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Dell Offshoring Project Managment

In: Business and Management

Submitted By anthonyjns1130
Words 653
Pages 3
In the past century, The United States has morphed into a highly specialized service economy. Production and manufacturing have left our shores, and traveled to other countries such as China and Taiwan. This trend has erected numerous questions including the structural integrity of this country’s economy. A lot of other disturbances arise from this conversation. Chinese currency manipulation and overall lack of oversight are creating a volatile mixture that could erupt at any moment. One topic that needs to be examined further is the sweatshop labor dynamic present in many of these manufacturing nations. Horrendous conditions and low pay make the cost of labor insanely cheap. Low to no tariffs as well as tax loopholes make this “offshoring” a no brainer for corporate executives looking to cut their bottom lines. The ethical and legal ramifications are still to be evaluated by society and the courts alike. To begin, there are many perceived incentives for decision makers offshoring their operation. Asia’s large population allows for a massive demand in the labor market . China in turn can provide a small wage and bad conditions to its workers. Numerous networks interact in China to lower barriers and make entrance easier for industries (i.e. the tech sector) . Goods from China also receive exemption from import taxes. The most interesting of all these incentives is the fact that Chinese companies are known to not comply with labor and wage laws. This again cuts costs, because the company doesn’t receive any negative consequences if it decides insurance for workers is unnecessary. All of these factors combined makes producing goods, and exporting some services a no brainer. The major disadvantage for companies engaging in offshoring could be the potential public relations issues they will have. The media and western society catches a single hint that any company is doing this, and there will be a firestorm let upon that company. The conditions described in the Metai factory are comparable to slavery. With the 41 cent an hour wage and living conditions there, it is a level away . Workers are forced to live in dormitories within the compound, and are forced to stay there for four days a week . Who is responsible for these travesties? The Chinese government is enabling this all to go down with there lack of law enforcement. Companies like Dell, Lenovo, and even Apple should also retain some agency in this problem. Not only are they taking jobs out of this country, but they are also taking advantage of a situation that involves exploitation of the weak. If allegations concerning some of these suppliers are found to be true, U.S. companies should not continue to support the exploitation. In America it is against the law to facilitate any operation, and the same scrutiny should be applied to companies that do business abroad. Dell’s demand for cheap keyboards, in large quantities, at fast rates definitely enables the system to continue. Dell should try to find another solution for its supply chain. At the end of it all, if Dell enables this exploitation to exist, doesn’t that mean the consumer also has agency. Americans want things immediately. We are a consumer economy that thrives on the customer. So when the IPhone 7 is announced, there is an instant, large demand created for a product that hasn’t even been manufactured yet. This demand transfers over to the Foxconn cooperation, which in turn uses its borderline slave labor force to push out as many IPhones as possible. Consumers and companies a like are not going to change this problem alone. Diplomatic conversations need to be taken, and ultimately the Chinese allow this to go on. China neglects to take care of their people, and evidence piles up by the year. I will not stop buying Dell computers, or Apple IPhones. There is a lot of injustice in this world, and governments need to fulfill their responsibilities as sovereigns.

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