationalAmazonstrategies controlchanges fast IM@ 2011 20. SummaryOrganization of international businessControlling of international businessMarketing control techniquesRelation of controlling and organization to marketingReferences: Handbook marketing controlling by Christopher zerres,Michael p. zerresMarketing management by Philip kotlerGlobal marketing management by W. keegen, M.green IM@ 2011 21. Questions ThanksIM@ 2011