CASE STUDY (CLO2) Going To China To Cut Costs Dynamic Textiles is a foreign-owned multinational corporation operating in Malaysia for the last 10 years. This corporation hires female and handicapped workers who are qualified and skillful to produce trendy blouses for export to the US and EU. Currently, the corporation earns normal profits. After analyzing its long-term business returns, in view of maximizing profits, the management decided in a meeting to close down its operation in Malaysia and start a new business in China. The justification behind the closure is to reduce the costs of operation as the Corporate Planning Department had done a study and found that labour cost in China is comparatively lower. In addition, there will also be cost closure, however, the corporation would have no choice but to retrench its Malaysian employees The decision was made without consulting the in-house workers' union, since the management is of the view that it has the right and power to make such strategic decisions for business sustainability. Moreover, it strongly believes that its shareholders' interests should be given priority over the interests of other stakeholders. The decision to close down operations was thus announced to all employees a day after the management's meeting. The in-house workers' union immediately arranged for a protest in front of the management's office to prompt public attention. Case study questions 1. What are the market analysis, quality control check, and regional cooperation of this case? Briefly explain and write what are the solution for this. 2. In this case why they choose to open in China. Explain about Malaysia and China dynamic textiles operation differences and benefits. 3. In your opinion, what are the better solution to overcome this problem and make dynamic textiles business more successful and profitability? (50 marks)