After conducting a SWOT analysis on competitors operations, the Uniform and Linen Leasing Company (U&L) discovered one of their largest and looming threats is in the area of increased operational costs. Some of these expenses are: rising labor wages, worker's compensation, an increased and aging retirement population with pensions and miscellaneous benefits, rising state unemployment insurance, and rising healthcare costs. U&L has decided to expand and open a manufacturing facility in China as part of their strategy to lower these types of expenses. The plant will be used to manufacture uniforms.
Do you agree that opening a new facility in China will alleviate increased operational costs for U&L? Describe benefits and challenges to support your answer.© BrainMass Inc. brainmass.com October 25, 2018, 6:41 am ad1c9bdddf
It is true that the cost of labor and associated labor costs would be cheaper in China, which is why many U.S. based manufacturing companies and other industries are moving operations or opening additional plants in China. The wage structures and benefits structures are completely different than in America. In this country, the wages must be paid at a minimum ...
The solution provides a detailed explanation determining if opening a new facility in China will alleviate increased operational costs for U&L. Benefits and challenges are also provided.
Uniform and Linen Leasing: Operational objectives for both production and services.
The Uniform and Linen Leasing Company (UL) was first established in 1942 as a small privately-owned company, which provided services such as renting, cleaning, maintaining, and delivering workplace uniforms and linens to local restaurants and hospitals. William and Charles Miller founded the company while living in their hometown of Denver, Colorado. Over the years, UL grew and expanded their services throughout the United States until William and Charles decided to retire and sell UL to an investment group.
Today, UL services companies throughout the United States and Canada. UL has increased their services to include rental, lease, and direct purchase programs. The rental program includes pick-up and delivery, laundry, inspection, repair, maintenance, and replacement services. The lease program supplies uniforms and linens but does not include laundry and maintenance services. The direct purchase program includes both custom-designed and brand named products.
The UL expansion has impacted all of its operations including areas of employees, facilities, products, and services. Trends related to competition strategies and globalization has also impacted U&L. U&L has identified the need to evaluate and reassess their company vision and operational objectives. The company has chosen to have a contest for the best mission and vision statements. You have an opportunity here to demonstrate your knowledge of the service industry and your enthusiasm as a new manager at UL.
You plan to submit a vision and mission vision statement, in hopes of recognition and receiving first place in the contest.
A requirement of the submission is to also a draft of the operational objectives related to the mission statement and to explain how they provide value to the company. The operational objectives need to address both production and services.
The types of companies UL provides services to has expanded from restaurants and hospitals to include airlines, automotive, health care, sports, retail, service, and manufacturing. They also provide specialized clothing, including protective and flame resistant wear.
Due to globalization and competition trends, UL has recently entered the manufacturing sector of producing uniforms and linen products. As a mid-level manager for UL, your role requires you to:
Compare and differentiate UL with its competition.
Plan and manage manufacturing and workforce issues as well as service issues such as customer demands and behaviors.
Evaluate processes and recommend efficiencies as deemed necessary.
Organize and evaluate data to better manage the service operations of UL.