Essay on Organizational Ethics, Values and the Law-Mol 606

835 Words Aug 12th, 2012 4 Pages
Group Assignment

Organizational Ethics, Values and the Law-MOL 606

05/30/2009

Business Cycles and Employment Practices in a Domestic Garment Company

Executive Summary

A domestic garment company is a privately held apparel company whose marketing mix is primarily focused on product and place (U.S operations vs. foreign countries) rather than price. The company is projecting $150 million in sales next year which is a 50% increase than last years’ sales. Their target market has been consumers who will pay more for fashionable styles due to the speed and flexibility of their operations. Therefore, price is not important as there are some psychological influences
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Now, as the management teams prepares to move out of the summer season and forecast are being conducted for fall and winter, the trend for demand of their products is lowered. The management team has to evaluate the performance of its staff, and ‘think outside the box’ for creative solutions. Additionally, as a rarity for our management team, it is a US based garment manufacturer, who prides itself on being a leader in the industry by the way it treats it workers, in both working conditions and pay. Any deviation from its original business strategy, could pose potential negative perception and/or press.

Real Problem

So the real problem that the management team faces is how do they manage a limited production run for the next 20 weeks, and producing less than 4,000,000 dozen pieces of garments to adjust to industry demand, still show that it is sensitive to and values the needs of their employees, and yet still remain profitable. A concurrent problem that they are also evaluating is will they need all 3000 employees?

Alternatives

Typically, the 3000 sewers work 8 hour shifts, 5 days a week. Under the current production model, 20 dozen pieces of garments are produced per sewer or 60,000 dozen per day. The management team needs to find a way to stay produce less that 4,000,000 dozen pieces, and on this current trajectory, this

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