Question

What do you see as the main organizational problems that are likely to be associated with implementation of a Global Standardization Strategy? Please take one industrial as your case to explain your answers explicitly in no less than 300 words

Answer 1

answer-

Global standardization strategy is one of the international strategy in which a Global company uses the same marketing strategy to all countries where it operates or do business. They target the whole globe with same marketing campaign, message with same product or service.The example of Compay using global standardization strategy is Coca Cola in Beverage and drink industry.

The organizational problems that will likely to be associated with this strategy is first organization will face lack of creativity and employee engagement. Coca cola's all marketing strategy and campaign are made by company employees in home country. This means there is no participation of employees working in foreign subsidiaries because HQ of the company uses the same campaign running in all countries. This cause lack of creativity and participation by other employees in foreign countries.

The second problem is Lack of diversity and innovation. When company uses the same product with same marketing strategy then innovation lacks and product diversity can not be seen. for example- you will see same coca cola drink with same packaging with same design all around the world. This may not liked by many consumers in some country who may get bored with same appeal and aesthetics of the product.

The third problem is Authority and Centralization issue because in this strategy, Many important decisions are made by Home country company and its management which discourages employees and thier performance in foreign subsidiaries. If employees get more authority and decision making power in foreign countries then they can be more productive, more highly performer in order to achieve organization's goal.

The fourth problem is cultural issue and legal problems associated when a company uses the same product with same marketing. Each and every country has its own culture, social norms, legal structure which does not match with home country. For example- different employment law, different laws for advertising a product, different culture and consumer preferences for soft drinks. The lack of such knowledge cause organizational problem for the company.

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