How would you offset the cost of such investment and make up for it?

Cr Show more Read the following and answer the questions in detailed analysis: You are the CEO of Crazy Clothiers Industries with its corporate manufacturing headquarters in Boston Massachusetts. CCI has taken major set backs in sales for the past 5 years then last year saw a phenomenal up-swing in profits. So CCI made its greatest gains in 20 years. However most of the clothing industry has moved to China Pakistan and India but you have no factories there. Outsourcing may be a good choice at this time if you had factories overseas or simply offshored with a global partner. A decision which must shut down one of your plants and move up to 20 percent of your business overseas to cut down on operating costs. An upgrade in technology with nearly $100000 could set your company on a better footing to compete for the European market; with specialized fashions that are now becoming the new craze there. Market research shows that the Europeans might cater more to your brand than the Far or Middle East. CCI has 4 uniquely manufactured clothing dyes that have not been duplicated yet. You have minimally marketed this dye globally (since its not your lead product) and its sales could be a major source of financial sustainability. CCI mission is that of a manufacturing rather than a retail company. The founding owners of this now publicly owned firm have a mission of remaining primarily a manufacturer and wholesaler. Its been their sale driver. Middle level and Front Line managers have endured cuts in pay for 3 years. If the current trend of organizational profits continue in the next year it would be possible to give raises and to boost some incentive programs but you must allocate new funds there. The loyalties of employees have been tested to the limit and some good talent may leave if things dont change. CCI has two young multinational locations in Mexico and in Canada. The Mexican market is slow and barely surviving because of national political and environmental issues. However last years sales improved for the first time ever but only slightly. The Canadian factory is booming; and its profits accounted for 30% of the contribution to last years total global profits for CCI. The US market though waning still accounts for the largest share of all profit generation each year. However global challenges and opportunities persists. These are CCIs main strengths: It has a 40 year history in the clothing industry. CCIs products cater to middle and low income earners and they have never been pushy for sophistication and its dyes are world renown even in Europe. The Republicans now control both houses of Congress but Barack Obama even as a lame duck President vows to oppose most of their initiatives. He proposes and is supported by his party to raise new taxes on Business and tariffs on imported goods next year but also to slash corporate taxes too by allowing the tax loopholes to continue. He favors retaining NAFTA (North American Free Trade Agreement). His Universal Health Care program although limping and unpopular still remains adding more cost to business. The Republicans along with Red-State Democrats vow to eventually repeal it or trim the most unpopular parts. All companies must comply or pay very stiff penalties and it would add between $30000 to $60800 extra yearly investments in health provisions for all your employees beginning January 2015. Energy costs have tanked at their lowest levels. Cost of gasoline is minimal now; but no one knows for how long. The cost of raw textiles which feeds your clothing manufacturing increased but only by 2% for the last two years. Market analysts say it will escalate beginning in 6 months. It might affect profits depending on what you do! Make some Leadership decisions to benefit Crazy Clothiers Industries. 1. Describe in detail the context of Crazy Clothiers Industries within todays economy. Discuss in detail 3 major areas of competitive challenges facing this organization. You should also identify and discuss 2 things that might help in their competitive situation as they address their HR needs. If we assume that because of available funding you can only raise the pay of one group of managers who have suffered cuts which ones would you do first? Provide a managers rationale. 2. Should CCI outsource or not? Make the case with 4 reasons on why you should or why not? What plant would you close if you do? If you dont what alternative would you initiate? Is it time to upgrade with technology? Why? How would you offset the cost of such investment and make up for it? What 1 thing should CCI absolutely not do NOW? Give 3 reasons. 3. Consider that CCI intends to keep the Mexican Branch. Two applications after all interviews and background checks have been done arrive on your desk to fill the CEO position there. A new Leader is needed to save the sagging firm. Both applicants are equally qualified with very minor differences. One of them is a Mexican raised in Mexico with 15 years of Sales experience and an MBA from Harvard. The other is a Caucasian born and raised in the United States. He graduated with a Masters from Stanford with an MIS degree as well as accumulated a combined 16 year Marketing/Management experience in Cuba and Guatemala. Who would you hire? Explain the pros and cons ONLY for the hired candidate. I need you to provide rationale in at least THREE items in each category for the hired candidate ONLY. 4. Was your decision prejudicial or discriminatory (unethical/illegal discrimination)? Defend whatever answer you give with 3 reasons. This question takes application from legal and ethical considerations and not merely from common logic. 5. Write a Mission Statement for CCI in less than 30 words. Explain fully 2 important items in that statement? Describe Short-term Business and HR goals for CCI? Describe in 15 words Crazy Clothiers Quality Imperative Challenge. Show less

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