Business Cycles and Employment Practices in a Domestic Garment Company

Business Cycles and

Employment Practices in a

Domestic Garment Company

October 14th, 2016

In the current business world it is not easy to enter new markets, especially being an apparel company. Hence, if the company did penetrate the market, it would still be a challenge to remain on top of its competitors. The company’s previous sales were up to 80 million dollars and its future projection is about 150 million dollars. This is due to the fact that the company targets niche markets that will pay more for products in the current fashion trend which makes the speed and flexibility of operations more important than price (Wicks, 2011). Unlike others, the company has a mission to treat its workers the best treatment possible. It use to employ 2000 workers, however due to the high demand of the company’s products 1000 more employees were hired.

During the upcoming season the company will be facing an excess of workers while sales are very low. There are many ways for the company to deal with this situation such as layoffs. However the company’s reputation would be on the line since it takes the treatment of its employees very seriously. Now the company is facing a huge issue that needs to be solved in a manner that does not affect is employees and the company’s image.

If they decide to lay off its workers then not only are they going against what they believe in but also could ruin the image of the company. Many customers might be aware of how employees are treated with respect, and if all a sudden they are gone due to a slow working season could lead to more damage to the company’s future revenues. On the other hand if the company would like to keep its perfect image they can keep their workers. However this decision will create huge costs on the company that can turn into losses due to the lack of sales in the winter season. The company is in the middle with making decisions on either making more money or working ethically. If they decided on layoffs, how could they choose among the workers whom to let go. This might raise some legal issues creating larger problems than the company can handle.