Business Strategy of Management Context of Standardization

Question: Describe about the Business Strategy of Management for Context of Standardization. Answer: Chapter 7: 1). It is observed that in the context of standardization, the creators and the participants are not only concerned about developing new ideas, they are encouraged to create new standards. On the contrary, format wars could occur through proprietary formats that are usually incompatible. These both are in a competition in the same industry. 2). It is evident that standardization could help in developing the coordination as well as the efficiency. Likewise, standardization also helps in increasing the quality of service 3). Standardization is influenced by the competition and the price war. In order to become aggressive in the market, the organizations deal with the price war strategy (Hill, Jones Schilling, 2014). It has been identified that first and the second movers in the market could provide creation as well as innovation. Hence, the beginner or the start-up firms play the role of first mover. Conversely, the second movers are aware of the faults existing in the innovation process or implementation caused by the first mover. Chapter 8: Answers 1). The organizations that have strengthened their positions in the domestic market are the rush of expand their business in the global market. In the global environment, the organization could experience increasing number of market opportunities. While running the operation in the global environment, the firms get the skilled employees at considerably low cost, which helps them to keep balance in both local as well as international market (Bremmer, 2014). The organization could hire the best employees at local labor rate in the country where they run the operation. In addition, contributing to the employment of the country, the organization receives support from the government that helps the firm to acquire an unknown market. 2). As discussed earlier, the organization in the global environment gets the opportunities to hire the potential employees at low rate. Thus, the company sums up the production cost and invest more on the Research and Development to increase the quality of products. Likewise, the increase in the profit margin and stable economic scale helps the company to expand the business in the global environment. For example, most of the large organizations like Google, Microsoft in United State hire the employees from foreign countries. 3). One of the significant strategies mostly implemented by the organization in the global environment is adoption of different culture. While running the business in the foreign country, it is necessary for the company adapt to country culture and trends. Based on the culture and trends, the products and services should be developed. This helps to best meet the needs of the customers. 4). It is mostly observed that while getting into the global market, the organizations apply different strategies to remain active, safe and earn profits. Four different drivers that large drive the operation of a firm are Technology, Global Talent Pool, cost of labor and Agreements of trade (Laufs Schwens, 2014). Figure 1: Global market entry strategy (Source: Laufs Schwens, 2014) On the contrary, strategic alliance is also considered as an effective way to get into a new market. It could be risky for the company to run the operation in new market being unaware of the market drivers. Therefore, the company relies on the strategic alliance. Reference list: Bremmer, I. (2014). The new rules of globalization.Harvard Business Review,92(1), 103-107. Hill, C. W., Jones, G. R., Schilling, M. A. (2014).Strategic management: theory: an integrated approach. Cengage Learning. Laufs, K., Schwens, C. (2014). Foreign market entry mode choice of small and medium-sized enterprises: A systematic review and future research agenda.International Business Review,23(6), 1109-1126.