Ethical Issues Faced by Disney Walt in Overseas Market
Business ethics is an important facet for running a successful business. It refers to doing what is right at the workplace that would bring harmony among employees, create positive image to clients and other stakeholders in general.
According to McNamara, (2010), “Perhaps most important, attention to ethics in the workplaces helps ensure that when leaders and managers are struggling in times of crises and confusion, they retain a strong moral compass.” The Walt Disney Walt has to confront its own ethical dilemma in the overseas market in China. One of the ethical issues it faces is wage disparity between the local Chinese employees and US employees who have been relocated to work in Chinese Walt Disney parks.
The significance of paying US employees more than their Chinese counter parts is because it is expensive for a foreigner to live and work in China. Accommodation rates are high for them besides the difficulty of finding restaurant that sell their food. However, there are positive things resulting from relocating US employee to China.
To begin with, the firm will enjoy low overhead cost as compared to that of training new Chinese employees to work in the parks. In addition, cultural diversity is of essence for the running of businesses. If Walt Disney employs both US employees and Chinese employees to work in the same park, there would be mutual understanding of cultural differences between these two groups.
Though bringing US employees to China means more running costs, this move is justified as the costs will be subsidized by the employment of cheap Chinese labor that is readily available. “Business ethics in the workplace is about prioritizing moral values for the workplace and ensuring behaviors are aligned with those values -- it's values management,” ( McNamara, 2010). Therefore as long as the firm maintains harmony in the workplace, and that its operations are smooth, wage difference can never be an issue for Walt Disney World.
Reference
McNamara, C. (2010). Complete Guide to Ethics Management: An Ethics Toolkit for Managers. Accessed on September 11, 2010 form http://www.managementhelp.org/ethics/ethxgde.htm
Showing posts with label Disney Walt. Show all posts
Showing posts with label Disney Walt. Show all posts
Wednesday, 18 May 2011
Socio-Cultural Problems faced by Disney Walt in Overseas Markets.
Socio-Cultural Problems faced by Disney Walt in Overseas Markets.
Penetrating overseas market in not an easy task for business organizations. This is because of the diversity of our social-cultural differences which greatly define tastes and preferences. Walt Disney is one of such international organization that has faced the hurdles of international marketing for instance, the penetration of in Chinese market.
Most firms assume the penetration in an overseas market is an uphill task; however, at times that is not always the case. Though people speak different language and have different cultural orientation, this does not mean they won't enjoy goods and services like Disney Walt's Cinderella or Mickey.
Cross-cultural differences not only have impacts on international trade but also to the domestic market. According to Tian, (2009), “The changed world makes marketing a cross-cultural process that requires marketers must be well informed with cultural differences nationally, locally, and ethnically to be the winner in the 21st Century market.”
Disney Walt must realize that venturing into the Chinese market means that they are moving from a modernized culture to tradition-based culture of the Asian community. Therefore studying the market differences in cultural desires of these two groups would positively impact on their marketing success in China.
Another problem associated with international marketing in Chinese market for Disney Walt would be dealing with wage disparities. In China there is cheap labor that means low wage rates. However, if Disney Walt brings its US employees to China they would not only misunderstand the tastes and preferences of the locals but they will also face high cost of accommodation and food.
This is because foreigners are charged relatively higher residential costs than the locals. Their meals will also have to be prepared in selected restaurants at higher costs than the readily available Chinese foods. Therefore, for successful operation of Disney Walt in the Chinese market, the firm has to find remedies for the social-cultural issues above for a successful business in China.
Reference
Tian, R. G. (2009). Cross-cultural issues in the 21st century marketing. Accessed on September 9, 2010 from http://www.infosciencetoday.org/type/research-type/cross-cultural-issues-in-the-21st-century-marketing.html
Penetrating overseas market in not an easy task for business organizations. This is because of the diversity of our social-cultural differences which greatly define tastes and preferences. Walt Disney is one of such international organization that has faced the hurdles of international marketing for instance, the penetration of in Chinese market.
Most firms assume the penetration in an overseas market is an uphill task; however, at times that is not always the case. Though people speak different language and have different cultural orientation, this does not mean they won't enjoy goods and services like Disney Walt's Cinderella or Mickey.
Cross-cultural differences not only have impacts on international trade but also to the domestic market. According to Tian, (2009), “The changed world makes marketing a cross-cultural process that requires marketers must be well informed with cultural differences nationally, locally, and ethnically to be the winner in the 21st Century market.”
Disney Walt must realize that venturing into the Chinese market means that they are moving from a modernized culture to tradition-based culture of the Asian community. Therefore studying the market differences in cultural desires of these two groups would positively impact on their marketing success in China.
Another problem associated with international marketing in Chinese market for Disney Walt would be dealing with wage disparities. In China there is cheap labor that means low wage rates. However, if Disney Walt brings its US employees to China they would not only misunderstand the tastes and preferences of the locals but they will also face high cost of accommodation and food.
This is because foreigners are charged relatively higher residential costs than the locals. Their meals will also have to be prepared in selected restaurants at higher costs than the readily available Chinese foods. Therefore, for successful operation of Disney Walt in the Chinese market, the firm has to find remedies for the social-cultural issues above for a successful business in China.
Reference
Tian, R. G. (2009). Cross-cultural issues in the 21st century marketing. Accessed on September 9, 2010 from http://www.infosciencetoday.org/type/research-type/cross-cultural-issues-in-the-21st-century-marketing.html
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