Travels of a T-shirt in the Global Economy Harvard Case Solution & Analysis

Strategy 4

Exploitation of labor must entirely be prohibited which is being done in the form of overtime working. We are calling late working as exploitation because the MNCs have not paid it for their labors in developing countries. Rules must be established by the companies for the standardized work hours. This is because if a worker is putting efforts by his or her compliance to do more work other than standard eight hours then the company has to pay for the extra amount of time to labor. However, the rate of overtime can differ from the regular one, but the company should value the working hours in terms of money allocated to the hours spent. The company can also establish a system in which they are going to pay their workers on the basis of units produced per day. However, after eight hours if labors are working then they are going to be paid on the basis of hours as well as units produced. Although this increase causes some complexities in the disbursement of wages into their labors, but this strategy organizes their system and will have a good impact on consumer behavior against the company.

Strategy 5

To enhance the standard of living of the society in which the multinational is going to establish its business, the company must provide employment as well as uncover a system that allows the worker to increase their educations. By improving the level of education of the worker, the company is contributing profoundly towards the development of the society. This strategy is also to remove the tag that globalization is exploiting labors in developing countries and making them poorer and deprived of necessities. By educating the workers, the company is also making efforts in increasing the literacy rate of the host country. This will also support the business to make people understand about company’s operations.

Strategy 6

The company must employ precautions to reduce injuries and mishaps in the workplace. It has been observed that employees are exposed to health risk during their working hours due to which they got injured. If the labor is capable of completing their task efficiently then it is the responsibility of the company to take the initiative for their safety purposes. In the textile industry, the workers are often working in an environment where they open up to various kinds of risk regarding massive machinery. This strategy serves as an ethical practice done by the company to save its workers from health related issues.


The above-suggested strategies are based on the development of labor in the developing countries. Now we are analyzing strategies that are going to be profitable for the company. It is notably important for a corporation to take care of the rights of its shareholders in a dynamic competitive environment. Our examination is mainly based on the three factors.

1.    Company Profitability

2.    Stakeholders perspective (employee salary)

3.    Strategic Compatibility with the international market

Strategy 1

From the perspective of profitability of the company, the hiring of skilled and unskilled labor will increase the numbers of workers that are useful for the per unit production of the enterprise. This strategy does not affect the profitability of the company because the workers are being hired at a regular and low wage rate. However, the production activities are going to be increased with the increased number of labors. In the meantime, the workers are getting skilled with on the job training.

The prime stakeholders in the textile industry are the employees, customers, suppliers of the raw material and the investors whose investment are concerned with the profitability of the company. In this strategy, the company is making efforts to increase the motivation level of its employees with a rise in the level of workers' income. When a company hires people on the basis of their learning skills, the labor is unaware of their worth in the market, hence, yet being paid by the company to a certain level. However, after acquiring a complete set of skills to produce the desired outcome, the company increased labor wages up to the minimum legal wage rate as per defined by the government. This strategy is highly effective to increase the loyalty of the workers because the labors are getting compensation for their efforts and with this rise in the monetary reward, the enthusiasm of the laborers to perform a greater amount of work has also increased.....................................

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