Wednesday, 11 June 2014
Globalisation part 2
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Sunday, 8 June 2014
The Relocation of Dyson - Outsourcing
- James Dyson was heavily criticized for sacking 800 UK workers and relocating his manufacturing plant to Malaysia.
- During 2002, Dyson, was regarded as a patriotic figure because of his reluctance to relocate his operations abroad, despite the fact that labour would be cheaper, as well as land costs.
- However, later in 2002 Dyson announced that he was relocating the production wing of his business to Malaysia. Due to this 800 semi-skilled UK assembly workers lost their jobs, although 1200 head office and research employees remained in place at the firm in Britain.
- 2005 - profits of £102.9 million - representing a 137% increase in previous figures.
- 20% turnover - UK workers paid more
- less tax towards the government
- low production costs/ high sale prices - greater profit margin - larger income for employees
- During 2002 the company was faced with going out of business
- Dyson was able to invest more money into technology/ design/ performance - example of this is the Ball product.
- Lower wages for Malaysian workers - reduce unit production cost by 30%
- more of an open market and easier access to nearby suppliers - South East Asia
- Filtering - people have less money for upkeep of property, degregation of housing stock.
- allowed expansion of Quaternary sector
- close to new emerging markets - Australia and Asia
- government used high interest rates - need low exchange rate - make their exports competitive abroad.
- UK government failed to implement manufacturing supportive measures - training/ engineers/ apprentices/ scientists
Thursday, 5 June 2014
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