The New World
People are seeking for their best alternative choices currently. Consumers are looking for the best methods of spending their money. If the company does not stay competitive by developing new strategies, it could go out of business or lose to their competitors. Companies might face tough decisions of cutting costs through reduction of wages and outsourcing. Outsourcing became very popular in 21st century as a result of the modernized technology, free trade and globalization which have made communication and trade efficient globally and in a faster way. In this situation the company has to make decisions between outsourcing that will help the company very much by cutting costs and option B which involves keeping the main labor in the Concord and helping maintain the Concord’s economy. Each option has its own pros and cons but I believe that between these two options, the company should opt for option B since even if its is expensive, its benefits are more and leads to the prosperity of the company in the future.
Some might argue that outsourcing is beneficial since it reduces a lot of costs as it offers flexibility, short time to prepare the necessary places required and lower wages (apple). This research is not enough since there are more facts as compared to these ones. We should focus on china for example where manufacturers can perform their work in just fifteen hours as compared to the US where they could do so using three months. China did not have to meet the standards of product quality and workplace safety standards and many more others. This resulted in dangerous (Wal-Mart) (Powerful garment industry fight off regulations (kimchi). In this case, the company might have to pay more if a company which is starting to sue or have suddenly shut down as a result of the workers deficiency. A company also put itself in a risk when outsourcing. They have to remotely transfer information including confidential data such as research and development of the product, product strategies or even pay roll which could be exposed or leaked by the manufacturers. Outsourcing is cheap since the manufacturers are working for many companies at a time. This is mostly applied by china which produces products and sell them at a lower price than expected the company may end up losing money instead of making profits as expected.tis is happening to the us economy which is declining lately. Outsourcing would decrease middle income jobs and result to higher income inequality gap which the US is already the experiencing. The image of the company by doing this is damaged where customers boycott from buying such goods from those companies (Wal-Mart). The company should pay its workers well for them to appreciate the working environments for example in the case of Bangladesh (cite Bng).the companies should pay their workers better for them to continue working which leads to making of profits.
On the other hand, we will still have to lay off 30 percent of worker and also reduce 25 percent or the remaining wages over the next three years. This of course does not seem to be a good idea. It only guarantees viability for company only 2-3 years. In these three years it is still important to note that consumers will not find the product more special or attractive. Many consumers are interested in the quality of the products they are buying and not necessarily the price. Consumers are interested in the healthy goods which are of good quality companies are also considerable for example timberland and Burma gives their employees a one week leave unlike Pepsi thus many employees withdraw from Pepsi(citing page 211). The main aim of these companies is to make profits as a way of attracting many customers. Majority of people will still prefer shopping online (Amazon) but if we notice, now Amazon also have a Banner, Made in US they do so in order to increase the number of sales. Consumers are more attracted to companies with a good brand image and thus such companies are seen to make more super profits than those with a damaged brand image. Thus companies should maintain good images and reputations.
As a result from the analysis and weighing of both parties, keeping main labor in the city of concord would be a better choice to make at this point. Not only this option will help to improve reputations and operational efficiency but also reducing risk exposure and encouraging loyalty and innovation (Reader 215). The company is more likely to get a loyal or long term customers whose trust the company which is very important according to today’s society where decisions keep on changing from time to time. The companies are giving employees their rights which enhance their images. This contributes to employees remaining motivated which will in turn contribute to huge profits to such companies with good working conditions.
In our world today, when capitalism is taking control sometimes it’s inevitable that companies have to make tough and hard decisions to enable their survival. This is one of the biggest problems that create inequalities. Many companies find it difficult to employ capitalism which should not be the case. Companies should use method as one way of creating a good image and reputation to the customers. This will in deed attract more customers and as a result increase the profits of the company.
