Month: September 2011

Recently, Bank of America, U.S.’s largest bank by deposits, announced that they will implement a new $5 fee for debit card users in 2012. The 5 dollar monthly charge targets the bank’s debit card users for using their cards to make purchases, but the debit card holders are still able to get free cash withdrawals. This risky move by the bank raises a common question: will they lose customers or will other banks begin to follow?  If other banks begin to follow, Bank of America card holders will have no other choice but to pay the required monthly fee. Thus, those that were thinking of switching to another bank, it is most likely not worth the switch. High chances are that the fee charge is a new trend here to stay.

My view on this article is that this change can be risky yet smart. Considering if the other banks do not follow this trend, then Bank of America will lose its customer base, and people will choose other banks. However, if other banks implements this fee as well, then Bank of America will have an advantage of being first.

Picture: http://topics.nytimes.com/top/news/business/companies/bank_of_america_corporation/index.html

Read more on this article here: http://www.bbc.co.uk/news/business-15133612

Apple Inc., the ‘Nike of Consumer Electronics’, has grown to be one of the highly successful companies in world. With annual sales of $65.23 billion, surely they can afford to provide a safe and comfortable work place for their employees right? Quite the contrary. In fact, last year there were media reports of Apple contractor Foxconn employees committing suicide because of long working hours and unfathomable pressure every day. Workers claimed that they were ‘being treated as machines’ and announced that they only earn $300 USD monthly. After nine suicides in one year due to the working conditions at Foxconn, Foxconn ensured no more suicides by making its employees promise not to commit suicide. Furthermore, Apple was found using suppliers that uses child labour and chemicals which poisoned dozens of workers. With companies like Apple and Nike embracing these unethical practices in order to sustain their company’s high profits, other companies will follow their steps. This may not be only Apple’s problem, but it can be seen as a global problem where companies are determined to find the lowest-cost suppliers for financial benefits.

Picture: http://au.ibtimes.com/articles/25271/20100528/china-taiwan-foxconn-apple-dell-hewlett-packard-iphone-ipad-assembler-contractor-technology-electron.htm

Want to read more? http://au.ibtimes.com/articles/25271/20100528/china-taiwan-foxconn-apple-dell-hewlett-packard-iphone-ipad-assembler-contractor-technology-electron.htm

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