The organizational design or structure is the “pattern of structural components and configurations used to manage the total organization.” (Griffin and Pustay, 2005 pg 392) It is typical for a company to reproduce or use what they have as a working model in the United States. As we learned earlier from our discussion about exploring globalization, we must be careful of words we use, packaging design and distribution methods. Lets take a look of three separate companies and their marketing strategies and organizational structure.
Wal-Mart expansion to China.
Wal-Mart expansion into china with included 32 stores with the same flare and layout as those in the United States. However they needed to make distinct differences, for instance this was the first Wal-Mart to have a wide variety of raw fish. They used the same organizational structure that they have in the United States. (Discovery Channel Special, Aired Summer 2005) “Wal-Mart International has experienced success because of its ability to transport the company’s unique culture and effective retailing concepts to each new country. The division makes a concerted effort to adapt to local cultures and become involved in the local community. Associates respond to customer needs, merchandise preferences and local suppliers. By serving each hometown in the same way, Wal-Mart International has realized significant growth with potential for much greater development worldwide.” (Wal-Mart, 2005)
McDonalds expanded the same way globally as they did in the United States. In the mid 90’s they started offering franchises on a global basis. In 1994, when they opened their first McDonalds in Kuwait, cars lined up for 7 miles to have an opportunity to order a burger. (McDonalds, 2005) Again what worked for them in the United States also worked globally. They also needed to make some culture changes for instance at the McDonalds in Germany they serve beer as well. (Discovery Channel, McDonalds, Summer 2005)
Again, Starbucks duplicated what worked well for them in the United States globally. They give mangers of each store to run their store based on local needs yet keeping the same Starbucks principles. (Griffin and Pustay, 2005, pg 335) They also have taken the approach for both importing their coffer and selling their coffee abroad “International Business Partnership Our global success would not be possible without our international partners, who share in our values and commitment to bringing the Starbucks Experience to customers worldwide. How we choose partners is critical to our success:” (Starbucks, 2005)
From the research I have done on these companies, the organizational structure when expanding globally did not change. Each different type, Wal-Mart a duplicate of what they have in the United States, McDonalds as the franchise giving control to business owners or though distribution, and Star Bucks using International Partners, each used what worked well for their expansion in the United States.
Griffin, Ricky W. and Pustay, Michael W., 2005, “International Business”, by Pearson Education, Inc, Upper Saddle River, NJ
Discovery Channel special on Wal-Mart expansion to China and the changes management needed to make to adapt to the China Culture. Aired on Cable Television summer 2005.
Wal-Mart International Operations, “International History”, [Electronic Version] Retrieved on December 5, 2005 from http://www.walmartstores.com/GlobalWMStoresWeb/navigate.do?catg=369
McDonalds History, “The History of McDonalds”, [Electronic Version] retrieved on December 5, 2005 from http://www.mcdonalds.com/corp/about/mcd_history_pg1/mcd_history_pg5.html
Discovery Channel special on McDonalds expansion globally. Aired on Cable Television summer 2005.
Starbucks, “Starbucks International Coffee”, [Electronic Version] retrieved on December 5, 2005 from http://www.starbucks.com/aboutus/international.asp