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Example research essay topic: Levi Strauss Employee Motivation - 1,784 words

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INNOVATION AND CHANGE: LEVIS FACTORY WORKERS ASSIGNED TO TEAMS Introduction This case study will revolve around the diminishing of Levi Strauss & Co. as an apparel icon in terms of sales and factory workers morale. It shall focus on the falling sales, profit margin and significant restructuring expenses that have cost disappointment on the part of the workers. The study aims to profound on the following questions: What went wrong with Levis move to teams in their plants? What could Levis have done differently to avert the problems? Devise a team incentive plan that you think might work.

Do you think the need to move jeans production off-shore was inevitable? Could Levis have done anything to avert the problem of increasing labor costs? Levi Strauss & Co. is one of the world's leading branded apparel companies, marketing its products in more than 100 countries worldwide.

The company designs and markets jeans and jeans-related pants, casual and dress pants, shirts, jackets and related accessories for men, women and children under the Levi's and Dockers brands. Invented in 1873 by Levi Strauss, Levi's jeans are the original, authentic jeans. They are the most successful, widely recognized and often imitated jeans products in the history of apparel. Levi's jeans have captured the attention, imagination and loyalty of generations of diverse individuals in more than 80 countries around the world and continue to do so today through jeans wear innovation. (web In an industry notorious for low wages and lousy working conditions, Levis has prided itself on being a grand exception.

It offered generous pay, plus plenty of charity support in factory towns -- all of it financed by the phenomenal profitability of its brilliantly marketed brand name. It clung to a large U. S. manufacturing base long after other apparel firms began moving offshore, and it often was ranked among the best companies to work for. But to many Levi's workers, the company's image hasn't fit for some time. In 1992, the company directed its U.

S. plants to abandon the old piecework system, under which a worker repeatedly performed a single, specialized task (like sewing zippers or attaching belt loops) and was paid according to the amount of work he or she completed. In the new system, groups of 10 to 35 workers would share the tasks, and would be paid according to the total number of trousers the group completed. Levis figured that this would cut down on the monotony of the old system, and that it would enable stitchers to do different tasks, thus reducing repetitive-stress injuries.

Levis says the team approach was the company's attempt to ensure long-term survival for as many U. S. plants as possible. Plant closures might have come sooner, and job losses might have been heavier, had teams never been adopted, company officials say. Levis promises to persevere with team strategy in its remaining U. S.

plants. But unofficially, much of the approach is being scrapped as individual managers seek ways to improve productivity. "People in the plants are gradually going back to the old way of doing things, " says Mr. Garland (R. T King Jr. , 1998). Presentation of the findings and analysis Decline in their profit sales, rapid increase in the workers compensation costs and stress prompted Levis company to implement work re- organization which made the workers less enthusiastic although they dont want to return to the piece work system. As for Levi's their move in shifting from piece work to team work is to fill orders more quickly, improve quality and reduce muscle and strain injuries.

In turn workers are complaining for reduced workers compensation. "It's just not the same company anymore, " Herb Etheridge, a former regional production manager, told the Journal. "The perceived value of the individual and concern for people just is not there. " Maria Perez (not her real name), who works the night shift at Levi's factory number 614 in San Antonio, agrees. Perez sews labels on Dockers and 501 s, and she has already been laid off once by the company, from the Zarzamora Street plant in 1990. In recent months, she said, she has again noticed the warning signs of impending plant closure: changes in production, apathetic managers, and lengthy and seemingly pointless staff meetings. "Everybody's upset because they don't let us know if the plant's going to stay open or close, " Perez told us. "Almost everybody wishes they would close already and get it over with. " (June 1998, Sweatshop blues. htm). The team approach was the company's challenge to ensure a long-term survival for as many U.

S. plants as possible. Levis admitted that closures of plants might have come sooner if the team working was not adopted soon. Critics say that Levis failed to recognize the shift in marketplace dynamics because as a generic name for blue jeans, they enjoyed only a few competitive threats and the quality of the brand add up to its marketing strength. Others would say that Levi's management was not prepared for competitive threats.

Its high cost structure prohibited them from making pricing concessions. Additionally, the companys restricted distribution policy further eliminated market share opportunities. Strategic planning is crucial in any business because it will act as the directional map to the companys vision and mission. However, one has to know and understand the concept of the business to help develop the strategic direction for the organization. Levis should have applied the The Strategic Audit. Arthur Thompson and A.

J. Strickland (1987) argued that a business is best addressed through a SWOT analysis. Here, the planning team deliberates in creating four lists: (1) Internal Strengths (2) Internal Weaknesses (3) External Opportunities and (4) External Threats. Internal strengths are those characteristics of the company which place it at a significant competitive advantage. Internal weaknesses, on the other hand, are characteristics of the company which place it at a significant disadvantage. External opportunities are those factors, independent of management's control, which may be seized to the company's advantage.

External threats, again independent of the control, threaten effective management with harm. Opportunities and threats are found in what McCarthy and Perreault (1990) called the uncontrollable environment. They can be found in their marketing manager's framework model. To be effective, management must continually assess the social and cultural; technological; economic; legal, regulatory and political; and competitive variables. Not included in McCarthy and Perreault's model is the cooperative environment. Building strong relationships with suppliers and channeling members in the distribution system, is equally, if not more, important to the other variables in the marketing management framework.

Few would argue that the cooperative environment plays a significant role in a company's ability to gain sustainable competitive advantage in today's highly competitive and complex global market place. Communication of a strategic plan within the company stimulates positive employee response. Employees feel they " re part of a "more professional organization. " Their management has identified where it wishes to go, and made the necessary commitment to get there. Therefore, effectively communicating the strategic plan improves employee motivation. (Thompson, Arthur A. , Jr. , and A. J.

Strickland (III 1987). Levis failed to create alternative growth strategies in relation to their competitors, market opportunity and resources of the organization. Their operation was merely concentrated on the opportunities and strength being the top brand name apparel, putting aside the threats to come and the strategies to combat such threats. Since team working have been implemented to keep the business, Levis can device a motivation scheme to keep its employees morale high despite the business situation. Seeking employees ideas, keeping them informed, expressing personal interest, instilling pride in word, providing effective supervision are just some factors that can contribute well to employees motivation. To effectively motivate them, an effective incentive scheme is necessary.

Recognition is important, whether expressed thru monetary or non-monetary rewards. But monetary reward will always be vital because good pay is essential to employees satisfaction and must be given priority. Levis workers should not feel that they are underpaid. Bonus plan must be created to provide extra compensation to boost the morale of the staff. Profit sharing is also a monetary incentive to encourage employees to be more creative and think of ways to increase their sales and reduce expenses.

Non-monetary recognition may include plaques of appreciation, announcement of special accomplishments or promotion. Social relaxation in between busy working hours can improve employees sense of belonging ness. Recreation programs can also be adopted as a way of developing good working relationship among them. Establishing a reasonable work production standard is one way of solving the ambition falls of workers.

Living up to the set standards will bring a sense of achievement to the staff. In addition, better placement, better working environment, self achievement and self esteem add up to employee motivation. These are just practical employee management and motivation suggestions for Levis which could help strengthen companys decline. Reports said that Levi's profit has improved this year due to layoffs, closure of plants and other cost-cutting measures proven to be effective. The retrenchment done was proved to be a useful strategic tool only that it did not prove to be beneficial to the workforce management. The need to move jeans production off-shore was inevitable for Levis to avert the problem of increasing labor costs.

Such move will help them continue their business without having to spend so much for labor because off-shore production means a cheap labor cost. This cost-cutting technique will be beneficial to a declining company like Levis. Conclusion and Recommendation Reclaiming a losing business is virtually impossible. Competitive threats must be blocked by developing a strategic planning scheme and enhanced managerial and leadership skills. Companies like Levis Strauss should keep in touch with the pulse of the Marketplace, Market Penetration, Market Development and Product Development. The strategic plan should include the stimulation of positive employees response to the changes that may take place in the company.

They should make the employees feel that they are part of the organization. Evaluation of alternative strategies will provide a framework to a better preparation for unexpected events that may either make or break the company and its people. REFERENCES King R. T. Jr. (1998), Jeans Therapy The Wall Street Journal Clearance Centre, INC. Dow Jones and Company, Inc...

Accessed August 7, 2008 web Thompson, A. , Jr. , and A. J. Strickland (III). (1987). Strategic Management: Concepts and Cases, Piano, Texas: Business Publications, Inc p 98).

Care, F. (ed). Customer Satisfaction Drives. Auto Web Sites' Traffic Accessed August 7, 2008 web Corporate Transformation without a crisis. Accessed August 7, 2008 web Ulrich, William.

Business Process Reengineering Legacy Systems Transformation. Accessed August 7, 2008 at: web


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