Professional English Online Cambridge University Press 2012 ..PHOTOCOPIABLE..

Standardisation and differentiation

Marjorie Rosenberg

Aims
to be able to define these concepts
to express the pros and cons of
each of the concepts
to understand a text about a
multinational company
to learn the vocabulary used in
describing a companys strategy
to be able to discuss the strategy of
a multinational company
to consider the elements of
differentiation
to create a strategy of differentiation
for a product
to present your ideas to the class
Tasks
to agree on definitions
to fill in a chart with pros and
cons of each of the strategies
to read and understand a text
to match terms to their definitions
to talk about the strategy of a
multinational and offer your own
opinions about it
to discuss the elements of
differentiation and offer your own
ideas about the strategy
to work out a differentiation
strategy for a particular product
to present your ideas to the class
This activity can be used on its own or used together with Business Advantage
Advanced, Martin Lisboa and Michael Handford, Unit 2.
Level
Advanced (C1C2)
Timing
4045 minutes without the follow-up activity
This should include checking the answers, the discussions and the presentation of
ideas at the end.
Lead-in (10 minutes)
Students work in groups to define the two concepts. When they have finished, they
should share their ideas with the class and the definitions given below are compared
with those the class came up with. They then fill in two tables with the pros and cons
of the different strategies and these are discussed. Possible answers are given
below.
Standardisation: to give things of the same type the same basic features
Differentiation: to adapt products to different markets and target groups
Possible answers
Standardisation
Pros Cons
makes use of economies of scale
more control of quality and brand by
HO
easily recognisable
not suitable for every market
cannot compete with localised products
may indicate that company is out of
touch with specialised needs of market
Differentiation
Pros Cons
designed to appeal to particular group
more globally competitive
promotes cultural-awareness image of
company
more expensive to produce
may dilute brand name
may not be recognised as belonging to
company


Professional English Online Cambridge University Press 2012 ..PHOTOCOPIABLE..
Reading and vocabulary (10 minutes)
Students read the text and then work in pairs to match words from the texts with their
definitions.
Key
1 matrix structure 2 generate 3 distribution channels 4 transnational 5 supply
chain 6 economies of scale 7 foothold 8 evolve 9 emerging 10 cohesion
11 autonomy
Discussion (5 minutes)
Students work in groups to discuss several questions about the article.
Elements of standardisation and differentiation (5 minutes)
Students discuss elements of differentiation and try to give examples. They are
encouraged to add others to the list.
Working out a strategy (1015 minutes)
Students work in small groups to come up with a differentiated strategy for a
particular product in a foreign market. They should consider the elements above and
keep in mind the cost factor as well. When they finish, they present their ideas to the
class.
Follow-up
Students look on the internet for products sold world-wide and try to find differences
in features, packaging, advertising etc. from country to country. They can bring the
information to class to present to the others.
Sources
http://www.pg.com/en_US
http://wearedevelopment.net/2012/04/29/the-strategic-development-of-proctor-and-
gamble-into-a-global-giant


Professional English Online Cambridge University Press 2012 ..PHOTOCOPIABLE..
Standardisation and differentiation
Marjorie Rosenberg

Aims
to be able to define these concepts
to express the pros and cons of
each of the concepts
to understand a text about a
multinational company
to learn the vocabulary used in
describing a companys strategy
to be able to discuss the strategy of
a multinational company
to consider the elements of
differentiation
to create a strategy of differentiation
for a product
to present your ideas to the class
Tasks
to agree on definitions
to fill in a chart with pros and
cons of each of the strategies
to read and understand a text
to match terms to their definitions
to talk about the strategy of a
multinational and offer your own
opinions about it
to discuss the elements of
differentiation and offer your own
ideas about the strategy
to work out a differentiation
strategy for a particular product
to present your ideas to the class
Lead-in
Work in a small group and define these two words in reference to products produced
for both domestic and international markets.
Standardisation
Differentiation
Discuss the advantages and disadvantages of these two strategies. Fill in the tables
below and then present your ideas to the rest of the class.
Standardisation
Pros Cons

Differentiation
Pros Cons



Professional English Online Cambridge University Press 2012 ..PHOTOCOPIABLE..
Reading and vocabulary
Read the text and then work in pairs to find the underlined words in the text which
match definitions 111.
One global company which has evolved over the years is Procter and Gamble. The
Cincinnati, Ohio-based company has over 300 brands in 180 countries. As long ago
as the 1990s, P&G changed their strategy from a Global Product Structure to a
Transnational global strategy. This led them to consider the geographical
differences in the market places they were in and specialisation of particular brands
while maintaining economies of scale regarding areas such as production and
distribution. This strategy allowed them to keep costs low while giving them the
opportunity to better meet the needs of customers. In addition, this type of structure
has the advantage of making use of both centralised and decentralised functions
within the organisation. They can work efficiently and quickly to respond to
customers wishes on a local level while maintaining the brand image and quality the
company is known for. Key areas which require local customisation have been given
autonomy, but the R&D department stays centralised, meaning that the executives
running the company have control over it.
Today P&G is organised using a global matrix structure requiring control at various
levels and a great deal of cooperation and cohesion within the workforce. In order to
maintain the efficiency and brand recognition achieved by P&G it was necessary to
co-ordinate major parts of the business across nations. These included the
distribution channels, logistics, the supply chain, the manufacturing process and
finally putting an international IT system in place to oversee it all.
Today P&G is recognised world-wide as a global innovation leader with some of the
best-known household brands. Twenty-five of these brands each generate more than
$1 billion dollars in annual sales. Some 15,000 market research studies are carried
out annually around the globe and P&G prides themselves on interacting with more
than five million customers in nearly 100 countries. In order to stay on top of the
latest trends P&G works together with external companies who they seek out to help
them with innovation and new ideas to ensure their foothold in both established and
emerging markets.
Definitions
1. an arrangement within a company where employees are responsible to two or
more managers, often in different departments
2. to product or create something such as profits
3. methods that are used for selling a companys products or services, for example,
selling them through a distributor or a retailer
4. used to describe companies or business activities that exist or take place in more
than one country
5. the system of people and organizations that are involved in getting a product from
the place where it is made to customers
6. the reduction of production costs that is a result of making and selling goods in
large quantities, for example, the ability to buy large amounts of materials at
reduced prices
7. a strong first position in a market, industry, etc. from which further progress can
be made
8. to develop gradually, or to make someone or something change and develop
gradually
9. beginning to have economic power or success
10. the situation when the members of a group or company are united
11. the situation when a group of people can organise their own activities


Professional English Online Cambridge University Press 2012 ..PHOTOCOPIABLE..
Discussion
Do you think that P&G has a good strategy for both standardisation and
differentiation? Why or why not?
Which of their products do you know?
In which ways do you think they may change their products according to the
market?
Elements of standardisation and differentiation
Discuss these elements of differentiation. Try to find examples if you can. Can you
think of any others?
packaging
advertisements and advertising campaigns
USPs
colours
features
Working out a strategy
Work in small groups. Choose one of the products below and decide which of the
elements mentioned above should standardised to maintain the brand image and
which should differentiated depending on the market you are selling it in.
car shampoo fast-food restaurant
mobile phone computer software hotel chain
Put your ideas together and present them to the class. Discuss ideas the other
groups have and talk about the best strategy to make use of economies of scale
while meeting individual needs in markets.
Follow-up
Check the internet for products sold worldwide and try to find differences in features,
packaging, advertising etc. from country to country. Bring the information to present
to the rest of the class.