The structure of suppliers’ management and operations generally attracts little customer attention or interest; all customers want is the delivery of perfect products or services, on time, in full, whenever and wherever they want them, and preferably at the same price everywhere in the world where they operate. Inconsequential though it may seem to the customer, the window of opportunity hinges firmly on matters of organizational structure. Increasingly, it is supply chains, rather than the individual efforts of organizations, that compete in the market place. This transformation has profound implications for how companies organize to create and deliver customer value. Consider for a moment how difficult, if not impossible, it is to meet customers’ expectations where the company organizes as follows:
There are, of course, many other possible combinations, none of which will be perfect. Organization for effective marketing is a subject fraught with difficulty, largely because all companies and all markets are different. The complexities arising from the possible combinations of product, market, geography, function and size make it impossible to be prescriptive about the way a company should organize for marketing. None the less, there are some abiding general precepts that involve decisions at macro level about the centralization of management control, and at micro level about the structure of marketing activity.
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