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On December 15, 2003, Levi Strauss & Company announced it would close two last remaining apparel plants in the United States to finalize its transition from a clothing manufacturer to a marketing, sales, and design company. Beginning in 2004, all Levi's apparel was to be produced by contract manufacturers located in low-wage countries. As recently as 1990, Levi Strauss had produced 90 percent of its apparel in company-owned plants in the United States employing over 20, 000 production workers. With every plant closing, Levi Strauss and Company provide severance and job retaining packages to affected workers and cash payments to small communities where its plant were located. Still, these communities struggled to recover from the loss of jobs associated with Levi Strauss's closings' many of the former Levi Strauss employees who took new jobs found it difficult to match their previous levels of compensation and benefits. Questions: Does Levi Strauss's strategy to outsource its manufacturing pass the moral scrutiny test? Is it ethical for a company to close plants employing 20,000 workers and shift production to low-wage-paying contract manufacturers in foreign countries? Why or why not?

On December 15, 2003, Levi Strauss & Company announced it would close two last remaining apparel plants in the United States to finalize its transition from a clothing manufacturer to a marketing, sales, and design company. Beginning in 2004, all Levi's apparel was to be produced by contract manufacturers located in low-wage countries. As recently as 1990, Levi Strauss had produced 90 percent of its apparel in company-owned plants in the United States employing over 20, 000 production workers. With every plant closing, Levi Strauss and Company provide severance and job retaining packages to affected workers and cash payments to small communities where its plant were located. Still, these communities struggled to recover from the loss of jobs associated with Levi Strauss's closings' many of the former Levi Strauss employees who took new jobs found it difficult to match their previous levels of compensation and benefits. Questions: Does Levi Strauss's strategy to outsource its manufacturing pass the moral scrutiny test? Is it ethical for a company to close plants employing 20,000 workers and shift production to low-wage-paying contract manufacturers in foreign countries? Why or why not?

Principles Of Marketing
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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Crafting and executing strategy are core management functions. Whether a company wins or loses in the market place is directly attributable to the caliber of that company's strategy and the proficiency with which the strategy is executed. Read this simple case and answer given questions On December 15, 2003, Levi Strauss & Company announced it would close two last remaining apparel plants in the United States to finalize its transition from a clothing manufacturer to a marketing, sales, and design company. Beginning in 2004, all Levi's apparel was to be produced by contract manufacturers located in low-wage countries. As recently as 1990, Levi Strauss had produced 90 percent of its apparel in company-owned plants in the United States employing over 20, 000 production workers. With every plant closing, Levi Strauss and Company provide severance and job retaining packages to affected workers and cash payments to small communities where its plant were located. Still, these communities struggled to recover from the loss of jobs associated with Levi Strauss's closings' many of the former Levi Strauss employees who took new jobs found it difficult to match their previous levels of compensation and benefits. Questions: Does Levi Strauss's strategy to outsource its manufacturing pass the moral scrutiny test? Is it ethical for a company to close plants employing 20,000 workers and shift production to low-wage-paying contract manufacturers in foreign countries? Why or why not?
Transcribed Image Text:Crafting and executing strategy are core management functions. Whether a company wins or loses in the market place is directly attributable to the caliber of that company's strategy and the proficiency with which the strategy is executed. Read this simple case and answer given questions On December 15, 2003, Levi Strauss & Company announced it would close two last remaining apparel plants in the United States to finalize its transition from a clothing manufacturer to a marketing, sales, and design company. Beginning in 2004, all Levi's apparel was to be produced by contract manufacturers located in low-wage countries. As recently as 1990, Levi Strauss had produced 90 percent of its apparel in company-owned plants in the United States employing over 20, 000 production workers. With every plant closing, Levi Strauss and Company provide severance and job retaining packages to affected workers and cash payments to small communities where its plant were located. Still, these communities struggled to recover from the loss of jobs associated with Levi Strauss's closings' many of the former Levi Strauss employees who took new jobs found it difficult to match their previous levels of compensation and benefits. Questions: Does Levi Strauss's strategy to outsource its manufacturing pass the moral scrutiny test? Is it ethical for a company to close plants employing 20,000 workers and shift production to low-wage-paying contract manufacturers in foreign countries? Why or why not?
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