More Related Content
Viewers also liked
Viewers also liked (10)
Recently uploaded
Recently uploaded (20)
Presentación7 internationalcarpetwholesalers
- 2. Overview February 1994 International Carpet Wholesalers : rug importer and distributor company, NY, USA James McHenry: Buyer for “International Carpet Wholesalers” Mr. Abdelhadi Hachad: Managing Director of “Somarta”, Morocco, North-Africa Ms. Paula Feldman: President of “International Carpet Wholesalers”
- 3. Overview Mr. McHenry managed to come to a provisional agreement to purchase handmade carpets from Mr. Hachad Mr. Hachad had to purchase raw wool from McHenry’s firm. = mutual benefit from the agreement BUT: Mr. McHenry shocked by 12-14 years old girls working at four or five at one single loom, 48 hours a week for 50 cents a day.
- 4. Overview Complete dilemma: Take the best deal he can by purchasing carpets knowing its employees working conditions Or call it off
- 6. Presentation of the different exhibits 1. A dialogue between Mr. McHenry and Mr. Hachad of their meeting in Marrocco to finalize the agreement 2. A fax from Mr. McHenry to Ms. Paula Feldman explaining her the details of the deal. 3. A fax from Ms. Paula Feldman to Mr. McHenry telling him her answer 4. A portion of a letter sent by McHenry to his wife 5. A note from McHenry telling Mr. Hachad Ms. Paula Feldman’s response
- 7. Strengths and weaknesses of the situation
- 8. Child labor employment Strengths low-cost for both industries working in factories is a better solution for children than working in sex trades rug’s quality is better when it is done by children Weaknesses Problem of ethics, moral and conscience What about their education ?
- 9. Cultural Differences Strengths Child labor is a tradition and is cultural Young girls give the money to their family so they can survive Weaknesses What about our business culture ? Where do we stop ? A cultural custom doesn’t mean it is not a bad one
- 10. Moroccan Carpet Business Strengths Moroccan carpets are good quality Export and import duty and taxes are free Doing business with Morocco is easier in terms of logistics Weaknesses But there are other countries that have a good carpet reputation
- 11. Statement of Problems Do foreign activities perceived as immoral must be taken into account in international business even if those are defined as legal?
- 13. Option 1: Status Quo Advantages Mr. McHenry can wait for his wife’s answer Mr. Hachad can propose him a better offer Disadvantages It won’t change the girls labor problem
- 14. Option 2: Inform Ms. Feldman about the employees conditions of work Advantages Clear conscience for Mr. McHenry Mr. McHenry’s boss might be the most situated person Disadvantages Possible conflict of ethics between the two of them Mr. McHenry originally had the possibility to call off the deal Mr. McHenry perceived as inefficient and not responsible enough
- 15. Option 3: Mr McHenry decides to call off the agreement Advantages No more ethical problem Mr. Hachad can think about the risks for his business of employing young girls Good image of the company Disadvantages Will have to find another deal, in another country = may be hard Price can be higher Quality can be affected
- 16. Option 4: Mr McHenry accepts the commercial exchange with Mr. Hachad Advantages Low-cost prices Taxes and duties free Children labour in Morocco is legal Disadvantages Ethics and morals concerns will remain for Mr. McHenry Emphasize the credibility given to those conditions = bad reputation for the company
- 17. Option 5: Mr McHenry reports the problem to the local authorities Advantages McHenry sure about the laws, he’s faultless No more ethical problems Good way for checking the real age of the girls and their work conditions Disadvantages It prevents the young girls from earning money for their family No more deal with Mr. Hachad and Morocco It can put off other partners