In today’s global economy, in order for a company to be totally successful in the business world they need to take into consideration 2 very important aspects. Although at first sight it may appear to seem that social obligation and social responsiveness are the same, they are quite different and include different tactics and strategies that need to be taken into consideration before launching a product in ot the global market.
To begin with, social obligation occurs when a company takes certain actions in order to meet requisites set out by the government in order to meet the economic and legal responsibilities. This would basically focus on product safety and in product liability to say in a nutshell. These product safeties are certain standards to which a product must adhere to, these would include aspects as health standards, ensuring that a product has a label that includes a date of production just as an expiry date; it must also include an ingredient and nutritious information just as the hypersensitivity reaction that can occur. Before a product can enter the market the company needs to ensure that a label is intact on the product, this label must include especially include the place of production, and which company is responsible for the product. It must also include all the ingredients, this is especially important as in this way a customer can easy sight if an ingredient used may be dire to their health as different people are allergic to different ingredients. The date of production is important but what must not be omitted under any circumstance is the expiry date as this entails up to what date the product is consumable without giving side effects if no hypersensitivity is present to any of the ingredients.
There are various strategies of expanding one’s business. The decision of which strategic move to choose is generally depends on internal conditions of the business in discussion. There are companies that manage to stay in their local markets and continue to harness growth from it, while others discover potential markets in foreign countries that drive them to expand. In the case of business ...
This label must also include the country of production and the company responsible for the product. This is deemed as obligatory because in the effect that the product does not meet all the regulations on the market they can easily be found and help liable for the product and its faults. This is exactly where product liability comes into play. If faults are found with the product the government or customers affected can hold a firm and its officials responsible when a product causes injury, damage or death.
On the other hand, Social responsiveness is seen when a firm engages in social actions in response to some popular social need. This is basically a company giving back to society. This can be better explained using a very local example. Let’s take Chuc’s Service Station for example, this business venture is said to be quite successful due to the preference of the public to this certain service station. Mr. Chuc in response as a gratitude to society offers to be the official sponsor of the Hankook Verdes Team.He makes it his responsibility to take all the expense in regards to the ell functioning of the team. A perfect example of how he is giving back to society.
In conclusion, a company must see to it that all governmental obligations are met in regards to a product entering the market. Safety standards must always be adhered to so as to not have any product liability suits on the backs of these producing companies. I hereby reinstate that in order for a business to be quite successful they must see to it that all these regulations are met so as to have a prestigious product of the best quality in the market.
The Global Product Company concept means ”to concentrate manufacturing – and ultimately other activities – wherever in the world it could be carried out to GE’s exacting standards most cost-effectively”. That means that the production is moving to countries where people are mostly underutilized (the example given in the case study tells about engineers from Eastern Europe, who cost only $1,5/h). ...