smizari

Qatari Firms Blacklisted for Woeful Treatment of Indians

2006-04-26T13:41:00.000+04:00

It is well known that companies always looking to reduce its cost through various activities. One of these activities is hiring cheap labor, which is a good thing as long as those labors treated well and respectfully. However, it wasn't the case in several Qatari's companies according to "Qatari Firms Blacklisted for Woeful Treatment of Indians" article.

According to Baron Framework, mistreatment for labors is raising a non-environmental market issue which can be analyzed through four I's.

The blacklisted companies as well as those on the watch list have defaulted in paying salaries and other benefits to their Indian workers. The accommodation and in some case, the food they provide to workers, are "sub-standard", the official said.

Issue:
The main issue is the mistreatment to Indian labor in Qatari's companies. They are not paid on time, and the foods they provide to workers are "sub-standard".

Interest:

The two main interest groups in this issue are companies that are using cheap labors (Indian workers) and the employees themselves that are being mistreated.

Institution:

The 11 firms have been removed from the Indian embassy's prior approval category (PAC) in Qatar and will not be entitled to employ Indian workers any more.

Indian Embassy is the institution that is involved in the issue. I think that Qatar government should be involved in this issue since it is a Qatari's companies which reflect the country's image of how they treat other nationalities employees.

Information:

93 Indian construction workers in Qatar were allegedly thrown out of their labor camps by their employers after they lodged a complaint with the Indian embassy about non-payment of salaries.

It is clear from this part of the article that the information was transferred to the embassy when the Indian workers has complained about their working condition and what they are facing from their employers.

I think that these companies should think carefully about employee's treatment because that reflects their image to their customers. Customers are human beings, they are very sensitive to social problems and that affect their buying power in certain market. Since there are many alternatives in today's market and it is really a competitive market, these companies should be alert how to keep their customers and how to treat their employees.

Gulf Air says its business strategy will stay unchanged

2006-04-19T11:44:00.000+04:00

Gulf Air was formed years ago, since 1950, by partnership among three governments: Oman, Bahrain, and Abu Dhabi. Few months ago Gulf Air President and Chief Executive James Hogan said that Abu Dhabi, the third co-owner, was withdrawing from the alliance. He also said: "Gulf Air's business strategy would not be changed as both Bahrain and Oman confirmed". By reading this article "Gulf Air says its business strategy will stay unchanged" and speaking of business strategy reminds me of several elements of Hamel's frame work. CEO of Gulf Air has mentioned, "There will be no change to Gulf Air's core approach to business or to its on-going business strategy." This statement leads us to the following ponits:

Gulf Air Core strategy:

Business mission: "We will continue to build upon our successes, enhancing our brand and our services to reinforce our position as the leading airline in the region."
Basis of differentiation: Gulf Air will differentiate their business as they did for years by focusing on their customers, on their staff and on their services.

Customer Interface:
Pricing structure: Gulf Air made sure that they offer reasonable prices for their customers because the customers usually get attracted to low/ reasonable prices.

Value Network:
Partners: Gulf Air has formed partnerships among three governments to go on with their business (Oman, Bahrain, Abu Dhabi), but now it is only between Oman and Bahrain.

By the end of this article, we conclude that Gulf Air took into consideration that Abu Dhabi has withdrawal from Gulf Air in order to concentrate its efforts on Etihad Airline. Nevertheless, they are confirming that neither its strategy nor its performance will be affected by this withdrawal.

Disney to probe labor claims in China factories

2006-03-25T16:56:00.000+04:00

When I read this article " Disney to probe labor claims in China factories", it reminds me of StarBucks case, McDonald's case, and Nike case. All these cases raised non-market environmental issues included social, political, and legal issues. As a result it will effect the market issues which are related to customers, suppliers, and firms. So, this article can be analyzed through Baron's frame work.

"The Walt Disney Co. said it will investigate claims by a labor rights advocacy group of unsafe conditions at Chinese factories that make books for Disney. The National Labor Committee said the factories forced employees to work 10- to 13-hour work days and paid them below the legal minimum wage. "

The four I’s:
Issues:

Unsafe working conditions·
Long working hours ( 10- 13 hours\day)
Wage that is below the legal minimum wage.

"Disney said in a statement it had contacted Verite, a non-profit social auditing and training firm, to conduct an investigation of the claims. In New York, the National Labor Committee released a videotape of people with faces obscured to hide their identities who said they were workers...."

Interests:

National Labor Committee.
Verite a non-profit social auditing and training firm)

Institutions:

There is no main institution involved yet in these issues, but the government should be involved in it.

Information:

Interest groups know about these information through the observation when they visit the factories. In addition, the information is published through media ( internet and news papers).

Knowledge Is The Life Blood

2006-03-09T16:14:00.000+04:00

In "Knowledge Is The Life Blood" there is a debate between the information technology managers and knowledge managers. The main idea that has been raised in this article is the importance of organizational knowledge in improving the business. There is maybe a disagreement between the employees in certain business about knoledge management, but there is no doubt about the importance of knowledge and the information itself. "Charles Babbage, the mathematician and economist, argued that better use of knowledge and technology could both make businesses more profitable and raise the standard of living for workers." This reminds me of Hamel's frame work when he mentioned the four elements to create a wealth potential of your business: Efficiency, Uniqueness, Fit/Alignment, Profit Boosters. Profit Boosters is not only how to make your business profitable but really profitable. Peter Senge, professor at MIT's Sloan School of Management, described "the organizational learning cycle". He described the cycle in three main components. It starts with learning a new skills and capabilities in order to be more capable and confident. This will lead to changes how employees view themselves, their jobs, their colleagues, and their customer. When this kind of knowledge and skills will be available to the members of any business of course it will improve the performance of it. And this kind of learning that Hamel's mentioned in how to increase returns through learning effects. With more knowledge and skills you can win over your competitors.

Retailers Must Do More to Stay on Top of Competition

2006-02-08T16:34:00.000+04:00

The name of the article itself points out that in order for each business to stay in a good shape in the market it should work hard and do more efforts. The market in Middle East and especially in Dubai, as it mentioned in the article, is in the peak of success and it continues to grow. Thus, the companies and businesses should follow the same direction of the market or other wise they will left behind. As leading retail analyst said, “Retail outlets need to deliver experiences, not just the basic goods and those who don't maintain market buoyancy may be left behind.”

This article refers to main points in Hamel’s frame work which is regard Business Concept innovation. This concept is more about going around competitors (avoidance) than attack them or works against them. I think that both core strategy and customer interface are fit in this situation.

First, the core strategy of the firms (how the firm chooses to compete) is trying to be different in the basis for differentiation since there is severe competition, as McArthur said, “Competition will be fierce as the amount of leasable area will double to over 118 million square feet by the end of the decade.” In addition, the firms always try to come up with new strategies to keep up with the consumer revolution, and to attract as much customers as they can. Of course we can recognize that they are really succeed in there way of thinking and managing their businesses at this time of sever competition. According to McArthur, "We are definitely moving along in the right direction. If we take the UAE for example, it is now the third most successful country in the world at shopping centre marketing."

Second, the article illustrates that customer interface strategy is really well used by the people who are in charge of Dubai Festival City as it stated in the article, "Therefore, strong offerings in family entertainment, multiplex cinemas, large food and beverage components and theme parks are all being planned to keep consumers entertained."

Google Is Destined To Fail In China

2006-02-01T13:41:00.000+04:00

One of the factors that determine the wealth of the business model is to be profit booster which is trying to make your business not only profitable but really profitable. Google is a very well known search engine around the world and like any other profitable business, Google tried to increase its returns and expand its success more and more. Hence, Google attempted to enter China market as a huge competitor. In this stage, Google really did a big mistake by ignoring the history of China market and the fate of the previous foreigners companies who entered China. According to Perry Wu, "They entered China to win, but left only remnants of their power after a few years' struggle." To be really a strong competitor you should apply at least one of the competitors' lock-out approaches which are preemption, choke points, and customer lock-in. In Google case, they couldn't apply any of those approaches. They were trying to get into a market which already has its leaders in China which mean that other competitors took the opportunities. In addition, Chinese customer already got used to what they have, so their loyalties are going to Chinese companies. Hence, Google faced another problem in getting to this market. One more thing related the nature of the Internet business in both America and China. In America, Google is controlling and specializing in Search sector. Every internet company is specializing in a sector. However, in China competitor Internet companies have developed a symbiotic relationship and they are all providing the same services. Consequently, Google is not used to this kind of competition, so it is not going to succeed in China market.

Test Post

2006-01-22T01:46:00.000+04:00

Test Post for MGT 406 at AUS