Question

What do you believe is the most significant change required in organizational structure as a company makes the shift from a national to a global enterprise? Why? How does this change most significantly influence the marketing of the company's products or services? Explain.

Answer 1

The most significant change in organizational structure is to make it decentralized and transform it into department or functions based organizational structure, while moving from national to global company. It is because, it helps not only in fast decision making process, but also the decision making is customized, depending upon the conditions of the different geographical locations such as culture, compliances and purchasing power of people, trends and preferences among the other factors. It helps take right decisions for each location and company can benefit from it. Besides, company can implement strategic policies more effectively where each employee in the organization knows its role clearly and work to achieve its objective.

It makes marketing of the company to be more of location and customer specific. Now, marketers of the company prepare more customized messages that are in line with the cultural values and traditions so that it builds connectivity with the target audience. It makes marketing to be more effective in terms of positive product positioning, branding and connecting with the target audience. As a result, marketing becomes more effective in achieving organizational goals.