Bad Business and Int.

Business (Lecture 2)

Bad Business
1. Cutting Customer Service Level
Decreasing the number of consumer service representative causes
the waiting time per customer to increase. This increase in waiting time
frustrates the consumers, and ultimately leads them to search for other
alternatives with better services.
2. Replacing Representatives with Computers (Automation)
Substituting human representatives for automated answering
machines have a large impact on the psychology of the consumers. The lack
of human interaction have a negative effect on the consumers mind. This
negative impact causes to problems; firstly the consumer has a fall in their
perceived service idea. They seemed to get the idea that the firm/producer is
no longer concerned about its consumers after sales.
Secondly, inefficiency takes places. A human representative can
directly talk about the consumers problem and at times understand the
unique situations that may take place. However an automated machine does
not have the capability to talk about the problem directly nor take hand in a
unique situation.
3. Cutting Employee Wages
Normal assumption is that cutting down labour will decrease labor cost,
leading to a decrease in the total cost, and finally an increased profitability.
However research has shown that the assumption is wrong. Cutting down
labor lead only to a fall in profit. This occurred due to two reasons.
Cutting down labor caused a fall in moral in the rest of the employees.
When they can see the direct impact on their surroundings, they may be
depressed about the sudden change. Another impact would be that the
remaining employees will start feeling insecure as they too may get laid off.
Moral letdown and insecurity lead the workers to behave inefficiently.
Concluding that the profits falls further.
4. Fast growth effort due to Success
Firms at times in the pursuit of increasing its profits, tries to expand
rapidly. During this rapid growth, the owner(s) of the firm tend to deprive the
firm of proper attention. The lack of attention causes the firm to bear
improper hiring, providing improper training, and using unstandardized
materials in its products.
5. Extreme Fees
Some firms have the tendency to bill exaggerated fees in order to make
a large chunk of profit. Simple things that the firm can cover as supplement,
are sold separately by the firm. This extreme fees lead the consumers to be
frustrated and leaves to find cheaper and better alternatives.

6. Sale of Worthless Products

Firms providing flawed or imperfect products brings in more attention to
its after sale services or the warranty services. As more consumers complain
or goes back to fix the flaw, the reputation of the firm falls.
7. Extremely Strict Hiring Qualifications
Firms being rigid on their hiring parameters can lose out exceptionally
good people. Moreover they must be ready to make exceptions when needed
to capture the talent pool required to boost the firms activities.

International Business Ethics

In the arena of International business, all firms must have a code of conduct
for all managers around the world. Managers on their end must be ready to abide
by these ethical codes no matter what situation they are in. They must also be
ready to sacrifice short term benefits to ensure long term benefits.

1. Internally accepted Human Rights

2. Uphold the Right of Collective Bargaining
Collective bargaining is performed by the labor union. The theory behind
this is that one side cant be provided with everything. Power and
resources must be distributed as such that one side cant have both.
Imbalance causes unethical practices to increase.
3. Avoid being involved with Human Rights Abuse
4. Take no part in compulsory human labor
An employee cant be forced to work. They have the basic right to decide
whether they want to work or not. It is unethical since forced working is in
the same terms as slavery. Human Rights cant be abused in any way
during work.
5. To do away with Child Labor
It is not possible to completely eradicate the concept of child labor in the
developing countries. It must be understood that the idea about forced
child labor isnt true, rather children take it up on themselves to work to
provide for their family. Thus it is better to make alternatives to slowly root
out child labor or provide basic skills so that they may have a better
future. Examples like schooling at work, food for school, are attempts to
provide the basic living skills.

6. To support a caring and cautious approach to environment

7. To reduce any kind of Employment Discrimination
Equal Employment Opportunity states that when a candidate fulfills the
basic requirements of a particular job, he/she cant be disregarded. All
must be considered as potential candidates for the job.
8. To encourage Environment Friendly Technology
9. Work to stamp out corruption in all its ugly guises.