Birmingham Boot Co is a footwear manufacturer from the English Midlands. It sells premium boots at a retail price of £175, and produces around ten million pairs per year.
The company was founded in 1960, but in 2015 was sold to a private equity company. At this time, the decision was made to outsource 95% of all of the company’s production to
two sites in East Asia. This reduced cost, but has created problems with both quality of the products and reliability of the supply chain.
In the face of these challenges, the company has appointed a new CEO who is keen to return production geographically closer to the company’s headquarters. One option that she wishes to pursue is the possibility of opening a new factory in Germany, and so she has
asked you as the company’s HR director to prepare a 2000 word report identifying the positives, negatives, and overall feasibility of this proposal with regard to HR issues. Within your report, you have been asked to prepare particular recommendations for pay level
setting for managers and line operatives in Germany as compared to the UK. The CEO is particularly impressed that you have recently completed an MSc in HRM, and so has asked you to draw upon relevant academic theory from your studies in the preparation of your report.
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