Wednesday, October 12, 2011

Global Companies and Human Rights

The main difference between Market-Building Strategy and Cost-Minimizing Strategy is that one doesn't assault human rights to increase their profits and the other increases their profits at their employees expense. I believe that the smarter strategy for a company to choose is the Market Building Strategy because they involve making significant investments that are unlikely to produce profits immediately and they are more committed to the people and the country. An example of companies that use this strategy are large food and beverage companies. An example of companies that use Cost-Minimizing Strategies are large factories where the employees are forced to work long hours and receive very little pay. I believe that it's important for a company to choose wisely when it comes to either of these strategies, because if they choose cost-minimizing over market-building, the media could hear of it and then the company would be exposed and customers would find out about how the company operates. If they find that they don't like the way the company operates or treats it's employees, many customers will turn down any product made by the company and that will result in lower profits for the company.

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