Please complete the asked questions in this Case study from the textbook (Ha-Brookshire. Global Sourcing in the Textile and Apparel Industry).

CASE STUDY 8: Who's Responsible? In the sourcing world, many crises and prob- Scenario 2: Faux fur or not? lems will occur, despite taking necessary Alex is a sourcing manager at Marc Jacobs. precautions. Although the first priority is to find He just learned that his recent production of the best solution, and to ensure no harm will faux fur jacket lines for Marc by Marc Jacobs be done, companies also have to come up with contained real Chinese raccoon dogs, not fake resources to solve these problems. The follow- fur as the garment label showed (McShane, ing two cases are scenarios that could happen Blain, & Moore, 2013). The Humane Society in real-world sourcing. Together, let's discuss conducted an undercover investigation on the what sourcers can do if they encounter similar garment and it is now all over the news. Marc situations. Jacobs is really upset, as his name is associated with the scandal. Century 21, the retailer of Scenario 1: Ship or container hijacking these jackets, is now calling his company to find Sunhee is a sourcing manager for a major wom- out what really happened. As the sourcing man- en's wear company. She recently had production ager of this product, Alex feels responsible and in Turkey and the finished goods are finally "on wants to rectify the situation as quickly as possi- water" (the goods are on the vessel in transit). ble. First, he checked the purchase order and it When she woke up today, she saw a headline simply stated that the jacket needed fur around that said a commercial cargo ship operated by the hood. There was a reference sample (the Maersk Line, a worldwide shipping and logis- quality sample of fur that Alex's team sent to tics company, had been hijacked by Somalian the factory) attached to the purchase order but it pirates. (Indeed, MV Maersk Alabama, the did not include information on the fiber content. commercial cargo ship with a crew of 23 was Next, Alex checked with the factory in China hijacked and rescued in April 2009. See more on and his supplier confirmed that the reference this story from the 2013 film Captain Phillips.) sample was real animal fur and the raccoon dog This ship was supposed to carry Sunhee's fur used was the closest quality that they could 48,000-unit order of women's knit shirts that find to match the sample. He then checked in she has been working on over the past seven with the team responsible for marketing and months. Although her immediate concern was labeling. They had created the "faux fur" label for the crew on that boat, Sunhee also realized for this jacket thinking that real fur would not that her merchandise may never arrive and be possible to source at this jacket's price point her retailer will have empty shelves during the and assuming that any fur used would be fake. upcoming selling season. While Sunhee keeps At the time, faux fur was in fashion so they her eyes on what is happening with the rescue wanted to capitalize on that fashion trend. Now, operation, she also now has to come up with Alex has been called into Marc Jacobs' office a new solution to fill the inventory and raise in an hour. What should be Alex's response to money to fulfill this new order. For that, she first Marc Jacobs? Where did things go wrong? If checked the purchase order. It was issued in the words "faux fur" are removed from the mar- FOB terms. Who should apply for the insurance keting label, would the company be ok (since claim for this type of loss-Sunhee or her sup- it is not a fraudulent marketing claim)? What plier in Turkey? How does Sunhee's company, precautions can be taken to prevent this kind of factory, and retailer get compensated for this mistake from happening again? type of loss? CASE STUDY 8: Who's Responsible? In the sourcing world, many crises and prob- Scenario 2: Faux fur or not? lems will occur, despite taking necessary Alex is a sourcing manager at Marc Jacobs. precautions. Although the first priority is to find He just learned that his recent production of the best solution, and to ensure no harm will faux fur jacket lines for Marc by Marc Jacobs be done, companies also have to come up with contained real Chinese raccoon dogs, not fake resources to solve these problems. The follow- fur as the garment label showed (McShane, ing two cases are scenarios that could happen Blain, & Moore, 2013). The Humane Society in real-world sourcing. Together, let's discuss conducted an undercover investigation on the what sourcers can do if they encounter similar garment and it is now all over the news. Marc situations. Jacobs is really upset, as his name is associated with the scandal. Century 21, the retailer of Scenario 1: Ship or container hijacking these jackets, is now calling his company to find Sunhee is a sourcing manager for a major wom- out what really happened. As the sourcing man- en's wear company. She recently had production ager of this product, Alex feels responsible and in Turkey and the finished goods are finally "on wants to rectify the situation as quickly as possi- water" (the goods are on the vessel in transit). ble. First, he checked the purchase order and it When she woke up today, she saw a headline simply stated that the jacket needed fur around that said a commercial cargo ship operated by the hood. There was a reference sample (the Maersk Line, a worldwide shipping and logis- quality sample of fur that Alex's team sent to tics company, had been hijacked by Somalian the factory) attached to the purchase order but it pirates. (Indeed, MV Maersk Alabama, the did not include information on the fiber content. commercial cargo ship with a crew of 23 was Next, Alex checked with the factory in China hijacked and rescued in April 2009. See more on and his supplier confirmed that the reference this story from the 2013 film Captain Phillips.) sample was real animal fur and the raccoon dog This ship was supposed to carry Sunhee's fur used was the closest quality that they could 48,000-unit order of women's knit shirts that find to match the sample. He then checked in she has been working on over the past seven with the team responsible for marketing and months. Although her immediate concern was labeling. They had created the "faux fur" label for the crew on that boat, Sunhee also realized for this jacket thinking that real fur would not that her merchandise may never arrive and be possible to source at this jacket's price point her retailer will have empty shelves during the and assuming that any fur used would be fake. upcoming selling season. While Sunhee keeps At the time, faux fur was in fashion so they her eyes on what is happening with the rescue wanted to capitalize on that fashion trend. Now, operation, she also now has to come up with Alex has been called into Marc Jacobs' office a new solution to fill the inventory and raise in an hour. What should be Alex's response to money to fulfill this new order. For that, she first Marc Jacobs? Where did things go wrong? If checked the purchase order. It was issued in the words "faux fur" are removed from the mar- FOB terms. Who should apply for the insurance keting label, would the company be ok (since claim for this type of loss-Sunhee or her sup- it is not a fraudulent marketing claim)? What plier in Turkey? How does Sunhee's company, precautions can be taken to prevent this kind of factory, and retailer get compensated for this mistake from happening again? type of loss