Hiringthe foreign workers may interfere with the policies of China¶s political and legal environment.Prior to Riordan¶s plans to expand the facility in Hangzhou and hire additional foreignworkers, the management should consider the political and legal climates of China to eliminateinterference with the goals of the company. China is a communist state but embraces a freemarket economy (Hodgetts, Luthans, & Doh, 2005). Presently the political environment is stablein comparison to Latin America or the Middle East (Hodgetts, Luthans, & Doh, 2005). However,Riordan needs to investigate thoroughly the legal and regulatory aspects of expanding the facilityand hiring foreign workers in China.The legal and regulatory environment in China needs investigating. Planning to expandthe Hangzhou facility must be approved by the government.
While China have been doing this the countries In the Middle East with the oil have been trying to shift away from having a customer base from over dependence on the Western market and so they have been looking at rapidly growing markets like China. Another example of how a good relationship leafs to a good supply of energy is the case of the US and Saudi Arabia. They had a symbiotic relationship, meaning that they depended on each other, but in the aftermath of 9/11 their relationship has become increasingly strained. This is because 15 out of the 19 hijackers were of Saudi nationality. However, they need to have a good relationship so they can both survive as Saudi Arabia need the money from exporting and the US need the energy.
Eric Soltys Unit 3 Assignment Business 340: Business Ethics Post University Walmart Case Study Case Questions and Answers: 1. What are the ethical issues associated with Wal-Mart’s extensive sourcing of low-cost products from China? 2. Based on your experience, does Wal-Mart sacrifice product quality in order to offer customers low prices always? 3.
This in turn means that if the products are defective and not up to standard then they could damage the relationship with the Chinese department store. Another potential problem that may result from accepting the Chinese department store's order is that the research and development centre for the product line is based in the UK. This means that there problems could arise if there is a break down in communication between China and the UK, for example wrong orders could be received in China which would be particularly problematic with the average delivery time from factory being 21 days, 11 more than the UK factories. Therefore this means that these problems could be much more costly than if they happened from the UK factories. (8/10) Andrew Mitchell believed that the best solution to resolving the dispute over the introduction of new technology was to close the UK factories and move production to a purpose built factory in China.
Second, financially stressed companies that go dark are the very companies’ shareholders need to monitor usually and where transparency is most important. Clearly, SOX has both positive and negative effects. However, the implementation problems of the Act do not provide sufficient reason to weaken or eliminate SOX requirements or to adopt significant exemptions based on company size. 2. What advantages would China offer foreign companies to list on its exchanges?
But consumers aren't helping their fellow countryman earn his own living by buying these imported items. Consumers are giving their hard-earned money to Walmart to go back to China to buy more items. (Smith & Young, 2004). Walmart has created new jobs for people when they open new stores, but they are underpaid jobs. Many of the positions are part-time, therefore, they are positions without benefits.
Gap Analysis: Riordan Riordan Manufacturing opened a production facility in China. Because it flourished, Riordan's CEO wanted to add another facility. By adding another facility, Michael Riordan hopes to provide the company with additional international opportunities. The competition in China results in a lack of skilled labor; however, labor from nearby countries is available to Riordan Manufacturing. Using workers from these other countries requires Riordan Manufacturing to consider cross-cultural issues.
And the manufacturer becomes the serf, the vassal, the underling who has to do the bidding of the retailer. That's a new thing (Smith). If a company can't produce what Wal-Mart wants at a price Wal-Mart feels is attainable, they go elsewhere; in most cases that is to China. As Dicker states, "China provides a combination of political stability, sturdy infrastructure, and a labor force willing to work for pennies an hour" (118-119). If major United States manufacturing firms are being cut out of the equation, small town companies could never hope to conduct business with Wal-Mart.
In addition, the philosophical approach used is the Friedman doctrine stating that the only social responsibility of business is to increase profits, so long as the company stays within the rule of law. Therefore, after weighing benefits of huge potential market and the costs of censoring some information related sensitive issues, Google agreed with Chinese regulations to follow the regulation by doing their own censorship 2. Do you think that Google should have entered China and engaged in self-censorship, given the company’s long-standing mantra” Don’t be evil”? Is it better to engage in self-censorship than have the government censor for you? Answer: I think Google already made the right choice to enter the Chinese market and censor its own site, rather than allowing the Chinese government to do it.
Although competitors could attempt to use the same approach in international markets and take away market share from the company it is likely that they will not be very successful because since FedEx was established first they already have a loyal group of clientele which will be unlikely to leave to a new company. The move from the Philippines to China is a good one because China will bring in more revenue and be more profitable than will be the Philippines. The managerial functions of planning include figuring out the strategies that FedEx must employ in order to be a company that can survive and compete with any other company in its market. The function of organizing is to be able to perform managerial jobs. Buyouts have allowed FedEx to manage the sources available to them in a way that allows them to survive in their market.