Like many other American brands, Holden apparel is made in China. LeBlanc explains that while he would like to manufacture lines in the United States, government regulations, labor costs, and high corporate tax rates are too heavy a burden. Availability of material is another reason for producing goods in China, since most of the fabrics, buttons, and snaps that Holden uses come from Asian suppliers. In addition to such procurement problems, garment making requires skilled labor—something LeBlanc says is rare in the United States. Despite the many challenges Holden faces as a small business competing in a global economy, LeBlanc’s knack for navigating global markets is as sharp as his ability to tame even the most challenging downhill courses.

Question

1. Using the open systems view of organizations, describe Holden Outerwear’s internal and external environment.

2. How has globalization influenced Holden’s business and created opportunity?

3. What are some challenges of globalization for managers at Holden?