Professional Documents
Culture Documents
Ryan
1
Bridget
Ryan
Section
one
Oz
Active
(QLD)
is
a
SME
company
located
in
Brisbane
with
40
employees,
who
are
a
retailer
of
active
wear
in
the
medium
to
high-end
market.
The
clothing
has
a
technological
advantage
of
keeping
form
after
stretching.
Oz
Active
pursues
to
increase
its
global
presence
in
both
production
and
retailing,
and
managing
the
complexity
of
synergistic
brand
perceptions
across
them
(Madden,
Roth
&
Dillion,
2012).
This
case
study
will
identify
the
ethical
issues
associated
with
outsourcing
production
from
Myanmar,
to
market
the
clothing
to
the
Japanese
and
provide
recommendations.
The
Carroll
Model
has
been
used
to
evaluate
how
the
pyramid
of
responsibilities
works
together
to
create
overall
sustainability
for
Oz
Active
(Visser,
n.a).
Stakeholder
Theory
implies
Oz
Actives
actions
appeal
to
the
multidimensionality
of
the
consumer
as
not
only
an
economic
being
but
also
a
member
of
a
family,
community
and
country
(Luo
&
Bhattacharya,
2006).
Therefore,
Corporate
Social
Responsibility
(CSR)
is
becoming
increasingly
important
as
part
of
global
branding
strategies
to
create
a
differential
advantage
by
building
emotional
bonds
with
consumers
and
enhancing
overall
corporate
image
(Hoeffler
&
Keller,
2002).
Businesses
and
corporations
are
initiating
programs
and
strategies
aimed
at
enhancing
social
welfare,
protecting
the
environment
and
defending
human
rights
(Luo
&
Bhattacharya,
2006).
21.4%
of
companies
in
Burma
have
CSR
pledges
(Bauer,
2012).
International
business
ethics
demonstrations
that
cultures
and
nations
hold
entirely
different
standards
of
both
law
and
ethics
(Joseph,
2015).
The
standards
for
employment
practices
are
not
constant
between
countries,
unethical
practice
may
be
banned
in
Australia,
however
legal
in
Myanmar
a
less
developed
country,
consequently
companies
take
advantage
(Welford
&
Zieger,
2013).
Additionally,
the
textiles
and
clothing
industry
falls
under
all
four
layers
of
Carrolls
Model.
Manufacturing
will
help
Myanmar
both
economically
and
social
terms,
in
the
short-run
providing
incomes,
jobs,
and
foreign
currency
receipts.
In
the
long
run,
the
opportunity
for
sustained
economic
development
with
appropriate
policies
and
institutions
to
enhance
the
dynamic
effects
of
textiles
and
clothing
(HKTDC
Research,
2016).
2
Bridget
Ryan
In
June
2013
the
International
Labour
Organization
lifted
all
restrictions
on
trade
and
investment
in
the
country,
however,
Oz
Active
needs
to
be
aware
the
military
controls
the
business
sector
(Bauer,
2012).
Also,
Myanmar
has
unclear
regulatory
frameworks
and
outdated
legal
systems,
thus
companies
are
unsure
as
to
what
they
can
and
cannot
do
(Myanmar
Manufacturing,
2015).
Leading
to
foreign
countries
reducing
their
help
in
Myanmar
against
human
right
abuses
by
the
government
and
military
officials,
examples,
forced
labor,
torture
and
extrajudicial
killing
(Wagley,
2013).
Furthermore,
Myanmars
Environment-Friendly
Reform
has
been
under
way,
Oz
Active
has
to
ensure
the
factory
is
environmentally
friendly
by
partaking
in,
renewable
energy,
waste
reduction,
energy
audits,
conserve
water,
and
recycle
materials
(Layne,
2014).
For
example,
by
Oz
Active
using
bamboo
within
the
T-shirts
and
to
reduce
carbon
footprints
importing,
the
company
can
purchase
bamboo
from
the
closely
located
farms,
and
recycle
the
pickled-bamboo
shoots
as
a
source
of
food.
Lastly,
the
Labour
Organisation
Law
2012
are
granting
more
statutory
rights
to
workers
in
Myanmar,
both
in
working
conditions
and
increased
wages
(Myanmar
Manufacturing,
2015).
Therefore
now,
foreign
firms
are
paying
higher
wages
than
local,
with
a
monthly
minimum
wage
of
$90;
Oz
Active
should
pay
employees
a
monthly
wage
of
$160
with
benefits
to
families
in
the
initial
stages
and
further
increasing
with
time
(HKTDC
Research,
2016).
Section
Two
Japan
was
the
chosen
country
to
market
Oz
Active
clothing
to,
due
to
the
information
in
table
one
and
further
considerations
that
are
discussed
in
sections
two
and
three.
Table
one:
Target
Market
comparison
between
Japan
and
Indonesia.
Country
GNI
per
Government
Unemployment
Responsible
Population
Imports
Capita
-
PPP
Rate
Competitor
(2013
Dollars
index
est.)
(2013)
Japan:
37,
790
A
parliamentary
3.1%
8/138
127,
103,
$766.6
Chosen
government
388
billion
country
with
a
constitutional
monarchy
Indonesia
9,
270
Republic
5.94%
41/138
253,
609,
$178.6
643
billion
Target
The
Japanese
markets
for
Oz
Active
are
extremely
fit
and
healthy
especially
in
the
market
younger
generations.
The
International
Prevalence
study
found
more
men
than
women
within
aging
from
16
25
will
be
primary
target
and
secondary
audience
will
be
both
genders
Japan:
30-40
yrs.
(Bayman,
et
al,
2009).
Observers
argue
that
everyday
life
in
japan
involves
3
Bridget
Ryan
more
commuting
by
public
transport
than
by
car,
meaning
more
daily
exercise
(Ghosh,
2013).
According
to
the
World
Health
Organisation,
98%
on
average
do
60
minutes
of
exercise
a
day
(Pawlowski,
2016).
Also,
the
Japanese
pride
themselves
in
looking
acceptable,
the
active
wear
needs
to
be
socially
adequate
and
trendy
for
them
to
feel
comfortable
wearing
it
both
to
work
and
gym
(Segal,
2015).
This
information
will
help
with
designing
the
perfect
product
for
the
consumer.
4
Bridget
Ryan
opportunities
and
challenges
in
the
worlds
second-largest
retail
market
(Salsbery,
2010).
Japanese
prefer
to
buy
products
with
a
low
environmental
impact:
reduction
in
energy
consumption
and
waste,
environmentally
conscious
or
green
design
(Huysveld,
2015).
Therefore,
ethically
sourced
materials
(Bamboo)
for
the
T-shirts
will
gain
traction
(Salsbery,
2010).
The
four
primary
target
market
behaviors
changing
are,
hunting
for
value,
spending
more
time
at
home,
buying
products
differently
and
as
stated,
being
health
and
environment
conscious
(Salsbery,
2010).
Study
shows
the
Japanese
consumers
path
to
purchased
are
justified
by
their
choices
(increasing
the
liking
of
the
chosen
item)
only
when
self-relevant
others
were
made
salient
(i.e.,
social
cues
were
present)
(Lee
&
Ng,
2015).
Oz
Active
has
to
ensure
the
Myanmar
factory
and
business
plan
is
ethically
responsible,
guaranteeing
there
are
no
complications
that
could
affect
the
customers
behaviors
when
considering/purchasing
the
product.
Section
three
The
recommendations
below
have
been
created
after
critically
analyzing
manufacturing
in
Myanmar,
how
to
target
the
primary
audience
in
Japan,
and
linking
the
four
layers
of
Carrols
Model.
These
recommendations
should
be
incorporate
to
achieve
overall
sustainability
in
the
short
and
long
run
for
Oz
Active,
achieving
global
success.
5
Bridget
Ryan
Recommendation
Two
-
Marketing
Action
CSR
practices
help
build
brand
equity,
awareness,
and
image,
also
credibility,
evoke
feelings,
and
engagement
(Hoeffler
&
Keller,
2002).
CSR
for
Oz
Active
can
be
more
than
a
cost
or
constraint;
it
creates,
innovation,
competitive
advantage
and
opportunity
(Luo,
&
Bhattacharya,
2006).
Essentially,
Failure
to
be
a
good
corporate
citizen
can
devastate
executive
careers,
Oz
Active
and
stakeholders,
particularly
if
they
appear
to
be
taking
advantage
of
the
less
fortunate
Burmese
workers
(Madden,
Roth
&
Dillon,
2012).
The
following
are
CSR
projects
Oz
Active
could
introduce:
5%
of
each
purchase
goes
to
Hands
on
Tokyo
or
Shine
on
kids,
the
customers
can
choose
who
they
want
to
donate
to
at
the
end
of
purchase,
Childcare
room
within
the
factory,
one
teacher/supervisor
to
every
15
children,
Recycled
materials
given
to
employees
and
Salazar
and,
Environmentally
friendly
factory
to
both
the
planet
and
workers,
using
the
available
resources
within
Myanmar.
Hence,
it
would
be
an
economical
advantage
for
Oz
Active
to
incorporate
CSR
into
their
business
practices
within
Myanmar,
to
potentially
reduce
the
degradation
of
their
reputation
and
credibility
with
the
Japanese
markets
(Luo,
&
Bhattacharya,
2006).
6
Bridget
Ryan
References
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&
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(2014).
Country-of-origin'
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Bayman,
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B.,
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J.,
Bowles,
&
The
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(2009)
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on
Physical
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from
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J.
(2012)
What
does
Corporate
Social
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in
Burma
Look
Like?
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from
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responsibility-in-burma-look-like
7
Bridget
Ryan
Hoeffler,
S.,
&
Keller,
K.
L.
(2002).
Building
brand
equity
through
corporate
Madden, Thomas J., Roth, Martin S. &Dillon, William R. (2012) Global Product
8
Bridget
Ryan
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9
Bridget
Ryan
Welford,
R.,
&
Zieger,
M.,
(2013).
Responsible
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Inclusive
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f
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