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Division of Labor is when the production process is split into a number of parts and every worker has to perform a special task. After Adam Smith and other important researchers concluded that division of labor is the main engine which is responsible for the wealth of the societies. This strategy was adopted by a number of companies among which Honda was one of the prominent names.

   Honda is using division of labor in car assembly on a very high scale, in order to produce a wide range of automobiles such as smart cars, family vehicles and heavy construction machinery etc. Due to division of labor Honda is able to produce high quality vehicles with great efficiency which enables it to cut their costs and yield high profits.

  However, Honda has to face demerits due to division of labor. Honda has expanded its operations to a massive scale, which led it to face dis-economies of scale specially managerial and financial. It became a tough job to design a system which could run company at such level with maximum efficiency.

Information Source:

http://www.omegauto.org/estudios%5Cter045.pdf

http://www.chinalaborwatch.org/news/new-305.html

High School text book. ( GCE A Levels Business Studies ) 

Image Source: http://www.aymag.com/images/cache/ba8b374d9814fe1656474c1d3a112e37.jpeg

http://blog.castsoftware.com/wp-content/uploads/2011/08/honda-software-failure.jpg

With the advent of Globalization, corporations can now operate in multiple countries. By utilizing outsourcing, these businesses exploit the huge economies of scale. The “race to the bottom” cause the third world countries to reduce their taxes, remove the trade restrictions and sell themselves to earn the bid for the companies. Such companies profit from these situations, causing problems such as child labor, sweat shops and destruction of native land.

The main aid for Globalization is the immense technological development. New communicational methods; VOIP calls, Business Skype and other similar programs have allowed top level management to communicate with their employee, helping to make quicker and effective decisions. Specialized means of transportation of goods such as huge sea-containers, railway system and heavy road machinery have made goods accessible to every part of world. Some of the Companies in the race of Globalization are Coca-Cola, McDonalds, Nestle, Apple and the list continues.

Information Source: http://www.infed.org/biblio/globalization.htm

Images Source: http://outsourceportfolio.com/wp-content/themes/revol/images/blogs/globalizationBusinessFlow.png

An international public limited company, the body shop was founded in 1976 by Anita Roddick. The company’s unique selling point is its green and sustainable production. The no animal testing is a corporate social responsibility adapted by the company.

    This allows the company to act in a morally and socially responsible manner. The business also takes part in community fair trade, where an even portion of the income is given to the third world producers. Also by funding charities such as Children on The edge, Women Kind and WWF, the body shop grows its good will.

Although maintaining such standards is a high cost to the company in short run but in long run it turns out to be beneficial as customers start respecting the companies ethical views hence give preference over the competitors. Currently the organization has expanded into 61 countries with more than 2,400 stores. The unique selling point of the company gave it such a boost that the stocks of the company were called the gravity defying stocks as their prices rocketed to more than 500% their original value.

Information Source: http://www.thebodyshop-usa.com/values/AgainstAnimalTesting.aspx

Image Source: http://static.guim.co.uk/sys-images/Guardian/Pix/pixies/2009/9/12/1252782766672/The-Body-Shop-001.jpg

http://www.compasscareer.com/wp-content/uploads/Business-Ethics.jpg

Ten Tree Apparel is a young Canadian clothing chain, which hopes to save the world we play in. Dave Luba and Kalen Emsly, both graduates of Campbell Collegiate in Regina, Saskatchewan have taken up the fashion industry by storm with their new invention. Not only have they been successful in terms of sales, but also the amount of recognition and respect the young men have achieved is impeccable. Starting off from a small town, they’ve paved their way to the international market. The concept attached to their unique business is the reason behind their success.

For every item you buy Ten Tree will plant ten trees! The beautiful landscapes we know today are disappearing due to our actions. By planting ten trees and ensuring that all the clothing is produced responsibility using sustainable material they allow each and every customer to make a difference. This isn’t new; but what is new, is how Ten Tree has used the concept of planting trees to inspire entrepreneurship, build sustainable communities, provide shelter and generally increase quality of life. After all, your world is your playground; so keep it clean. Keep it sustainable.

Sources: http://tentree.org/category/about/