Knights Apparel Case Study

The Survival of Knights Apparel When Knights Apparel made the decision to reopen a company that is based overseas in another country to assist in their production, the challenges began. Bozich wanted to eliminate unjust treatment that many individuals who work in factories overseas endure. It is crucial to communicate clearly, what the changes will entail along with addressing any dilemmas that may develop during the transition. This modification does not just affect the employees; it affects the company as a whole. Stakeholders need to be made aware of every minute detail such as cost, plan, expectations, ethical concerns, and how it will be more efficient to utilize an overseas company versus one located within the United States. In order for Knights Apparel to survive, all stakeholders must be satisfied with the situation, quality of the product must remain the same, or increase and production numbers must increase in order to substantiate such a drastic move. One of the biggest concerns with utilizing factories that are located within other countries is ensuring that their human rights are not violated. Being that more companies are utilizing companies and/or factories overseas in order to pay employees less so that they may obtain a larger profit, it is pertinent that the human resources department has an understanding of the employees’ …show more content…
Making changes could result in spending a large amount of the revenue that may never be recouped. Spending hundreds of thousands of dollars on furniture for a new factory that may or may not flourish may not be the smartest idea. Paying employees more in one factory than in another may also raise some ethical issues. This may result in the employees at other factory locations refusing to work due to the lack of equality in pay. How can it be justified that employees who are doing similar jobs have such an extreme difference in