Cost-minimizing companies use the cost-minimizing strategy because they are more influenced by the pressures of globalization to increase profits. This of course leads to human rights violations. Most of this is fueled by the fact that most cost-minimizing companies are based in countries that fail to enforce protection of human rights, China being the prime example. Most of the things we have are made in China by people who are over worked, under-payed, and most likely working in poor conditions.
Tuesday, October 11, 2011
Market-building Strategy an Cost-minimizing Strategy
Market-building companies use the market-building strategy and will most likely not abuse human rights, unlike the cost-minimizing companies. Market-building strategies make significant investments that won't produce an immediate profit, because of this they have a stronger commitment to the people and the country they are in.
Subscribe to:
Post Comments (Atom)
I like how you go into detail about each strategy individually, but i'm wondering how you feel about them individually. Do you agree with one of them? Isn't it hard to accept the fact that people are taking jobs that harm their human securities but really they have no choice? Are cost-minimizing companies good? Are they bad? Is it realistic to say that every company should have one strategy or the other?
ReplyDelete