Navigating the Challenges of Labour Misuse and Infrastructure Safety Concerns:

Using Porter’s Five Force analysis

Introduction

All Things Yoga is a company that designs, manufactures, and retails yoga wear and related
products. The company has a strong brand and is known for its commitment to social
responsibility. However, the company is facing pressure from shareholders to improve its
bottom line. As a result, the operations team has proposed moving manufacturing from
Costa Rica to India, where costs are lower. This decision has been met with some
controversy, as India has a history of poor labour and safety standards in its manufacturing
industry. The company is also concerned about the negative publicity that could result from
moving manufacturing to India.

Current Situation

The political environment in India is relatively stable, which is a positive factor for All Things
Yoga. However, the government has been criticized for its lax enforcement of labour laws,
which could pose a risk to the company. The company will need to carefully monitor the
political and social environment in India and be prepared to act if necessary. The Indian
economy is growing rapidly, which is a positive factor for All Things Yoga. The low cost of
labour in India is also a significant advantage. However, the company will need to ensure
that it pays its workers a fair wage and provides them with safe and healthy working
conditions. The Indian population is young and growing, which is a positive factor for All
Things Yoga. The country also has a large middle class, which is growing rapidly. This means
that there is a large potential market for All Things Yoga's products. The Indian
manufacturing industry is rapidly adopting new technologies, which is a positive factor for
All Things Yoga. This will help the company to improve its efficiency and productivity.
However, the company will need to ensure that its suppliers are using safe and sustainable
technologies. India is facing serious environmental challenges, such as air pollution and
water pollution. This is a major concern for All Things Yoga, as it wants to be seen as a
responsible company. The company will need to work with its suppliers to ensure that they
are using environmentally friendly practices.

Problems:

The primary problem of the company is the rising costs of manufacturing in Costa Rica. This
is due to factors such as increasing wages and the cost of raw materials. As a result, the
company is facing pressure from shareholders to improve its bottom line. The secondary
problem is the negative publicity associated with manufacturing in India. This is due to the
country's history of poor labour and safety standards. The company is concerned that
moving manufacturing to India could damage its reputation and hurt its sales.
Alternatives:

One alternative is to outsource manufacturing to a third-party supplier in India. This would

allow the company to benefit from the low cost of labour in India without having to worry
about labour and safety standards. However, the company would need to carefully vet the
supplier to ensure that it meets its standards. Another alternative is to invest in new
technology to improve efficiency in Costa Rica. This would allow the company to reduce its
costs without having to move manufacturing to India. However, this would be a significant
investment, and it is not clear if it would be enough to offset the rising costs of
manufacturing in Costa Rica.

Decision and Implementation:

I recommend that All Things Yoga move its manufacturing to India, but with some
safeguards in place. The company should work with its suppliers to ensure that they are
using safe and sustainable practices. The company should also monitor the political and
social environment in India closely and be prepared to act if necessary. In addition, the
company should develop a public relations plan to address the concerns of its customers
and shareholders. The plan should emphasize the company's commitment to social
responsibility and its efforts to improve the lives of its workers in India. By taking these
steps, All Things Yoga can mitigate the risks associated with moving manufacturing to India
and continue to build its reputation as a socially responsible company.

Conclusion:

The decision of All Things Yoga to move manufacturing to India is a complex one. The
company will need to weigh all of the factors carefully before deciding. However, I believe
that moving manufacturing to India is the best option for the company in the long run. By
taking the necessary steps to mitigate the risks, All Things Yoga can ensure that it continues
to be a successful and responsible company.