ASSIGNMENTS due 11/19/2022 nepali time 10 am (Saturday)


Assignment 3.2 – QUESTIONS FOR THE WEEK (Please limit your answer to 500 words per question – although it might not be necessary to write this much for the questions you select).

A visiting American executive finds that a foreign subsidiary in a poor nation has hired a 12-year-old girl to work on a factory floor, in violation of the company’s child labor prohibition. He tells the local manager to replace the child and tell her to go back to school. The local manager tells the American executive that the child is an orphan with no other means of support, and she will probably become a street child if she is denied work. He also tells the American executive that this is a common situation and not just a single instance.  What should the American executive do?


Discuss why the culture of a country might influence the cost of doing business in that country. Illustrate your answer with a country and company example.

Under what conditions is it ethically defensible to outsource production to the developing world where labor costs are lower when such actions also involve laying off long-term employees in the firm’s home country? Explain your response.

Can a company be good at corporate social responsibility but not be sustainability oriented? Is it possible to focus on sustainability but not corporate social responsibility? Based on reading the Focus on Managerial Implications section, discuss how much CSR and sustainability are related and how much the concepts differ from each other.

Choose any two countries that appear to be culturally diverse (e.g., Sweden and Colombia). Compare the culture of those countries and then indicate how cultural and ethical differences influence (a) the costs of doing business in each country, (b) the likely future economic development of that country, and (c) business practices in each country.



 (Please limit your answer to 500 words per question – although it might not be necessary to write this much for the questions you select).

Many companies in the sharing economy have successfully taken their business to foreign markets as well. What challenges and opportunities do you see for these companies as they expand into foreign markets?



Discuss this statement: “An understanding of the causes and consequences of performance ambiguity is central to the issue of organizational design in multinational firms.

What is the most appropriate organizational architecture for a firm that is competing in an industry where a global strategy is most appropriate? Discuss your selection.

Plot the current position for any two of the following firms on Figure 13.6: Procter & Gamble, IBM, Apple, Coca-Cola, Dow Chemical, Intel, and McDonald’s. In each case justify your answer.

For one of the firms that you used in 4, what do you believe is the best quadrant for this firm for the future?  If it is shifting to a different quadrant, what does the company need to do to move there, or if it staying in the same quadrant what are the risks and benefits of staying in this quadrant?  Justify your answer.




Ethical Dilemma – McWane’s

Birmingham’s McWane Inc., with 10 major foundries, is one of the world’s largest makers of cast-iron water and server pipes.  In one of the nation’s most dangerous industries, McWane is perhaps the most unsafe, with four times the injury rate of its six competitors combines.  Its worker death rate is six times that of its industry’s.  McWane plans were also found in violation of pollution and emission limits 450 times in a recent 7-year period. 

Workers who protest dangerous work conditions claim they are “bull’s-eyed” – marked for termination.  Supervisors have bullied injured workers and intimidated union leaders.  Line workers who fail to make daily quotas get disciplinary actions.  Managers have put up safety signs after a worker was injured to make it appear the worker ignored posted policies.  They alter safety records and doctor machines to cover up hazards.  When the government investigated one worker’s death in 2000, inspectors found the McWane policy “was not to correct anything until OSHA found it.”

McWane plants have also been repeatedly fined for failing to stop production to repair broken pollution controls.  Five plants have been designated “high priority” violators by the EPA.  Inside the plants, workers have repeatedly complained of blurred vision, severe headaches, and respiratory problems after being exposed, without training or protection, to chemicals used to make pipes.  Near one plant in Phillipsburg, New Jersey, school crossing guards have had to wear gas masks – that location alone received 150 violations between 1995 and 2002.  McWane’s “standard procedure&rdquo” (according to a former plant manager) is to illegally dump industrial contaminants into local rivers and creeks. Workers wait for night or heavy rainstorms before flushing thousands of gallons from their sump pumps. Given the following fictional scenarios, what is your position and what action should you take?

On your spouse’s recent move to Birmingham, you accepted a job, perhaps somewhat naively, as a company nurse in one of the McWane plants. After 2 weeks on the job you became aware of the work environment noted above.

You are a contractor who has traditionally used McWane’s products, which meet specifications. McWane is consistently the low bidder. Your customers are happy with the product.

You are McWane’s banker.


Question 1:Why does Gucci produce most of its products in Italy rather than in Southeast Asia? How does this strategy help Gucci maintain its reputation for ethics and sustainability?

Question 2: What does Gucci’s commitment to sustainability and ethical behavior mean to you? Are the strategic choices Gucci makes realistic for fashion companies like Zara or H&M that produce more affordable products? 

Question 3:How does Gucci’s commitment to ethics and sustainability help set the industry standard? Does Gucci, as a fashion icon, have a responsibility to be an industry leader when it comes to ethics?