Zara Fashion Chain Linked With Slave Labor in Brazil - Literature review Example

INTERNATIONAL MARKETING Article one Zara fashion chain linked with slave labor in Brazil By The Sydney Morning Herald, August 20, 2011 Summarize The fashion chain Zara is implicated for being associated with slave labor mostly by having workers perform their duties in unhealthy and dangerous work stations and also through outsourcing workers illegally with an intention of overworking then for own benefits. Issue Zara fashion shop has been operational in Brazil. However, it was noted that they the company was not responsible for its employees. Through the investigations carried, workers worked for very long shifts and unfavorable conditions Mr. Bignami stated that the economic turmoil in Spain has forced large numbers of people to migrate to Brazil Implications Inditex, Zara’s parent company was not to blame for unauthorized outsourcing of workers from Bolivia and Peru. This is tarnishing the reputation of the firm which can impact negatively to its market share whereby its customers may take it as a company that is out to exploit others. After it was noted that working conditions in this shop are unfavorable, the ministry of labor demanded an explanation and change must be effected towards improving the same. The hours workers take in the working place are very many hours. Increasing the number of employees so that they can work in shift and recommended hours is an option. This will in the long run mean that the expenditure of the firm will increase as a result of increasing workers. Article two From pit to port: India’s $10 billion coal export plan By The Australian National affairs, 20th August, 2011 Summarize Adani Enterprises in an Indian energy giant which has developing a big mine in the Galilee Basin. It seeks to control whatever component coal touches from railway line to the ports and this brew up some heated arguments from coal seam gas developers and farmers about the land ownership. This control is aimed at making sure that the supplies of coal arrive to the destined locations as planned and in time. Issue Adani enterprises are out to make several developments in Queensland with an intention of having coal exports to India for sustainable growth. The company is well equipped and has diverse strategies to put them a level higher than the other companies. It is also worth noting that this company is headed by a university dropout who is a 41 year old Gautam Adani which means that, the strategies and the innovation applied in the company are far above any educational qualification if at all this company is competing with other firms headed by well educated people. Implications With this company in the market, there are many improvements that are going to be experienced in Australia. First the railway line and the ports will have to be improved so that transport of coal is easier. Agriculture as said to be a main activity is also going to benefit through railway and ports in the case of imports and exports. As stated by Mr Derasari, there is a need for a new port, and Adani will do the construction and there is also a proposal for two new train lines. Moreover, employment and revenue are going to be delivered by this project. This will mean that Queensland economy is going to receive a boost as there are going to be 5000 jobs during construction phase and thereafter, 3500 permanent jobs. Article three Bumpy ride on the shrinking Kangaroo (Qantas faces identity crises in its shakeup) The Sydney Morning herald: 20th August 2011 Summarize Qantas is a house hold name in Australia and it is a national identity over the past 90 years. However, this brand has continued diminishing in the market to an extent that it is wedged out by big players in the industry when it comes to international flights. The current management is working towards getting back the firm to its position in the international flights. Issue Those who have been in the industry for a long time have complained on the diminishing of the brand Qantas. 1000 jobs have been lost and this is attributed by lower wages and conditions compared to other firms offering the same services. According to Hubert Horan, a US aviation consultant, trying to revive Qantas brand seems impossibility due to the inevitable damage to the brand currently. The competitive gap has grown so wide for Qantas to cover currently. If action is not taken urgently, this brand is going to be forgotten sooner or later. The big question is whether Qantas will manage to penetrate the Asian market or she will return with nothing as it is common with some other firms who ventured in the same. Implications Qantas has well established domestic business but they are struggling to make it in the international business. As stated in the article, the launch of a premium airline by Qantas is going to trigger responses from rivals such as Singapore Airlines and Cathy pacific. They will do all things possible to maintain their dominance in Asia and mostly the route to Tokyo and Hong Kong to Taipei and Singapore. However, this will take time and determination for it will require time, skills, resources and lots of money. Qantas need to be aware that it is venturing into a new territory with diverse culture and politics and has to develop her brand from scratch. This will not happen overnight but with the right efforts and commitment they are going to make it. Finally, what matter most in this case is the execution of the ideas already conceived on how to implement change. Article four All a Boart as drilling on surge The Sydney Morning herald: 20th August 2011 Summarize Many organizations are crying foul due to ever pinching, sweeping economy. But this is with the exception of Baort Longyear which does not feel the impact of economic crisis for it is registering profits all season. This organization has recorded double of its half profits meaning that its sales are ever increasing. The strategies applied to run this organization contribute in a big way the progress attained. Issue As many organizations go for strategies to help them stand in the stumbling global economy, this company is working towards increasing its market share and maximizing profits. Utah based drilling company operating in more than 40 countries was hard hit by the financial crisis and this made the junior miners collapse. But Boart had concentrated in developing its business with the major miners and this has made it play safe because the junior minors are only 12% of its revenue. Implications Due to the tactics applied in managing this business, profits keep on increasing regardless of the financial crises that is affecting each and every company. Boart has increased its source of revenues from mining in relation to certain more exploration expenditure which account for half of its revenue. However, it has not clocked the best when it comes to the wider market share and this is attributed to the rising labor and material costs. Article five Bumpy ride on the shrinking Kangaroo (Qantas faces identity crises in its shakeup) The Sydney Morning herald: 21st August, 2011 Summarize Brenna IT is a company that offers IT solutions to small and medium sized entities and when it started it noted there was a very big gap in the mid market that was not taken care of. This was contributed by the fact that suppliers sold software and hardware but none bothered whether the customers got the best from the IT solution they sold. Brenna IT therefore ventured into a market and was able to come up with innovative products that met the market needs. Issue Many suppliers just sell their products to the customers, but they don’t follow up to see whether they are of any help to them. Furthermore, customers may incur some expenses of some software that they may never need or use. In this case there was a need to develop a solution whereby customers buy what they want to use and the pay as they use. This created a virgin market which is not yet ventured but needed precise innovation so that the needs of these customers can be met satisfactorily, Due to the rapid growth, there was a need to come up with procedures of how to carry on with the business so as to ease operations. This brought about the manual which defined what each n every leader was entitled to. This was designed to change how they handle customers and the formulas of success. Implications Having ventured in a market segment that was not flooded, competition was minimal and therefore there was a chance for a very quick growth. This caused the company to have very many employees after a very short time and this transpired to so many customers who were to be handled by the company. Having such growth, the company is financially stable and even after the financial crises they are still standing tall. Read More