Pacific Brands Case Study
Pacific Brands Case Study
Contents
Introduction
1. Problem Identification 1.1 Cost Reduction 1.2 Structural Reorganisation 1.3 Ethics and Social Responsibility
2. Problem Analysis 2.1 Cost Reduction 2.2 Structural Reorganisation 2.3 Ethics and Social Responsibility
3. Recommendations
4. Bibliography
Introduction
Pacific Brands is an Australian based textile retail business that operates throughout Australia, New Zealand, United Kingdom and Asia. Within the following report is an exploration of the change process which Pacific Brands began implementation of in 2009.
This step change was driven by a number of internal and external factors. These included falling profit and share price, increasing costs and the pressure of the worsening Global financial crisis. Added to this was the need to stay competitive in a market that has significantly shifted to cheaper imports. (TCF Review 2008, pp. 9-10)
Pacific Brands restructure and the sale/discontinuation of unprofitable brands generated a focus towards core brands and the implementation of a profitable, streamlined structure that would guarantee the most cost efficient model. The disadvantage of such an aggressive restructure was the immediate media backlash and ensuing reputation damage caused by the outrage of employees, politicians and general public.
1. Problem identification
1.1 Cost reduction
As in all developed markets the Textile, Clothing and Footwear industry that Pacific Brands encompassed had been impacted by the dramatic rise in imports. Compounding this was the growing consumer demand for cheaper product, a rising Australian dollar, and the Global Financial Crisis further adding pressure on an already falling share price. For the achievement of future success and reversal of falling share prices, Pacific Brands needed to implement a programme of cost reduction initiatives and a focus towards their core profitability.
1.2 Structural Reorganisation
Contents
Introduction
1. Problem Identification 1.1 Cost Reduction 1.2 Structural Reorganisation 1.3 Ethics and Social Responsibility
2. Problem Analysis 2.1 Cost Reduction 2.2 Structural Reorganisation 2.3 Ethics and Social Responsibility
3. Recommendations
4. Bibliography
Introduction
Pacific Brands is an Australian based textile retail business that operates throughout Australia, New Zealand, United Kingdom and Asia. Within the following report is an exploration of the change process which Pacific Brands began implementation of in 2009.
This step change was driven by a number of internal and external factors. These included falling profit and share price, increasing costs and the pressure of the worsening Global financial crisis. Added to this was the need to stay competitive in a market that has significantly shifted to cheaper imports. (TCF Review 2008, pp. 9-10)
Pacific Brands restructure and the sale/discontinuation of unprofitable brands generated a focus towards core brands and the implementation of a profitable, streamlined structure that would guarantee the most cost efficient model. The disadvantage of such an aggressive restructure was the immediate media backlash and ensuing reputation damage caused by the outrage of employees, politicians and general public.
1. Problem identification
1.1 Cost reduction
As in all developed markets the Textile, Clothing and Footwear industry that Pacific Brands encompassed had been impacted by the dramatic rise in imports. Compounding this was the growing consumer demand for cheaper product, a rising Australian dollar, and the Global Financial Crisis further adding pressure on an already falling share price. For the achievement of future success and reversal of falling share prices, Pacific Brands needed to implement a programme of cost reduction initiatives and a focus towards their core profitability.
1.2 Structural Reorganisation
Bibliography: * ABC Radio (Australia), (2007, 17 January) K. Barlow Australian Broadcasting Commission * M * We 'll block PacBrands exit: union, 2009 <http://www.theage.com.au/business/well-block-pacbrands-exit-unions-20090227-8jfq.html> * Management Foundations and Applications, Chapter 6, p.141, Raymond L * ABC News (Australia), (2012, January 10) M. Janda, <http://www.abcnew.com.au> * Professor Roy Green, Review of the Textile Clothing and Footwear Industries 2008, p