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Pacific Brands Case Study Analysis
Pacific Brands is an Australian manufacturing company of many iconic and everyday brands including Berlei, Bonds, Dunlop, Hard Yakka and Mossimo, just to name a few. The purpose of this report is to analyse a case study regarding the response from Pacific Brands to the environmental forces affecting the organisation. In 2009, this Australian company announced the decision to move manufacturing operations overseas, closing seven factories and terminating 1850 jobs throughout Australia, all in the need to keep up with the Australian economy and provide lower prices to consumers. Simultaneously, whilst all this is happening, an increase of $1.12 million was being awarded to CEO, Sue Morphet’s salary.
Management Issues Identification
1. Need to reduce Costs: Pacific Brands have identified that with the current economic trends within Australia and the demand from consumers for lower prices there is a need for the company to reduce manufacturing costs. With the Global Financial Crisis (GFC) adding pressure to organisations in today’s market, Pacific Brands have recognised that they need to implement strategies in order to remain competitive within the markets and offer consumers products that they both want and can afford to purchase.
2. Re-structure: In order for Pacific Brands to achieve overcoming the first management issue, they have established that the most effective method of achieving reduced costs is to make the move off shore. As Australian companies strive to achieve maximum profits, they need to establish more effective and efficient processes within the organisation. With the realisation that labour, among other costs, is extensively cheaper in countries such as China, the move is being made to lower expense costs.
3. Ethics: Pacific Brands went under media and social scrutiny when in the same period of time, 1850 jobs were made redundant and executive salaries were increased. The company also...