No Longer
“Made in the USA”
Member:
1. Nguyen Danh Ha
2. Vuong Tat Khang
3. Le Minh Quan
Instructor:
Prof. Dr. CK.Kwai
Agenda
1. Summary of the case
2. Identification of issues
3. Recommendations
Levi Strauss & Company (LS&C)
Founded in San Francisco
by Bavarian immigrant
Levi Strauss in 1853.
Developed, and set the
...
$68
Jacob Davis
Levi Strauss
Levi Strauss & Company
(LS&C)
Levi Strauss & Company
(LS&C)
Premier clothing
supplier for
American youth
Sells products in
over 100
countries
Proudly
ma...
Levi Strauss & Company
(LS&C)
Cheaper products from competitors
 Suffered in decreasing in sales and
earnings.
Golden tim...
Levi Strauss & Company
(LS&C)
2003
End all North American production
Facing the Fact
Assumptions
The change of
Levi causes the
encourage other
US companies to
follow.
Closing manufactures
in US and outsource...
Outsourcing the manufacturing
No LS&C plant in US
Structural
• The situation has changed!
• Gap, Guess and Ralph Lauren…
h...
Outsourcing the manufacturing
No LS&C plant in US
Structural  Reduce cost by outsourcing
the manufacturing
 Recapture th...
“America’s 50
Best Companies
for Minorities”
Close all local plants
Cut jobs
?!?
Empathy, originality,
integrity, and
cour...
Focus on product
design and marketing
Outsourcing the manufacturing
No LS&C plant in US
Free resources
previously devoted ...
Outsourcing the manufacturing
No LS&C plant in US
Human
Resource
Much lower labor cost
Outsourcing the manufacturing
No LS&C plant in US
Human
Resource
Is the
manufacturin
g techniques
of other
countries as
go...
Vulnerable to political changes
in other parts of the world
Outsourcing the manufacturing
No LS&C plant in US
Political
No...
Levi’s & Co, an icon of
American
Made in …………
Made in ………………
Made in .............
China?!?
Combodia?!?
?!?!?
Recommendations
To:
‒ Reduce the dependency
‒ Keep the quality
‒ And solve the problem of ethic
Keep
manufacturing in
the ...
Conclusion
Outsourcing the
manufacturing in Levi’s
the Deindustrialization
• Not a negative
phenomenon,
• Natural conseque...
Q&A
References
• Making sense of Intercultural
Collaboration – Allan Bird and Joyce S.
Osland
• Case 6: Levi Strauss & Co: No ...
Presen tation has end
Thank You
Intercultural Management - Case Study: Levi Strauss and Company: No Longer Made In USA
Intercultural Management - Case Study: Levi Strauss and Company: No Longer Made In USA
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Intercultural Management - Case Study: Levi Strauss and Company: No Longer Made In USA

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Intercultural Management - Case Study: Levi Strauss and Company: No Longer Made In USA

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  • - In 1873, Levi Strauss and tailor Jacob Davis received a U.S. patent to make the first riveted men's work pants out of denim: the first blue jeans- Developed, and set the standard for denim jeans for over 130 years.
  • Intercultural Management - Case Study: Levi Strauss and Company: No Longer Made In USA

    1. 1. No Longer “Made in the USA” Member: 1. Nguyen Danh Ha 2. Vuong Tat Khang 3. Le Minh Quan Instructor: Prof. Dr. CK.Kwai
    2. 2. Agenda 1. Summary of the case 2. Identification of issues 3. Recommendations
    3. 3. Levi Strauss & Company (LS&C) Founded in San Francisco by Bavarian immigrant Levi Strauss in 1853. Developed, and set the standard for denim jeans for over 130 years. An American Icon
    4. 4. $68 Jacob Davis Levi Strauss
    5. 5. Levi Strauss & Company (LS&C)
    6. 6. Levi Strauss & Company (LS&C) Premier clothing supplier for American youth Sells products in over 100 countries Proudly manufactures clothing in the US
    7. 7. Levi Strauss & Company (LS&C) Cheaper products from competitors  Suffered in decreasing in sales and earnings. Golden time has passed Recapture the loyalty of youth market Reduce cost by outsourcing
    8. 8. Levi Strauss & Company (LS&C) 2003 End all North American production Facing the Fact
    9. 9. Assumptions The change of Levi causes the encourage other US companies to follow. Closing manufactures in US and outsource its manufacturing outside the use damaged its reputation. LS&C is an American icon.
    10. 10. Outsourcing the manufacturing No LS&C plant in US Structural • The situation has changed! • Gap, Guess and Ralph Lauren… have long farmed out production overseas. Change the structure to fit the situation! “A business needs to be profitable” -- Levi’s spokesperson
    11. 11. Outsourcing the manufacturing No LS&C plant in US Structural  Reduce cost by outsourcing the manufacturing  Recapture the loyalty of the youth market. Cut ~2000 jobs in North America Close 2 remaining U.S. plants Outsourcing to cheaper contract factories in Asia and Latin America
    12. 12. “America’s 50 Best Companies for Minorities” Close all local plants Cut jobs ?!? Empathy, originality, integrity, and courage US is important market for sales Ethic conflict? Outsourcing the manufacturing No LS&C plant in US Structural “Excellence in Ethics” “Community Involvement Teams”
    13. 13. Focus on product design and marketing Outsourcing the manufacturing No LS&C plant in US Free resources previously devoted to manufacturing Human Resource
    14. 14. Outsourcing the manufacturing No LS&C plant in US Human Resource Much lower labor cost
    15. 15. Outsourcing the manufacturing No LS&C plant in US Human Resource Is the manufacturin g techniques of other countries as good as USA? How about the raising of labor cost?
    16. 16. Vulnerable to political changes in other parts of the world Outsourcing the manufacturing No LS&C plant in US Political Not only LS&C but also USA losing ability to manufacture domestically The suppliers now play an important role Important position sales, marketing, design
    17. 17. Levi’s & Co, an icon of American Made in ………… Made in ……………… Made in ............. China?!? Combodia?!? ?!?!?
    18. 18. Recommendations To: ‒ Reduce the dependency ‒ Keep the quality ‒ And solve the problem of ethic Keep manufacturing in the host and remote countries Certified Quality Control System 1 2
    19. 19. Conclusion Outsourcing the manufacturing in Levi’s the Deindustrialization • Not a negative phenomenon, • Natural consequence of further growth in advanced economies. “the faster growth of productivity in manufacturing than in services” Main reason:
    20. 20. Q&A
    21. 21. References • Making sense of Intercultural Collaboration – Allan Bird and Joyce S. Osland • Case 6: Levi Strauss & Co: No longer “Made in USA” • http://www.levistrauss.com/about • Bureau of Labor Statistic (http://www.bls.gov/bls/blswage.htm)
    22. 22. Presen tation has end Thank You

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