Pacific Brands
Pacific Brands is Australasia’s leading manufacturer and wholesaler of apparel and home and sporting consumer brands including Berlei, Bonds, Clarks, Dunlop, Everlast, Grosby, Holeproof, Hush Puppies, King Gee, Slazenger, Sleepmaker and Tontine. Pacific Brands has substantial scale with sale of $A1.5billion and 7000 employees, and was the second largest MBO completed in Australia at the time of completion. ‘Catalyst Investment Pty Ltd 2010 case study, Pacific Brands Nov 2001 to April 2004’
Globalisation is the worldwide interdependence of resource flows, product markets and business competition. In the global economy, resources, markets and competition are worldwide in scope. The term ‘external environment’ refers as stated by Robbins, …show more content…
In early 2009, as the effects of the global economic crisis and the downturn in the Australian economy began to bite, the company announced plans to relocate its manufacturing operations overseas and closed several Australian factories which resulted in the sacking of 1850 Australian workers. (Schermerhorn, Davidson, Poole, Simon, Woods, Chau – Management Foundations and Applications 1st Asia – Pacific Edition 2011:56) What also occurred was the reported simultaneous awarding of millions of dollars in pay rises to the company’s top 13 executives. This in turn resulted in unprecedented emotional response that Pacific Brands actions evoked. The company insisted that it would not back down, releasing a statement that to do so would mean the loss of another 7000 jobs in the current economic climate. It was announced the company would move ahead with its decision as Australians want to pay less for their clothes, ‘long long gone are the days when Australians are actually prepared to pay more for Australian made goods.’1 Schermerhorn, Davidson, Poole, Simon, Woods, Chau – Management Foundations and Applications 1st Asia – Pacific …show more content…
From a strategic business point of view, the decision to move offshore to cut costs was an effective move, but from a PR perspective the deliverance of this decision and the handling of Customer/HR relations were poorly managed. Instead of just ‘cutting jobs’, a well thought out and structured HR/PR plan should have been instigated to protect the creditability of the company and instil faith by the remaining employees that their best interests were being taken into account, and they were not just another number on the factory floor. The 1850 employees that lost their employment should have been protected by Pacific Brands with a well thought out and executed plan created by the brands Human Resources team that would not only have protected the vested interests of the employees but also the credibility of the company and its shareholders. In various stories relating to this, it is portrayed that the employees were given no notice and no indication of the companies intentions to move offshore, no indication of their intentions to ‘sell off the Australian Brand’ and become a mere importer of overseas
Globalisation is the worldwide interdependence of resource flows, product markets and business competition. In the global economy, resources, markets and competition are worldwide in scope. The term ‘external environment’ refers as stated by Robbins, …show more content…
In early 2009, as the effects of the global economic crisis and the downturn in the Australian economy began to bite, the company announced plans to relocate its manufacturing operations overseas and closed several Australian factories which resulted in the sacking of 1850 Australian workers. (Schermerhorn, Davidson, Poole, Simon, Woods, Chau – Management Foundations and Applications 1st Asia – Pacific Edition 2011:56) What also occurred was the reported simultaneous awarding of millions of dollars in pay rises to the company’s top 13 executives. This in turn resulted in unprecedented emotional response that Pacific Brands actions evoked. The company insisted that it would not back down, releasing a statement that to do so would mean the loss of another 7000 jobs in the current economic climate. It was announced the company would move ahead with its decision as Australians want to pay less for their clothes, ‘long long gone are the days when Australians are actually prepared to pay more for Australian made goods.’1 Schermerhorn, Davidson, Poole, Simon, Woods, Chau – Management Foundations and Applications 1st Asia – Pacific …show more content…
From a strategic business point of view, the decision to move offshore to cut costs was an effective move, but from a PR perspective the deliverance of this decision and the handling of Customer/HR relations were poorly managed. Instead of just ‘cutting jobs’, a well thought out and structured HR/PR plan should have been instigated to protect the creditability of the company and instil faith by the remaining employees that their best interests were being taken into account, and they were not just another number on the factory floor. The 1850 employees that lost their employment should have been protected by Pacific Brands with a well thought out and executed plan created by the brands Human Resources team that would not only have protected the vested interests of the employees but also the credibility of the company and its shareholders. In various stories relating to this, it is portrayed that the employees were given no notice and no indication of the companies intentions to move offshore, no indication of their intentions to ‘sell off the Australian Brand’ and become a mere importer of overseas