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Abstract

It was March of 2008, the senior executive team of Nike in the US headquarters is under stress because of the results presented to them by the consulting team they had hired in December 2007. Mex Mode is a subsidiary of the Korean company, Kukdong Apparels operating in Atlixo, Mexico and is a key supplier of college T-shirts and hoodies for Nike USA. Many operational issues have emerged at the Mexican facility since it started its operations in 1991, causing sleepless nights for the executive team at Nike Apparels and Kukdong. This time it was not a labor strike like the one back in 2001, but the poor performance of the facility and high defect rate leading to high internal rework that was bothering them. To find out the reasons behind the poor productivity of this facility, Nike Inc and Kukdong USA decided to hire a consulting team from the University of Southern California (USC) School of Business who carried out three months of pre-assessment at the facility. As the team presents their assessment results, the senior executive team wonders if any of these problems could be solved in the short run. The consulting team has proposed to carry out training programs and interventions to mitigate the problems at the workplace. Now the senior executive team has to quickly make a decision if they believe that a change intervention will be able to resolve all the issues that have appeared in the pre-assessment report. It is a critical decision to be made as it involves lot of investments in terms of time, money and efforts besides the fact that the success rate of most change interventions is relatively low. This case study has been peer reviewed by the editorial board of the Journal of Organizational Behavior Education (JOBE).

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Abstract

It was March of 2008, the senior executive team of Nike in the US headquarters is under stress because of the results presented to them by the consulting team they had hired in December 2007. Mex Mode is a subsidiary of the Korean company, Kukdong Apparels operating in Atlixo, Mexico and is a key supplier of college T-shirts and hoodies for Nike USA. Many operational issues have emerged at the Mexican facility since it started its operations in 1991, causing sleepless nights for the executive team at Nike Apparels and Kukdong. This time it was not a labor strike like the one back in 2001, but the poor performance of the facility and high defect rate leading to high internal rework that was bothering them. To find out the reasons behind the poor productivity of this facility, Nike Inc and Kukdong USA decided to hire a consulting team from the University of Southern California (USC) School of Business who carried out three months of pre-assessment at the facility. As the team presents their assessment results, the senior executive team wonders if any of these problems could be solved in the short run. The consulting team has proposed to carry out training programs and interventions to mitigate the problems at the workplace. Now the senior executive team has to quickly make a decision if they believe that a change intervention will be able to resolve all the issues that have appeared in the pre-assessment report. It is a critical decision to be made as it involves lot of investments in terms of time, money and efforts besides the fact that the success rate of most change interventions is relatively low. This case study has been peer reviewed by the editorial board of the Journal of Organizational Behavior Education (JOBE).

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