A) Problem Statement: Pacific Brands Cases Study, IBA 111, SP1, 2013.

The global financial crisis forced businesses to implement aggressive strategies focused on minimizing expenditure to ensure survival. Australian company Pacific Brands responded by moving manufacturing offshore in a bid to lower production overheads. This structural change manifested with the closure of seven factories and inevitable local job losses. In contrast to these actions the companies CEO and higher levels of management received extensive pay rises. The approach appeared to illustrate the companies desire to ensure its key stakeholders, the shareholders, were satisfied with disregard for the organizational values it had identified on previous occasion.

The company’s failure to develop an effective long-term strategy for the management of potential external environment impacts on their business model tarnished its reputation, putting into question its managerial focus, suggesting that it rewarded those who succeeded in formulating resolutions that create profit regardless of the impact on the domestic labour market.

B) Problem Statement: Pacific Brands Cases Study, IBA 111, SP1, 2013.

The aim is to develop a long-term management strategy that combats the impact external factors have on the success of the business, with a focus on ensuring the organizational values are upheld.
The global financial crisis saw companies like Pacific Brand implement aggressive strategies to maintain competiveness in the uncertain economy. This strategy exposed Pacific Brands lack of long term planning for major external environmental changes impacting on the company’s organization structure and values. This lack of forward thinking combined with the excessive managerial pay rises resulted in a lack of confidence and damage to the previously respectable reputation.
Root cause analysis (RCA)