Qatari Blacklist

The article about how some Qatari companies got black listed shows some non market issues that the Qatari companies are currently facing. This is considered a non market issue since effects the people they hire (Indians), due to a law passed by the Indian government. This non market issue will probably raise market issues, since the Qatari companies will have to start hiring other nationalities and this is a disadvantage since Indian workers settle for the lowest wages. This could also effect their relations with the customers and suppliers since some people might not want to be associated with a company that doesn’t treat its employees fairly.

Using the four I’s to analyze the case we see that:

A- Issues: The issue here is that some Qatari companies got black listed and can’t hire Indian employees anymore.
B- Interests: The people that could be affected are the employees the customer and maybe even the suppliers.
C- Institutions: The institution that had the most effect he is the Indian government since it banned the Qatari companies from hiring Indians. Also media played a role here since now people know that some Qatari companies don’t treat their workers fairly.
D-Information: What the Indian government knew about the issue was that their worker where not being compensated and that they where being treated unfairly.

This issue could have risen for some reasons which are:
1- Morale concern for the workers.
2- Interest group activity, in this case the Indian government.

Disney In China

The article about Disney in china shows a non market issue that the company is facing. Analyzing the issue using the four I’s we see that:
Issue: The issue in this case is that Disney is forcing its employees to work 10-13 hours a day and paying them below the minimum wage.
Interests: The people that are affected by this issue are the employees of the company.
Institutions: The National Labor Committee stated these facts
Information: Disney has no current information about the issue so it’s conducting an investigation to see if the claims are true.

This issue could effect the companies performance because as we know non market issues can lead to market issues in this case, such market issues could be that the customers of Disney will stop buying there products all together since they are abusing their workers. The previous non market issue could have risen due to moral concern and interest group activity.

The stages that such an issue goes through are:

Issue identification: The issue was brought up by the National Labor Committee.
Interest group information: National Labor Committee is probably a committee that is there to protect various employees and it could lead to bad publicity and damage the company’s reputation
Administration: The Company is currently undergoing an investigation to measure how accurate those statements are.
Enforcement: Once the company is done with the investigation they will probably take actions to correct the issue if it did exist.