Sisco Pty Ltd is a privately owned company that has been in the business for over 20 years. The company started out as a manufacturing business. Over the years, the company went into wholesaling and eventually opened the first store in Burwood in 1994. Since then, 14 more stores have opened their doors to cater for ladies fashion at reasonable prices. The reason the prices are reasonable is due to the fact that there is no secondary department where stores purchase wholesale then distributing to the general public, all clothing that the retail store Sisco provides is manufactured and sold by the same company. Although Sisco survived the past two decades of competitiveness, Sisco will consistently provide high quality clothing at competitive prices by taking a step in going global. A decision to restructure their manufacturing department to China will significantly reduce the production cost of their clothing.
During the last few decades, companies have been confronted with an increasingly competitive environment.
Forces facilitating globalisation, such as the liberalisation of international trade, the international integration of production, research and marketing by major Multinational Companies (MNC's), as well as the emergence of major economic regions like the European Union, have enabled companies to invest overseas to gain or maintain competitive advantage. Hodgetts et al. (2006, pg 7 - 8) states that globalisation creates both opportunities and challenges, furthermore global trade investments will continue to grow, bringing wealth, jobs and technology to many regions around the world. It is in no doubt that a high percentage of current large organisations already adapted towards globalisation in gaining their current success. Companies such as Sisco must take precautions upon becoming a MNC, especially towards a country with different; values, culture, work ethics, language, political views and government regulations.
China and the clothing...