International Human Resource Management
Gudrun Fakundiny MBA
In your assigned team, you are asked to complete the attached case studies. Please document the answers for each case, indicating the names of your team members. It is recommended to write the answers electronically so that they can be used for the presentation when called for it. The same format can be given to me, no double work is required.
Each team will be asked to present one case study during our attendance sessions. The other teams are invited to participate in discussing the presented results. I will collect the work of each team. You can give me a copy or alternatively send it electronically until Tuesday, May 13th, 12:00 to: email@example.com You are expected to have this assignment finished by Tuesday, May 13 at 12:00 Enjoy your learning !
Case 1 (Strategic HRM ) Can Knights Apparel Satisfy All of Its Stakeholders and Survive? Imagine how changed your life would be if you woke up one day and could no longer see the vibrant blue sky or your child's face; your once colorful world had been taken from you and turned to darkness. That is exactly what happened to Joe Bozich, CEO of Knights Apparel, when he suddenly lost his vision due to the unexpected onset of multiple sclerosis. Certainly, the founder of the leading supplier of college-logo apparel was disturbed by his situation. In response to his experience, Bozich reflected, “While we had the resources for medical help, I thought of all the families that didn't. I started thinking that I wanted to do something more important with my business than worry just about winning market share. That seemed kind of empty after what I've been through. I wanted to find a way to use my business to impact people that it touched on a daily basis.”
Fortunately, Bozich's vision made a full recovery. And the experience left him with an urge to evaluate what was really important and what he believed to be right. Knights Apparel is a privately held company based in Spartanburg, South Carolina, and contracts with 30 factories worldwide. Its apparel deals with scores of universities that have allowed it to surpass Nike as the number-one college supplier of college-logo apparel. When Joe Bozich met with Scott Nova, the Executive Director of the Worker Rights Consortium, a group of 186 universities that press factories making college logo apparel to treat workers fairly, his goal was to address stamping out worker abuses and fair treatment in apparel factories. He even decided to open a model factory. At Nova's urging, Bozich chose the depressed Dominican Republic community of Alta Gracia to set his example.
Alta Gracia had been home to a Korean-owned factory that made baseball caps for Nike and Reebok. When that factory closed in 2007, 1,200 employees were displaced. Cooperating closely with the Workers Rights Consortium, Bozich reopened the Alta Gracia factory with the explicit goal of paying workers a premium wage. Although risky in many ways, this was also experimental in that it acted as a response to appeals from myriad university officials and student activists that the garment industry stop using poverty-wage sweatshops. The Alta Gracia factory has 120 employees. Most apparel factories worldwide still pay the minimum wage or only a fraction above, which is barely enough to lift families out of poverty. For example, the minimum wage is 15 cents an hour in Bangladesh and around 85 cents in many cities in China. The minimum wage is around $147 a month (85 cents an hour) in the Dominican Republic's free trade zone, where most of its apparel factories are located. The Alta Gracia factory pays $2.83 an hour.
Bozich invested $500,000 in renovations to overhaul the factory with pricey new equipment and furniture. He brought in bright lighting, five sewing lines, and pricey ergonomic...
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