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Questions:

1. Identify the type of business and HRM strategy that Bonds is pursing in
response to overseas completion. How effective are they and are they
clarify aligned with each other?

Answer: The following types of business have been pursued by Bonds:-After two years
of foundation of the company Bond started making gloves at Redfern using imported
silk yarn. Bond had a dream to bring textile and clothing production into the one
business. Bond built Australian first cotton spinning mill. After World War it spread
garment to towel sheets and to other states. It employed 6500 people bought new
business consolidate to garment in 1980s. But in 1970 it stopped and about 150
workers lost their jobs and the equipment were moved to other sites. It was in the late
1980s that Bonds invested $25 million in 1990 and further upgraded of $15 million in
1995. By the support of overseas Assembly provisions (OAP) china. Bonds created 700
jobs in china for makeup and reimport. The Bonds began to export their production to
overseas. Volume of production remain consistent turnover increased 15% profit growth
4% in last 7/8 years.

2. Given the two separate sides of the industry- a capital intensive textile
manufacturing and a lobour intensive T-shirt making side-how could
changes in the strategic, structures and culture of Bonds enhance
productivity?

Answer: Giving emphasis on machine textile side could be enhanced and it would
increase productivity. Bonds spent more money in machine. Improvement in the
machinery cut the jobs of the workers because it did not need more workers because
machine is doing the extra works. Bonds give preference to machine and that’s why it
created productively on textiles.
But on the other hand Bonds looser market share of T-shirt in local market. The reason
of losing market share of T-shirt is labour intensive and Bonds gave emphasis only on
machine. So Bonds had to reduce employers in different course of time. But in china
about 700 jobs have been created in a factory jointly run by Bonds and Berlei.
About 60% of the output is for Bonds mainly baby wear. China has an interesting
government program to support Australia companies by in effort encouraging them to
exploit overseas labor. This is the overseas assembly provisions (OAP) set up in
1992.workers cut the garments then transport it to china for makeup and reimport.
Otherwise Australia would be out of textile business. The above mentioned change
could give Bonds to increase productivity and stability in business.
3. The geographic location of Bonds plants are all in areas of high
unemployment and low industry concentration. What would be the negative
impacts on Bonds of closing them and moving all its operations to China?

Answer: Moving to China will be a new challenges for Bonds. Because Bonds will face
new external factors like some new threats. Bonds have to face new competitive
market. Bonds needs to service its all strategies and policies for new environment.

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