Annual Report 2006
GfK Group: www.gfk.com
Organization and administration
GfK’s business model focuses on providing information services that specialize exclusively in market research. The company has consistently geared its organization and administration to the standards which support the global growth of GfK. An essential element of this is the decentralization of functions, which enables the companies to quickly take advantage of opportunities presented locally by the market. In addition, 128 subsidiaries operating in 70 countries were included in the consolidation. In Germany, in addition to the parent company, the network includes 15 consolidated companies and two associates. GfK AG functions both as the holding company and as an operating unit. The Group is based in Nuremberg.
Management Board and divisional executive bodies: matrix organization
The company is run by a Management Board consisting of a total of five members. The Chief Executive Officer (CEO) is responsible for Strategy, Internal Audit, Product and Methodology Development, Corporate Communications and IT Services. The Chief Financial Officer (CFO) and Board Member for Human Resources is responsible for Financial Services, Human Resources and Central Services. The operating business is organized on a matrix basis. In addition to responsibility for the subsidiaries, one member of the Management Board is responsible for Custom Research and one member of the Management Board for Retail and Technology. The fifth Management Board member is head of the Consumer Tracking, Media and HealthCare divisions.
Each business division also has its own executive body consisting of the responsible Management Board member and selected executives. The members of these executive bodies have the task of coordinating work in the divisions efficiently. GfK manages its operations according to these business divisions. Sales margin targets (or hurdle rates) serve as the management indicator. For illustration purposes, the information is shown by business division and by region.
Administration: centralized services within the Group
GfK’s Group Services comprise the following centralized administrative departments: Corporate Communications and the Financial Services department which includes Group Accounting, Group Controlling, Treasury, Taxes, Legal Services and Transactions and Human Resources; all of these have global responsibility. The Financial Accounting and Operational Accounting departments of Financial Services as well as Central Services are responsible for most of the companies in Germany. Outside Germany, responsibility for the functions of the latter departments rests with the individual GfK companies.
GfK Annual Report 2006