Multi-Type Corporation: Doing Business in the Caribbean This case was written by
ID: 344563 • Letter: M
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Multi-Type Corporation: Doing Business in the Caribbean This case was written by Mare S Mentzer Like many U.S. manufacturers saddled with high labor costs, Multi-type Corporation, a manufacturer of office equipment, has transferred many of its operations overseas. Yet Multitype finds itself the focus of demonstrations in the Unied because of the host country's domestic policies. In Multitype's case, the host country is a small Caribbean nation, the Swan Island Republic, which consists of one large island and several smaller islets. In the late 1700s, the British began colonizing these small, desolate islands and tried to establish plantation agriculture as they had on Barbados and Jamaica. ground was too swampy, and eventually the plantations were abandoned. The blacks turned to subsistence Islands were a forgotien backwater within the British Empire. Civil But the British departied, leaving the islands in the hands of the black laborers who had been agriculture, raising barely cnough fruits and vegetables to feed themselves. For overa transported from Africa to work the plantations. The servants fron Great Britain were used to staff the small administrative office and hospital in the eapital town, New Liverpool; and the British willingly carried the expense of maintaining these services. The black Swan Islanders barely managed to serape by, living a hand-to-mouth existence generation after generation. Yet the black Swan I not alone. In the interior of the island lived about 200 Carib Indians, a tribe related to the Native Americans. The Caribs were content to live in the forested center of the island, and the blacks were content to live along the shore, so the two groups rarely came into contact In situations where they did meet, violence was the inevitable resuls. The Caribs, despite their primitive spears and hatchets, had a tradition of militancy and rebellion against outsiders. The Caribs continued the same lifestyle they had before Europcan exploration and settlement, living mach the same as they had in the centuries before Columbus. The Caribs and the blacks were tied for the dubious distinction of being the most impoverished people of the Caribbean. In spite of the islands' poverty and lack of economic development ependence seemed inevitable as other nations pressured Great Britain to dismember its colonial empire. The Swan Islands were not exempt from this pressure. Finally, in 1977 the British flag was lowered in fromt of Government House in New Liverpool for the last time, and the bright red and green flag of the Swan Island Republic was raised. John Bailey the black chief of police under the British, promptly appoinsed himself president of the Swan Islands and began to seek ways of improving the economy of the new nation. The soil was too wet for commercial agriculture, and the swarms of mosquitoes made tourism impossible. Thus, when Multitype was seeking a location with cheap labor for a new manufacturing plant, the Swan Islands seemed ideal. The govenment of John Bailey welcomed Multitype enthusiastically, and the impoverished population of New Liverpool flocked to the new factory in search of jobs. Even at a wage of $5.00 a day (U.S. currency was used in the Swan Islands), Multitype could choose whomever it wanted from the hundreds of eager job seekers. Its local employees, all of them black, spoke English, so communication problems were minimal. And, due to the workers' motivation and enthusiasm, the plant was extremely profitable for Multitype and enabled the firm to maintain its competitive position in the United States. Back in the United States, fultitype's top management was shocked to find a group of American Indians picketing the company's headquarters one morning, protesting on behalf of the Carib Indians in the Who are the stakeholders in the case and what are their stakes? What is your appraisal of the attitudes that seem to be developing on the part of Multitype's top management? Identify the ethical issues facing Multitype Corporation. Suppose Multitype had the opportunity of putting together a coup d'etat that would replace Bailey with a leader more compassionate toward the Caribs. Would it be the right thing to do? To fulfill its ethical responsibilities to parties involved, and also to address its own and actions should Mult ity pe take? Should economic interests, what anyone else be informed of Multitype's plight in the Caribbean?Explanation / Answer
Stakeholders- Multitype corp, Workers in Swan Islands, Government of Swan Island, Caribs' supporters in US. Company's stake lies in the operations of the factory in the island, Government who is responsible for bringing in a Foreign company and provided employment to people of the island, Supporters do not have a huge stake but it is more of emotional stake in this situation.
Top management must be worried about the opportunity that they spotted for cheap labor. They might need to increase the wages accordingly as a settlement. It will directly impact the profit margins of office equipment. In addition to this, they might consider taking the operations somewhere else if the wage demand goes too high. That will attract setup cost.
Ethical issue- Is it fair to make people work at such low wages just because these labors don't have any other options available? Ethically, this would be categorized as exploitation.
I believe the case has more text which is not posted on Chegg. Kindly post them to get the full answer.
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