AussieBum: Impact of Globalization

Topics: Social responsibility, Corporate social responsibility, Socially responsible investing Pages: 5 (1827 words) Published: September 1, 2014
Aussie Bum is an Australian business that was established in 2001. The company initially manufactured men’s underwear, though has recently broadened its product range to include leisurewear, swimwear and sportswear. The present director of AussieBum Sean Ashby “believed he could make more traditional bathers”. Despite the criticism off retailers and department stores Ashby proceeded with his idea and was determined to try his exclusive approach. AussieBum is now a global success earning over $10 million a year, with 150 different products available. AussieBum has been significantly impacted by globalisation. Globalisation is the “process by which traditional barriers between countries are removed. These barriers include language, currency, differing values, geographic, politics and laws/policies”. (Business Studies In Action Text Book). Some impacts of globalisation includes: increased trade, immigration/emigration, advanced technology (aeroplanes/mobile phones), cultural integration and employment opportunities. In regards to business globalisation can alter a lot of aspects of operations. Some examples of operations impacts of globalisation include: purchasing materials and fabrics: this can be made cheaper and there may be more variety of materials to choose from. Transportation of inputs and outputs: there is faster more effective ways of transportation, there is more options such as boats, aeroplanes etc. Manufacturing of products: this may become more efficient through globalisation as new technology is produced. Packaging: there may be more technology available to produce different kinds of packaging. Storage: you can store products where you would like due to globalisation you can store products around the world. And customer base: this may broaden due to the new technology available to customers overseas. AussieBum’s Operations Strategies:

AussieBum is a small business. They now employ just over 35 people and produce a variety of different products (150 products). AussieBum is growing substantially with a 15-20 precent growth in sales and profit from 2001. This growth effects the volume of products operations is manufacturing. AussieBum focus on two main operations strategies: new product design and quality management. New product design is an operations strategy primary managed/directed by the original owner of the company Sean Ashby. It is the process of designing new products, adjusting previous products and enhancing future products. As customer demand is increasing it is essential for AussieBum employees to multitask, there is now a collaborative approach to new product design strategy. “The design phase drives the management of materials” (John Wiley). When AussieBum is designing a product they are determined to utilise the most appropriate fabrics/material for that product. The other operations strategy AussieBum use is quality management. Quality management is the management of the quality of the product. The aim is to decrease the amount of defects the product has and to do that whilst still achieving profit. The quality of these products are examined by the ability to see, feel and touch the product before it goes into the customer’s hand. These are the two components of AussieBum’s operation strategy. Impact Of Globalisation On AussieBum’s Operation Strategies: Globalisation has impacted AussieBum’s operations strategies. With globalisation a lot of businesses find it more cost effective to manufacture overseas. Bonds, AussieBum’s major competitor shifted their manufacturing overseas in order to obtain optimal profit. Due to AussieBum’s small quantities required manufactures overseas were unwilling to produce AussieBum’s products, so they are still dedicated to manufacturing in Australia. Advantages of manufacturing in Australia include: local knowledge of suppliers and conditions, good relationship with suppliers and a positive public image. Although AussieBum have resisted globalisation by still...
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