Case Study on Shifting of Production To China

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Case Study:

What decisions best suites the Company in the business decision?
Discuss whether the company should concentrate on Profit or Product Image or both?

In this cut throat competitive world, as per the stake holder’s theory, a company does not only gain its long term objectives and long term loyalty of the customers by merely making profits or large sales, but it also involves building customer relationships, good rapport and corporate image in the society and also on the perception of the customers regarding the company. A company should definitely be working to make more and more profit, but in the process of obtaining them, they should think of building enduring organizations. In order to maintain an image through which the customers would love to engage with the company on a long term basis, a company should take core interest in accomplishing societal purpose and providing appropriate atmosphere to the people working in it. Companies that emphasize more on corporate social responsibility, can easily deal with the politicians and global business regulators and have much lesser chances of undergoing inquiries, accusations and public campaigns against it for violation of human act and other such issues. Considering the above points, production in China is not favourable since it involves issues of improper working culture and conditions, exploitation and work place harassment of the workers, repressive dictatorship and unnecessary censorships.
Owing to the above factors and considering the fact that the company would hardly have any control in the working procedures and this may result in public campaigns which would adversely affect the sales as well as the product’s brand image among the customers. Hence, giving the production to a contractor in China is not advisable from the marketing and branding perspective. Instead, special incentives, appreciations and awards, apart from the financial ones, should be provided to the current workers which would ensure loyalty and provide them the urge to stay in the company and not constantly demand for a hike.

Skills

Posted on

March 10, 2018

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