Organizational and Marketing Structure

Today we will be looking at three completely different companies. We will find out how each is structured for international business. We will also be determining the marketing strategies for each. The three companies I chose to research in depth are VF Corporation, Wal-Mart, and Starbucks. After the presentation of each of these companies, you will have a much better understanding of the organizational structure and marketing strategies of each.

VF Corporation is a leading manufacturer and distributor of apparel. There brands include Wrangler, Lee, Vanity Fair, Bulwark, JanSport, and Nautica, just to name a few (VF Corporation, 2004a). They make a wide variety of products including blue jeans, shirts, brassieres, and sportswear. In 1992 VF Corporation entered the European market with its intimate apparel by acquiring many businesses there (VF Corporation, 2004b). In 1997 VF Corporation launched a marketing initiative called consumerization (VF Corporation, 2004b). In 1999 VF Corporation expanded into Latin America through the acquisition of UFO which is a leading brand in Argentina (VF Corporation, 2004b). They also expanded into ecommerce the same year, to open up their products online to manufacturers, retailers, and suppliers (VF Corporation, 2004b). In 2001, "VF undergoes strategic repositioning to address current market dynamics and improve return on capital, a key driver of shareholder value" (VF Corporation, 2004b). The VF Corporation has headquarters in many states within the United States, but also has them in Mexico, Argentina, Belgium, Spain, Italy, and Hong Kong (VF Corporation, 2004c). As you can see VF Corporation tries to reach people around the world, not just in the United States. Their marketing strategy is to change products to fit the needs of people around the world. "Management's vision is to grow VF by building leading lifestyle brands that excite consumers around the world" ("Form 10-K for V F Corp," 2007). In May of 2005, VF Corporation announced that they would be using a new Global Supply organization to better serve its customers (Business Wire, 2005).

Wal-Mart began its international venture in 1991 when it opened a Sam's Club store near Mexico City (Wal-Mart, n.d.). Ever since then Wal-Mart has continued to grow across the world and now operates in Argentina, Brazil, Canada, Costa Rica, El Salvador, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico, and the United Kingdom (Wal-Mart, n.d.). Wal-Mart's marketing strategy includes building new stores and acquiring stores where customers want to see them (Wal-Mart, n.d.). "These strategies have given the company excellent market penetration and positioned the company for future development" (Wal-Mart, n.d.). Wal-Mart has had success because of its adaptation to the local cultures and by becoming locally involved in each (Wal-Mart, n.d.). Wal-Mart planned to open over 200 more stores in 2006 (Wal-Mart, n.d.). In 2007 Wal-Mart restructured to better suit its customers and employees (Wolf, 2007). Wal-Mart does not incorporate the use of regional offices (Cobarrubias, 2002).

Starbucks does international business in 38 countries outside the United States (Starbucks Coffee Company, 2007a). In 1996 Starbucks went international when they opened a store in Japan (Starbucks Coffee Company, 2007b). Starbucks markets to a diverse group of individuals (Starbucks Corporation, 2007b). Starbucks embraces their diversity by offering products that fit their needs and desires (Starbucks Corporation, 2007b). All of Starbucks marketing campaigns go through a sensitivity review to avoid any possible problems with cultural insensitivities (Starbucks Corporation, 2007b). Three business strategies that Starbucks utilizes are through joint ventures, licenses, and company owned operations (Starbucks Corporation, 2007a).

Each of these three countries is different in both the products that they provide, but also the way in which they conduct business. Today we looked at the organizational structure of Starbucks, Wal-Mart, and VF Corporation. The products that they offer range from coffee and tea to all types of products to apparel. In the aforementioned review of each company it is apparent that each of these companies caters to the diversity of each of their customers. Instead of offering one product fits all, they change it as necessary. This is something that PM Company needs to realize the importance of.

References

Business Wire. (2005, May 16). Vf realigns executive leadership to drive global brand and supply chain strategies. Retrieved March 20, 2007, from Globe Investor Web site: http://www.globeinvestor.com/servlet/ArticleNews/print/BWIRE/20050516/20050516005866

Cobarrubias, F. (2002, September 11). Wal*mart stores, inc. Retrieved March 20, 2007, from http://faculty.haas.berkeley.edu/meghan/299/Case_analysis_WalMart3.pdf

Form 10-k for v f corp. (2007, February 27). Retrieved March 20, 2007, from Yahoo Finance Web site: http://biz.yahoo.com/e/070227/vfc10-k.html

Starbucks Coffee Company. (2007a, February). Company fact sheet. Retrieved March 20, 2007, from Starbucks Corporation Web site: http://www.starbucks.com/aboutus/Company_Factsheet.pdf

Starbucks Coffee Company. (2007b, February). Company profile. Retrieved March 20, 2007, from Starbucks Corporation Web site: http://www.starbucks.com/aboutus/Company_Profile.pdf

Starbucks Corporation. (2007a). International development. Retrieved March 20, 2007, from Starbucks Corporation Web site: http://www.starbucks.com/aboutus/internationaldev.asp

Starbucks Corporation. (2007b). Starbucks marketing policy. Retrieved March 20, 2007, from Starbucks Corporation Web site: http://www.starbucks.com/aboutus/marketingpolicy.asp

VF Corporation. (2004a). Our brands. Retrieved March 20, 2007, from VF Corporation Web site: http://www.vfc.com/sub_pages/our_brands.php

VF Corporation. (2004b). Vf history. Retrieved March 20, 2007, from VF Corporation Web site: http://www.vfc.com/sub_pages/our_history.php

VF Corporation. (2004c). Where we are. Retrieved March 20, 2007, from VF Corporation Web site: http://www.vfc.com/sub_pages/headquarters.php

Wal-Mart. (n.d.). International overview. Retrieved March 20, 2007, from Wal-Mart Web site: http://walmartstores.com/GlobalWMStoresWeb/navigate.do?catg=369

Wolf, A. (2007, February 12). Wal-mart reorganizes merchandising, marketing structure. Retrieved March 20, 2007, from Reed Business Information Web site: http://twice.com/article/CA6415688.html?industryid=23098