• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Employees of Etch-A -Sketch expected the closure to take place. The company had already moved production of toy lines to China, and most employees knew it was just a matter of time before EAS went too.

Extracts from this document...

Introduction

Etch-a-Sketch was originally invented in Paris by garage mechanic Arthur Granjean who called it 'L'Ecran Magique', (the Magic Screen). The toy did not need batteries and did not have loose parts which rendered it a great toy. He took it to the International Toy Fair in Nuremberg in 1959. The screen did not ignite much interest until The Ohio Art Company took it on and started to manufacture it. Originally made by hand, mass production began in July 1960, and with television advertising, sales soared. Confronted with sluggish toy sales, the Ohio Art Company lost money for two years running. In December 2000, it took the strategic decision to outsource production of the Etch-A -Sketch toys to Kin Ki Industrial, a leading Chinese toy maker, laying off one hundred US workers in the process. Employees of Etch-A -Sketch expected the closure to take place. The company had already moved production of toy lines to China, and most employees knew it was just a matter of time before EAS went too. Bryan Ohio a small town of 8,000 residents and also the home of the DUM-DUM hard candy suckers, has taken a cumulative effect of outsourcing to China. ...read more.

Middle

As for the tasty food it is apparently a mix of boiled vegetables beans and rice with meat or fish served only twice a month. The workers at Kin Ki have apparently become restless. They went on strike twice in 2003 demanding higher wages and better conditions. The company responded by raising wages a few cents and allotting an extra dish of food to each worker per day. Senior executives deny that organizers of the strike were fired for voicing out their concerns. Ohio's CEO stated to the Times reporter that he considered KinKi's executives to be honest and that he had no knowledge of labor problems there. But he said that he intended to make a visit to China soon to make sure that they " understood what was expected" One memo preparing workers and supervisors for an inspection in September 2001, urged workers to help the factory "cope with clients." "Foreign clients made unattainable demands during previous inspections, including on limiting overtime," the memo said. "But when you think about it, you come from all over the country to make money, not to rest." A more recent memo, issued to prepare for an inspection that took place on Nov. 26, urged workers to memorize false numbers for wages and working hours to reflect Shenzhen's regulations. ...read more.

Conclusion

The total savings in labor and overhead costs can be altered to build adequate facilities abroad with excellent working conditions and benefits for the workers while maintaining cost savings. Ohio Art Company should be in better contact with their manufacturer abroad. There should be direct supervision of conditions. A mission statement should be written and posted for all employees to see when going to work. There should be a clearly professed level of standards and expectations with a full support from the upper hierarchy to ensure conditions and standards are met. Compensation does not necessarily need to be increased but the overall environment would raise the level of morale for the workers. Offering bonus incentives for management to comply with local laws and regulations will prevent management from deceiving officials about working conditions' facts and figures. This would encourage a positive atmosphere from the top downward creating a leadership dedicated to ethical conduct and treatment of employees and compliance with local code. Instilling a stronger international awareness in Ohio will also help their effort. A need for a stronger awareness was sensed in the articles about Bryan, Ohio. They should send executives to China more often to improve the operations by instilling a sense of corporate culture and establishing an expectation upon the local management. Germanson, Ken People's Weekly World Newspaper, 12/11/03 New York Times: "Ruse in Toyland: Chinese Workers' Hidden Woe", December 7, 2003 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Business Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Business Studies essays

  1. Starbucks expansion into China

    According to the report of Asian Development Bank, China's growth rate for the coming 2-3 years is predicted to be 8.5 % and above ("Economy of China", 2005). Therefore, "We believe that China has enormous growth potential," said Martin Coles, president of international operations at Starbucks ("China is Starbuck's Cup of Tea", 2005).

  2. Analysing Job sectors in Canada. Identify trends in employment and occupational demand patterns for ...

    What actions would you take today? The action that you will take should be planned carefully and correctly because if wrong decisions are made then it could affect the company to a great extent. Remember that making people redundant and recruiting again later when the market picks up is expensive.

  1. This paper will concentrate on Apples Apple TV business, and its complementing iTunes business.

    3: Example of Affiliate Program Source: http://www.hbo.com/ iTunes tagging It's a new program started by Apple, which is aimed at radio stations. This is a facility where a radio listeners with compatible HD radio's or car stereos can tag a song they hear on the radio.

  2. Thai Tuan Textile Company, Vietnam - Marketing Strategies

    Price sensitivity In spite of orientating to middle up class, Thai Tuan does not set their price too high because: * Low income of Vietnamese customers: Although the Vietnamese economic has developed rapidly, average income is levered obviously recently, majority of Vietnamese people are still leaving in poor condition.

  1. Business plan for Laundry Toaster laundry dryer.

    So that the timing of the production can be reduced and the production process will run smoothly. As a result, the inventory and work in progress is also reduced and increase our performance and quality of the product. Other than that, the holding cost will reduced and maintain our profit.

  2. Ford Company Analysis - corporate structure and financial analysis

    Evaluation of Cash Redistributions to Shareholders Ford Motor Company Returns 2007-2011: ?Period of canceled dividend payout and no buybacks? 2011 2010 2009 2008 2007 Div. per Share 0,0 0,0 0,0 0,0 0,0 EPS ($) 1.44 1.95 3.44 -2.85 5.05 Stock price e.

  1. Barilla Case. To make Barilla, the number one manufacturer of pasta Barilla employs ...

    The pipeline stock that DO owns between CDC and DO is 280 units. 2. Pre-JITD: A different Q and R value that delivers a lower cost policy than one described in the note is Q value of 422 units, and R value of 200 units, for total costs at $13999.62 (versus previous total costs of $14043.68).

  2. Business Plan - EDGE is a video production company that aims to create self-promotional ...

    GoPro and Contour is a company that sells tough, durable, high quality cameras that you can mount in many places to come up with good footage and unique views. Being athletes ourselves, both in the traditional sense and in newly expanding action sports, we know what the customers will

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work