Economic Downturn Hits Oz clothing Essay Example | Topics and Well Written Essays - 3750 words

Economic Downturn Hits Oz clothing - Essay Example The focus in this paper is on Oz clothing, a manufacturer of clothing in Australia that is facing serious threats to their operation in the business due a variety of internal problems and also due to the policies incorporated by the Australian government. The organization cannot withstand the competition from the foreign competitors in the market and is facing a threat for existence. The Industrial relations and the practice maintained by the organization were poor in nature and are adding up to the resistance in the process of revival. The importance of Industrial relation has been highlighted over here and efforts have been made to identify that how the success of various elements and process in the organization depends on the proper alignment to the Industrial relations. The impact of the policies of Industrial relation on the employees helps to have a clear understanding on the motivation of the employees. The employees and the laborers of the organization are a prime part and co ntribute a lot to the organizational success. The organizations should provide proper care and maintain their responsibility towards them by framing policies in line with the industrial relations. The overall problems of OZ clothing can be segregated into two factors, internal and external. The internal factors denote the set of issues which are present within the organization and prevent the organization to reach its desired goals, and the external influences are the factors outside the organization which prevents the cause of the organization. ... The primary reason for the failure of the organization can be contributed to lower productivity which has occurred due to the adoption of obsolete technologies used by the firm. As a result of the use of the obsolete technology an overall increase in the price of the products per unit is also increasing. The company is facing serious issues with the process of manufacturing. The increase in cost of the manufacturing is also associated with the high amount of labor costs. The process of effective utilization of labor is absent in the company and thus labor has emerged to be a factor of high cost for the company. The skills of the labors in the production department are also under question. The organization also faces serious issues with the line of products they deliver to the customers. The organization generally deals with underwear as their commodity product. Customers believe that their products are not original and are also not fashionable. In view of the perceptions from the cus tomers; the retailers are canceling the orders of the products. The products are also highly priced than the competitors and it is also acting as a major cause for being unpopular in the market. The product designing team of the organization has not brought any innovation in the design or the quality of the products and has failed to satisfy the needs of the customers. The absence of fashionable products in their product line has also been a major cause for the customers easily falling to the low priced products outsourced from China. The organization also has low source of capital and this further prevents them to opt for the new technologies or look after