Benefits Of Outsourcing To Host Country

Benefits Of Outsourcing To Host Country In spite of the recent global economic recession, the worldwide business outsourcing market has achieved tremendous growth, According to one of famous International investment consultancy firm known as McKinsey Company predicts that the demand for outsourcing services will obtain $230 billion by in 2011 from whole worlds and it will grow and by 10.5 percent (compound annual growth rate.). In the current business world many large organizations are outsourcing various jobs for example call centre services, payroll, e-mail services, Business Process Outsource and HR. As example: HSBC Bank has outsourced their call centres and Electronic Data Processing at India and Sri Lanka. AVIVA Insurance outsourced their call centres at India and Sri Lanka. IBM has outsource business Transformation system and customer contact work [call centres] at India 1.1 Outsourcing Outsourcing can be defined as contact between two companies to provide services which might otherwise be performed by in-house employees. In todays world there is trend of outsourcing .Many multinational companies are now outsourced various level of jobs, as example such as call centre services, payroll management-mail service assistance. These outsourced jobs are handled by companies who have skilful labours who specialize to provide in services which are located outside the home country. In today business world Outsourcings has become latest trend which is becoming more common in information technology field. 1.2 Reasons for Outsourcings There are various reasons behind for outsourcings. Following section will describe the reasons for outsourcing: Improve Goal Congruence Outsourcing allow management to make attention on the vital or core business issues related with meeting customer needs and maintaining day to day issues. Outsourcings Allow To Access World-Class Capabilities Each notation is specialization in their own core activities. Ex: Qualitative labour-India. Advance technology-China and Japan. Outsourcing allow to access world-class capabilities, including innovative technology and so forth Share Risks With Different Peoples Outsourcing allows management spread certain level of risks as example demand variability and capital investments. Provider Free Resources for non core activities Outsourcing allowing organization to concentrate on non core activities and it allow to allocate those free resources among other activities Reducing Cost By Economic Of Scale Outsourcing allows organization to provide services at lower cost structure, which resulted from economies of scale. Reducing cost is the most persuasive reasons for outsourcing. Allow To Use Resources Not Internally Accessible Outsourcing is most preferable opportunity for companies that have potential to rapid growth, expansion into a new geography area , or spin-offs . Outsourcing Allow to use Resources not internally accessible Allow To Mange Functions Are Difficult Control problems are a one of major reason for outsourcing. However, managers have to find out underlying causes for difficulties rather than outsourcing Even though there are various reason behind for outsourcing , ability of obtaining cost advantages is The main objective of outsourcing is, But lot of organizations are fail to realize any cost advantages received from outsourcing. The famous investment company Gartner is predictive that in 2009, 80% of organizations outsourced by having primary goal of coat cutting bit they are unable to achieve their primary goal of cost cutting, because there are various hidden cost of outsourcing. Such as outsourcing companies have high level of staff turnover rates than other organizations ,Normally it is high as 80% 100%, cost of losing client due to increases of frustration. Therefore outsourcing must be fully monitored. Can easily fail. 1.3 Different Types of Outsourcing Outsourcing can be different type. Following section demonstrate the different types of outsourcing 1. BPO Business Process Outsourcing BPO is the contact between two companies to handle business activities on behalf of another organization. The big companies in developing countries .such as USA, UK,Australian etc.., outsourcing their back office function to India to get cost advantages and quality services. E.g.HSBC and IBM outsourced its employee payroll, data entry, voice calling activities to India 2. LPO legal process outsourcing LPO is the contact between two companies to process legal activities, such as patent application drafting, legal research and so forth. 3. RPO Research Process Outsourcing. This is most famous outsourcing method in the biotech industry. Customers outsource their RD work to external parties. RPO also stands for Recruitment Process Outsourcing. 4. HRO Human Resource Outsourcing. Human resources management comprise training, staffing, payroll management etc. These activities are outsourced by external companies that are located overseas. Ex In the US market, HRM outsourcing is a vast area. The amount counter for HR outsourcing is 29-30% of the total outsourcing 5. MBPO Medical Business Process Outsourcing. 2.0 Call Centres Outsourcing The call centre industry comprises 80% of the total outsourcing industry in the world. that is why normally outsourcing refer and known as call centre outsourcing . A call centre outsourcing is that external party performs the part of a clients business which handling telephone calls. Outsourced call centre handle customer complaints over the telephone. Call centers actually start on as plain provider e-mail response and managing services. But in todays world outsourced has been spared in vast area. it cater huge areas ,such as providing technical support over the phone, handling customer relationships , arrangement of travel services, , provide educational consultation , customer care assistance , financial services, and provide online business to customer support Two different words go together with outsourcing, that is BPO and Call centre.Call centre can be stated as a BPO organisation. A Business Process Outsourcing (BPO) organization which is responsible for performing a process or a part of a process of another business organization. Call centres can be outsourced to following functions Call canters can be divided into major two parts Inbound contact centre Inbound contact centre mainly encompasses customer oriented services such as provide customer assistance, sales inquiries assistance, troubleshooting solutions, and credit card process. Outbound call centre. An inbound call centre also implements customer services as well as it became live representative to provide extreme satisfaction to its customer and enhance the performance of the organization. 3.0 Benefits 0f Outsourcing to The Host Country This section will discussed Benefits of outsourcing call centers to the host country. Current trend in the call centre outsource market is the Asian countries. That is lot of call centers are located in Asian Countries such as India, China, Sri Lanka, Thailand, Philippine, and so forth. in outsourced market, India is the market leader in the international outsourced by grabbing big market share which is more than 80 %.this is basically due to its well fluent English speaking skilled workforce and low level of salary range when compare to developed countries salary range. India salary range is 80% lower than developing countries like USA, UK and so forth .Other feasible locations for off shoring in Asia include China and the Philippines, Sri Lanka .this will further elaborated by using diagram [Figure 1] HSBC has one future plan to open wholly owned BPO subsidiary known as HSBC Electronic Data Centre in Kolkata, India,which forecated to employed 2,000 staff working on back-office operations, HSBC has another BPO at Naina Lal Kidwai India, , has employ 2,000 staff HSBC is spreading the network of processing centers by opening a new business process outsourcing centre in Sri Lanka to provide data processing and customer service facilities for the banks global operations. The new centre at Colombo Aviva has plan improve 5,000 employment opportunities in relation to business process outsource (BPO) services in India and Sri Lanka Figure 1: Distribution of Outsourcing Operation Is outsourcing desirable or undesirable? It is still debatable. Outsourcing provides various benefits to the home countries which is business is undertakings as well as the country where services are being or will be provided (Host Country). This assignment is basically based on outsource call centre in India. India is one of the worlds leading providers of call center services .India is the most favored IT/BPO destination of the world. There are lots of the big MNCs all over the world are interested in outsourcing their operations in India. This report will discuss the benefits of outsourcing to host country. To develop this report India is consider as home country Why India is selected for outsourcing? The answer is very straight forward. India is full with large skillful labour forces. India produces the largest number of graduates in the world. This lead to improve skilled labour forces in India. Call center Outsourcing offers many advantages to the country where the services are being provided can be discuss as follows: 1. Improve Economic Growth of Host Country Call centre Outsourcing brings cost advantages and increase in profits in macroeconomic terms to both home countries which business undertakings as well as host country benefits in various aspects. During last few years India has achieved tremendous growth rate by contributing services of off shoring. According to market research, India has been benefited extremely from growth in this outsorcing area and the rate of growth is above the expectation level. In the fiscal year that ended March 2010, Indias IT industry and outsourcing call centre revenue was $16 billion, and $8.5 billion of this was from Call centre Outsourcing services. According to market research ,It is forecasted that the countrys IT related services and call centre Outsourcing services exports will reach $30 billion by 2011 .Market research conduct on outsourcing predicted that the global call centre outsourced services will encounter for revenues of US$1.2 trillion by 2011. Finally, providing outsourcing services will lead to improve Economic growth of host country and Indian gross domestic product can be expected to grow at 8.5 +/- 0.25 per cent (in fiscal year 2010/11). Share of call centre outsourcing from total exports can be graphically shown as follows Figure 2: contribution of outsourcing to Indian Exports 2. Reduce Unemployment and Create New Employment Opportunities Outsourcing services will be the good sign for national unemployment in India. Services off shoring will lead to expand employment opportunities in developing countries like India. India has pawed the way for a significant number of jobs In terms of growth in off shoring area. According to market research and statistic Call centre outsources are projected to increases employment level up to 1.1 million by 2011 and 3.3 million by 2015 and in the telecommunication industry alone, it is forecasted that straight job creation is reach 2.2 million by 2011 as well as outsourcing will create a further 3 jobs which are not core related to outsourcing as well as Reduce unemployment and create new employment opportunities. It can be shown as follows [Figure 3] Figure 3: Unemployment Rate vs. GDP Growth Rate Example: HSBC is off shoring processing looks locations which enables to obtain work with lower cost ,to provide low cost qualitative services to Asian countries .in Asian news paper it indicate that in developed countries. These locations take on work such as data processing and customer service, but also internal software engineering at Pune, Hyderabad (India), Vishakhapatnam (India), Kolkata (India) , and 65,000 people were working in the call centers over the next two years Even though outsourcing is great solution for unemployment it has some negative impacts. Outsourcing is a management tool that has a great amount of emotions. Upon hearing about outsourcing, majority of the employees fear that they will lose their job. Like any other managing change in an organisation, workers resist and hate the concept of outsourcing. In both cases of off-shoring and outsourcing, in the short term, there are risks of job losses, but the gains from relocation could lead to the creation of new jobs and outsourcing is a great opportunity for the employees to get a better training, development and career opportunities. 3. Women are equally treated in providing Job Opportunities Outsourcing will provide equal job opportunities to women in India. The ability to complete far-off locations job that located very closer to their town lead to improve womens employment level. This is the one of major motivation factor which provides chance more female to enter the off shoring employment. For women, the unemployment rate has trended slightly downward over last few years, while the jobless rate has fallen quickly. [Figure 3-Unemployement Rate of women].This indicates that more women have entered the labor force during last few years. This factor has directly link to the employments opportunities created by outsourcing call centres in India. Example: According to market research, which indicates that 49 %of Wipros (a large Indian off shoring company) workforce is female, while ICICI OneSources workforce is 60 percent female . This will indirectly lead to improve employment level their earning capacity Figure 4: Unemployment of Women 5. Outsourcing provide motivation for Education One of major reason for outsourced manufacturing is cost .that is basically outsourcing relies on a basis for cheap, but with well educated and highly skilled workforce. The highly skilled labours are created from well established education process. In India the payment level provided by employees who are working in the outsourced companies are above the industry average range of salary. On other hand this type of employment can be considered as more respectable job. So all these factors lead to motivation to be part of outsourced company. so become employer of company potential candidates should have sufficient level of skilled including fluency of English. In a nutshell Outsourcing provide motivation for Education 6. Host country Consumers get Advantages of Quality of Services Some time The call centres being provide same services to host country local customers[Ex:India] as well as home country customers [Ex:US market ] .as a results host country customers enjoyed by getting qualitative services which are normally served to developing counties. Example: In 2009 HSBC established call-centre in Sri Lnaka which providing same services to host country local customers [Ex:Sri Lanka ] as well as home country customers 7. Transfer of Advance Technology to Host Country Outsourcing call centres will lead to transfer Technology and knowledge to home country. Outsourcing requires appropriate technical sophistication. For example, it is essential to have reliable and inexpensive communication links with the rest of the world when doing outsourcing. Host country can get massive advantages from latest technology in short term as well as long term. There is no limitation to transfer technical knowledge. 8. Improvements in Human Asset Export-oriented field have been shown to get better the quality of human Asset .outsourcing lead to Improvements in Human Asset 9. The Outsourcing processes is more environmentally friendly Outsourcing does not lead to adverse negative externalities, such as environmental pollution and labour expropriation. The impact of this type of negative environmental externalities is normally at ignorable level. Because it is very difficult to calculate these negative impact to the society and environment. Because the actual consequences which exposed to the world after a long period of time. 10. Rapid Expansion of the Services Sector The amount of employment level in service sector is about 30% , Based on marketing research, in developing countries, , 83% of the US employments market is non-farmers who are employment in services sector, There is high tendency to the growth of jobs in the services sector .it is estimated that in USA market more than 97% of the jobs created are service related jobs during the 2012 4.0 CONCLUSION In conclusion, Outsourcing has positive impact on both Host country and Home Country as well. Outsourcing Call centre helps multinational companies like HSBC, AVIVA, IFS and etc. to create a higher value at a lower cost through getting location advantages and low salary rate skilful labour. Host Country will be benefited by transmitting latest technology, global training for the employees, creation of massive job opportunities and rapid growth in GDP. On the other hand The benefit arrived for home country due to outsourcing is , people who live in home country need to less amount of money to purchase well qualitative goods and services, this lead to improve greater savings in home country which finally affect positively in home countrys economy In particularly while host country is being getting advantages of the outsourcing at the same time the employees in the home country will be affected by the facts of unemployment. Because outsourcing the jobs have possibility to lose. The developing countries like India , Sri lanka get benefited because of outsourcing , but in other hand the people in the first world nations will suffer from unemployment. Even though it improve unemployment level of economy of home country, it positively affect on home countrys economy by improving GDP. Then this leads to improve productivity on global economy. Outsourcing is a one of the latest and successful management strategy that has a huge amount of advantages. Lot of the employees are in under pressure .because they have fear of losing their job because of Outsourcing. Therefore employees dont like to engage with this concept even if there are many advantages exist to all parties.

Examples of Differences in University Education :: Teaching Education

Examples of Differences in University Education You know, there is not all that much I would actually change about this university. Sure we could use some better facilities and the more diversity the better, but those changes have to take place over time, sometimes a long time. For now I am content with the prospect of throwing out ideas used by other universities to either increase student recruitment or enhance the image surrounding our college, that has without doubt been tarnished in past years. One example of how we could increase the ease on the perspective student milling around our website is to take a note or two from the University of Oklahoma in Norman, Oklahoma. The university of Oklahoma is seen as a highly academic institution along with having an advanced sports program. The Oklahoma Sooners went undefeated this past year. The good thing about their website is that it is very easily navigational, which is a plus because prospective students aren’t in the mood to have to siphon through presents addresses and alumni paraphernalia to get to what dorms they will be living in. The website also has a clearly defined area for the different colleges that are found with the walls of the University. One thing I myself had a problem distinguishing when I first started to look at Washington State University. Along my web based trip through colleges in the United States I also came across Plymouth College in Plymouth, New Hampshire. Now although this college seems to have a lot of the same basic attributes we do here at Washington State I found that they facilities they provide to their students to be far above our own. Not only do they provide the typical state of the art computer labs and rec. center, but also in some halls they have sectioned of soundproof music rooms for those students participating in things such as the symphony orchestra or band. In one hall they even have a ski tuning room , maybe a little more of a necessity in that part of the country but still really cool. I think the more exciting and significant part of my glimpse into this college was the fact that in every hall the students were allowed to enhance their living space by doing pictorials or murals on the walls.

Barry Bonds and Steroid Abuse by Athletes Essay

On a warm, sunny morning on July 24 in the year of 1964, Barry Lamar Bonds was born in Riverside, California. He was born the son of Patricia and Barry Bonds, a former major league All-Star. As he grew up, he attended Junà ¯Ã‚ ¿Ã‚ ½pero Serra High School, in which he excelled in baseball, basketball, and football. During his high school years, Barry was part of the varsity baseball team and was drafted by the San Francisco Giants when he was a senior. Barry Bonds had declined the Giants’ offer and attended Arizona State University instead, where he continued to excel when playing baseball. After graduating and receiving a degree in criminology in 1986, Bonds was drafted by the Pittsburgh Pirates and began his major league career in the MLB. Barry Bonds made his major league debut on May 30, 1986 with the Pittsburgh Pirates. In his first season he had 16 home runs, 48 RBI, 36 stolen bases and 65 walks, while playing centre and left field and he batted as the leadoff hitter. In his second season, Bonds obtained 25 home runs, 32 stolen bases, and 59 RBIs. Barry Bonds continued to expand and get better each season. In 1987 and 1989, Bonds recorded 19 home runs, 58 RBIs, and 14 outfield assists, and was second in the MLB. Barry Bonds received his first ever MVP award in 1990 and continued to be awarded numerous Gold Glove and Silver Slugger awards with the Pirates until 1992. In that year, Barry Bonds opted for a salary too high for Pittsburgh to meet; therefore he was forced to resign. Barry met Susann Branco in August 1987, in Montreal, Quebec, the soon-to-be mother of his two children. They both eloped to Las Vegas, Nevada on February 5, 1988 and married not too long afterwards. Their first son arrived in 1990, named Nikolai, and their daughter, Shikari, arrived a year later. They then separated in June of 1994 and finally divorced in December of the same year, which was said to be caused by mutual abuse and also said to have been a media affair. Barry Bonds then married again on January 10, 1998 in San Francisco, with Elizabeth Watson. He had one daughter with her named Aisha, born in February of 1999. Despite all of the negative publicity and comments the couple has surpassed, the Bonds’ marriage is nearing its end. Barry Bonds then followed in the footsteps of his father and godfather by joining the San Francisco Giants in 1993. Barry remained a Giant for another fourteen seasons, earning countless awards and creating new records; Bonds was at an all-time career high. In 2003, controversy began to revolve around Bonds, and was referred to as the â€Å"BALCO Scandal.† Barry was alleged to have lied while under oath about taking steroids. His trainer, Greg Anderson was accused of supplying steroids to several other athletes as well. Bonds was charged with four accounts of perjury and one account of obstruction of justice, with its trial set to be held on March 21, 2011. On September 21, 2007, the San Francisco Giants confirmed that they would not be re-signing Barry Bonds, leaving him as a free agent, and he still is one currently. Rumours blamed the BALCO Scadal as the reason why the Giants did not re-sign Bonds. Major Accomplishments: > Graduated from Michigan State University in 1986 with a criminology degree > Drafted by the Pittsburgh Pirates in 1986 > Awarded 7 MVP awards throughout his career in the National League > Earned 8 Golden Glove Awards throughout his career > Obtained 12 Silver Sluggers as an outfielder > Part of numerous clubs such as the 50/50 club, the 500 club, and the 600 club > 3-time MLB Player of the Year > 14-time All-Star > He recorded 762 home runs, 2,558 walks, 688 intentional walks, 1,996 RBI, .444 on-base percentage, 2,227 runs, 2,986 games, 1,440 extra-base hits, 12.92 at-bats per home run, 5,976 bases, 601 doubles, .607 slugging percentage, 514 stolen bases, 9,847 at-bats, 2,935 hits, 77 triples, 91 sacrifice flies, and 1,539 strikeouts > And much more†¦ Effect of Steroids on Barry Bonds’ Career: Barry Bonds was always an amazing athlete, even before he allegedly began taking steroids. He was going to be drafted into the National League at the mere age of 18 (an offer which he politely declined). He had already won 3 MVP awards and passed the 300 home runs mark, before being said to take performance-enhancing drugs around 1998. After the year Barry Bonds was said to have taken steroids, his career was beginning to reach an all-time high, which was rumoured to be the effect of steroids on Bonds’ body. There were tests done that conclude that Barry may have used a steroid-like substance, leading to his rebuttal, in which he attempted to place the blame on his trainer for â€Å"tricking† him into using steroids. This may have been Barry Bonds’ way of trying to remove the responsibility of taking performance-enhancing supplements from himself and onto his personal trainer, Greg Anderson. Even if the rumours weren’t true, the allegations thus led to the downfall of his career. Supposedly, his career lasted for another 9 years, after his substance abuse, but ended in 2007 when his contract with the San Francisco Giants expired and they did not sign Bonds again. Barry hasn’t retired yet, and as a free agent he is still looking for a contract, although he may not receive one due to his alleged steroid use. Why Athletes Use Steroids: There are several psychological and sociological reasons for why athletes would like to and have used steroids and other performance-enhancing drugs. One of the big causes of steroid use is low self-esteem; an athlete may be insecure and is scared of performing poorly, letting fans down, or of embarrassing themselves, so they look towards drugs to enhance their performance. Sometimes athletes believe that if they don’t look bigger or stronger than others, they aren’t as good as others, which isn’t always true. Other athletes may be aiming to be number one and nothing less, but they want to take a short-cut by using steroids, so they can get instant results. They believe that once they perform better, they can also make more money, get more endorsement deal, and more. Constant pressure from teammates, coaches, and society leads to the use of this drug, therefore the athlete cannot always be blamed. These all may be liable reasons, but they aren’t good enough to make steroid use acceptable. How the Body is Affected by Steroids: Both Sexes: * Increased risk of mood disturbances including mania and depression * Increased risk of psychosis * Increased risk of aggressive acts which may injure self or others * Increased risk of cardiovascular disease * Increased risk of liver disease and cancer * Increased risk of kidney disease and cancer * Risk of HIV and Hepatitis B & C from contaminated needles * Acne * Bad breath * Decreased sex drive * Baldness * Water retention * Muscle cramps * Aching joints * Increased risk of muscle tears * Increased risk of tendon injuries * Increased risk of nose bleeds * Insomnia * Decrease in immune system effectiveness * Infertility Men: * Increased risk of prostate enlargement and cancer * Decreased testicular size * Gynecomastia (growth of breasts) Women: * Increased risk of cervical and endometrial cancer * Increased risk of osteoporosis * Irreversible enlargement of the clitoris * Irreversible hoarsening and deepening of the voice * Irreversible increase in facial and body hair * Decreased breast size * Amenorrhea * Uterine atrophy Children: * Short Stature * Premature ephiphyseal closure Taken from: http://www.musclenet.com/steroid.htm A Natural and Legal Way for Athletes to Improve Their Performance: Improving an athlete’s performance isn’t as complex as it’s believed to be. Athletes just have to follow simple lifestyle rules every day to help boost their athletic performance naturally and legally. An athlete just needs to follow the workout routine specific for what sport they are participating and while they exercise they must rehydrate, replenish their body with carbohydrates and protein, refuel electrolytes, and practice a lot. Athletes can also do specific exercises to work on things like their swing, speed, kick, etc. For example, if a baseball player wanted to work on the power of their swing, they would use a heavy, lead bat and practice batting with that, gradually increasing their strength. This may be the â€Å"long road† to improving athletic performance, but it’s also the natural and legal way. Bibliography: 1. 15 Simple Ways to Improve Athletic Performance. http://www.hammernutrition.com/ hnt/2227&OMI=10126,10071&AMI=10126&RETURN_URL=%252Fza%252FHNT%253FPAGE%253DTRAININGTIPS%2526OMI%253D10126%252C10071%2526AMI%253D10126&RETURN_TEXT=Performance%2520Tips/ Copyright 2011, Hammer Nutrition LTD. 2. Barry Bonds Bio. http://www.jockbio.com/Bios/Bonds/Bonds_bio.html Copyright 2007 Black Book Partners, LLC. All rights reserved. 3. Steroids – Pros and Cons. http://www.musclenet.com/steroid.htm Copyright 2005 MuscleNet.com

Theoretical discussion of Nikes labor standards in foreign nations - Free Essay Example

Sample details Pages: 5 Words: 1514 Downloads: 1 Date added: 2017/06/26 Category Business Essay Type Narrative essay Did you like this example? What labor standards regarding safety, working conditions, overtime, and the like, should Nike hold foreign factories to: those prevailing in that country or those prevailing in the United States? The unsuccessfully of labor standards which are child labor, hazardous working conditions, excessive working hours, and poor wages in developing countries are still the major problems. In order to increase company profits, Nike then reduces the cost by having the low labor wages paid. The multinational corporations such as Nike needs to developed code of conduct for their suppliers to make its unidirectional and correctly. The meaning of a code of conduct is the code that provides a guideline of ethical behaviors and values which company uses to follow when faced the problem in a day-to-day work (Locke, 2007). He also states that the code of conduct of Nike requires subcontractors to consider some basic labor, safety standards, and environmental and health. According to Kochan (2007), the codes of conduct do not protect the labor rights or improve working conditions but can limit legal liability and prevent the company reputation only. According to the case, Nike faced the problem of the low labor standards in foreign factories that are the subcontractors. Nike had become a sweatshop symbol of the evils of globalization. The definition of sweatshops is unsafe and unhealthy working conditions including low wages, long hours or work with no overtime pay, health or safety, and child labor (Banfe, 2001). The sweatshops will occur in the factories that have the problems of poor labor standards (Miller, 2006). For example, the company that pays the salaries less than minimum wages and forces employees to work overtime. The sweatshops and low labor standards are the important factors that can impact the economic development (Park-Poaps, 2009). According to Miller (2006), the sweatshops don ¿Ãƒâ€šÃ‚ ½t help low educated workers in the develop ing countries from poverty due to the fact that people have less alternative choices in choosing a job. A big American company  ¿Ãƒâ€šÃ‚ ½ Nike outsources the foreign factories to manufacture their athlete shoes. This will caused the United States has the impact on unemployment rate (Greene, 2007). Due to the fact, huge labor markets are needed to satisfy the demand which increasing continuously (Schwartz, 2000). He also states that the requirement of the huge labor markets will cause the talent is become not important. According to Greene (2007), the salaries are set based on the productivity level. No company can pay a labor wage beyond the productivity level. The reason of poor labor standards in terms of minimum wages and hiring child labor caused Nike ¿Ãƒâ€šÃ‚ ½s subcontractors to become a sweatshop. The setting of minimum wages should be cancel to deny the problems of the poor labor standards (Greene, 2007). The statistical analysis found that the anti-sweatshops campaign can increase the unskilled labor wages around twenty percent in the footwear factories (Miller, 2006). Regarding to safety, working conditions, overtime, Nike should hold the conditions with foreign factories which are Indonesia, Vietnam, and China. If Nike persists on prevailing conditions in the United States, there is unessential for Nike to look for outside countries manufacturers. According to Park-Poaps (2009), the research found that the foreign outsourcing firms have impact on the stakeholders and governance structure in terms of the public pressure. Nevertheless, through the pressure that Nike received from many groups of association, the company should find the solution to improve the working conditions or labor standards from the Nike ¿Ãƒâ€šÃ‚ ½s foreign manufacturers. If Nike can enhance its labor standards, Nike will receive benefits from the public relations rather than putting more effort. In addition, Nike can reduce the cost of developing public relation strategies. According to Park-Poaps (2009) in the recent time, the American companies place importance on corporate public relation in order to answer and perform the public response. The enhancement of labor standards in foreign factories could make Nike has good company ¿Ãƒâ€šÃ‚ ½s reputation. To avoid the problems of the sweatshops, the improvement of education and a living wage should be done by the government in each country (Greene, 2007). Moreover, the viable systems of labor conditions should be control and restrict by non-governmental association such as non-governmental organizations (NGOs) (Park-Poaps, 2009). Nike has got a high public pressure from the problem of sweatshop in the foreign subcontractor companies. Therefore, Nike should response to the public by creating the ethical labor management strategies which respect to human rights and also public relation management strategies based on the moral practice (Park-Poaps, 2009). Nike can also establi sh the codes of ethics in the corporate culture. According to Kantor (2002), the codes of ethic can produce a good effect on corporate social responsibility (CSR). The company that does the corporate social responsibility can create the company reputation in the positive way. Nike should put more effort in decision making when doing business internationally by having the ethical standards in human resource management in supplying company. According to Park-Poaps (2009) the ethical standards of the company can refer to the role of top management that can impact on the company reputations. The managers should present their higher standards as role models to employee in the way they should behave (Kantor, 2002). If Nike practices the better ethical labor standards, the company will receive good corporate image. Moreover, Nike should hold the foreign subcontractors to those prevailing in the United States by having the possible standards in term of working conditions and overtime that p rotect the basic rights of employees. In the production period, the productivity limitation within a day should not exceed employee strength and also should not hurt the worker ¿Ãƒâ€šÃ‚ ½s health (Schwartz, 2007). Regarding to the Nike case, the company could not meet the satisfaction of stakeholder which is the employees. The problem of employees seems to be the influential concern rather than other stakeholders. According to Schwartz (2000), a good company needs to meet the satisfaction of its stakeholders which are customers, shareholders, and employees. He also argued that if the employees lose their jobs, it is the company mistake. The emphasis of stakeholders especially in employees caused the company has more cost adding (Greene, 2007). He also states that many companies try to avoid the cost of labor by changing the ways in doing business. For example, the automated check-out counter in supermarkets and teller bank machines has been found in the developing world. T he cost saving is become a major concern at the present time when the economic problems occur. In addition, the technology changing is also the possible factor to reduce the number of workers. Therefore, the change in technology and the cost saving could be the cause of the unemployment in developed countries such as the United States. These factors lead the big company  ¿Ãƒâ€šÃ‚ ½ Nike needs to use the outsourcing manufacturers in foreign countries to produce their products. According to Locke (2007), the ways Nike response to the public pressure are that all suppliers need to sign the code of conduct and post within the factories. In the code of conduct, it provides the training and the staff to control all of suppliers. In addition, Nike has approximately one thousand mangers working in those foreign factories to responsible for training Nike ¿Ãƒâ€šÃ‚ ½s code of conduct and labor practices. Locke also argued that the new approval process of Nike is the three diff erent types of audit which are a basic environmental, safety and health audit, and a more in-depth management and working conditions audit. However, the codes of conduct of Nike seem to be unsuccessful in some countries which the problems of poor wages and inordinate work hours or harassment (Locke, 2007). Hence, Nike should continue to check and evaluate the foreign subcontractor firms. In another way, Nike can use the trusty auditor firms to inspect the accuracy within those manufacturers. In conclusion, the sweatshops are the major problem of Nike in doing business with foreign subcontractors to manufacturer their products. To eliminate the sweatshops, the related associations or government in those developing countries should come to look after and inspect Nike ¿Ãƒâ€šÃ‚ ½s subcontractors. The needed of the huge labor markets in the real world can create the obstacle in the working conditions such as a low wages paid, no overtime pay, long-time working, and child labor. On the other hand, the education and a living wage are also important factors that need to concern in order to solve the problem of unskilled workers in developing countries. Moreover, Nike should hold the foreign factories to those prevailing in subcontractor countries  ¿Ãƒâ€šÃ‚ ½ Vietnam, Indonesia, and China. To improve the labor standards regarding safety, working conditions, overtime, Nike should practice the ethical standards by concern on the human right and basic needs of employees. The managers should act as the role model on the ethical behavior to make the employees to follow the codes of ethic. In addition, the codes of conduct are important for the Nike foreign manufacturers to follow and practice in the correctly way. If Nike ¿Ãƒâ€šÃ‚ ½s foreign subcontractors can improve the labor standards and working conditions by using the codes of conduct and the codes of ethic, Nike will get the benefit from the public relation in term of company reputation and als o avoid public pressure. Don’t waste time! Our writers will create an original "Theoretical discussion of Nikes labor standards in foreign nations" essay for you Create order