Levi Strauss and Abroad
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- Date Submitted: 10/17/2011 08:20 PM
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Levi Strauss At Home and Abroad
1. In 1990, Levi Strauss decided to close its South Zarzamora Street plant. Their decision to close the plant brought Levi Strauss many benefits but along with those benefits, problems accompanied. More than 1,000 people found themselves jobless when Levi Strauss decided to close its South Zarzamora Street plant. The company also found themselves faced with local labor activists that were willing to fight back. Due to the embarrassment from the protest, Levi Strauss found itself donating almost $440,000 to provide employment assistance and training to its former employees.
Although the transition faced Levi Strauss with some complications, consequently there were benefits that came from the change. The company was able to significantly cut down its cost per unit in manufacturing their Dockers by reducing salaries and numbers of employees needed to perform the same amount of work as the South Zarzamora Street plant. Many people from the third world country found themselves with a job since Levi Strauss brought their manufacturing company oversea.
Levi Strauss's decision to close its San Antonio plant might arguably be heartless to some but it was a valid business decision. Fundamentally, they are still a business and a business's goal is to produce profit. To be as successful as they were then, they had to think of what mattered the most, which was how much profit the company can make. In pertaining to business, their calculative actions made sense. Socially, it was an irresponsible decision. In doing so, more than 1,000 people found themselves jobless. This had a rippling effect which inevitably affected the whole town.
It is difficult to argue that the company could have reasonably been expected to keep the plant running. The cost of closing the plant was $13.5 million, which was calculated to be recovered within two years once they move their plant oversea. That meant that Levi Strauss projected to profit $6.75...
1. In 1990, Levi Strauss decided to close its South Zarzamora Street plant. Their decision to close the plant brought Levi Strauss many benefits but along with those benefits, problems accompanied. More than 1,000 people found themselves jobless when Levi Strauss decided to close its South Zarzamora Street plant. The company also found themselves faced with local labor activists that were willing to fight back. Due to the embarrassment from the protest, Levi Strauss found itself donating almost $440,000 to provide employment assistance and training to its former employees.
Although the transition faced Levi Strauss with some complications, consequently there were benefits that came from the change. The company was able to significantly cut down its cost per unit in manufacturing their Dockers by reducing salaries and numbers of employees needed to perform the same amount of work as the South Zarzamora Street plant. Many people from the third world country found themselves with a job since Levi Strauss brought their manufacturing company oversea.
Levi Strauss's decision to close its San Antonio plant might arguably be heartless to some but it was a valid business decision. Fundamentally, they are still a business and a business's goal is to produce profit. To be as successful as they were then, they had to think of what mattered the most, which was how much profit the company can make. In pertaining to business, their calculative actions made sense. Socially, it was an irresponsible decision. In doing so, more than 1,000 people found themselves jobless. This had a rippling effect which inevitably affected the whole town.
It is difficult to argue that the company could have reasonably been expected to keep the plant running. The cost of closing the plant was $13.5 million, which was calculated to be recovered within two years once they move their plant oversea. That meant that Levi Strauss projected to profit $6.75...