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Globalization, technology, innovation, diversity and ethics have influenced the way business is done & operated in most parts of the continent. As a result of globalization of world business, China has become an appealing market for foreign investors. The attraction is unquestionable. The country's low labor costs, in particular, enable companies to manufacture clothing, footwear, toys, and many other products very cheaply. China is also emerging as a large consumer market because of its population for many goods. At the same time, terrible labor rights and human rights conditions persist even as China's economy develops. Foreign companies must address these conditions if they wish to operate in a socially responsible manner. This paper presents an understanding of some of these challenges by applying case business operations involving a shoe making industry. Under this particular type of business we shall discuss culture differences about relationships with business partners, water shortages & labor problems as being some of the challenges the business may face when being established in China-Beijing city. At the end of the document we will be able to document some recommendations about policies of future advancement for the company especially in the US market.
A shoe making business is a unique type of business that requires creativity and designs to stay put in the market. This type of business is artistic, profit driven and demanding.
In the shoe manufacture business, product development is the first step in the manufacturing process. The process requires or involves lots of research and market analysis in order to come up with products which will be in demand. The main challenge for a start up that is common in this type of business is developing a fast line and coming up with flesh ideas on products development. The shoe manufacture business necessitates careful quality control and distribution of products. It demands control in terms of checking the construction methods closely used in the production sample by the contractor which ensures that the quality remain constant. This is achieved by going or being present at the factory and inspecting workers to ensure quality shoes are produced. The designs to be constructed should address the need of a particular target group/market.
The financial organization in shoe manufacture business requires good management with much planning and advice as possible. The business requires good financial planning which is a fundamental aspect of business operation and success. Apart from financial stability, the business most important tenet is branding. Branding defines a company's competitive advantage and is done through a process of identifying customer need and the creating an image around the product to fit the need.
The people of the republic of China government have undertaken several initiatives to demonstrate its determination to better protect its workers. The labor law in china covers working hours, labor contracts, wages, workers safety, and labor disputes among others. Currently the government mandates a maximum of not more than 40 hours. If workers are to work m ore than these hours, a fixed and mandatory pay rate is supposed to be paid to them. Workers also enjoy a one day off every week. The working conditions are required by the government to be safe and sanitary. These practices have often been violated by the employers in many cases with some still practicing the sweatshops. (CNN Fortune)
The codes of conduct in china entails, there should be no forced labor and child labor; concerns about wages, benefits and terms of employment; limitations concerning working hours, prohibits abuse; contain types of disciplinary action; health and safety policies; and environmental standards. Though there is an existence of these laws of conduct the government understands the following regarding violations of such. It puts into notice that the adequate labor laws are poorly enforced. And codes imposed on factory owners raise costs therefore owners have a financial incentive to ignore some requirements. The government also knows that the exhaustible supply of migrant workers, most of whom are ignorant of their rights under Chinese law and are willing to work under any conditions without protest this puts them under the mercy of their bosses In another contribution it also prohibits the existence of independent trade unions which leaves workers without representatives who can discuss violations with management. Many companies who have tried to follow these rules have found the effort to be expensive and otherwise they are searching for good alternatives to protect their employees. (China business review)
As we have seen, U.S.A strong individualism and medium masculinity affects the way Americans make decision to determine how they do. Mostly they work alone and less cooperative in business terms. They always value their independent and control. China's collectivism and medium feminism focus more on groups and instituting to determine what they should do. In contrast Chinese are more likely to cooperate with other to avoid risks a reduce responsibility. Marketing of clothing on the American market would therefore require a great commitment and dedication meant to counter the perception of Chinese clothing. I currently view the quality standards of design clothes that my company will be dealing with will be well accepted in the US market despite the cultural difference.
In order for the company business to move forward to the future in providing innovative and high quality products three basic policies can be used as a guide. First is to accept change, creation and change. It is advisable that investors who want to start businesses in china take a number of actions to address labor rights problems in China. At first one can operate Chinese factories directly, and if this is not possible, they can influence a factory's conditions by sharing the costs of improving labor standards, especially if they control a large percentage of the factory's output either alone or together with other companies. The Second initiative they should take is to adopt a detailed code of conduct and hire competent supervisors to evaluate conformity, while ensuring their practices do not contribute to these problems. Lastly since codes and monitoring in China are only partly effective, companies can, and should, seek to empower Chinese workers to act on their own behalf by educating them about their rights though representatives, and by seeking to protect the right of workers to protest abuses. Businesses that succeed are ones that learn how to turn problems into competitive advantages for their company. The first ingredient required to excel in challenging situations is to understand that problems will be encountered in daily operation of the business. It is important to look at them as a challenge for the type of business in order to establish an innovative and creative atmosphere.
The business should develop a good relationship with the customers and other partners such as manufacturers, government and business that work together towards the growth of business. In the first situation the business should involve everyone to some degree in outlining the goals for any business. The involvement sheds much light into particular areas of the business that I may not have given much though to. By letting the employees set up certain goals, it gives them a sense of pride and put the company at an advantage over others. (Ambler and Wetzel, 2004, 245)
It is important to understand that discoveries are not made by living in the part previous success and failure only provide a guide or stepping stone to find new bearings when coming up with new solutions. Radical new approaches should always be a consideration to achieve real progress.
Adapting to the globalization of the world economy and to the related shift from domestic to global business requires adopting a new strategy as well as managerial skills. At lest the main issues need to be addressed in order to cope with the global market by any particular type of business. The first step is; understanding changes in the international market, understanding the global challenges that business face and how to purpose to meet these challenges and lastly how to prepare qualified individuals who can understand the business well and adapt to the changes taking place in the global market.
Ambler, T and Witzel, M 2004.Doing Business in China,
Rout ledge publishers
‘CNN Fortune, How companies Fight Sweatshops', from: http://money.cnn.com/2006/05/03/news/international/pluggedin_fortune/(February 29, 2008)
‘Labor Issues and Corporate Responsibility in China' China Business
Review from : http://126.96.36.199/search?q=cache:RFWXxSyn1T4J:www.uschina.org/public/documents/2006/11/labor-issues-corporate-responsibility.pdf+environment,+labor+and+political+issues+in+china&hl=en&ct=clnk&cd=9&gl=ke (March 4, 2008)
The World Bank Group doing business project in' from: http://www.doingbusiness.org/ExploreEconomies/?economyid=42 (February 29, 2008)