International Business Case Study: Maple Leaf Shoes
Over the course of the company’s lifetime, there have been numerous changes within Maple Leaf Shoes and its environment that demand a change in the strategy the company employs. Some of these issues are from the ever-evolving economic environment, particularly with the help of globalization, other issues are a direct result of the corporate atmosphere that has been created since the takeover.
Maple Leaf Shoes found its niche in being a low-cost provider, but production costs have been steadily rising. Not only is productivity an issue, but the company is faced with high labour costs. Compounding these issues is the fact that the price advantage was a critical aspect of the company’s marketing strategy, but competition from overseas has become a problem with high, quality shoes being made at a cheaper price due to the cessation of international trade barriers.
Unfortunately, there are numerous challenges that surround employee relations. Labour costs account for 45% of the manufacturing costs, and have been steadily rising. Due to this increase in costs, Maple Leaf Shoes has begun to automate its manufacturing process. This has caused a negative reaction from workers. In addition, Maple Leaf Shoes has sold some of their nonperforming …show more content…
Looming over the upcoming meetings is the fear that a strike may coming if talks do not go as the union hopes. Furthermore, Maple Leaf Shoes would be crippled by the strike, and would be unable to recovery for a long period, which has upped the stakes. In addition, there is the threat that the remaining nonmanagerial staff are about to unionize, and management is worried that it will reduce already limited autonomy it processes in hiring, terminating and managing employees. Rapid unionization has some members of the company pointing their fingers towards the tone at the
Maple Leaf Shoes found its niche in being a low-cost provider, but production costs have been steadily rising. Not only is productivity an issue, but the company is faced with high labour costs. Compounding these issues is the fact that the price advantage was a critical aspect of the company’s marketing strategy, but competition from overseas has become a problem with high, quality shoes being made at a cheaper price due to the cessation of international trade barriers.
Unfortunately, there are numerous challenges that surround employee relations. Labour costs account for 45% of the manufacturing costs, and have been steadily rising. Due to this increase in costs, Maple Leaf Shoes has begun to automate its manufacturing process. This has caused a negative reaction from workers. In addition, Maple Leaf Shoes has sold some of their nonperforming …show more content…
Looming over the upcoming meetings is the fear that a strike may coming if talks do not go as the union hopes. Furthermore, Maple Leaf Shoes would be crippled by the strike, and would be unable to recovery for a long period, which has upped the stakes. In addition, there is the threat that the remaining nonmanagerial staff are about to unionize, and management is worried that it will reduce already limited autonomy it processes in hiring, terminating and managing employees. Rapid unionization has some members of the company pointing their fingers towards the tone at the