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In contemporary society, we as an individual enjoy consuming products manufactured by different companies without demurring their effects on us and other aspects of life. There are different patterns of consuming these products, which impact our lives positively or negatively, depending on their effects. This paper will analyze the effects of Nike and Blenz coffee products to consumers. The effects, which will be analyzed, will either have a direct or an indirect impact on consumer’s life. The analysis will cover the consumer effects, impacts, and patterns of Nike and Blenz coffee products in relation to the environment, social, health, economics, and legal factors. Due to these factors, issues such as pollution, child labor, diseases, economics and trade unions, distribution, and consumption will be addressed.
Nike factories are located in India, which deals with textiles such as clothing. Currently, the prices of clothes are becoming relatively cheap as most of the textile factories move with fashion and that people continue to buy in large quantities. Textile factories produce clothes in bulk quantities, which make the management to employ a large number of working forces. The economic instability and the fluctuation of textile prices have affected the employment statistics of many nations since a large population is losing its textile jobs (Business Teacher 1). Textile factories have poor working conditions such a low payment to the workers, lack of good relations, overworking the employees, and failure to promote and recognize them. Trade unions campaigns try to improve poor working conditions by pushing for better payment, including overtime payment, but their effort is not yet fruitful since they have not succeeded. These unions also play a major role by bringing good interaction between the management and the workers through discussions (Business Teacher 1).
Presently, India represents a quarter of the clothing production in the whole world (University of Cambridge Institute for Manufacturing 4). Nike clothing has attracted a very big market share internally as well as the whole world. Environmental impacts occur mostly due to lethal chemicals, which are used in manufacturing stages such as dyeing, printing, and pre-treatment. These harmful chemicals produce toxic gases that pollute the environment at a high rate. They also affect the health of workers by causing respiratory diseases. Nike industries have a problem with waste disposal such that they do not have a specific place for disposing of their waste products, and the method of disposing of is inefficient (Harris 1). The excess wastewater consumed in these factories is always released in water-based areas, thus causing pollution to rivers and other water-based areas. The polluted water can cause diseases to human beings and livestock if consumed. Some of the diseases that are well known to result from polluted water include cholera, dysentery, and bilharzia (MHHE 1).
The improvement of living standards has increased the demand for Nike products making these factories gain a lot of profits. The workers, on the other hand are not benefiting from the gains since they are paid minimum wages compared to the bulk work they do. Due to the demand of Nike products, the company has been producing them in huge numbers and their supply is relative to the demand. This has resulted to an increase in investment of the organization as well as contributing to its growth. The company has laid its core competencies well to ensure that the demand of their products does not go down.
These products are greatly advertised through the media such as televisions and promotions and this encouraged me to purchase them as they have a great market share (Harris 2). The media plays a major role in marketing these products, thus enhancing their popularity. In India, there is poor development t of infrastructure such as roads which make the transportation of Nike products to be difficult thus causing a delay to their destination. This is a major problem because the company does not have the capability of improving the status of roads in India unless assisted by the relevant authorities.
One of the major challenges to these factories is the issue on Child labor, due to the fact that they are unable to monitor indirect employees and subcontractors (University of Cambridge Institute for Manufacturing 11). Most of the employees bear with the burden of minimum wage payment as most of them are poor. The issue of gender discrimination is also widespread within the organization and has created a discrepancy in the relative authoritative status that each gender holds within the workplace.
The issue of sexual harassment/abuse is widespread among business organizations where it not only violates women’s gender equality rights but also has a psychological impact on women that is directly related to their employment status. In other words, in order to remain within the workplace, the less superior female employees must cope with all the feelings and the hardships they encounter, and pretend that the problem does not exist, to maintain their employment. This is often portrayed as sex-role behavior towards authority, where the less superior must be subject to the direction of the more superior individual to obtain career advancement or other employment opportunities. This form of discrimination and prejudice should be eliminated to allow these women do their work in a friendly environment. Allowing them to work in friendly environment will give them courage to fight poverty with determination.
The purchasing patterns are also determined by the changing population structures such as femininity, age, and the customer lifestyle. Cultural changes vary from one country to another and have a greater effect on the purchasing power of the consumer. Some of the cultural changes that influence the purchasing power include religion and language. These are some of the issues Nike factories should consider while distributing their products. When these issues are well taken care of, the company will be in a position to create a competitive advantage over its competitors since it will have a clear knowledge of which products to distribute in different regions of the world.
To improve their performance and avoid criticism from the public, Nike Company should consider changing customer protection legislation, safety and health issues, rules/ terms of employment, and environmental legislation. The criticism the company face from the public on issues such as child labor, overtime, and minimum wages attracted the attention of human rights organizations media with an attempt to eliminate the public pressure.
The next part covers the analysis of Blenz coffee products. These products are of high quality and have a high demand in the whole world. Though it is not greatly advertised due to a lot of competition for customers’ attention in the media, it has a large market share (Trustees of Dartmouth College 2). The Blenz coffee factories buy the coffee bean at a high price as the producer countries are levied high tax rates. Tax fluctuations levels in these factories are always charged to the customers. Trading of Blenz coffee is highly affected by tariffs imposed by other countries during importation and exportation (Trustees of Dartmouth College 3). These tax impositions by other countries result to coffee loss, inefficiency and poor trade relations among the trading countries.
This company should be aware of the political stability of the countries they intend to trade with. They should consider this because any change in the government regulations result to alteration of tax and legislation. The factory should trade with those countries that are experiencing political instability with great care. This company should be careful when disposing their waste products since in Canada where the company originates; there are laws for efficient waste disposition.
Blenz coffee company respects the Canadian trade laws for smooth running of their business (Trustees of Dartmouth College 6). The company is taking a great step by considering varying the terms of employment to enhance good working conditions for the workers. Blenz Company abides by the local government rules for good relations. This allows the company to trade in a fair legal ground.
All companies should put into consideration the impacts of their products to the consumer in relation to environment, social, health, economics and legal factors. This will assist them to reduce the negatives impacts their products are causing to the consumers. Companies should develop good working conditions such as better payment, elimination of child labor, flexible rules and regulation, and good relations for better achievement of the factory goal as this will motivate the workers. Putting into considerations all the factors describe in this paper, trading companies will be in a position to achieve their set goals with much ease. Consumers will trust companies which are considering the effects of their products to them. In this context, companies doing so will gain a competitive advantage over their competitors.
Business Teacher. Global Factors and strategy. 2011. Web.
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Harris, Jonathan M. “Trade and the Environment.” 2008. The Encyclopedia of Earth. Web.
MHHE. The Global Marketing Environment. 2007. Web.
Trustees of Dartmouth College. “Blenz Coffee Company.” 2002. Tuck. Web.
University of Cambridge Institute for Manufacturing. Well Dressed? PhD Thesis. Mill Lane, Cambridge: University of Cambridge, 2006. Print.