Question: QUESTION ONE (20 Marks) MALDEN MILLS Sometimes, doing the right thing is more important than profits, a lesson that Malden Mills learned firsthand. When the


QUESTION ONE (20 Marks) MALDEN MILLS Sometimes, doing the right thing is more important than profits, a lesson that Malden Mills learned firsthand. When the factory burned down in 1995 just two weeks before Christmas, production halted and employees assumed they'd be out of work until the factory was rebuilt. But CEO Aaron Feuerstein extended the employees 90 days at full pay, as well as 180 days with benefits at a cost of $25 million to Malden Mills. After the factory was rebuilt and all of the displaced workers were rehired, cooperation and productivity reached a new high, with 40% more business, 95% customer and employee retention, and a production increase from 130,000 to 200,000 yards per week. However, since then, Malden Mills has been to bankruptcy court three times, with much of the debt tied to the rebuild of the factory. REQUIRED a) From this case, Feuerstein made employees happy. As an entrepreneurship expert, using clear facts, advise whether these bold philanthropic actions will pay off in the end for this enterprise. (10 Marks) b) In order to understand the situation fully and forge for a way forward, assist Feuerstein to analyze Malden Mills business environment giving tangible solutions using: 1 . PESTEL ( 6Marks) 11. SWOT ( 4Marks)
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