Free Essay

Standardization

In:

Submitted By projectstudy
Words 1616
Pages 7
Abstract
This research paper discusses the key term: “standardization” that’s chosen as a topic for this study for module four for International Business class. Recent scholarly articles and various publications were examined and reviewed covering standardization process as a measurement to manage global operation of international business. Its limitations and drawbacks are deliberated as well. Through out this research papers, the following subjects were deliberated: reasons for picking this key term as a topic, a specific explanation and definition of standardization and its role, process, a summary for the major article chosen which is titled “A Model of Advertising Standardization in Multinational Corporations” and the main points it covered, a specific discussion covering the relation of this article to key term and to manage global operations and international market, the relation of the four other scholarly articles research and their discussion to the relation to the major article and main key term. Keywords: standardization, global operation, culture, marketing mix, advertising

Standardization

Key Term and Why I am Interested In It
The key term I decided to extend my research on for this week is “Standardization”. After reading the required material for the International Business class, I have acquired a better conceptualization for the aspects and dimensions of doing business abroad. Consequently, I have desired to further my understandings on one of the important topics covered in Chapter 8 of the textbook (Satterlee, 2014) under the notion of global operation management process issues. Upon relying on the assorted scholarly journals and articles I am interested to develop explicit and superior information for the key term standardization. Hence, this will be by covering it’s definition, variables, factors, evolution in time and application in the various business functions whether production, advertising, marketing, accounting or even management. Getting to know about the advantages, disadvantages and limitations in the process of a business standardization will assist in my decision make process for future global operations management across nations. I will apply this key term on the international market for the objective of building a solid understanding for my Global Cultural Analysis Research and my interest in getting to know about its business. From a professional point of view, I am looking forward to learn more about this process in order to differentiate and know where and when to implement standardization verse adaptation in real life. Therefore, I am interested in gaining standardization vs. adaptation process proficiency to be cable of integrate this knowledge into my work field as the business expand internationally.

Explanation of The Key Term
One type of strategies required for international business process expansion beyond the local borders is called “standardization”. Standardization is the practice of following and maintaining a uniform system or product when expanding across nations. The actual process is an analogy for the key term “adaptation”, where the first expresses uniformity and not being influenced by external factors where as, the latter deals with customization and meeting the needs and demands of the variables in the foreign nation such as: culture, climates and personal preference. Standardization maintains the various aspects of the production process and ensures product uniformity. Additionally, such a standardization process is portrayed to “maintain the various aspects of the production process and ensure product uniformity. Additional cost savings accrue because machinery, training, and processes can be kept uniform across standardized production facilities.” (Satterlee, 2014, p. 249). As a leader and successful manager, it is not only vital to understand the concept that “standardization of business processes can improve organizational efficiency, reduce error rates, and provide a variety of other savings, but it must be approached with care and the involvement of the stakeholders, including the people “in the trenches” who will have to implement and use the standards” (Prosser, 2005) in order to succeed and produce actual competences in global operation business but also to be aware that it is a double-edged sword strategy where it many benefit when used properly, or can be harm when poorly designed.
Major Article Summary The major article that I chose to summarize is titled “A Model of Advertising Standardization in Multinational Corporations”. This enclosed scholarly article covers a comprehensive study to develop the main measurement standards of the factors for the advertising standardization process in the multinational corporations. Throughout this article, the MNC vs. subsidiary degree of control over advertising standardization is carefully examined and justified. Hence, in reference to Solberg (2000), the important structural factors of the extent of standardization in a foreign market related to the amount of influence of subsidiaries in making marketing decisions and the HQ headquarter market knowledge. In addition, this study covers and analyzes the findings of other researchers (Martenson, 1987; Rau & Preble, 1987; Tai & Wong, 1998) stating that this work lacks incorporated structure between advertising standardization decision and a dimensional structure of its degree of control. Moreover, this article reviews and assesses other factors such as the environmental conditions and similarities in market positions between MNC’s and subsidiary’s and their relation in determining the level of advertising standardization. Therefore, This article provides extensive support of the hypothesized factors affecting those variables. Least but not last, this article provides elaborated information supporting the research performed, ascertaining the adequacy of mediator model between the various factors and the level of advertising standardization and establishing the proportional relation of the MNC’s degree of control over the subsidiary market in relation MNC’s knowledge of the subsidiary market, its position as well as its environmental conditions.
Discussion
Relation between this article, standardization and module five. This major article displays a structural model of different factors and variables examining the relation between the effects of the MNC’s level of control in selecting the advertising standardization over subsidiaries. Throughout this article elaborated information and empirical analysis of this MNCs and subsidiaries market knowledge and environmental conditions are addressed; consequently, demonstrating factors and variable to take in consideration when managing global operation especially MNC’s type. Hence, this article provided examples and results of the different variables and factors that play a major role in determining this global market entry in specifically in this case it was addressed in the advertising section of business. And as outlined by this modules objective, this article successfully met the goal of evaluation methods useful in global entry markets. Based on this research and from my acquired readings, I learned about global entry market and strategies such as standardization vs. adaptation based on assessing the market, culture, climate, and production variables in the subsidiary market.
Relation of this article to the other four scholarly articles.
The research paper objective is to develop a better understanding of the key term standardization, which was covered through the definition earlier. The study of the major article has outline the importance of assessing different variables and factors to determining process system. As mentioned previously, in this case it was MNCs and subsidiaries interrelation with several variables and the control of their advertising standardization. Conversely, the four scholarly articles enclosed within this research paper endorse supplementary materials to this point of view. The article titled “International Marketing Standardization: A Meta-Analytic Estimation of Its Antecedents and Consequences” deliberate the major study by providing supplementary research based on a meta-regression analyses for this key term from a international marketing aspect a view point. Furthermore, “Standardized/Adaptation of International Marketing Strategy: Necessary Conditions for the Advancement Of Knowledge” is another supportive article delivering theoretical basis for the framework of the standardizing or adapting in global operation process. In addition, both of the articles “Standardization Preferences: A Function of National Culture, Work Interdependence and Local Embeddedness” and “A Cross-Cultural Study of Luxury e-Branding: Standardization vs. Adaptation, Product Category, and Country-of-Origin” validate the major article main points of MNCs vs. subsidiaries market control as well as familiarity in market. Hence, those two articles expand on and tackle the role of culture in determining the operation process. The first relates to so by examining Hofstede dimension of culture whereas the latter elaborates by offering practical example concentrating on the luxury brands in the Chinese vs. U.S. culture and their effects on the standardization process.
In conclusion, not only does this research paper provide articles to examine the main key term “standardization” from a theoretical standpoint, but also it focuses on the practical aspect of this process.

References
Laroche, M., Kirpalani, V. H., Pons, F., & Zhou, L. (2001). A model of advertising standardization in multinational corporations. Journal of International Business Studies, 32(2), 249-266. Retrieved from http://search.proquest.com/docview/197168131?accountid=12085
Lin, E. (2012). A cross-cultural study of luxury e-branding: Standardization vs. adaptation, product category, and country-of-origin. Xing Xiao Ping Lun, 9(1), 91-120. Retrieved from http://search.proquest.com/docview/1013847831?accountid=12085
Newburry, W., & Yakova, N. (2006). Standardization preferences: A function of national culture, work interdependence and local embeddedness. Journal of International Business Studies, 37(1), 44-60. doi:http://dx.doi.org/10.1057/palgrave.jibs.8400179
Prosser. T, (2005). Business process standardization in complex organizations–making it work. Musings on effective management, Retrieved from http://oneffectivemanagement.wordpress.com/2008/04/09/business-process-standardization-in-complex-organizations-making-it-work/
Ryans,John K.,,Jr, Griffith, D., & White, D. S. (2003). Standardized/adaptation of international marketing strategy: Necessary conditions for the advancement of knowledge. International Marketing Review, 20(6), 588-603. Retrieved from http://search.proquest.com/docview/224310673?accountid=12085 Satterlee, (2014) Cross Border Commerce, With Biblical Application (Second ed.). Raleigh, NC: Synergistics International Inc.
Tan, Q., & Sousa, C. M. P. (2013). International marketing standardization. Management International Review, 53(5), 711-739. doi:http://dx.doi.org/10.1007/s11575-013-0172-5

Similar Documents

Premium Essay

Standardization vs Adaptation

...business since it drives the Multinational Company’s ability to reduce cost or respond to local market demands (Bartlett and Ghoshal, 1998). According to Walters (1986) standardization is the implementation of a similar or uniform marketing programme or process across national borders. The standardization strategy indicates the use of a unique market or the homogenization of international products. In few cases standardisation have a 100% uniformity as many organisations have different levels of standardisation and standardise segments of the marketing mix. Levitt (1983) states that the “Global competitor will seek constantly to standardize his offering everywhere… He will never assume that the customer is a king who knows his own wishes.” However, standardisation should not be looked at from only the point of the marketing mix but also the management of an organisation. Sorenson and Weichmann (1975) stated “the intellectual method for approaching a marketing problem, for analysing that problem, and for synthesizing information in order to arrive at a decision, can absolutely be standardized on an international basis." This belief have been supported by many other studies for example, regarding the promotion of multinationals Dunn (1976) suggest “"the methodology of planning is one area where standardization seems to work." Several advantages of standardisation is developed by Carpano and Chrisman (1995), Walters...

Words: 2002 - Pages: 9

Premium Essay

International Standardization

...Advantages of adopting ISO standards are as follows:- Significance ISO standards contribute more to a company's economic sustainability than ever before. An increasing number of manufacturers and business customers will not even do business with a supplier that is not ISO certified. According to www.indianindustry.com, ISO certification is now effectively a requirement of doing business in the European Union, even though it is not a legal mandate. Efficiency The process of becoming ISO certified forces you to objectively analyze your current internal processes, and can result in the implementation of more efficient and cost-effective production processes. ISO-certified production processes reduce waste, redundancies and safety hazards while ensuring that your business is environmentally friendly. These facts taken together not only reduce direct operating costs, but can also prevent financially damaging legal actions against your company. International Business Reliability and trust in international business relationships is an ever-present concern. With so much distance between companies on opposite sides of the world, it is difficult to truly ascertain whether your suppliers are following safe, humane and responsible business practices. ISO certification is a way to ensure your international business partners that your company adheres to international standards, and by the same token can reassure you that your foreign suppliers are credible and reliable as well. Marketing ...

Words: 890 - Pages: 4

Premium Essay

Standardization

... A hospitality service is an intangible factor in the hospitality industry. It is what the host given to the guest for their needs. It is the important part in hospitality industry. “Standardization refers to the situation where uniformity is achieved either in outputs (products or services) and / or in the processes that produce such outputs.” (Taylor, 2000, p. 51) It is using the same ingredients, recipes, prices, and etc. In the setting of customer service, standardization is the processes making the organizations to focus their attention in provide a great customer service. It is satisfying the customer expectations and needs. The motivation for standardization comes from a number of sources. “These include the aspiration for reducing costs and improving reliability of systems. By promising that reliable and interoperable standard exists, it is possible to dodge being locked into specific vendor’s products and ensure healthy race to improve quality, reduce costs, and guarantee reliability of supply.” (Ratha and Govindaraju, 2008, p. 473) I am agree with the statement that standardization of hospitality services provides customers with consistent quality and ensure that staffs are able to deliver it. It is a great way to give excellent services to customer. Nowadays, standardization of hospitality services can be seeing everywhere, even all over the world. This is done to promise that the finished product made has consistent quality, and that any...

Words: 2575 - Pages: 11

Premium Essay

Standardization

...FEATURE The Value of Standardization By Randy W. Clark, President and Chief Executive Officer, Energistics RANDY W. CLARK is President and Chief Executive Officer of Energistics. He has more than 25 years of experience in the oil and gas industry in a variety of different roles and positions with industry companies, including 10 years with Baker Hughes in Houston. Before joining Energistics, Clark was Senior Vice President of cc-hubwoo/Trade-Ranger, the world’s largest electronic marketplace for indirect goods, whose members include many major oil and gas operating companies such as Shell, Total, Statoil, and ConocoPhillips. Additionally, Clark has been active in many global ebusiness standards development efforts and is immediate past-chair of the Petroleum Industry Data eXchange, the e-commerce subcommittee of the American Petroleum Institute. Clark’s experience has included oil and gas production-facility design and project management, purchasing management, business process re-engineering, new product development, data and information standards development, and e-business strategy and development. He earned BS and MBA degrees from Texas universities and he holds professional certification in new product development from the Product Development and Management Association. Talent & Technology » 15 S tandardization of data and information exchange is one of the most problematic, yet potentially highest value, issues facing the upstream oil and...

Words: 1929 - Pages: 8

Premium Essay

Standardization

...Fashion Industry in Russia. General overview Alla Vinnik Helsinki, 2010 Leningrad Region Chamber of Commerce Fashion Market in Russia. Content 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Background General information Segmentation Specifics of Russian consuming Production Import/export Main distributions channels Main brands Accessories Regional specifics Tendencies Conclusion Leningrad Region Chamber of Commerce Background of Fashion Market in Russia • Soviet time (till end of 80th) • “Second hand” time (end of  80th – middle of 90th) • Development time (middle  of 90th – 2008) • Crisis (2008 – ?) Leningrad Region Chamber of Commerce General information • General overview of retail market. * • Retail sales in Russia in 2008 accounted 13,850 tr. Rub (380 bln. EUR). • The forecast for 2009 is 15,235 tr.Rub – the growth is only 10%  vs 27%  growth in 2008. • The majority of Russian retail operators have changes their plans on store  openings for 2009.  • Clothing retail market overview: • Clothing, footwear and accessories remains the second‐largest retail  sector after food retailing in Russia. In 2008 it amounted to 1,452 bln RUB  (40 bln. EUR) • In 2008 clothing accounted for 61,7% of the total market,  footwear – 35,9%, accessories – 2,4% • In 2009 –estimation is about 4,9% decreasing * PMR research ”Clothing and footwear retail market in Russia 2009‐Luxury market insights and development Leningrad Region Chamber of Commerce Segmentation Price segmentation...

Words: 2828 - Pages: 12

Premium Essay

Jeanpatt

...CIO leadership – IS/IT for Managers Core D – Group 4 Q.1. If you were Jim Barton, how are you going to address the 3 questions raised by Bernie Ruben about blogging and other emerging technologies in the company? Bernie Ruben raises three questions about blogging and emerging technologies at IVK. What, if anything, should we do about this blog entry? As Jim Barton, we don’t want Carl Williams to know anything about the blog about IVK. He will be mad if he learns that a description of June 28 events are available on the Internet. As it seems to be a blog not read by a big amount of people, we should just don’t talk about it and try to make the blogger turn off his page indirectly. Do nothing. What should be our general policy about blogging based on inside information from within the company? Jim Barton has to settle a policy to prevent people putting stuff about IVK on their computer or online. IVK’s employees have to know that they cannot talk about work outside of work. We, as the CIO, have to work with the compliance department to design the confidentiality policy. If we build this policy in a way that the blogger understands that he is out of compliance it should make him correct his blog by himself without any action of the company. The policy should not be only about blogs but about also about Web 2.0 technologies. It has to be acute enough to avoid to blindside IVK’s IT department again. A good way to get Williams understand the issue could be to enlighten...

Words: 1347 - Pages: 6

Free Essay

International Strategies

...International Operations Strategy Analysis Coca-Cola Coca-Cola Nokia Nokia McDonald’s McDonald’s Dow Chemical Dow Chemical IBM IBM US Steel US Steel Procter & Gamble Procter & Gamble Four Basic International Operations Strategies International enterprises who by definition have to have a presence in more than one market must endure both pressures for cost reductions and for local responsiveness. The biggest challenge for these companies is to find the right balance between the two approaches because these place conflicting demands on business operations. Practically all multinational firm use the above strategies or some variation of them when it comes to international operations. For example, Coca-Cola is well known for using relatively standard brands, formulations, packaging, positioning and distribution channels in its global markets (Vogt, 2015). Similarly, research shows that even though McDonald’s has tried to customize their offering to match local consumer preferences. However, the company’s philosophy remains loyal to the idea that the customer would experience a standardized service and quality regardless of geographical location or McDonald’s restaurant (Loukakou, 2012). Companies such as IBM and P&G face relatively different scenarios when attempting to have a presence in global markets. These companies have the luxury of not facing very high cost reduction or local responsiveness pressures. Consequently, these companies...

Words: 913 - Pages: 4

Premium Essay

Marketing

...case-study based on the export venture of Renova Black toilet paper was developed. In addition to the analysis of secondary data, interviews were conducted with 3 Renova managers, 3 trade customers and 10 consumers. Findings suggest that an international marketing strategy simultaneously standardized and adapted to new export markets forms a good fit with the existence of limited resources, light structure and centralized decision making possible due to firms’ reduced size. This study presents important insights for managers of small players in the global marketplace attempting to boost the internationalization process. It also broadens our understanding on the standardization versus adaptation debate using a fresh perspective. Keywords: International Marketing Strategy, Exports, Standardization, Adaptation. 1. Introduction The concept of Blue Ocean Strategy (Kim and Mauborgne, 2005) refers to value innovation as the solution for creating new market space through the simultaneous pursuit of differentiation and low cost strategies. However, a Blue Ocean Strategy implies assuming high risks as the size of the new market demand cannot be predicted (Lages, 2012). In order to mitigate this risk, Lages (2012) suggests that firms must adopt a GloCal mindset based on the identification of unknown similar needs and values across markets. This is how firms can render their marketplace global and satisfy regional needs, while benefiting from economies of scale...

Words: 292 - Pages: 2

Premium Essay

Critical Review: Standardisation vs Adaptation

...A critical review of Viswanathan, N. & Dickson, P. 2007, ‘The fundamentals of standardizing global marketing strategy’, International Marketing Review, vol. 24, no. 1, pp. 46-63. Introductory Academic Program – Academic English The issue of standardisation versus adaptation, which affects all international business organizations, continues to evolve as markets and technologies develop further. In the article ‘The fundamentals of standardizing global marketing strategy’ (2007), Viswanathan and Dickson contribute to the discussion by examining the considerations related to the standardisation of a multinational company’s marketing practices. The authors subsequently propose a new theoretical framework that identifies three complex drivers to be considered in evaluating the degree of marketing standardisation possible: the similarity of consumer response to the marketing mix, the transmissibility of competitive advantage, and similarities in the amount of economic freedom in different markets. The article imparts perceptive insights on the latter two drivers, which, according to the literature review, have been relatively ignored by researchers in comparison to the role of consumers. This critical review assesses the structure and practicality of the proposed conceptual framework, as well as the comprehensiveness of the authors’ exploration of the issue. The proposed theoretical model, intended for the use of marketing practitioners as an instrument in decision-making...

Words: 981 - Pages: 4

Premium Essay

Mkt 310 Wk 8 Quiz 6 Chapter 13 & 14

...and town. B) The stores enable a retailer to take advantage of quantity discounts for fixtures and other materials. C) The stores ease the employee interchange among branches. D) The stores help portray a consistent image among franchise and chain store units. 5) Rationalized retailing is often used in conjunction with ________. A) micro-merchandising B) prototype stores C) a top-down space management approach D) a bottom-up space management approach 6) A characteristic of rationalized retailing programs is the ________. A) encouragement of manufacturers to finance inventories B) use of low-cost rental locations C) use of used equipment and fixtures D) high degree of centralized management control 7) Rigid control and standardization for each phase of business...

Words: 1070 - Pages: 5

Free Essay

It3250

...integration; however, as the company continues to grow exponentially, all branches and departments require the need for integration. A coordination model calls for high levels of integration but little standardization of processes (Robertson, Ross, & Weill, 2006). Implementing a coordination model will allow the financial advisors at each branch the power to negotiate and customize their experiences with customers. The focal point of the EA implementation will be the integration of shared data and services by all branches and departments across the world. By focusing IT investments on enabling the integration and standardization required of the company’s operating model, a company prepares itself for future strategic initiatives, without knowing what those initiatives might be (Robertson, Ross, & Weill, 2006) The operating model that has been set forth for Money Making Finance is no doubtable an excellent decision. Other financial and insurance companies have benefited immensely operating their EAs as coordination models to include MetLife and TD BankNorth. Coordination allows companies to integrate untold numbers or processes without forcing standardization (Robertson, Ross, & Weill, 2006). As a financial company, it is essential for Money Making Finance to avoid standardization in order to meet the demands of customers as previously mentioned. Changes to previous assignments include the maturity stage that Money Making Finance is currently operating at. After...

Words: 868 - Pages: 4

Premium Essay

Irhr

...tradition. 1 Contemporary management functions With the development of management system, it makes people to realize that the world is changing. Thus, we need to reconsider how to accomplished management and the relationship between director and staffs. New technology and new operation mode are swap out the old. We need to combine the new and old management style. 2.1 The function of Standardization procedures. To set up the standard of the procedures will boost the efficient of the work, like use the certain size of tools for large farm work will save lots of labour costs. Due to some general problems exist in company, like unclear divide of the work or ambiguity of the duties and the power. It will leads to chaos in management. Therefore, company take standardization procedures not only to reduce the operational costs but also operational risk. For example the standardization applied in McDonald's. As an annual sales over 20 billion of the world’s top 5 hundred company, operate over thirty thousand restaurants over the worldwide. McDonalds applied standardization on production, advertising and employment. They all use the same standardized kitchenware, such as the “V” chips spade. It improve efficiency. That's the experience of McDonald, it took several years to set up a standardized process. To make sure each process accordance to the standards and any personal judgement and experience are redundant....

Words: 998 - Pages: 4

Premium Essay

Os 400 Iso 9000

...Standardization in anything makes it easier for people. They are able to know what to expect. We hear as children and as parents about standardized learning. The basis of this is that everyone is able to learn the same. The same curriculums to students no matter what school they attend. We also find standardization in different working fields by choice. Some companies choose to learn from others on how to run things. It can also come from employment of someone that worked for a company that had good policies. Certification is another way to join the ranks of standardization. ISO 9000 is one of these certifications that can help companies reach great standards. The point of ISO 9000 is embedding a quality management system into a company that will help increase productivity, reduce unnecessary costs and ensure quality processes and products (What is ISO 9000?, 2012). Companies have been able to use this standardization to help them become better. ISO certification is flexible certification that can be used with many different types of companies. It is not set for just one particular field. The whole point of ISO certification is to establish, maintain and improve a company’s quality management system (What is ISO 9000?, 2012). By looking at the big picture within a company they are able to set goals for improvement and work towards the greater good. ISO has three parts of audits. The first type of audit is the adaption of standards on a company basis. Internal...

Words: 762 - Pages: 4

Free Essay

Ethics

...IT Standardization in the Workplace IT Standardization is a strategy for minimizing IT costs within an organization by keeping hardware and software as consistent as possible and reducing the number of tools you have that address the same basic need. It may take the form of ensuring that every computer has the same operating system or purchasing hardware in bulk so that every PC in your office is the same make or model. Standardization often goes hand in hand with centralization, the process of giving your IT department more control over purchases of hardware and software, and more control over what staff members are allowed to do with their office computers. While imposing equipment standards can help you streamline your IT infrastructure, simplify decision making and minimize purchasing and maintenance costs, the process of standardizing can be complicated. There needs to be a balance created for standardizing your equipment versus balancing the organizational and staff needs. The process of standardization leads to greater effectiveness and efficiency in the workplace. Many workplaces rely heavily on IT infrastructure. Companies need technology to complete our most simple functions every day. Many workplaces, including companies I have worked, there are many laptop models with different programs installed on each one. We use various versions of MS Office including 2003, 2007 and 2013. Our systems are outdated with some laptops dating back to 2003...

Words: 988 - Pages: 4

Free Essay

New Hire Comunication

...New Hire Communication Classmate Review Use the table below to review the New Hire Communication assignment for the team member assigned to you by your instructor. Indicate whether each item is met, partially met, or not met and include specific feedback in the Comments column. |Content |Met |Partially Met |Not Met |Comments: | |80 Percent | | | | | |Paper defines the purpose of the communication. | | |x | | |Paper defines the audience. | | |x | | |Paper indicates the selected channel(s) for communication along | | |x | | |with rationale for selecting the channel(s). | | | | | |Writing Guidelines |Met |Partially Met |Not Met |Comments: | |20 Percent | | | | ...

Words: 449 - Pages: 2