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  • Essay / Essay on Globalization and Standardization - 2112

    IntroductionOne of the key features of the 21st century business environment is the timely growth of globalization. Today's communications, business relationships and global mutual dependence impose new and evolving challenges on business strategists. World trade has seen phenomenal growth due to globalization. (Al-Hyari et al, 2011) Transporting people and goods to all parts of the world has never been as fast and cost-effective as it is today (Pinho and Martins, 2010). Globalization can be briefly defined as a historical process characterized by increasing engagement between people in all corners of the globe (Modelski, 2003, pp.55-59). Both glocalization and standardization can be key elements and strategies of globalization. Glocalization is the concept that, in a global market, a product or service is more likely to succeed when it is adapted to the locality or culture in which it is sold. Standardization is the opposite of glocalization and is often less successful because a product is not modified or adapted to specific cultures; rather, it is the same product, the same advertising and the same target market. However, this approach often proves ineffective due to cultural differences. It could be argued that we live in a globalizing world. A globalized world is the creation of a global market and a global consumer. This idea is that all consumers have very similar wants and needs and will therefore purchase the same products. It could be argued that 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 it is in the world. Globalization It is difficult to give an exact idea..... . middle of article......based on the review of previous studies, it can be indicated that there is no agreement among researchers on the effects of globalization on cultural differences national. Authors who believe in the existence of a homogeneous global culture suggest that standardization is the best strategy. Other authors argue that adaptation is the best solution. More recently, authors who highlight the difficulty of applying one or the other strategy in practice and emphasize the importance and necessity of using adaptation and standardization simultaneously (Sorenson and Wiechmann, 1975; Prahalad and Doz, 1986; Boddewyn et al., 1986; Douglas and Wind, 1987) created a new school of thought; the adaptation strategy. Businesses that want to succeed in an international market are recommended to use both strategies to achieve success because globalization can create either divergence or convergence..