Chapter 15, Problem 15DQ

Summary Introduction

Case Summary:

As the clothing industry gets competitive and time sensitive, it adds pressure on suppliers to complete orders in a short time span. This has led to poor working conditions and ill-treatment of workers. Companies like ZARA, H&M are under pressure to do something about this.

Characters:

No prominent characters.

Adequate information:

Value chain management (VCM) is externally oriented and focuses on both incoming resources and outgoing goods and services. VCM is oriented with effectiveness and aims to create the greatest value for the customers. The customers are considered to have the greatest and highest power in the value chain process out of all the other parties involved in the process. VCM is highly vital to the success and survival of any organization, as maintaining the value will enable the business to attract and prolong the customers. It is highly significant organizations provide value to the customers, as this determines whether they are willing to sacrifice their resources (money).

To determine:

The way incidents like this affect the way managers work with a value chain.