Tuesday, October 11, 2011

Market-Building Strategy vs. Cost-Effective Strategy

As the book defines, market-building companies are less likely to abuse human rights than cost-minimizing firms, which are more short-term oriented and more vulnerable to the pressures of globalization to increase profits as the expense of employees' human rights. Market-building strategies involve making significant investments that are unlikely to produce immediate profits. Companies that pursue this type of strategy usually have a better level of commitment to the citizens and nation in which it operates. The market-building strategy seeks profit by building up markets rather than assaulting worker rights. On the other side of things, the cost-minimizing strategy is extremely important. It actually increases profits, however; it does so at the expense of the employees. The cost-minimizing strategy may be effective in many ways, but in order to get to the top using this strategy, human rights need to be infringed upon. It is not, in any way, desirable for a company to have to abuse these rights. So which is better? I'm gonna have to go with the market-building strategy. I know for sure I would never want to be part of something that took away my basic human rights.

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