The global account management organisation
7 important questions on The global account management organisation
What is the definition of global account management?
What are the four steps of GAM (global account management)
- Identifying the selling firm's global accounts
- analysing the global accounts
- selecting suitable strategies for the global accounts
- developing operational level capabilities to build, grow and maintain profitable and long-lasting relationships with global accounts
Analysing global accounts include: (5)
- The basic characteristics of a global account
- the relationship history
- the level and development of commitment to the relationship
- goal congruence of the parties
- switching costs
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The organizational set-up in GAM, three models:
- Central HQ-HQ negotiation model
- balanced negotiation model
- decentralized local-local negotiation model
What are the four characteristics of an central HQ-HQ negotiation model?
- HQ-HQ negotiation
- customer has a high degree of buying power - the supplier has less power
- central control of decision-making in customer HQ
- supplier is selling standardized products
What are the three characteristics of balanced negotiation model?
- HQ-HQ negotiation is supplemented with local-local (per country) negotiation
- balanced relationship between supplier and customer
- requires a higher degree of coordination of relationship between supplier and customer
What are the two characteristics of decentralized local-local negotiation model?
- Local-local (per country) negotiation
- the customer has decentralized decision competencies to the local subsidiaries (country organizations) this may be an advantage for the supplier, because it can negotiate on a local basis and perhabs get better deals compared with HQ-HQ negotiations.
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