Saturday, March 18, 2006

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.

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