Report for case three footwear international

Report for Case Three Footwear International Background Footwear International is a large-scale multinational corporation with tremendous influences, as it has more than eighty-three companies which includes many production facilities and retail stores around seventy countries in the world. In 1947 the government transitioned from British ruled to that of a providence of Pakistan, which became known as East Pakistan. Although they had independence, they always felt disconnect and that they were underrepresented in the government. In the early 1970’s, they gained their independence with the help of India and became known as the country of Bangladesh. The country became more stable since ruled by President General H. M. Ershad in 1983. In Bangladesh, more than 60% GDP was created by agriculture sector but it has to suffer great financial losses by annual nature disasters. Official religion is Islam due to 85% of population are Muslims and official language is Bengali. Footwear Bangladesh, a constituent company of Footwear International in Bangladesh, first became active in local area in the 1930s. In 1962, the construction of a footwear manufacturing facility at Tongi(an industrial town located thirty kilometers north of Bangladeshi capital) was took placed by the first major investment. Then, Footwear Bangladesh grew to the largest private-sector foreign investment in the country with 1, 800 employees, eighty-one stores, fifty-four agencies and $30 million revenues. It is also relevant with people’s daily lives that a pair of shoes would be consumed by local person in two years at least. The description of sandal incident On Thursday, June 22, 1989, an article which points out Footwear Bangladesh whose design used on the insole of sandals is a sign of great disrespect to Muslims was shown on a fundamental newspaper with close tie to an opposition political party. The design is a image of Chinese temple bells that was misunderstand as the Arabic spelling of Allah. These infuriated Moslem communities and strikes as well as demonstrations were exploded even youth groups declared that they were willing to risk their lives to protect their religion. In addition, a local lawyer was ready to charge four managers of the company as a section of the criminal code that forbade “ deliberate and malicious acts intended to outrage feelings of any class by insulting its religion or religious believers. ” Analysis for the sandal incident 1) The country has continued to remain split with many political groups fighting for power to overthrow leadership. Many of the parties were linked to opposition newspapers, which promote their political position. Thus, it is obvious that the whole sandal incident was a conspiracy by an opposition political party. 2) For Footwear Bangladesh, the key issues how to mitigate the misunderstandings and wrong facts that were presented to the Muslim nation in case the worse situation as religion and culture are very sensitive subjects to people of any civilization. The company faced major problems that of potential boycott of all products made by Footwear Bangladesh. The worst situation is that this incident would lead to a series of doubt about the product, company and its venture maybe causing financers to back out. The filling of criminal charges against John Carlson, the Managing Director, and three other Footwear managers could causing a large scale turnover in the human resources world over with panic resignations. 3) For Footwear International, the key issue they most concerned that the incident could spread to other Moslem nations and cause uprising in other countries where Footwear has subsidiaries. These would destroy corporation’s reputation worldwide and rupture relationships between customers and Footwear causing heavier boycotting Footwear products around the world. Short-term plans 1) Footwear Bangladesh should kept stakeholders informed about latest information of this incident as they are concerned about company’s interests as well and they may offer helps to company. 2) A inside meeting is necessary for stabilizing company’s order in this special period. Manager also could encourage dithery personnel to stay here facing current predicament together. 3) A news conference would be held in time, before that manager could persuade government to control social orders and suppress riots by force if necessary and it is helpful to Footwear make an apology to those who had lost their mind. And the news conference would better include that a sincere apology, a promise to make up Muslim, an unambiguous explanation that the design is a image of Chinese temple bells rather than name of Allah, be willing to accept investigation by the bureaus to prove that this incident is not that Footwear with Salam Rushdie and international Jewish conspiracy against Moslems, statement of Footwear’s opposition that support and respect Islam and promise that these sandals would not show up in Bangladeshi market and that point out this incident is a conspiracy and calling on innocent Muslim stopping all strikes and demonstrations for not to be used as a tool for political struggles by opposition parties. 4) Taking actions that urge media coverage and Internet to report Footwear to be sinless that the opposition political party wants to defame Footwear by wrong facts. It is better to control the news would not reported in other countries. 5) Prepare a detailed report for predicted losses and a viable plan to show confidence that manager is able to rehabilitate Footwear Bangladesh to Footwear International. Long-term plan 1) Setting a department which focus on culture different to avoid such incident happen again and organizing personnel have knowledge about religion culture. 2) Establishing a foundation to support and hold local religion activities to communicate different religion culture. 3) Do some social charity to help impoverished people and fundamental education. These actions may ameliorate the relationship between local customers and company. 4) To make up losses among this incident, these sandals could be exported to other countries where Muslim being not.