Global standardization. How to Overcome Resistance to Global IT Standardization 2019-02-01

Globalization and Standardization

Global strategies require firms to tightly coordinate their product and pricing strategies across international markets and locations, and therefore firms that pursue a global strategy are typically highly centralized. A company needs to ask itself important questions; is its brand strong worldwide? A conceptual contingency framework is often theorized between the critical variables of the business such as high sales revenue, capacity utilization and specific relationships between these variables and their effective implementation can lead to high levels of performance. Using identical strategies will result in lower costs and higher margins. Utilising theories of human behaviour and social systems, social work intervenes at the points where people interact with their environments. South Korea is estimated to have such programs at more than forty universities; China is estimated to have such programs at more than twenty universities; and Japan has at least twelve universities with standards education pro­grams. Gupta 'The Quest for Global Dominance: Transforming Global Presence into Global Competitive Advantage' Jossey-Bass.

Case Study

Many researchers agree that standardizing certain elements of the marketing mix and adapting others to different market conditions is necessary Vrontis and Thrassou, 2007. One goal is to save 40 percent on the cost of radios by using only 50 instead of 270 different ones. Standardization Skills and Experience The development of complex technol­ogy standards requires a multi-disciplinary set of skills and experience. There are standards to protect the environment and human health and safety, and to mediate commercial trans­actions. Donald Purcell Donald Purcell has more than three dec­ades of experience in global standardization as an advisor to domestic and international standards committees. In these cases, the same product can be sold throughout all markets.

Global standards

For one, people can expect the same level of quality of any specific brand anywhere around the world. What it is that you love about that product? For example, the National Institute of Standards and Technology has funded the creation of more than sixteen new standards education programs. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical we ll—being in societies around the world. Also, if your brand theme is powerful and has global appeal, a standardized approach helps people around the world share in the value proposition you offer. Standards with regard to cultural and ethnic diversity and gender inclusiveness With regard to cultural and ethnic diversity schools should aspire towards the following: 8.

How to Overcome Resistance to Global IT Standardization

The key condition is that they work with universally accepted, harmonized rules—international standards—to be able to contribute effi­ciently at different points of the chain, while extracting maximum value for themselves and their national economies. Retrieved November 12, 2013, from 11 Nanda, K. Given the centrality of the process- product dialectic, and the fact that the principles underscoring the standards emerged, to a large extent, out of the processes, it is vital that the standards are read in conjunction with Appendices A and B. Consider, for example, the following statements. Further more they argue that standardization will be successful when the homogeneity of customer response and the degree of similarity in economic freedom is high and competitive advantages are easily transferable. Relevant criminal convictions, involving abuse of others or human rights violations, must be taken into account given the primary responsibility of protecting and empowering service users. Pros and Cons Why would a company want to use global standardization? Introduction In his book The Lexus and the Olive Tree 1999 , Thomas Friedman states that understanding globalization is one of the most important issues that must be under­stood by policymakers and executives all over the world.

What Is Global Standardization in Marketing?

Consequently, numerous studies have been conducted on whether multinational companies should adapt or standardize international marketing behavior. There was very little global standardization of data, systems or processes. For example, diversity among different countries does not allow full standardization. Global business strategies are closely related to the business developing strategies adopted by businesses to meet their short and long term objectives. Global Perspectives on the Strategic Value of Standards For many years, it has been generally accepted that standards control access to markets. They are mostly quiet, unseen forces, such as specifications, regulations, and protocols that ensure that things work properly, interactively, and responsibly.

Global standards

In undertaking such an initiative it was also vital that minority opinions were considered and reflected in the development of the document. A business can employ a global business strategy to reap the rewards of trading in a worldwide market. Retrieved November 12, 2013, from 10 Mourdoukoutas, P. Evenly, they need to recognize their distinctive external environmental constraints and benefits of standardization. It also helps in saving the managerial time and effort to take decisions regarding the manufacture of different products. It should be a balance of both. Nevertheless, although the standardization approach is more common, its adoption is not unconditional, as proposed by Douglas and Wind 1987.

Global Standardization in Marketing: Definition & Strategy

This year, he was voted as the most influential economist in the world by Forbes magazine. These companies may include international strategies in their business model to increase sales, but they know that their main target consumer is local. Yet, when multinational companies exert all their efforts on the extreme position of either approach, they often become unfeasible and incoherent. Products The nature of your products and services plays a central role in whether standardized marketing makes sense. However, variations across markets indicate that a fully standardized marketing approach may not be appropriate. Retrieved November 12, 2013, from 5 Jain, S.

Global Standardization in Marketing: Definition & Strategy

This research identified the advantages and disadvantages of each method stating that the solution to a successful market approach lies between the two extreme approaches. However, evidence suggests that standardization and adaptation is not an all or nothing proposition but a matter of scale. Issues to Think About If standards control access to markets, and directly affect more than eighty percent of world trade, there are some important issues that should be considered by all parties in the world interested in global trade and economic development. If a company enjoys strong brand identity and a strong reputation, choosing a standardized approach might work to its benefit. For example, McDonald's sells falafel in Egypt, gazpacho in Spain, poutine in Canada, various vegetarian products in India, and taro pie in Asia. Coca-Cola's marketing also maintains a consistent theme to help reinforce the image it is presenting.

Standardization and customization

This allows the company to market its product in a similar fashion to consumers worldwide, while at the same time, cutting costs and maintaining a strong recognizable brand. Think about a product you purchase regularly that you absolutely love. These practical guidelines should include: a multi-tiered classification for the basic qualification, e. In short, global competition and control of the global standard­ization process operates in a rather cloudy en­vironment. Developing a global marketing strategy is a key concern for multinational companies. Marketing of products sold internationally may be standardized to keep a uniform image among the varying markets. Selling large quantities of the same, non-adapted product and buying components in bulk can reduce the cost-per-unit.

Standardization

Adjusting the marketing strategy such that it takes into account these variations enhances the product's chance of success. Now, there is at least one negative aspect to global standardization. Thus, Appendix A describes fully the processes that were involved in developing the standards, and it documents the minority views that were expressed. Customer preferences, competitors, channels of distribution, and communication may differ. For electronic and electric devices the world has truly be­come one market. Globalization is not the only thing influencing events in the world today, but to the extent there is a North Star and a worldwide shaping force, it is this system. Since 2000 there has been a virtual explosion of academic programs on the strategic value of standards education.