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The Standardization-Adaptation Dilemma: Emphasizing Global Processes or Local Conditions in Supply Chain Strategy? A Case Study at Tetra Pak Korea

Helldin, Malin LU and Hallberg, Jesper (2012) FEKP02 20121
Department of Business Administration
Abstract
Problem definition: In times of increased globalization, the question of to what degree global companies should standardize their business is a topic often addressed in academic research. Connected to a decision between standardization and adaptation are tradeoffs, as both directions bring about advantages that would otherwise not be fulfilled. Tetra Pak Korea is an example of a case where such tradeoffs need to be considered. In line with Tetra Pak’s standardized, global delivery strategy, the regional management has communicated an ambition of 100 percent direct deliveries for the local market company in Korea. However, challenges regarding an implementation have been identified, which has led to a need for further investigation. How... (More)
Problem definition: In times of increased globalization, the question of to what degree global companies should standardize their business is a topic often addressed in academic research. Connected to a decision between standardization and adaptation are tradeoffs, as both directions bring about advantages that would otherwise not be fulfilled. Tetra Pak Korea is an example of a case where such tradeoffs need to be considered. In line with Tetra Pak’s standardized, global delivery strategy, the regional management has communicated an ambition of 100 percent direct deliveries for the local market company in Korea. However, challenges regarding an implementation have been identified, which has led to a need for further investigation. How could Tetra Pak handle the tradeoffs that arise because of these challenges? Are the greatest advantages achieved through an implementation of the standardized process, or would Tetra Pak benefit more from a solution adapted to the Korean conditions?

Purpose: The purpose of this thesis is to investigate how Tetra Pak Korea could handle challenges and associated tradeoffs that arise from the desired implementation of a global, standardized delivery strategy. Furthermore, through this investigation, the purpose is to contribute to the case company’s development and to the general, academic discussion regarding the balance between standardization and adaptation in global supply chain strategies.

Conclusions: Through a literature study, process efficiency (including both an internal and an external dimension), customer management and financial performance have been identified as areas to consider in decisions on standardization and adaptation. As illustrated by the case study, all of these areas influence and are influenced by the decisions, and all areas influence each other. Because of this, it is of importance to use an overall approach, where all the areas are regarded equally, when analyzing a potential implementation of standardization or adaptation in supply chain strategy. Furthermore, it is important to analyze each case individually and to avoid labeling a certain factor as profiting from either standardization or adaptation in all situations. (Less)
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author
Helldin, Malin LU and Hallberg, Jesper
supervisor
organization
course
FEKP02 20121
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Global Strategies, Standardization, Adaptation, Supply Chain Strategy, Process Efficiency, Financial Performance, Customer Management
ISSN
1651-0100
language
English
id
2612804
date added to LUP
2014-12-22 10:33:24
date last changed
2014-12-22 10:33:24
@misc{2612804,
  abstract     = {Problem definition: In times of increased globalization, the question of to what degree global companies should standardize their business is a topic often addressed in academic research. Connected to a decision between standardization and adaptation are tradeoffs, as both directions bring about advantages that would otherwise not be fulfilled. Tetra Pak Korea is an example of a case where such tradeoffs need to be considered. In line with Tetra Pak’s standardized, global delivery strategy, the regional management has communicated an ambition of 100 percent direct deliveries for the local market company in Korea. However, challenges regarding an implementation have been identified, which has led to a need for further investigation. How could Tetra Pak handle the tradeoffs that arise because of these challenges? Are the greatest advantages achieved through an implementation of the standardized process, or would Tetra Pak benefit more from a solution adapted to the Korean conditions?

Purpose: The purpose of this thesis is to investigate how Tetra Pak Korea could handle challenges and associated tradeoffs that arise from the desired implementation of a global, standardized delivery strategy. Furthermore, through this investigation, the purpose is to contribute to the case company’s development and to the general, academic discussion regarding the balance between standardization and adaptation in global supply chain strategies.

Conclusions: Through a literature study, process efficiency (including both an internal and an external dimension), customer management and financial performance have been identified as areas to consider in decisions on standardization and adaptation. As illustrated by the case study, all of these areas influence and are influenced by the decisions, and all areas influence each other. Because of this, it is of importance to use an overall approach, where all the areas are regarded equally, when analyzing a potential implementation of standardization or adaptation in supply chain strategy. Furthermore, it is important to analyze each case individually and to avoid labeling a certain factor as profiting from either standardization or adaptation in all situations.},
  author       = {Helldin, Malin and Hallberg, Jesper},
  issn         = {1651-0100},
  keyword      = {Global Strategies,Standardization,Adaptation,Supply Chain Strategy,Process Efficiency,Financial Performance,Customer Management},
  language     = {eng},
  note         = {Student Paper},
  title        = {The Standardization-Adaptation Dilemma: Emphasizing Global Processes or Local Conditions in Supply Chain Strategy? A Case Study at Tetra Pak Korea},
  year         = {2012},
}