Most of the famous clothing brand company are making their products in developing countries, like China, Bangladesh, India, most of them are sweatshops, the owner of the factory doesn’t care about workers’ safety, and they all work in a bad work condition, people who works there are bearing lots of difficulties, they don’t get legal wages, they don’t get pay for extra working hours, and also the clothing company doesn’t care about it either, the only thing they cares is they are getting their products on time and made in a cheap price.
In April, the Rana Plaza building collapse killed more than 1,100 people, the government started to banned all the factories in Bangladesh, almost 200 factories closed, but Walmart still buying staff from Bangladesh, only last two factories can make clothing now, Walmart didn’t care about worker’s safety, they don’t care how many people dead from the accident because of the bad work condition, they still buying products from them. The international labor groups have been pressing retailers to sign an agreement to pay for fire and building safety upgrades to Bangladesh factories. So far, several large retailers including H&M, and PVH Corp., which includes Tommy Hilfiger and Calvin Klein, they have signed onto the agreement. But Walmart and Gap, have not sign it yet. Instead, they are working on an alternative plan that they say will improve safety faster 2014 but that is not legally binding. Also one of the factory called Mars, the owner confirmed the customs data and said that the latest shipment went out last month,he said they never had any problems with Walmart or heard about its list of banned factories. He described Mars as a medium-sized garment manufacturer with less than 1,000 workers. From this news, we can know that Walmart doesn’t care about the work conditions for workers, they just want their products are made cheaper, so they can make more money on it, that’s why all the factories are in developing countries, because the labour cost in there is way cheaper than factories in Canada or in Untied States. Walmart forgot their business ethics, their products are cheaper than any other superstores, but all the money are come from exploiting workers, they never cares about how the huge amount of products made by a factory only have 1,000 workers, they have to work more than 16 hours a day and get less pay than other workers in Canada or other countries.
Make prices cheaper than other stores is actually good for the customers, people will save lots of money, therefore they will buy more staff in Walmart rather than others, Walmart also have lots of different products, like clothes, technology, food, etc. they are all cheaper than other stores, this is the reason why they have so many factories. That’s why they are so famous and have over 8,500 stores in 15 countries. But, they always put their own benefit first, and forgot worker’s benefits.
Stakeholders:
customers, factory workers, Walmart designers, stock share holders, owner of the factory
SWOT:
Strength: cheaper prices
Have more products
convenient
Weakness: Use sweatshops
poor qualities
Opportunity: more Opportunity in developing countries
Have monopolistic advantages
Threat: More people will against them because of the sweatshops
More competition
No more workers will work for them
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Image resource:
http://portside.org/sites/default/files/styles/large/public/field/image/Bangladesh%20Fire.jpg?itok=xCe9oBuz