Pacific Brands Case Study

2565 Words 11 Pages
Register to read the introduction… When using this assessment to measure the success of the Directors and senior executive group within Pacific Brands it would be a fair conclusion to say that the group was effective. Without knowing the specifics of Pacific Brands organizational goals it would be a reasonable assumption that one of these would be to increase sales results as a performance goal. Given the previous increase in sales of 16% the group’s goal was met with an element of success. When looking at the social maintenance of the group as an addition measure of success it cannot be ignored that the downsizing of Pacific Brands workforce focused on the front line level of factory workers and not at the executive or director level. If an objective of the group was to downsize its human resource factor in order to explore off shore opportunities or technological advancements to transform Pacific Brands then again the measure of success of the group was attained. By achieving these successes the Directors and senior executive groups may have assessed that the substantial increase in salaries for these groups was justified due to meeting the performance criteria of their remuneration packages. However when looking at some of the disadvantages of organizational groups (Woods et al Page 207) it may be that within Pacific Brands the directors group comprised of similar opinions and viewpoints which resulted in poor decision making. Clearly the directors believed the increase in salaries was both an ethical decision and deserved for the success achieved at the time. However in an ever changing environment this was a short sighted vision. Going back to Kotter’s (Kotter and Cohen, 2002) Eight Steps for Successful Change, the success of a transformation or change process depends of guiding the …show more content…
At the time Pacific Brands made substantial downsizing of its work force, Australia was undergoing substantial political change. Only two years in to transitioning from a liberal government to power of the day the Labor government, the current Prime Minister was soon to be replaced by a new premier. Little confidence was had in Kevin Rudd, the Prime Minister in 2009 and whilst Labor would maintain their stronghold and a new political era was on the horizon with the appointment of the first female prime minister. “Opinion polls showed Rudd's personal popularity had nose-dived, principally on the back of his decision to shelve Labor’s emissions trading scheme (ETS). “ (Stuff, 2010). Although at the time, Pacific Brands and the country as a whole were unaware of the impending change of Prime Minister, the level of low confidence and political unrest cannot be underestimated as influencing Pacific Brands decision to pull back its operations across

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