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Can Knights Apparel Satisfy All of Its Stakeholders and Survive?

4 pages
883 words
University of California, Santa Barbara
Type of paper: 
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Organizational change entails the process of planning and implementing proposed tweaks to its strategies, technologies or corporate culture with an objective of improving organizations productivity. Different aspects of change have been highlighted in this case study regarding the stakeholders of Knights Apparel.

Who are the Primary Stakeholders of Knights Apparel?

Primary stakeholders include individuals or parties with a functional and financial interest in a given product or organization. These are the factions which are directly influenced by a given organizational activity (Freeman, Harrison, & Wicks, 2007). From this case study, it is revealed that Knight Apparel is a company whose operation is dependent on different stakeholders. Joe Bozich is the CEO of this privately held firm. Along with other investors, Joe Bozich is the owner of the Knights Apparel. The employees (120 workers in the model factory), suppliers, creditors and customers (college students) are also the stakeholders of this firm. The society in which the Knights Apparel operates in Spartanburg, SC is another significant stakeholders.

For Each Stakeholder Group, What are their Major concerns?

The proposed changes in management and some of Knight Apparels operations has elicited worries and concerns among the companys key stakeholders. Joe Bozich, who is the CEO of the Knights Apparel is concerned on how to pay employees a fair wage. Joe is focused on paying his employees at least three times the average salary of the countrys apparel workers. The reopening of the Alta Gracia Factory is also an issue to the Knights Apparel. The company is concerned on whether students, Alumni and sports fans will be ready to pay premium prices, for its products.

The primary concern for the employees at Alta Gracia Factory is keeping a secure and well-paying job which can enable them to lead a quality life as well as supporting their families. The main worry for the Workers Right Consortium is whether the company will fulfill its promise of paying its employees a fair wage. The concerns of the investors (Duke, Universities, and Barnes &Noble) are on the Knight Apparels financial growth. The success of the model factor, which has 120 employees is a point of concern for the global factories who have been acting as suppliers for the company.

Describe the Key Roles and Responsibilities of HR Professionals at Knights Apparel

HR professionals at Knights Apparel will be bestowed the roles and responsibilities of overseeing the implementation of strategic and functional duties which align with the companys goals. Compensation and benefits are the significant roles that will be played by HR professionals at this firm. Knights Apparels new operational strategy involves setting up of the model factory in the Dominican Republic. This indicates that its HR should invest their efforts in developing programs and conditions which will promote high levels of productivity and returns in this model factory.

Optimizing the output of the workforce is a vital approach through which Knights Apparel can improve its efficiency. The company aims at paying its workers a fair wage, which is at least three times the average wage of the countrys apparel workers. The companys HR managers will be involved in the provision of guidelines on how to compensate employees (Mayhew, 2015). HR managers will be required to devise the strategic compensation plan, structure the firms performance management and appraisal system to facilitate the evaluation of the employees output. The roles and responsibilities of Knights Apparels HR team will also include recruiting new employees and training and developing the companys personnel to improve their competency levels. These HR roles will enable Knights Apparel to be successful in the implementation of the proposed changes.

Do You Think this Factory Will Succeed and Become a Model For Competitors?

The new approach undertaken by the company through its model factory will be a success, irrespective of the possible financial setbacks. Knights Apparels new strategy at the Alta Gracia Factory involves fair treatment of its workforce by resolving the issues of stamping out worker abuses and advocating for improved remuneration packages for the workers. The company is seeking to gain a competitive edge over its rivals through increasing the average minimum wage for its apparel workers. Application of this model indicates that Knights Apparel will experience difficulties competing with key players such as Nike and Adidas due to its relatively higher wages. It is also revealed that Knights Apparel will be compelled to absorb a lower-than-usual profit margin once the retailers are not asked to pay more at wholesale.

Knights Apparels aggressive marketing efforts will be crucial to the thriving of its model factory. The company has identified marketing and branding as the essential success elements of the Alta Gracia factory. Getting support from primary customers and investors such as Duke, giant college bookstore operators Barnes & Noble and Follett will be crucial when it comes to facilitating the companys marketing activities. Knights Apparel has also prepared video clips to promote its gear. These clips are shown at the bookstore and web documentary. These approaches are suitable for enabling the company to seize a significant market share in the apparel industry, ultimately edging out its close competitors.



Freeman, R. E., Harrison, J. S., & Wicks, A. C. (2007). Managing for Stakeholders: Survival, Reputation, and Success. Yale University Press.

Mayhew, R. (2015). Primary Responsibilities of a Human Resource Manager. Chron , 1-6.



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