Question

Describe areas of reporting that are impacted by standardisation of reporting across different industries versus different industries allowed more independence.

Answer 1

Standardization is the process of creating standards to guide the creation of a good or service based on the consensus of all the relevant parties in the industry. The standards ensure that goods or services produced in a specific industry come with consistent quality and are equivalent to other comparable products or services in the same industry.

The goal of standardization is to ensure uniformity to certain practices within the industry. Standardization focuses on the product creation process, operations of businesses, technology in use, and how specific compulsory processes are instituted or carried out.

One example of standardization is the Generally Accepted Accounting Principles (GAAP) that companies must follow when preparing or reporting their annual financial statements. They ensure uniformity in how financial reports are prepared and improve the clarity of the financial information presented to the public.

The most common form of standardization is in the area of business processes. Typically, companies with a global presence or franchises refer to detailed process documentation that ensures that the quality of their product or service is the same regardless of the geographical location that a customer visits.

impacted by standardisation of reporting across different industries:-

Manufacturing businesses

Businesses engaged in manufacturing processes often form framework agreements that ensure that the products they produce meet the same specifications as other businesses in the industry. The standardization may cover products sold in one geographical location or the global arena.

For example, manufacturers of LED and LCD television follow certain product standardization rules that ensure that the products sold in the market have similar features. The standards cover specifications such as screen resolution and size, inputs (HDMI port, USB ports, etc.), internet connectivity, etc. The standards are modified to accord with continuous advancements in technology.

Standardization among manufacturing businesses ensures that customers get similar products regardless of the manufacturer or geographical location of the store where customers buy from.

Product marketing

Standardizing products that are available in various states, countries, or continents ensures that customers receive the same product or service regardless of where they buy it. This applies to big brands that customers are already very familiar with, where any change in the product would likely be noticed immediately. One example of a company that uses this form of standardization is Coca-Cola.

Companies that operate globally also standardize their advertising, maintaining a uniform design theme across the different markets as a way of reinforcing its brand image among its global audience. The same design theme and color scheme are applied even when the product packaging is presented in a different language.

Those who do independent work by choice (free agents and casual earners) report greater satisfaction with their work lives than those who do it out of necessity (the reluctants and the financially strapped). This finding holds across countries, ages, income brackets, and education levels. Free agents reported higher levels of satisfaction in multiple dimensions of their work lives than those holding traditional jobs by choice, indicating that many people value the nonmonetary aspects of working on their own terms.

Independent work is rapidly evolving as digital platforms create large-scale, efficient marketplaces that facilitate direct and even real-time connections between the customers who need a service performed and the workers willing to provide that service. Today, just 15 percent of the independent workers we surveyed have used a digital platform to find work, but the so-called on-demand economy is growing rapidly.

While this digital transformation unfolds, several other forces could fuel growth in the independent workforce: the stated aspirations of traditional workers who wish to become independent, the large unemployed and inactive populations who want to work, and the increased demand for independent services from both consumers and organizations.