Saturday, June 03, 2006

Bibliography #11

Jones, John Philip. "International Advertising." Realities and Myths. 2000. p 3

How much benefit companies will gain from sensitive monitoring of market trends depends on the effectiveness of manufacturers' and advertising agencies' local antennae.It also depends on how much managers are encouraged to listen to the signals from the markets and on how quickly the firms react.

There are five different types of organizations that operate across national borders. The three marked with asterisks in the following list are widely recognized. The two remaining categories have come about as a result of relatively recent academic analysis that was undertaken because it had becoming increasingly obvious that the three more widely recognized organizational systems were unable to provide good enough guides for new evolving types of business.

1. Global organizations*: The role of overseas operations in global organizations is to "implement parent company strategies" - in other words, to use uniform techniques to market brands that are developed centrally.
2. International organizations*: In these types of organizations, overseas branches "adapt and leverage" parent company competencies; this allows a degree of flexibility in the adaptation of centrally developed brands.
3. Transnational organizations: In these organizations, overseas operations make different contributions to integrated worldwide operations by focusing partly on the local market and partly on how this can influence the firm as whole. This will encourage but not force a convergence of brands across the markets.
4. Permanent alliances: In permanent alliances, local operations remain independent, but alliances are cemented by the drive and self-interest of the decision makers in each country. Brands remain local, but convergence may possibly take place in the long term.
5. Multinationals*: In such organizations, the role of overseas subsidiaries is to "sense and exploit" local opportunities. Brands remain local.


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