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Case Study Answers

   

Added on  2023-01-11

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Economics
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Case Study Answers 1
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Case Study Answers 2
1. In spite of the way that off-shoring frequently has money related
advantages, including less expensive work and lower creation costs, re-
shoring can reinforce an economy. Re-shoring helps in creating
manufacturing jobs, which fortifies the workforce, lessens joblessness and
enables parity to exchange shortfalls. One of the more evident
advantages of re-shoring manufacturing activities is the regularly critical
decrease in conveyance and circulation costs. According to the Boston
Consulting Group American makers spend a normal of just 2 percent of
expenses on flammable gas adding to 1 percent for power, in contrast
with other significant makers in China who must spend a normal of 6
percent of expenses on energy for manufacturing (Mohiuddin et al.,
2018).
2. In year 2000, Douglas Daft, the chairman of Coca Cola, decided
to follow localization. His manifesto was “Think Local, Act Local”, but
localization resulted in some problems, the sale economies and the
quality of marketing suffered. Hiring new managers for marketing could
also not help in improving the result which ended up with the resignation
of Daft in 2004. Jeffrey Immelt, former CEO of General Electric, supported
localization in 2016 stating that localization will help in improving the
economy of the country as it will incur less cost in comparison with the
huge cost incurred in importing or exporting. It is a bold pivot as it
resulted in limiting of political pressure and interference and thus ended
in rising protectionism in trade (Groenewald, 2016).
3. As per the HR policies of Adidas the workers cost will be
decreased as they are using digital technologies in the manufacturing the
shoes. But as Adidas decided to use the digitally advanced production
units in all the major markets to reach the maximum number of
customers the requirement for the employees would increase. Due to
digital technology used in production like robots, the production capacity
will be increased and thus reduced the labor cost by 30%, as the
maximum production will be done by robots, but to reach the customers
the employees will be needed for marketing and managing the production
and also mainly to operate the robots (Baecker, 2012).
4. To cover the shortages of skilled workforce, companies can train
the existing workers in the organization. Training can be provided by the
expert employees, in this way company would be able to find the expert
Case Study Answers_2

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