The Global Business Strategy is the principle behind the businesses, companies or firms that is operating in a global environment which aims to serve the consumers all over the world. This strategy has been adopted by each business to accomplish their short term and long term goals.
The arguments in favor of the global business strategy of standardization are as follows: -
- It benefits in the economies of scale accruing to the company with it being able to produce in large quantities using more or less the same techniques of production
- It preserves the image of the home country which houses the global corporation since it helps in minimizing the costs of alteration, design or modification, handling and stocking the product, speeding up delivery systems. It also helps in saving the managerial time and effort to take decisions regarding the manufacture of different products.
- It helps in faster accumulation of the learning experience as fallout of the learning-by-doing approach.
The Global Business strategies are being addressed by the interdisciplinary issues of marketing, organization theory, business strategy and international management and concentrates on maximizing the firm performance. The international strategy of a global business should always consider how the company fits in the environment. The strategy may be standardization or adaptation.