Classy Styles Ltd., Inc.: shifting production overseas

Abstract

Theoretical basis The main theoretical models used in the instructor manual analysis are SWOT and institution-based view. Founder’s syndrome is also used as a foundation for analysis and discussion. Research methodology Primary source data acquired by the authors through one of the author’s actual experience working in the family business that is the subject of the case. Case overview/synopsis Classy Styles Ltd., Inc. is a small wholesaler of women’s apparel. It outsources production and sells to small retail stores. Classy Styles has grown steadily during its short existence, but is not on track to reach the CEO and majority shareholder’s profitability goal. The COO has determined that the only realistic way to achieve the goal is to shift manufacturing from North America to Asia. The decision creates tension between profitability and the CEO’s desire for tight supervision and control of the outsourced production shops. Complexity academic level Introductory undergraduate courses in general management would be sufficient, while a basic strategy course and/or entrepreneurial business course would be of benefit.