Which value chain activities does Asda outsource? Which value chain activities does it perform internally? Do you think Asda's (and other global apparel retailers') decision to outsource manufacturing to developing countries justified? Explain.

Ninety Cents Buys Factory Safety in Bangladesh on $22 Jeans A pair George jeans made by Sepal Group in Bangladesh sels at Anda, a British subsidiary of Wal-Mart, for 14 pounds ($22. 12). From that, the manufacturer gots 90 cents to cover all operational costs, including factory safety and employee pay. GRAPHIC ALEX TRIBOU / BLOOMBERG VISUAL DATA What goes into a pair of $22 jeans? Fabric Trim Other Factory Shipping and proti $394 $1.06 $1.13 $1.16 Distribution and store costs $10.50 & Fung prom Production Price/garment Amayor $3.69 Extra pocket material 0.10 Embroidery 0.15 Zoo $0.15 Button 0.06 010 Gambele 012 Mange sticker 0.23 Bosendab 002 Thread other man 031 $0.75 Com 0.28 Freight charge 0.10 $0.90 - Factory costs $0.26 - Sepal Group profit Factory owners are on pressed to reduce prices when competing for contracts to produce low cost quments The Worker Foghts Consortium estimate that adding a dime to sewing costs would provide enough money to reparerebuld unsade factories in Bangladesh. The owner of Sepal Group, Tou Minh, my charging bess than 90 cents to produce one would force him to make cuts that could compromise worker det Wald Shipping/Distribution Price/garment Portes $0.20 030 using grous predeorg Korg middotar 3.15 Franco What pro Anda 0.00 Muridown $0.36 Dibution 0.82 Carlos 104 Stonecos 3.60 Anda Store pro 0.87 Bloomberg Visual Data