An ongoing topic discussed constantly is corporate responsibility. Women employees claimed that they’d been systematically underpaid and underpromoted. Walmart is known for having such a bad reputation for its treatment towards workers. Ultimately this has huge implications on brand image and perceptions of the organization. Is this negative brand image really worth the low labor costs? Or would Walmart be better off if they paid their employees with higher wages resulting in no negative corporate image? Well, this question is not clear cut. It is hard to measure this since once a company has developed such a reputation it is hard to escape from this. However, it really depends on the customers. If they only care about the dirt cheap prices rather than the way workers are treated then they may not change their spending habits. On the other hand other customers may be against this form of “unethical responsibility”.

http://business-ethics.com/2013/10/01/0958-the-impact-and-echoes-of-the-wal-mart-discrimination-case/

The Japanese electronics firm Toshiba has said it will halve the number of staff in its TV divisions to 3,000. The changes will include closing two of its three overseas TV manufacturing facilities. Toshiba insisted on sticking to Asia and Africa, both which are emerging markets, and end sales in “unprofitable regions”. Employee costs are a huge cost to Toshiba especially when the minimum wage in Japan is roughly $10.65 per hour. Toshiba aims to reduce its loss of $166 million. Also Toshiba insisted that it would move resources towards making large screen ultra-high-definition where growing demand is expected. However Panasonic and LG are also manufacturers that have launched the ultra HD TVs. Perhaps for Toshiba to maximize sales and compete against competitors, it may have to establish product differentiation. The ultra HD TV may not be enough as two of its major competitors has also implemented this technological advancement. Therefore a unique selling may have to be established that would be suitable for current and potential customers of Toshiba. This will definitely require lots of research and development efforts.

The Japanese government will raise the rate of sales tax to 8% from April next year, from the current 5%. Many policy makers argue that the reason for the rise is due to reducing Japan’s public debt, which now stands around 230% of its GDP.The government intends to increase revenue in order to fund an ageing population by covering such welfare costs. The rise in tax can be seen as a long- term investment in maintaining the nation’s social security system. This would directly increase the sales of goods and services thus having a huge impact on consumers spending behavior. Although in the short run many consumers would not buy as many goods and services and have a knock on effect to business sales. Thus many companies need to focus on strategic planning and plan ahead in order to maximize profits. The macro economy has a huge impact on the business world therefore firms should consistently keep track of such government policies on a regular basis. Also I think that firms should invest in research and development efforts in order to project the demand after the increase in sales tax, so they know how much to produce without incurring waste.

http://www.bbc.co.uk/news/business-24343540

The ‘matatus’, Kenya’s mini busses seating between 14 and 24 people that travels along Kenya’s capital Nairobi carry a third of the city’s residents to and from work each day. Recently as of October 2013 the company has decided to invest in a free wifi system for the passengers which would increase customer satisfaction. As average rides are around 45 minutes to two hours, many customers face boredom due to limited entertainment systems and long travel times. Consequently this would stimulate brand loyalty and allow matatus to compete against major competitors. Free wifi means that a GPS system will be available for customers so they can keep track of traffic information, travel times, and access the movement of buses. Not only would this increase customer flexibility but attract potential customers whom are currently enjoying a substitute transportation system of the matatus. Technology advancements within the current decade has had huge impact on the business world and is a major factor many firms need to consider. In the case of matatus, the company has used advancements in technology to strive to fulfill customers’ needs and wants.

http://www.bbc.co.uk/news/business-24426676

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