ABSTRACT
As the firm's international sales increase, management's commitment to international operations will change, precipitating modifications to the organizational structure. Initially, management has no foreign sales unless the firm was created as an international business. Since all profits are derived from domestic customers, the firm's organizational structure does not contain an international marketing component. An export department organizational structure is formed when management creates a separate marketing function to accommodate export business. The location and importance of international marketing in the organizational structure will progress as international involvement increases. As international business continues to grow, the export department form of organizational structure will gradually become inadequate to support the needs of a more involved and diverse international involvement. An international headquarters company organizational structure results when the international business component is organized as a separate company but maintains affiliation with the domestic parent.
