7. Understanding the Theory and Design of Organizations, Ch. 5 Assignment

7.	Understanding the Theory and Design of Organizations, Ch. 5 Assignment Words: 2384

1. PURPOSE The intent of this workbook assignment is to review and explore various international products in the context of their international organizational structures. 2. SELECTED PRODUCTS 1. Selection Approach The product selection was made on the concept, that there should be some commonality in products in terms of their international recognition and at the same time this selection should have some diversity in terms of product usage by various households. ? Extra sugar free gum is commodity for middle class and upper middle class and is equally popular in high class, weight and diet conscious consumers. ECCO has international fame and it is being used from high to upper middle class gentry. ? Lacoste is a luxury brand popular in class conscious gentry and not in the reach of middle class consumers. The idea behind this combination is to get some good analysis regarding the international products and their organizations operating internationally 2. Products ? Extra Sugar Free Gum by Wrigley ? Ecco Shoes ? Lacoste Polo Shirts 3. PRODUCT-1 1. Introduction 1. Product Name: EXTRA® was Wrigley’s first sugar-free gum offering in the U.

S. and Extra gum is known for its incredible, long-lasting flavors that can trigger a state of perpetual enjoyment. Wrigley’s is the subsidiary of Mars incorporated, on October 6, 2008, Wm. Wrigley Jr. Company (NYSE: WWY) completed its merger with Mars, Incorporated, in a transaction valued at over $23 billion. 2. History: 1984, Wrigley launched Extra in the U. S. and Canada as the company’s first taste sustaining, sugar-free brand. Within five years of launch, Extra became the No. 1 sugar-free gum in the U. S. and in the world. 1988-2007 Extra has continued to delight consumers with exciting new flavors o 2007 Extra, along with Orbit® and Eclipse®, receive The American Dental Association’s Seal of Acceptance o 2008 Launch of Extra Fruit Sensations o 2008 Launch of Slim Pack. o 2009 Extra Fruit Sensations brings “smoothie” flavor selections to the gum category for the first time o 2009 Launch of Slim Pack 3 Pack. o 2010 Extra introduces Dessert Delights to its portfolio. o 2011 MyExtra gum launches letting you personalize packs of Extra gum for any occasion. . Vision & Corporate principles in Action Our Vision To create a culture where our associates’ unique talents are maximized and they feel valued and connected to each other and to Wrigley through living our values. Corporate principles in Action [pic] 4. Corporate Office: Chicago, Illinois 5. Regional Offices: There are eight (08) regional offices around the global: |REGIONS | |1. Americas |5. Middle East | |2.

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Western Europe |6. Africa | |3. Central Europe |7. China & Asia | |4. Russia & Eastern Europe |8. Australia & Pacific | 6. Range in products: Initially Extra was introduced in two flavors, Spearmint and Peppermint. Presently there are ten (10) flavors of Extra in the international market: |Extra FLAVORS | |1. Classic Bubble |6.

Supermint | |2. Peppermint |7. Polar Ice | |3. Spearmint |8. Winterfresh | |4. Cinnamon |9. Cool Green Apple | |5. Cool Watermelon |10. Strawberry Burst | 2. What country do the materials come from? All Extra sugar free gum products have same ingredients with the exception of flavors and colors.

The supply chain of Extra is handling two kinds of raw materials, natural extracts and synthetic materials, both kind of materials are purchased worldwide for various manufacturing facilities. |INGREDIENTS: | |Sorbitol, Gum Base, Glycerol, Mannitol, Natural And Artificial Flavors, Less Than 2% Of: | |Hydrogenated Starch Hydrolysate, Soy Lecithin, Aspartame, Acesulfame K, Colors (Red 40 Lake, | |Yellow 6), Sucralose, Bht (To Maintain Freshness), Phenyketonurics: Contains Phenylalanine. |

All the suppliers of Wrigley are provided with extranet connection for swift communication, which serve as backbone in Wrigley supply change management system. New suppliers are given essential training through Project Autoplant to integrate with the system. All suppliers are bound to Wrigley Code of Practice (COP) and are following “Committed to Ethical Trade” logo. 3. Where it is manufactured or assembled? Extra sugar free gum manufacturing value chain is composed of nine (09) processes. These are Melting, Mixing, Rolling, Scoring, Conditioning, Breaking and Coating, Wrapping and Packaging.

There are twenty one (21) manufacturing facilities around the world out of which four (4) are in U. S. and remaining are scattered in various geographical regions. 4. Which country does the marketing and advertisement? Wrigley has operations in more than forty (40) countries and distributes its world-famous brands in more than hundred eighty (180) countries. Wrigley markets its products including Extra through multidomestic strategy. Each geographical region has enabled Extra to target local segments and tastes through local marketing channels.

This might have increased the costs associated with multi domestic marketing but it worth spending. 5. In what different countries is the product sold? Extra sugar free gum is sold in more than hundred fifty (150) countries around the world. Similar to other Wrigley’s products Extra is sold through regional dealers and local distributors. The current distribution strategy makes its vital to target local segments with local tastes. For Saudi market the local distributors are getting supplies from regional sales office at Dubai, UAE. 6.

Analysis & Conclusion Wrigley (Extra) is committed to develop new products and new markets through diversification strategy. This is accomplished by being a product innovator and by seeking expansion with existing products and newly developed products. Wrigley Global Innovation Center (GIC) is designed to support creativity and collaboration, which is a critical part in the introduction of new products around the world. Wrigley is capturing the market for Extra by gaining competitive advantages through regional / national responsiveness.

This has been achieved while addressing the specific needs in various regions/countries. Therefore its worldwide geographical product structure is just suitable for its multinational operations. Instead of marketing the same standard product in international market or segment Wrigley has localized and adopted to please the local tastes. Since differentiated products do meet the needs of local segment and at the same time are not vulnerable for competition therefore in each region subsidiaries of Wrigley are modifying Extra sugar free gum to suit the local taste.

Wrigley is completely aware of the importance of localization and has considered adaptation as an inevitable choice and the same trend is being implemented in Wrigley’s marketing strategy. Extra sugar free gum is available in a variety of distinctive flavors, specifically tailored to local tastes, in geographies including Australia, Canada, China, Germany, Hong Kong, New Zealand and Taiwan. Wrigley’s social and community services and environmental protection programs are providing noble marketing platform to the firm internationally.

Such activities are bringing an image of socially and environmentally responsible organization and adding fame to its brand name in U. S, UK, Africa, China and India. 4. PRODUCT-2 1. Introduction 1. Product Name: ECCO is one of the will known good quality shoes makers. They have a Varity of shoes types’ casual, formal, sporty and sandals. They are available for men, women and kids. 2. History: 1963, ECCO was established by Karl Toosbuy in Denmark with the simple slogan “A perfect fit — A simple idea”. ECCO was inspired by the open and harsh landscape of southern Jutland, Toosbuy presented ECCO as a company with a passion for pleasant walking. 978, the company gained widespread international recognition for its comfort footwear, after that they launched some new shoes such as (Joke shoe, followed by the classics Free and Time shoe). These shoes were the first in the world to feature a sole imprinted with the manufacturer’s logo. 1982, sales reaches 1 million pairs of shoes annually in addition new licensed production lines started opened. 1990s launch of Kids, Golf and Performance shoes. 2000, ECCO owned every step of the production process, from design and leather production to branded retail sales. 005-2008 ECCO opened a state-of-the-art leather tannery and shoe factory in Xiamen, China. 2009 ECCO’s sports categories saw increased publicity. 3. Vision & Mission  (or Corporate principles) The company’s vision is to be the “most wanted brand within innovation and comfort footwear”. Their mission is to develop a Global leading edge retail concept which encompasses the ECCO culture, vision, and values. 4. Corporate Office: Ecco’s corporate office exists in Bredebro, Denmark 5. Regional Offices:

Ecco has six regional offices around the world: |REGIONS | |1. Ecco Europe |5. Americas | |2. Middle East |6. Asia | |3. Africa |7. Pacific | 6. Range in products: Ecco have a wide range in shoe market they produce mainly these items: |ECCO Range | |1. Casual shoes |6.

Sandals | |2. Business shoes |7. Ankle boot | |3. Classic shoes |8. Long boots | |4. Gore-tex for outdoor |9. Golf shoes | |5. Receptor for walking |10. Other accessories | 2. What country do the materials come from? Ecco maintained focus on the entire value chain or from “cow to shoe” as the company liked to put it.

Ecco bought raw hides and transformed these into various kinds of leather usable in shoe manufacturing. Leather constituted the main material in shoe uppers which were produced at Ecco’s production sites. The company owned several tanneries in the Netherlands, Thailand and Indonesia, which supplied leather to Ecco’s factories all over the world. 3. Where it is manufactured or assembled? Ecco had full-scale production units in Portugal, Indonesia, Thailand, Slovakia and China. Some of them were just been introduced, such as the new manufacturing faculty in china. 4. Which country does the marketing and advertisement?

The company has a core marketing team in Denmark that is handling worldwide marketing. About the company’s advertisement one of the committee members has stated that “We do not operate marketing budgets of the same magnitude as the big fashion brands. But our shoes are produced with an unconditional commitment to quality and our history is truly unique. We need to be better at telling that story”. 5. In what different countries is the product sold? Ecco products are sold in more than 90 countries worldwide, Ecco is recently opening stores in Saudi Arabia. 6. Analysis & Conclusion

What can you conclude about international products and organizations based on your analysis? After going through our textbook we could conclude that Ecco company needs two or more combinations of structure or some elements of structures, that’s why they are following a global matrix structure, as we all know that organizations who operates on a global scale frequently have to make adjustment to their structure which move the company to be global hybrid. The company’s stage of development is globally distributed and they are targeting the whole word as their market potential.

Ecco has gone through the four stages of development, they started with domestic orientation then to an international orientation after that they started shifting to multinational orientation and then moves globally. Ecco is decentralize from the operations point of view. However their R&D and marketing is centralized. Thanks to the advancement in the information technology that helps companies in promoting them to go abroad and compete internationally. 5. PRODUCT-3 1. Introduction 1. Product Name: Lacoste Polo Shirt Lacoste is a famous French clothing company which deals in other accessories, and mainly in tennis polo shirts.

Rene Lacoste disliked the customary tennis shirts, so he joined hands with Andre Gillier, the proprietor of France’s major knitted garments company, to produce the knitted cotton pique shirt that modernized the sportswear businesses. 2. History 1933, Rene Lacoste founded La Chemise Lacoste with Andre Gillier. They began to produce the revolutionary tennis shirt Lacoste had designed and worn on the tennis courts with the crocodile logo embroidered on the chest. 1963, Bernard Lacoste took over the management of the company from his father Rene. Significant company growth was seen under Bernard’s management. 970s and 1980s, In the United States the Izod and Lacoste were often used interchangeably because starting in the 1950s, Izod produced clothing known as Izod Lacoste under license for sale in the U. S. 1993, This partnership ended in, when Lacoste regained exclusive U. S. rights to distribute shirts under its own brand. 2005, almost 50 million Lacoste products sold in over 110 countries. Its visibility has increased due to the contracts between Lacoste and several young tennis players, including American. 2006, Lacoste licenses its trademark to various companies. 2007, Lacoste introduced their very first e-commerce site for the U.

S. market. 3. Vision & Mission The company’s vision is to “Inspire people with finest clothing and accessories products”. 4. Corporate Office: Lacoste is headquartered in Paris. 5. Regional Offices: There are six Lacoste regional offices around the world: |REGIONS | |1. Europe (France) |5. Americas (USA) | |2. Middle East (UAE |6. India | |3. Africa (Morocco) |7. Hong Kong | . Range in products: Lacoste provides a wide range of products: |Lacoste Range of Product | |1. Club Clothing |5. Leather Goods | |2. Sports Clothing |6. Eyewears | |3. Shoes |7. Watches | |4. Perfumes |8. Belts (Men, Women) | 2. What country do the materials come from?

Clothing material is mainly coming from France, and the colouring materials from Africa 3. Where it is manufactured or assembled? The Production lines are in many countries (i. e. Peru, Morocco, Indonesia, Romania and Italy) 4. Which country does the marketing and advertisement? Marketing and advertising guidance come from headquarter is in Paris. 5. In what different countries is the product sold? Lacoste has more than1,000 Lacoste boutiques and 2,000 concessions worldwide. The famous (Polo) shirts are sold in all countries worldwide, such as America, Europe, Australia, Asia and Africa. . Analysis & Conclusion As mentioned before, Lacoste company started as a local company and it is expand over the time. By time, Lacoste company went globally and the company was keen to keep its style and unique product. Since the product design and marketing is similar worldwide, that is mean Lacoste chose to adopt globalization strategy. Moreover, Lacoste is following the business growing pattern that, the luxury commodities are usually sourced and manufactured in low-cost countries. Asian countries are good place for manufacturing Lacoste products. This is in line with the globalization strategy scheme.

To meet the company strategy chosen , which is globalization strategy, the company is keenly adopting cost reduction in production to optimize their products in order to broad their market by approaching middle class consumers. Production is separated from the critical decisions of the product; such directives are coming from Paris headquarters. Reference to the textbook, Lacoste company is clearly adopting globalization strategy which is in line with the actual company business strategy. 6. SUMMARY In Progress…………………………………… 7. REFERENCES 1. http://www. wrigley. com/global/brands/extra. aspx 2. http://www. wrigley. om/global/brands. aspx 3. http://www. ecco. com/en/About-ECCO/Introduction/Who-we-are 4. http://www. ecco. com/en/Media-Center/Annual-report/~/media/Files/Pdf/Annual%20reports/ECCO_AnnualReport_2010_UK. pdf 5. http://investing. businessweek. com/research/stocks/private/snapshot. asp? privcapId=23875296 6. http://en. wikipedia. org/wiki/Lacoste 7. Understanding the Theory and Design of Organizations, Chapter -5, by Richard L. Daft, 10th Edition. 8. Strategic Management, Concepts and Cases, Part-1, by Fred R. David, 12th Edition. [pic][pic][pic] ———————– PEOPLE PLANET PERFORMACE [pic]

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