Cbseignou.com

Mehta Solutions provides Mba assignments , mba books ,blis , projects

The Quintessential Global Manager (Code: c101)

New
The Quintessential Global Manager
zoom Zoom image

 

Read the case given below and answer the questions given at the end.

 

CASE STUDY - 1
(Green Giant Runs for the Border)

To generations of consumers, the image of the Jolly Green Giant with his trusty sidekick Little Sprout has symbolized the convenience and dependability of frozen vegetables from America's agricultural heartlands.' However, the "Ho, Ho, Ho" of this genial figure is now being heard increasingly from the fields of Mexico, where Green Giant's production has been shifted in recent years. Today, Green Giant employs fewer than 150 people in Watsonville, California and over 850 in Irapuato, Mexico and in California as a whole, roughly one-half of all frozen-food processing firms have gone south, taking over 16,000 jobs with them. An estimated 40 percent of all frozen vegetables sold in the United States are now imported from Mexico.

The economic benefits for Green Giant's move to Mexico are immense. The wages of plant workers in Watsonville averaged $7.50 per hour or about $15,600 annually. Their counterparts in Irapuato receive $4.50 a day for an annual Income of around $1,400. Even after other costs are counted, Green Giant is estimated to save $13,224 per worker by moving jobs to Mexico. With fringe benefits that raise the pay by almost 60 percent, Green Giant's wages are slightly above the local rate, and unsuccessful union organizers have had to admit that the company's workers are quite content. Still, their income allows them only a very minimal standard of living and falls short of the guarantee in the Mexican constitution of a minimum wage sufficient to support a wife and children.

The job gains in Mexico benefit the new hires at Green Giant, which is known locally as Gigante Verde, and the Mexican economy as a whole receives a needed boost, not only from the foreign investment but also from the exposure to more advanced technology. The move of Green Giant and countless other American companies to Mexico increases the competitiveness of both countries in the global economy, but the benefit to Mexican citizens also comes at a price. The conversion of vast acreage to vegetables for the American table increases the price of beans and corn, which are the staples of the local diet. The Green Giant facility in Irapuato pumps more than half a million gallons of well water each day, and the water table, which used to be between 30 and 60 feet, is now over 450 feet. Few local residents can afford to drill wells that deep, and so most are forced to rely on the heavily polluted Guanajualo River. The use of well water to process vegetables protects American consumers from contaminants in the river but increases the health hazards for the citizens of Irapuato.

American companies are not required to observe U.S. standards for worker health and safety and for protection of the
environment, and the applicable Mexican standards are generally much lower and weakly enforced. Although Green Giant claims to operate by the same standards on both sides of the border, the record of many other companies is not as clean. In macquiladora plants, which receive special tax treatment, sweatshop conditions are known to prevail, and toxic wastes – which, by law, should be shipped back to the United States for proper disposal now pollute the Rio Grande.

Questions:
Q1. What are the advantages to Green Giant in moving to Mexico?
Q2. What are the advantages and disadvantages to the local residents of Irapuato from Green Giant‘s new facillity in their city?
Q3. What are the ethical responsibilities of Green Giant towards the citizens and workers at Irapuato? Does Green Giant discharge them effectively?

Old price: 800.00 Rs
Price: 500.00 Rs
Delivery time: Email attachment
Weight: 0.0001 Kg
Quantity: 
You are here: Home Case Studies The Quintessential Global Manager