Mad About Plaid
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CFO Doris Milne assured the directors that Project Fulcrum had moved decisively into its implementation phase after a year of analysis and planning. Doris indicated, the move to shut down Yorkshire is a relatively small step in what has been a long-term trend toward offshore production.But things got complex that it will have consequences for workers and communities,and not all of them will be welcomed.On the other hand, Castlebridge is no longer be British. Castlebridge,like many luxury fashion brand today is that business executives and bankers who know nothing about it or its merchandising often own, run, or sit on the boards.In order to get high profits,luxury brands start to aim at the middle market-a new broad socioeconomic demographic.They ramped up the design and production, which were easy-entrance products with which to hook customers.
They rolled out hundreds of stores around the world in middle-market tourist destinations.By targeting the middle market, luxury brands have made themselves vulnerable.So brands need to look for other ways to make profits,and the most logical way is to cut production costs which means shifting offshore. The steps they are taking to rationalize the supply chain and shift more manufacturing to lower-cost regions, particularly China, will support margins in this range. But it may couse workers lose job, and the British economy was losing as many as 30 million working days annually to labor disputes. Castlebridge might lost its “Britishness” when it decided to go global and hired a savvy American CEO and foreign designer.
Today, Castlebridge’s owners are from everywhere, and Britishness isn’t their priority; profits are. In a global marketplace, the company must figure out what it means to be British. It is not only a matter of geography, but also of high quality and a certain kind of design.The company now must re-discover, and redefine for the present, exactly what that is. More important, it must connect its values with the behavior required to live them out. In so doing, an organization proves that it can have both principles and profits. Mary Crane has an excellent strategic plan: The company will be headquartered in London, production based in low-cost regions of China and eastern Europe, and goods sold through a network of retail outlets around the world.
A revamped brand, plus higher margins and a global reach, should ensure that Castlebridge remains competitive in the cutthroat luxury goods market.But one thing should be considered: the staff. The directors need to figure out a strategy is enough to take Castlebridge successfully into the future. Firstly, communicate with staff clearly, move the fears and rumors about further job losses. Secondly, ensure Mary as CEO becomes a major factor in reshaping Castlebridge’s culture and organizational climate. Thirdly, take the pulse of employees’ trust and morale, the extent of their commitment to Castlebridge, and the likelihood of their helping or hindering corporate objectives. Finally, help rebuild employees’ confidence in hopes of motivating them again. Castlebridge reminds me of Burberry that plans to close its factory in Wales “British Classic ” product line all transferred to China.
This large migration means that Burberry since its inception, for the first time by leaving the local capital transfers . If the production processes will be completed in China , but also means that the world’s top fashion brands in the future will be realized by industry around the world.If it just considered about the cost, India should be a better choice which once is a colony of England that workers can speak english fluently and are more familiar with british’s culture. It is obvious that shifting to china is not only about cost.
The supply chain of raw material in China is easy to get with high quality.But the most important thing is that Burberry aims at Chinese market. Production in China makes the distance between brand and consumer closer. It might be full of risks but also a new break which leads Burberry to a new level. But workers in Wales against this shift firstly. Nearly three hundred british workers tried to stop it happening for the reason of unemployed. Whether it shift to China, it would be hard for Burberry to give up since the huge purchasing power has more attraction.