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International Business, 8th Edition by Michael H. Moffett, Iikka A. Ronkainen, Michael Czinkota

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CHAPTER 11

Organization, Implementation, and Control

CHAPTER CONTENTS & LEARNING OBJECTIVES

ORGANIZATIONAL STRUCTURE

1. To describe alternative organizational structures for international operations

IMPLEMENTATION

2. To highlight factors affecting decisions about the structure of international organizations

3. To indicate roles for country organizations in the development of strategy and implementation of programs

CONTROLS

4. To outline the need for and challenges of controls in international operations

Organizing to Think Globally and Act Locally

Globalization is at the heart of Procter & Gamble's structuring of its organization. This global structure replaced a region-driven apparatus with the goal of making employees stretch themselves and speed up innovation as well as moving products and processes across borders.

Four pillars—global business units, market development organizations, global business services, and corporate functions—form the heart of P&G's organizational structure:

  • Global business units (GBU) build major global brands with robust business strategies.
  • Market development organizations (MDO) build local understanding as a foundation for marketing campaigns.
  • Global business services (GBS) provide business technology and services that drive business success.
  • Corporate functions (CF) work to maintain our place as a leader of our industries.

How the new organization works can be highlighted with an example. The GBUs define the equity, or what a brand stands for. ...

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