INSEAD Library

Includes index

Digitized

Organization Strategy A Marketing Approach Table of Contents 1. INTRODUCTORY COMMENTS 1 The Matter of Terminology . . . The Distinction Between Programs and Businesses . . Emerging Themes . . The Plan of Study 2. DEFINING THE PRODUCT/MARKET SCOPE OF THE BUSINESS 7 Defining Integrated Business Units . . . Resource Size and Efficiency: Economies of Scale; Resource Organization and Specialization; Resource Integrity; Summary . . . Market Scope: A Qualifying Note; Market Decentralization; The Business as a Framework for Planning and Measuring Performance; Summary .. . The Need for Program Managements 3. PROGRAM STRUCTURES 17 Unilateral and Bilateral Program Structures . . . Simple and Complex Pro gram Management Units . . Program-Attached Resources . .. Market Segmentation and Program Organization . . . Segmentation Schemes and Phases of Growth . . . Summary . . . Significance of Program Organization Design 4. RESOURCE STRUCTURES .. 27 The Role of Resource Management .. . The Delineation of Resource Structures .. Program-Specialized Resource Units . . . The Positioning of Specialized Resource Units . . . Field Sales Organization: Sales Management Functions; Field Sales Specialization; Specialization of Individual Sales Representatives . . . Summary 5. PROGRAM-RESOURCE RELATIONSHIPS: PLANNING, OPERATING, AND GROWING THE BUSINESS 37 Planning: Annual Planning Processes; The Program-Resource Balance in Strategic Planning; Summary . . . Program-Resource Coordination Functions: Coordination Through Product Management; Interface Managers in Resource Departments; Independent Scheduling Functions; Summary . . . New Product Development . . . The Dynamics of Interaction 6. SURVEY RESULTS AND SUGGESTIONS FOR FURTHER RESEARCH 52 Results of the Questionnaire Survey . . . Toward Further Research: The Concept of Scale Economies in Organization; The Concept of Power in Program-Resource Relationships; The Utilization of External and Internal Resources; Organizing for Multinational Business Operations; Resource Structures CASES AND COMMENTARIES LOCKHEED AIRCRAFT COMPANY: LOCKHEED-GEORGIA COMPANY 61 Development of Gelac's Organizational Structure . . . Gelac Matrix Organization . . . The Programs . . . The Corporate Steering Committee . . . The Branches COMMENTARY ON LOCKHEED-GEORGIA COMPANY 102 Factors Leading to a Matrix Structure . . . Role and Authority of Program Directors . . . Role and Authority of Branch Heads . . Projectizing Resources . . . Resource Allocation . . . Organizing for Commercial and Military Markets . . . Summary INTERNATIONAL BUSINESS MACHINES CORPORATION: DATA PROCESSING DIVISION. 108 Development of the IBM Corporate Structure . . . Data Processing Division: Organizational Development . .. Data Processing Division: Organization in 1966 . . . Applications Development in the Data Processing Division .. . Setting Quotas .. . Sales Support . . . The GEM Region COMMENTARY ON IBM DATA PROCESSING DIVISION . .. 146 Structuring a Business . . . The Evolving Structure of the Resource Functions . . . The Emergence of Industry Programs . .. The Product Programs Organization . . . The Field Sales Organization . . . Future Organizational Developments . .. Summary MOBIL OIL CORPORATION: NORTH AMERICAN DIVISION . 156 Historical Background .. . Case Organization .. . The Marketing Department in 1967 . . . The Commercial Marketing Department .. . The Resale Marketing Department . . . A Field Marketing Division . . . Headquarters Staff Departments . .. Marketing's Role in Planning and Forecasting . . . Product Supply . .. Product Planning and Development COMMENTARY ON MOBIL NORTH AMERICAN DIVISION 179 Definiton of the Business . . . Defining Marketing Programs . . . The Planning System and Product Allocation . . . Summary E. I. DU PONT DE NEMOURS AND COMPANY: TEXTILE FIBERS DEPARTMENT ..... 187 Organization of the Textile Fibers Department in 1951. .. Consolidation of the Five Fiber Divisions .. . Further Organizational Changes . . . Controlling the Operations of the Sales Divisions COMMENTARY ON Du PONT TEXTILE FIBERS DEPARTMENT 197 201 Strategy and Organization . . . Understanding the Organizational Structure GENERAL FOODS CORPORATION: POST DIVISION . . Development of the Post Marketing Organization . . . Marketing Organization as of August 1966. . . The Marketing Plan . .. Sales Planning . . . Relations with Advertising Agencies .. . Marketing-Manufacturing Relationships . . . Product Development COMMENTARY ON GENERAL FOODS POST DIVISION 225 Program and Resource Structures . .. Planning: Form and Process . . . ProgramResource Relationships . . . The Product Development Process . .. Summary GENERAL ELECTRIC COMPANY: HOUSEWARES DIVISION . . 231 The Old Product Department Organization . . . Proposed Reorganization . . . The New Organization after September 1964. . . The General Electric Marketing and Distribution Operation . . . The Product Design and Production Operation .. . Universal Manufacturing Company . . . General Electric Distribution Company COMMENTARY ON GENERAL ELECTRIC HOUSEWARES DIVISION 254 The Case for Consolidation . . . Structuring the New Business . . . Or ganization of Field Sales . . . Product Development Processes . . . Summary FORD MOTOR COMPANY: NORTH AMERICAN AUTOMOTIVE OPERATIONS 261 Evolution of the Ford Organization, 1957-1967 .. . Case Organization . . . The Development of North American Automotive Operations . . . North American Automotive Operations in Early 1967 . . . The Ford Division .. . Trucks . . . The Ford Dealer Organization . . . The Autolite-Ford Parts Division .. . North American Automotive Operations in Late 1967 . . . Organizational Changes in Other Ford Operations COMMENTARY ON FORD NORTH AMERICAN AUTOMOTIVE OPERATIONS 289 E Pluribus Unum . . . The New Product Development Group -- Concept and Structure . . . Program-Resource Structure in the Sales Group .. . Strategy and Organization . .. An Evolving Structure . .. Ford of Europe and Ford Tractor as " Businesses" SEARS, ROEBUCK AND CO. ...... 296 Organization . . Recent Developments . . . Merchandising . . . Four Buying Departments . . . The Field . . . Planning, Logistics, and Product Development COMMENTARY ON SEARS, ROEBUCK AND CO. ... 326 An Interpretation of History . . . Understanding Sears Today . . . A Concept of the Sears Organization .. . Resource Allocation Procedures . . . The Buying Departments . . . The Roles of Parent and Field in Formulating Marketing Strategy . . . Product Development Strategy and the Implications for Organization . . . An Overview -- and the Future MONSANTO COMPANY: ORGANIC CHEMICALS DIVISION . . 336 Organization in 1967 . . . The Plasticizer Product Group . . . Division Reorganization COMMENTARY ON MONSANTO ORGANIC CHEMICALS DIVISION . 354 Program-Resource Structure . . . Planning . . . Product Development Processes Division Reorganization . . . Summary MONSANTO COMPANY: AGRICULTURAL DIVISION 358 Organizational Structure .. . International Sales . . . Product Development .. . Pricing .. . Scheduling . . . Planning and Budgeting COMMENTARY ON MONSANTO AGRICULTURAL DIVISION . . 367 370 Agricultural Division Organization MONSANTO COMPANY: INTERNATIONAL DIVISION The Overseas Division .. . Monsanto Europe . .. Emerging Problems . . . Appraisal and Restructuring . . The Evolving Organization --Structure and Interfaces . .. A Revised Charter for the International Division COMMENTARY ON MONSANTO INTERNATIONAL DIVISION . . 385 390 A Structure for World-Wide Strategies CHAS. PFIZER and CO., INC.: PFIZER INTERNATIONAL . Product Lines . .. Geographical Location of Pfizer International Activities . .. Historical Development of Pfizer International Organization . .... Organization in Early 1965 . . . 1965 Organizational Changes . . . The Future COMMENTARY ON PFIZER INTERNATIONAL . . . 409 412 By Way of Prediction FORD MOTOR COMPANY: TRACTOR DIVISION . ..... Organization . . . Product Development . . . Manufacturing . . . Equipment Operations . . . Sales and Marketing . . . Tractor and Implement Operations -- U S Ford Tractor Operations -- Europe . . . Overseas Tractor Operations COMMENTARY ON FOOD TRACTOR DIVISION . ... 432 435 Basic Organization .. . Organization of the Marketing Function . . . The Future INDEX TO COMPANIES AND COMMENTARIES . ..