Case Study Footwear 3s101u

Case Summary Based on case, Footwear is a multinational manufacturer and marketer of footwear. It have more than eighty-three companies in seventy countries and head office acts as a service center also got staffed with specialists drawn from all over the world. Besides required standardization in technology and design of facilities, it also encourages a high degree of decentralization and autonomy in its operations. They use a concept of partnership at the local level has made the company welcome internationally. Bangladesh is the most densely populated country in the world. Although that country is fertile but has a tropical monsoon climate and suffer from the ravages of periodic cyclones. In Bangladesh, have 85 percent Moslem of population and Islam was made in 1988. Bangladesh also has had a turbulent history in the twentieth century is include related with Pakistan and India until they got independence. Footwear Bangladesh became active at East Bengal in the 1930s. Until end of 1988, the company in Bangladesh was perceived as offering Footwear enormous potential for growth both through consumer education and competitive pressure. The managing Director of Footwear Bangladesh was John Carlos it is one of only four foreigners working for the company. Started on June 22, 1989 the incident was happen when John Carlson was shown a copy of Meillat in newspaper with title "Footwear's Unpardonable Audacity", that design on the insole of one model of sandal produced by the company include the Arabic spelling of the words "Allah" .The Story highlighted the fact when the design wan only the insole of the sandal and therefore, next to the bottom of the foot, a sign of great disrespect to Moslems. Following of investigation, the supervisor reported that the design had been based on a set of Chinese temple bells that the designer had purchased in the local market. Following the conservation Carlson was compared the design to the word Allah, which he had arranged to have written in Arabic. As the day progressed the situation got worse. Carlson was shown a translation of a proclamation that had been circulated by two youth groups calling for demonstrations against Footwear. More than that, calls had been made for charges to be laid against Carlson and four others under section 295 of the criminal code.

In addition, Carlson also received a copy of a statement that had been filed by a local lawyer, although no warrants were immediately forthcoming. Lastly, his secretary informed him that the Prime Minister was being quoted as calling the sandals incident an "unforgivable crime". Problem Statement "Based on case, we have detected that main or actual problem that facing Footwear International and Bangladesh are that of potential boycott of the product world over especially by the Muslim community". The boycott of the product will affect the company's sales, and the company will lose confidence. 3. ALTERNATIVE STRATEGIES The strategies available for this case are as follows: 1. Do a press conference to explain the misunderstanding to the public. 2. Hold the footwear production. 3. Held a meeting with stakeholders and government agencies to further explain and the way forward to resolve the misinterpretation of the logo. 3.1 Do a press conference to explain the misunderstanding to the public. John Carlson the Managing Director of Footwear Bangladesh should act quickly to defuse a potentially explosive situation by calling for a press conference to explain the misunderstanding of insulting Islam by including the name of Allah in a design used on the insoles of sandals. Footwear should come out and talk to the society through Medias. As the company is operating globally, the reputation is at stakes. John Carlson and the management of Footwear must reflect their professionalism and portray it well to the public as the business is about losing Bangladesh people’s trust and confidence. The population of Bangladesh is 85% Moslem, and Islam was made the official state religion in 1988. Being the only foreigner recognize by the government as "Bir Protik", it is crucial to maintain the recognition. John Carlson and the management must provide a clear explanation on the interpretation of the design used by Footwear Bangladesh.

3.2 Hold the footwear production With a population approaching 110,000,000, and per capita consumption of one pair of shoes every two years, Bangladesh was perceived as offering Footwear enormous potential for growth. In Bangladesh a Sandal with Allah as Footwear trademark in Arabic designed in calligraphy has been marketed although last year Islam was made the State Religion in Bangladesh. It would be wise to hold and call back the production of the sandals for the time being to ensure further investigation can be carried. This is crucial as Footwear was accused under Jewish ownership and to link the alleged offense with the gunning down of many people in Palestine by Jews. It will only worsen the reputation of Footwear Bangladesh should they decided to continue the production of the sandals. An internal and external investigation should be carried out during the period of holding the production as this will give the ample time for investigator to seek for evidences throughout the company. Footwear Bangladesh may export their product to other region or subsidiaries to ensure the operating cost can be recovered. 3. Meeting with stakeholders and government agencies to further explain and the way forward to resolve the misinterpretation of the logo John Carlson the Managing Director of Footwear Bangladesh is responsible to engage with the stakeholders and government agencies to gain during this challenging hour. It is the time to get the from the government agencies by giving the clear explanation of the incident and discuss the action plan to regain back the confidence and reputation of Footwear Bangladesh. Footwear and government agencies can collaborate together as a team by conducting CSR to the community to show the sincerity of the organization. Government

agencies

can

further

enlighten

the

communities

of

the

misunderstanding of the design. Footwear can invites the government and local communities to visit the Footwear offices to have a view of the initial design and implementation of the sandals. Besides that, all the employees in the development and marketing department were Moslems. As the employee of the

company, it will be a great contribution by explaining to their families, neighbours and community on the misunderstanding.

4.

EVALUATIONS OF ALTERNATIVE STRATEGIES

4.1

Do a press conference to explain the misunderstanding to the public

4.1.1 Positive Outcome By having a press conference, it will expedite the process of explaining to the public on the misunderstanding of the design by Footwear Bangladesh. Footwear would be able to interact with the reporters for potential Q&A session which can further explain the misunderstanding of the incident. Community would recognize the effort made by Footwear to explain the incident to the public. It will regain the confidence and recognize as when they accepting the explanation of Footwear Bangladesh. 4.1.2 Negative outcome Footwear Bangladesh must prepare the evidence and explain clearly to the public on the incident occurred as failing to explain to the public through press conference would be damaging as it is official statement made by the company. The representative of the company must able to understand and remain calm as the reporters might take the advantage to tarnish the reputation of the company and link it to the gunning down of many people in Palestine by Jews. 4.2

Hold the footwear production.

4.2.1 Positive Outcome By holding the Footwear production, it will certainly help to reduce further deficits to the company as people of Bangladesh has started to boycott the sandals made by Footwear Bangladesh. In this period, it will give the opportunity of Footwear to repair or replace and machinery that needs to

be maintain. This also gives the added advantage to conduct internal investigation to the employee of Footwear Bangladesh. It is important for the management to engage with the employee on the current situation and provide to the employee. 4.2.2 Negative Once the production has been stop, this means no more production of sandals which will affect the sale of the company. It will give negative values to the P&L if the production is not able to be continuing soonest possible. It will give negative signals to the main office and potentially the plant might be closed up should the issue is getting bigger and uncontrollable. 4.3

Meeting with stakeholders and government agencies to further explain and the way forward to resolve the misinterpretation of the logo

4.3.1 Positive Outcome Footwear will be able to explain and give detailed explanation to the stakeholders and government agencies on the misunderstanding of the logo or design. Once they cleared on the issue, it will provide additional to convince to the other party especially public on the misinterpretation of the design. It will help to expedite the recovery period for Footwear Bangladesh. 4.3.2 Negative The representative of the company must be able to explain clearly to the stakeholder and government agencies as it will certainly provide huge impact which leads to severe complains from the government agencies especially those involve with the incident. Stakeholders might withdraw their investment and quite from Footwear Bangladesh. Should this things happens, Footwear Bangladesh might need to close their factory and relocate to other places or country.

4.

THE BEST STRATEGY AND JUSTIFICATION

It is important for a leader to understand and recognize the local custom and sensitivity in operating the business. The first accused of this case is the Managing Director of Footwear Shoe Company, the second accused is the Production Manager of the said company, the third accused is the Marketing Manager, the fourth accused is the Calligrapher of the said company and last accused is the Sales Manager of the said company. All of the acc are foreigners and this shows that the local are having concern of the top management is seeded by foreigners instead of the local employees. The accused persons deliberately wanted to outrage the religion of Muslims by engraving the calligraphy of "Allah" in Arabic on a sandal thereby to offend the Religion of majority this Muslim Country. By marketing this sandal with the calligraphy of "Allah" they have offended the religious feelings of millions of Muslims. It is the solemn religious duty and responsibility of every devout Muslim to protect the sanctity of "Allah." Therefore, taking into consideration of the above strategies, the best strategy

is

to

hold

a

press

misunderstanding to the public.

conference

to

explain

the