Essay On Globalization And Standardization

Introduction

One of the major trademarks of the twenty-first century business environment is the expediential growth of globalisation. Today’s communications, trade relations and global mutual dependence impose new and ever changing challenges on company’s strategists. The world trade has grown phenomenally as a result of globalisation. (Al-Hyari, et-al, 2011) Transportation of people and goods to all areas of the world has never been as fast and cost-effective as it is today (Pinho and Martins, 2010). Globalisation can be briefly defined as a historical process which is characterised by a growing engagement between peoples on all corners of the globe (Modelski, 2003, pp.55-59)

Glocalisation and standardisation can both be key elements and strategies of Globalisation. Glocalisation is the concept that in a global market a product or service is more likely to succeed when it is tailored for the locality or culture in which it is sold. Standardisation is the opposite to glocalisation and often less successful this is because a product is not altered or tailored for specific cultures it is instead the same product, the same advertising and the same target market. However this is often an unsuccessful approach due to cultural differences.

It could be argued that we are living in a globalising world. A globalising world is the creation of a global market and a global consumer. This idea is that all consumers are very similar in their wants and needs and will therefore buy the same products. It could be argued this is not accurate due to cultural differences, for example although coffee is consumed all over the world it is consumed very differently depending on where in the world it is.

Globalisation

It is difficult to give an exact de...

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...based on the review of previous studies it can be indicated that there is no agreement between scholars on the effects of globalisation on national cultural differences. Authors who believe in the existence of a global homogenous culture suggest standardisation is the best strategy. Other authors argue adaption is the best. More recently authors who highlight the difficulty in applying either strategy in practice and stress the importance and necessity of both adaptation and standardisation to be used simultaneously (Sorenson and Wiechmann, 1975; Prahalad and Doz, 1986; Boddewyn et al., 1986; Douglas and Wind, 1987) have created a new school of thought; the stand-adapt strategy. It is recommended that businesses who wish to succeed in an international market must use both strategies in order to succeed as globalisation can create either divergence or convergence.