Essays on Pros and Cons of Standardization of Business Operations for Multinational Corporations Assignment

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The paper "Pros and Cons of Standardization of Business Operations for Multinational Corporations " is a perfect example of a business assignment. Some of the pros of standardising business operations for multinational corporations are related to the savings that the corporations make in terms of production and marketing costs (Czinkota & Ronkainen 2007, p. 328). This point is emphasised by Codita (2011, p. 25) through the assertion that the most important advantage of standardisation for corporations is the realisation of economic benefits, especially economies of scale and savings relating to costs of production and research and development.

For example, according to Mueller (2011, p. 27), some companies including Coca-Cola, Kellogg’ s Corn Flakes, Gillette and Colgate, have been able to achieve economies of scale by standardising the manner in which they use raw materials, equipment and other resources in their production and marketing activities. Another advantage of standardisation is that through the practice, corporations are able to have more effective scheduling and controlling of various activities, which enables more consistency as regards the products that the companies produce and the brand images that such companies have (Vrontis, Thrassou & Lamprianou 2009, p.

480; Wang & Yang 2011, pp. 27-28). The disadvantages of standardisation of the operations of multinational corporations are as follows. To start with, standardisation leads to a situation in which consumers have very few differentiated products that suit their different needs (Fujimoto 1999, p. 51). This may be detrimental to companies that standardise their products or operations, especially if such companies do not understand the needs of the local market given that consumers are likely to be inclined to buying items that are specifically suited to their needs.

Another demerit of standardisation, as noted by Govindarajan (2007, pp. 43-44), is that it is not always possible to have a total standardisation of the production or marketing mix for products across different countries. This is due to factors such as the regulations that are adopted in different countries, which may call for different standards for different products. What are the critical tasks and key success factors in the restaurant franchising business in an international context? You also need to consider the country manager’ s role and the nature of headquarters-subsidiary controls here.

(300 words) The success of a restaurant business that is franchising internationally will depend on a number of factors including whether it has sufficient business reasons for it to go international, whether the business is well established and profitable, whether the company can find an appropriate business associate, the target country in which international operations are to be based, and whether the company fulfils the legal requirements of doing business in the other country (Nieman 1998, p. 142). As regards sound business reasons for franchising, a restaurant must have sound reasons for expanding overseas.

Such reasons include the local market becoming saturated while market opportunities are seen abroad (Nieman 1998, p. 142). Also, a restaurant can franchise abroad in order to get an opportunity to increase the lifecycle of its products (Ahmed & Alam 2017, p. 324). In this regard, the country manager needs to be familiar with the new country of operation so as to identify the opportunities that exist for the business.


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