Subject category:
Strategy and General Management
Published by:
Ivey Publishing
Version: 2014-11-18
Revision date: 18-Dec-2014
Length: 12 pages
Data source: Field research
Abstract
Palliser is Canada's second-largest furniture company. The company has production facilities in Canada, Mexico and Indonesia, and has experimented with cutting and sewing leather in China. The company is looking at further expanding the relationship with China. Ever since Palliser set up a plant in Mexico, the company has faced increasing competitive pressure from Asia, especially from China. The president of Palliser must decide what form this relationship should follow. Should it be an investment, either wholly or partly owned, or should it be through subcontracting?
About
Abstract
Palliser is Canada's second-largest furniture company. The company has production facilities in Canada, Mexico and Indonesia, and has experimented with cutting and sewing leather in China. The company is looking at further expanding the relationship with China. Ever since Palliser set up a plant in Mexico, the company has faced increasing competitive pressure from Asia, especially from China. The president of Palliser must decide what form this relationship should follow. Should it be an investment, either wholly or partly owned, or should it be through subcontracting?