GM Class 9 & 10

Which are the differences among International and Area Division organizations?

• International Division: separates foreign from domestic, risk of siloing.

• Area Division: organized by geography, more adaptation, but duplicative.

Which are the differences among Product and Functional Division organizations?

• Product Division: expertise/product focus, less local responsiveness.

• Functional Division: efficiency/specialization, but market orientation weaker.

Which is the justification for Matrix organizations?

They balance global efficiency (product/scale) with local responsiveness (regions/customers).

What do we mean by Global KAM?

Global Key Account Management → managing multinational customers with dedicated global teams.

What do we mean by Share of Market (Volume share)?

Firm’s sales units ÷ Total units sold in the market.

What do we mean by Share of Market (Revenues share)?

Firm’s sales revenue ÷ Total market revenue.

What does it mean if Share of Volume > Share of Sales?

The firm sells at lower prices (low-value strategy).

What do we mean by Physical and Weighted Distribution?

• Physical: % of stores carrying the product.

• Weighted: % of market sales covered by those stores. Weighted is usually more relevant.