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Topic: Strategy

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M&s Organisation Structure For A New Buisiness

Posted by Anonymous on 250 Points
I am newly appointed marketing and sales, M&S, manager in an international pharmaceutical company in headquarter, HQ. I am working in a new buisness division/program. My job is to define the optimal organisation structure for the new M&S division (HQ, local down to the field force), to find synergies with the existing old buisiness on the local markets and also in the HQ. Could you suggest me some books, articles, dot.coms for reading? Real life cases are more than welcome.
Thank's in advance.
Alenka Rutar P.

  • Posted by JBtron on Member

    First thought: Try not to create acronyms that are not part of mainstream marketing jargon - you'll just confuse the people from whom you seek assistance. It's S&M, Sales and Marketing, not the converse.

    Second thought: Saying you're in "Pharmaceuticals" is like saying you're in "Sales": there's NOTHING to go on from an informational standpoint that can help US help YOU.

    WE NEED MORE BASIC INFOMRATION TO RESPOND TO YOUR QUERY, and I recommend you get on it before the rest of the Western Hemisphere wakes up and tries to answer you extremely vague question. They will probably tell you the same thing.

    The problem in your question is that there are so many pharmaceutical business models that it's almost impossible to guess which one is most pertinent to your situation.

    Get back to us, OK?

    Hope this BEGINS to help!


  • Posted by Blaine Wilkerson on Member
  • Posted by SRyan ;] on Member
    Alenka, it looks like you posted your question a second time with additional detail. You might want to click to Moderator Help and ask Val to close your first one and refund your points.

    The question you're asking is a tough one, so keep it open at least a couple of days! I'm sorry I don't have any advice of my own to offer...

  • Posted on Accepted
    Hi Alenka

    Is your organisation highly centralised or going that way? Are they looking to save resources through economies of scale?

    Do you have S&M personnel in each county or by region presently?

    It does depend significantly on your corporate culture and the size of your organisation. Somelarge firms prefer a matrix management structure with staff having international and domestic responsibilities typically reporting to both country and at HQ. I wouldn't recommend this especially if your regions are far spread geographically and across many different languages and cultures.

    Strong multinational organisations use a Macropyramid structure with an HQ that are highly centralized and the foreign SBUs normally operate at management or operational levels. Companies like IBM, Sony and McDonalds choose this structure but I am not sure about Biopharmaceutical companies. I only know of one called Biocon in India. Do Biopharmaceutical companies have a standard organisation model?
    The problem with this structure is marketing plans are produced centrally, reacting to local needs is virtually impossible, marketing is too standardized and may not reflect local/cultural considerations and it infuriates local management because of red tape and corporate processes. There is a need of control of course but this is also a separate challenge that needs it own control process.

    The other alternative is you can consider is the P&G/Unilever route of using an Umbrella structure although they are rationalising this through their product portfolio.

    The Umbrella structure gives autonomy of planning and control at all levels of management locally. The HQ only sets broad corporate objectives and provides support and advice but essentially each SBU develops a plan fortheir own responsibility.

    This structure is much more complex to administer but the SBUs can react to local needs, environmental developments and changes, effective local marketing plans can be developed but there can be alot of duplication as different SBUs work on similar strategies and tactics.

    Regardless of choice of structure your control process will be a challenge in itself but effectively implemented it can encourage higher standards, determines clarity and realistic expectations and gives corporate management the opportunity to intervene if necessary.

    The key element in you control process will be not only the input of your people but the staff from other members of your supply chain that's why TQM,ISO 9000 are used to underpin the whole control process.

    Obviously the transition between your current structure moving into your new one will take time and need to be introduced on a step basis. I would suggest a marriage of the benefits of the two structures that controls certain funtions like marcoms/PR but leaves enough leash for local SBUs to react to local opportunities as long as they have a continuos dialogue, support, advice and approval systems/processes in place from HQ.

    Can't really give you an opinion on your 3 divisions - 1 S&M in region suggestionas geography, customer needs,language and cultures factors are not made clear.

    Hope this helps you.

    Zahid Adil

  • Posted on Member

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