Introduction:This case study depictsthe possible factors and entities by the company Levis following to reduce theincidents like building accidents occurred in Bangladesh sabotaging the livesof more than 1200 peoples and their families.
Levis followed this tracesimmediate after 2012 happenings. Levis being the most accepted brand among themillennials make them to stand high. But they thought caring about the CSR alsobrings them the better social stand and also better purpose of the business.ANSWERS Answer 1The process that Levi’shave introduced will have a positive effect on the incidents like thisdisaster.· First, this kind ofincentives and points in interest scheme will motivate supplies to improvisetheir field of business.
They themselves within suppliers will have acompetition for maintaining the better facility and workforce to get thecontract and the capital. We can also say this as an opportunity cost for bothLevis and the suppliers· This also have the factthat internal collaboration is very much important to create the value for theproduct. Each outsourcing company should know about the capabilities of theother which lacked in Bangladesh incident. This can be happened in many numberof sustainable ways without affecting the profit in larger variables as Levisdid. · This also make thesuppliers to follow the mandatory alliance with the program so that they canget the best out of it.· And finally, the wordincentive (the token of appreciation) will make the supplier to work in moreethical way as their burden on cutting cost can be relieved to some extent Answer 2The persons to behind andsurrounded by this decision are the management itself (by encouraging this typeof schemes they care about their economies of sales and the break even, theworkers get their proper wages and helps them to lead a better life, theBangladeshi government, the family who got the benefits from this scheme,supplier (they are the direct benefiters, customers (the perceived value theyget in time) The other mainstakeholders are the local banks in Bangladesh who does not make their profitby lending to local businesses. · The communication betweenthe company and the suppliers should be pronounced properly · The main factors involvedin controlling is the cost, as the success of this schemes are purely based onthe control. · Levi’s can hirecontractors from local market consultants to keep tracking their operation.
· Continuous maintaining ofinternal collaboration under their purpose of agreement. Reviewing theiragreement by sending personnel’s randomly to the site. Normally it is difficultto have control over the outsource. But in this case they become accustomedwith the value deliverables of Levis to maintain some of these decorum. Answer 3 · Giving incentive willcreate a vast market of productivity by the supplier’s expansion, this happenswith the business cycle as global presence among customers increase with thesales and thus in parallel expanding their suppliers for more productivity. · This will become as theirbest opportunity cost, thus losing a fraction of profit does not matter· Grab attention fromworldwide market for their new schemes in work and they can use it forself-promotion· Less exploitation ofmanpower with the value being increased and by enhancing the environmentalstandards· At last in thiscompetitive world, it gives them the true purpose of why they exist and themeaning amongst the customer. · This make the company toperform better in CSR and have a proper relation with outside worldAnswer 4· The main thing about theincentives based on performance goals are realistic but it involves a costincurred by the company.· So deciding the costfactors will be a challenge, the cost includes tracking the performance levelson each suppliers basis, deciding the incentives based on the performance levelwill become as the sharks of the economy affecting the rest of the suppliers.
· We believe the costincurred is not addressed to decide about the financial sustainability. · And the other mainfactors are the suppliers taking advantages of the offers and working in arelaxed condition. Sometimes they can go to an extent where they can pretend towork accordingly but rather using the advantages.· The economic cycles playa vital role in this process as the bank in long term cannot effectively rungiving loan offers if they hit by a heavy recession. On the same hand, thesuppliers can keep their employees liable and can acquire the whole advantages.This can be prevented by the feedback system by examining the life of theemployees.
Conclusion:Wehave discussed the various process involved in effective sustainability of thecompany which give them the competitive advantage amongst the market and alsothe perceived value for their product without exploiting the social life of theemployees. Company that maintains both the profit level and the welfareness ofthe society have the humane responses when it comes to ethical grounds.