Product and Technology Standards
Heinz in Chile & South Korea
Introduction
"International markets have become increasingly attractive to companies hoping to secure new customers and add revenues. As barriers to trade have diminished, more and more companies have found attractive opportunities for expansion in countries outside their traditional home markets (Lovka & Powers, 2003)." The globalization of markets is the principal driving force behind the need for global product standardization theory.
Product and technology standardization is the process establishing a common set of parameters within an industry so that items produced by different manufacture are not only of great quality but also they can work together when needed. Standardization refers to the consistency of a product or service and the ability of the manufacturer to produce and reproduce that product or service with as little variation as possible. Standardization is necessary in order to ensure that consumers around the world receive the same quality of product or service regardless of where and how they are produced. The benefits of standardization may not always clearly be visible but it is enormous for our society. Multinational Organizations who conforms to International Standards can easily compete on many markets around the world. When products and services are based on International Standards, customers have more choices because of worldwide compatibility of these products. Standardization benefits all stakeholders because it acts to enhance the activity of global trade by eliminating a barrier to interoperability. International Standards can contribute to the quality of life in general by ensuring that the product and services we use are safe, reliable, efficient and ...