How should the company

manage and organize its

international activities?

Depending on their level of

international involvement,

companies manage their

international marketing

activities in three ways

1. Through Export Division

• A firm normally gets into international market by simply shipping out its goods.

• If its international sales expand, it organizes an export department consisting of a sales manager and a few assistants.

If the firm moves into joint ventures or direct investment, the export department will no longer be adequate to manage international operations

2. International Division

Companies that engage in several international markets and ventures create an international division to handle all this activity.

This unit is headed by a division president who sets goals and budgets and is responsible for company’s international growth.

The international division’s corporate staffs consists of functional specialists who provide services to various operating units. Operating units can be geographical organizations.

Or the operating units may be world product groups, each with an international vice president responsible for world wide sales of each product group.

Finally, units may be international subsidiaries, each headed by a president who reports to the president of the international division.

3. Global Organization

However, these companies face several organizational complexities viz.

1.) How much influence should the headquarter product manager have?

2.) And the company’s market manager for the banking sector?

3.) And the company’s country manager?

Recap :

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