ABSTRACT
Over the years, 3M developed an organizational matrix-several structures superimposed on one another. Managers of country subsidiaries shared responsibility with division managers located at headquarters in St. Paul, Minnesota. Disagreements over strategy sometimes arose. Subsidiary managers sought to maximize total sales and profits in their countries. Division managers sought to maximize the global sales and profits of their product lines. However, most conceded that the country managers often exercised the greater power. In this respect, some were concerned that 3M had been left behind. Most other global firms had centralized power over the past 20 years. 1 Despite the company’s dedication to its unique organization, a survey of 3M managers revealed that many believed the matrix structure had the potential to dilute accountability, hamper collaboration and create duplication of effort. 2
An important aspect of global marketing is the establishment of an appropriate organization. The organization must be able to formulate and implement strategies for each local market and for the global market as well. The objective is to develop a structure and control system that will enable the firm to respond to distinct variations in each market while applying the relevant experience that the company has gained in other markets and with other products. To be successful, companies need to find a proper balance between these two needs. A number of organizational structures are suitable for different internal and external environments. No one structure is best for all situations.
