Tuesday, October 11, 2011

Market Building Strategy vs. Cost Minimizing Strategy

There is a large difference between a market building strategy and a cost minimizing strategy. These strategies are completely different. A market building strategy is a strategy that seeks profit by building up markets; not violating human rights. Where as a cost minimizing strategy increases profits at the employees expense. For example, in the United States labor laws are enforced. In third world countries labor laws are hardly enforced. Most of the people in the United States work in friendly, comfortable, safe environments for a higher pay per hour. While in third world countries people work all day with no breaks, in a hot, unsafe, unbearable environment. When thinking about these strategies, human rights play a big part. Companies can respect human rights by promoting their company to even out the costs of fair labor or they can violate human rights by paying an extremely low amount for an unreasonable amount of hours. By paying their employees less they make more profit on their goods.

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