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Running Head: PACIFIC BRANDS CASE STUDY
Pacific Brands Case Study
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Pacific Brands Case Study 2
Introduction
Pacific Brands Limited has been the biggest of daily essential brands in the Australia
as well as New Zealand, retailing & distributing few of largest brands such as the Berlei, the
Hard Yakka, the Bonds, the Sheridan, the Holeproof, the Kayser and many more. Objective
of such a case study has been analysing fundamental problems associated with the Pacific
Brands strategy for closing all 7 of their factories in the Australia as well as sourcing their
merchandise by the southern Chinese factories thus resulting in layoffs of the year 1850
workers of the Australia. Purpose of such decision of Pacific Brands has been to save the
organization labouring in lot of debt of around $740 million at that time thus operating in the
much competitive, the global market as well as suffering impact of global financial crisis
within the organization.
Australian customers can love the products of Australia however they do not want
paying to them. Sue Morphett, the Chief Executive Officer of Pacific Brands has stated that
increase in the economical offshore manufacturing means that the Pacific Brands might no
longer afford towards making the clothes in the Australia, thus manufacturing the products in
Australia will give any competitive benefit to organization.
Identification and outlining management issues
1. Decision to fire the workers of the organization
2. Decision to enhance the remuneration of the executive
Whereas all the forces generally the environment may influence the activities of the
business, global financial crisis as well as their after effects on the economies in the entire
world gives the stark instance of how the economic situation may change fast as well as
dramatic. Here offshoring has been termed as relocating of 1 and many aspects of the
Pacific Brands Case Study 3
company’s business to some other location of different country for lowering the cost. It has
made the Pacific Brands the multi-national corporation because at that point of time the
company is in multinational phase of the internationalisation, company’s...