Advantages of Standardization

Standardization is the process by which a company makes it methods, especially its labor processes, uniform throughout its organization. Standardization helps cut costs by eliminating duplicated swither and allows a company to take reward of economies of scale when purchasing supplies. However, rough advantages whitethorn be lost when a company decided to govern its operations. Disadvantages Loss of UniquenessIf a company builds up a guest base that values its unique niche increases, or if the company serves a specialized merchandise, standardizing its processes may mean it loses roughly of its former nodes. For example, if a eating place builds its reputation on a varied and exotic menu, then changes to a standardized menu to provide a more predictable customer experience, its former customers may defect to competitors who provide more variety.Loss of Responsiveness. When a company expands into new markets, especially in foreign markets, standardization may work against t he firm. While it may be cheaper for a restaurant to deprave its trademark hamburgers in bulk, if it expands into a new market where people vitiate chicken much more often, its standardization measures may make it sluggish to respond to market conditions and end up costing money. Unsuited to about Aspects of Business Standardization may be advantageous in some areas of business, such as production, but some aspects of a business should be tailored to the customers needs.Customer service, advertising, distribution and product pricing must be driven by local market conditions to be successful. Stifles Creativity and repartee Time Standardization has the potential to get a business into a rut. Standards, once implemented, soon become the status quo and may become intrench in the corporate culture, making them hard to change when change is needed. However, market conditions often change, and companies that change quickly are best positioned to take advantage of them. Standardizati on may also stifle creativity, particularly in product design.