“i-Zone”
Reasons as to why this is the name of our group:
The reason why we have chosen this name is for two reasons. However we will begin by explaining what our name actually means and stands for. The “i” part is linked with the dominance of Apple in today’s technology industry. From i-Phones to i-Pods, they generally have the most market share. Their products are revolutionary and from their previous CEO, Steve Jobs, they as a single company have changed the way many of us live our lives today. The “Zone” part of our group name is to do with the ongoing Eurozone Debt Crisis. Within this, our main thoughts were derived from the European Economic ‘PIGS’ – Portugal, Italy, Greece and Spain. These countries have caused economic chaos around the world and in particularly on the financial markets.
“i”:
As we mentioned, Apple is a massive company. In fact its current Market Capitalization is $417 billion. This is compared to Exxon Mobil’s, which is $411 billion (Google Finance), which in turn makes it the most valuable company in the world by Stock Market valuations. This is just one of the reasons that we have chosen to use them as part of our group name. In an increasingly globalized world, companies like this affect international business and management. We are also interested and have been extremely surprised as to how strong they are financially. In August 2011, the company reported that it had $76.1 billion of cash, more than $3 billion than that of the US treasury Department. Then in its year-end financial statements, the company reported that it held more than $97.6 billion of cash. Although the increase is substantial, we did not look into this. At its current position, the company has enough cash to pay Greece’s debt payments that are due for the next two years. When a company has this much strength, both financially and as a brand, we thought it would be important to take note of it and at the same time, admire it. This is because less than 20 years ago, the company was facing closure and was failing badly. It has managed to turn itself around into, literally the biggest company in the world.
“Zone”:
As a group we believe that the most important topic in the international business world is the current issues that are facing several of the European countries, with regards to their debt levels and issues of whether they will or will not default. We have to begin with Greece, as it is the country that has attracted the most attention for all the wrong reasons. The EU and IMF has agreed a 229 billion Euro bailout and a 50% cut in the country’s debt. However more action is still needed and has been one of the pressing issues at the annual World Economic Forum in Davos. Although the figures are not positive at all, we are interested as to how and why countries like Greece got to this level. It all began with the currency change from the sovereign Dracma to the single currency being adopted, the Euro. The main reason for this was that it made it far easier for the government to borrow money from more countries. Greece went on a big, debt-funded spending spree, including paying for high-profile projects such as the 2004 Athens Olympics, which went well over its budget. As the worlds Global Financial Crisis started, the country was hit by the downturn harder than most, which meant it had to spend more on benefits and received less in taxes. Only at this point did some analysts begin to question whether Greece had accurately measured and reported its economic statistics. Economic problems meant lenders started charging higher interest rates to lend it money. Widespread tax evasion also hit the government's coffers. One of the main sources of revenue for the government, tourism, was also affected as issues in their own countries were affecting holiday goers. Currently, the main issues worrying investors and governments around the world are the cost of borrowing to the Greek government.
This is a very good first blog. I think this topic is hot right now because there are so many bad things happen when globalization start to affect the low level labor. Especially for the manufacturing business. Now companies are looking for cheap labors, so their targets become middle east, asian, and african people. They opreate so many manufacturing business in their countries and pay them really low wages. No weekend, 20 hours a day, 3 dollars a day, that is “amazing” because those people think they can survive with that king of condition. I know it might be true for some countries, but mostly people can not afford to work that crazy, some people even lose their lives cause of bad woring condition. However, in your guys blog, I really can feel strong opinion about how you guys feel bad for the globalization. But I think one thing you guys can do better is to balance this situation, you can focus 50 percent on what is the bad effect for globalizing the labor, but you can also use 50 percent of the first blog to explain how globalization help the lower income people and give them a working chance. I believe there are still many business trying to balance the world by setting up companies in the poor countries. All in all, this is a very good first blog and I really learn a lot from. You guys really know how to use the resources to back up your point.
ReplyDeleteI-Zone! Great job for your first blog!
ReplyDeleteI love the discussion on MNC's outsourcing in other countries, and the arguments between the morality of these MNC's providing "bad working conditions," in these foreign countries. Personally, I don't think anyone should just look at these situations one way, I think if people took the time to evaluate deeply the before and after of these MNC's invasion, they may have a different point of view on these effects of globalization. People are blindly comparing the working conditions of these foreign countries to the working conditions of those in the western countries such as the United States, Canada, etc... What people don't realize and understand is that the fact these countries outsource may have done the people of the foreign countries some good by providing employment opportunities. Perhaps these citizens were not employed before hand, although it may seem to be harsh working conditions, but it could be better than nothing. Overall, MNC's investing in less developed countries may be good overall, job employment and the economy may also be raised, local suppliers may also benefit.
Hi, i-Zone!
ReplyDeleteIt is really a thoughtful topic you chose on the ethical issue. Actually I had followed this News Corporation Scandal since it broke out. I totally agree with you that the behaviors of the company were unethical. As you mentioned, “Although Milly Dowler’s case was the one that rightfully attracted the most attention, she was not the sole victim. Sportsmen and women, politicians, film stars and other celebrities were all targeted”, the hacking problems did have “Prodromes” before. It seems they had realized and been punished this issue in the very early stage, but they did not even have an attempt to change it.
Also, Rupert Murdoch created a culture in his media industry that promoted the idea of getting the story by any means necessary. The history of corporate scandals may confirm the old saying that the fish rots from the head down. In my opinion, the aggressive culture of the corporation did play an decisive role in creating such an unethical behavior. I believe more regulations and ethical codes should be announced to regulated media industry.
In addition, I really enjoy reading different company examples you have used in the article, such as Enron case.