One of the most relevant issues in China today is the issue of malnutrition. Malnutrition is usually evident due to the poverty and overpopulation in China that brings about deaths and illnesses to children and infants, most especially. However, the recent malnutrition issue in China is largely attributed to the selling and distribution of the fake milk powders in the Chinese market that had been ingested by infants. These milk products were distributed to the different provinces in China, thus led to the spread of illness in rural areas and villages, called the big head disease. The incident led the death of thirteen and malnutrition of 171 Chinese infants, due to protein and nutrient deficiency in the substandard and cheap milk powder (Ying 2004). It has been reported that the fake milk products contain 1.74% protein in contrast to the standard protein content of normal milk products of 12.8% (Daniels 2005), thus, indicating protein deficiency that must not be given to infants. This incident led to the capture and confiscation of the different milk products from milk manufacturers to prevent further distribution in the Chinese market and affect the growth and nutrition of children. In relevance to this issue are the response and the influence of different social groups present in China. The presence, response and influence of these social groups in China determine the actions of the government and business firms, which may provide relevant activities in response to a variety of issues, such as health, economic, social, and political. Several social groups or also termed market segments are present in China; including consumer groups, peer groups, geographical groups, ethnic groups, business groups, the government or the political group, and financial or economic groups, which stratify the Chinese society. Formation of these different social groups depends on how they share the same opinions, subjects, likes, goals, interests, experiences, and way of thinking and reacting, thus, forming a connected network of individuals that actively exchange knowledge and information (Piana 2004). Consumer groups in China are one important aspect and mover of its economy, for they determine the success and failure of goods and services introduced in the market. Success and failure of goods and services are also determined by peer groups, which become the reference for choosing whether a certain good is a "must have", creating an imitation dynamics from other consumers or peers (Piana 2004), and are a part of the consumer group. Geographical groups are considered social groups as they influence the similarities across countries through the hierarchical structure of its international relationships (Piana 2004). In addition, ethnic groups are also present in the different provinces and states in China, which retains the cultural practices and beliefs of the country. The internal and external activities of the different social groups determine the numerous and different social issues addressed by the whole nation, thus affect the two most important group formed in any society, the business and the political group or the government. Business groups in the Chinese society is an alliance formed between the firm and its market that creates a formal or informal type of relationship ('Business Group' 2007), thus, emphasizing and reinforcing a strong tie or bond of commercial relationships and activities. The business groups present in China produces and influences the different market activities in the country, thus, contributing to the mobilization and progress of its economy, politics and society. Another major group formed is its government or political group, which controls, governs, legislates, and supervises all the financial, economic, political, and social activities in the country. The actions and provisions of the government, being a political and governing body in the country provides the order, peace and unity in the Chinese society. The four major social groups previously discussed influences the actions and response of the business firms and the government, due to several aspects, including the size of the groups, their needs, their opinions regarding a certain issue, the impacts or effects on the groups, and their location, influence, and response. Taking note of these certain aspects provides the business firms and the government with valuable and important information, which could guide and influence their decisions and actions in response to a certain social issue, such as the distribution of fake powdered milk products that led to the death of a number of infants in China. Consumer and peer groups can influence and moderate the activities of business firms, for example, milk-manufacturing firms, depending on their demand and consumption for milk products, which depends on their education, employment and social status. Consumer and peer groups have a great influence on the production and operation of milk manufacturers, thus, determining their position in the Chinese market. On the other hand, the consumer and peer group also influences and moderates the activities of the government, for the response and influence of such groups lead the government to restrict, make rules and regulations, govern, and control the operations of milk manufacturers, especially in response or desire for targeting international markets. In the case of the fake milk products, the role of the government becomes very crucial in solving the issue for they should be able to restrict the manufacture and distribution of the products to the provinces and states in China through preliminary investigation and study of samples of the product before distribution and introduction to the Chinese market. Likewise, the influence of the geographical and ethnic groups in China moderates the activities of business firms and the government, for their needs, location, education, and social status become the basis for the actions and response of the business firms and the government. For example, the consumption of the ethnic groups on milk products depends on their education and employment, thus, determining the success of the product in such groups. Similarly, their geographical location becomes an important factor in the distribution of products, thus, reinforcing the role of the government in making the possible way of reaching the minority or ethnic groups in the provinces. In this regard, the consumption and response of the social groups concerning the introduction of the milk products in the market provide the business firms with valuable and relevant information on their needs and wants. This influences the policy decision-making of the government through a variety of processes or approaches, such as campaign contributions or communication activities, money giving, and commonweal contributions (Zhilong 2006). With this, the problems of the social groups become provided with possible solutions, which may also affect the operations of the business firms. In relevance to the fake milk products case, the distribution and manufacture of the fake milk products were halted, thus, also stopping the operations of the milk manufacturers. Thus, it can be concluded that the response of the different social groups in China influenced the actions and responses of the Chinese government to solve the product quality problem of the milk products, in order to alleviate and totally eradicate the negative effects of the defective goods. In this regard, it can be understood that due to the negative effects presented with the consumption of the product, the government was able to reinforce its role and activities in the Chinese society, thus, restricting the operations of the milk manufacturers. With this, a chain reaction could be recognized, which indicates that the response and actions of the social groups influence the actions and response of the government and the different business firms. |
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