Competitive Environment Companies Manufacturing And Marketing Control Structure Research

Fierce competition in product market leads to gradual decentralization of the enterprises’ organizational structure, and the latter will inevitably cause the conflict among functional departments in actual operation. Therefore, it is extremely urgent to study methods to reinforce the management among the departments in the competitive environment. This thesis selects the conflict between manufacturing and marketing, and then begins the following research.First, this study considers that two oligarchs enterprise respectively present different performance in centralization, decentralization and mixed-three-competition models under the background of the competition between price and quality. Through comparing the different models, we explore the equilibrium of internal decision mechanism and the improvement of firm’s performance. Second, to further expand the model, this study also refers to two particular cases, one is that the two oligarchs enterprise cooperate to determine the quality of product, the other is that the importing country has the quality regulation on product, and then discusses the impact of such two cases on organizational structure selection.Through the comprehensive methods of Game Theory, Operational Research, this study reaches the following conclusions:First, three-tariff transfer-pricing mechanism which is based on quantity and quality of products can coordinate the conflict between manufacturing department and marketing department, and stimulate the two departments simultaneously. Meanwhile, the overall performance will be improved within the certain intensity range of price or quality.Second, with the gradual enhancement of synergistic effect which is closely related to quality cost, both centralized and decentralized structure will benefit from the strategy which jointly determines the product quality, realize better quality and performance than those in the competition environment, and meet the dual demands of the manufacturing and marketing departments in terms of quality and profit. In cooperation environment, the decentralized structure begins to present a better trend on product quality and performance, which is obviously reflected in fierce quality competition.Third, when both centralized structure and decentralized structure are feasible under the quality regulation of the importing country, the latter will perform better than the former, if the potential market demand is large enough. Moreover, this advantage is evident in the fierce price competition, and it will reach the maximum through properly regulating the transfer price between manufacturing department and marketing department.