The paper "Merino Wool Combing Company" is a perfect example of a business case study. Established in the 1930s in Bendigo, the Merino Wool Combing Company has grown from a simple family business to a respected small public company exporting 95% of its products overseas. However, the globalization of markets in the 1980s generated various competitions from low-wage countries and affected the company’ s competitiveness and profitability. Consequently, after many years of struggle, the company ultimately lost its viability and allowed a global and high technology-oriented Italian company to take over its operations.
However, a new problem started when the new management decided to build a more advanced plant in Geelong as a Greenfield site and close the Bendigo plant permanently. Moreover, although jobs would be available in the new site, the new management took in only half of the workers from the old plant, leaving the other half unemployed. The following section explores the situation at MWC through an analysis of different interrelated issues that affect organizational sustainability, industrial relations, management, human resources, government policy, and legislation. Case Study Analysis As one of Australia’ s most important agricultural industries (Lyons, 2009), wool production generates jobs and opportunities for many Australians.
However, the globalization of markets, which started three decades ago, had affected the profitability of some wool processing companies. The growing competition from lower waged countries began to affect the viability of many wool-related establishments in the country. According to the case study, Merino Wool Combing Company or MWC, a family-owned and operated business that started wool processing operation in the 1930s was one of those companies that have lost its profitability after almost 60 years of success, due to the globalization of markets and the high tariffs imposed by the European Union.
Consequently, disheartened by the weakening export and potential closure of the company, MWC accepted the proposal of a big Italian wool spinning company to take over and modernized their operations through high technology. As a new and technologically outdated subsidiary, the Italian company started to change almost everything in MWC including building a new plant in the outskirts of Geelong and closing the Bendigo plant permanently.
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