Introduction of the compan2

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Nov 24, 2024

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Introduction of the company A very well known company called Bonds in Australia has decided to shout down after being in business for more than 60 years. The manufacturing companies will reopen in China. The company sells clothing, sleepwear and hosiery. Why did Bonds feel the need to change? Australia has become very popular in importing goods from overseas and this lead to Bonds struggle to keep up with the competition. Changing the relocation of the factories meant that Bonds can still operate. Why did Bonds redevelop the factories? The decision to relocate the factories to China came after the factory reached a $149.5 million half year loss in 2009. The movement of the factories to China means that the company will pay cheap labour to the workers and therefore it will generate a higher profit from the sales. How was the new strategy beneficent? The new strategy will be profitable for the company and also for the consumers. For the company it is beneficent because they will pay cheap labour and therefore the product will become cheaper because the cost in producing the goods were less, this will also be satisfying for the consumer. The process of the change The process of the change is that all the factories that operate in Australia will close down and reopen in China. The manufacturing of the product will remain the same.
Disadvantages of the new system The major disadvantage of this new strategy is that 1850 jobs in Australia will be lost. Bonds was a well known Australian owned icon which meant that everything was made in Australia, but now the factory has become just like other factories who have been taken over by overseas. Another disadvantage is that some of the workers are above the age of 45 and the closing of the company will make it harder for them to find new jobs because of the age differences. Resistance from employees and clients and overcoming it Employees protested outside the factories when it came to know about the closing down and relocation of the factories. The owners of the factory overcame this resistance by providing free courses and training in other sections of employment. All entitlements of affected staff will be met and a $3000 benefit for each employee was given for there loyalty towards the company.
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