While Joe Fresh continues to manufacture their products in Bangladesh, Loblaws is working locally to help families. Online Reputation Expert, Herman Tumurcuoglu thinks that this was the best thing possible to do after the collapse to protect their image. However, the ORM expert thinks that Joe Fresh is putting off their image and reputation by ignoring the issue. Instead of focusing on their global image and what people think, Loblaws is working closely with the community that has been affected by the sweatshop collapse (specific environment) by providing compensation and local aid. But what is Joe Fresh doing?
So far, the company is not doing much. Joe Fresh managers and directors are responsible for this issue in the global environment. Part of Joe Fresh’s differentiator is that they have low cost clothing. However, that means it is produced at an extremely low cost as well.
What managers can do to influence the global environment which is directly impacting the company’s goals:
- Forgo high margins: by bringing their production out of Asian countries (domestic production), Joe Fresh will have to pay workers higher salaries among other more expensive costs. To remain competitive, they should not increase the price of their clothing but rather accept lower profit margins.
- If Joe Fresh chooses to outsource their production, managers should implement better working conditions regulations including the safety of the workplace.
- Joe Fresh should train a North American manager on Bangladesh culture (cross-cultural examination) to send and manage the Bangladesh factory. That training will allow the manager to understand how that culture operates and how to make sure they get the best work out of happy employees. The manager should adjust pay, hours, and conditions so the employees can equally lead a balanced yet productive life.
- Increase productivity by offering more jobs and reducing hours of current workers. The ideal strategy for Joe Fresh’s production moving forward (if they remain in Bangladesh) is to use local expertise to market to their people. Currently, the company has a poor local (specific environment) reputation so it is best that they follow Loblaw’s lead.
Specific to this case, the manager/director of Joe Fresh is responsible for the factory collapse at the global level. Within the factory are employees and communities who directly impact the success for the company (specific environment). All of the regulations and ideas above will improve the online reputation of Joe Fresh and their international image simply because doing the right thing looks good.