Bandag Inc.: Gerald Borenstein Decided To Expand Their Operations To Hong Kong

Bandag Inc. on the basis of the analysis done by Gerald Borenstein decided to expand their operations to Hong Kong. This move proved to be favourable for Borenstein until the economic downturn, something he had no control over. There were signs along the way of the turning economy, but, there was no possible way for Borenstein to stop or change the inevitable. Borenstein tried to continue operating as he saw best, but stronger competition and the loss of his contacts, other factors he had no control over, led to a reduction in sales levels and loss of management support, finally leaving Borenstein without a job. Although he had no control over some factors that led to the crisis in his career, Borenstein could have kept his position if he managed the things he did have control over in a better way. Borenstein made the decision of hiring staff and expanding business within the first couple of months as he was seeing favourable sales. If this decision was not taking so swiftly, he would not have been in the situation later on paying for engineering
He provided the employees with space and support required in anticipation of further expansion of sales. However, space and support was more than required. This highlights both favourable and unfavourable aspects of Borenstein’s HR capabilities, as it shows that he ensured his employees well-being, but it also shows that he did not utilize proper HR strategies to determine the right balance between sales and staff required. Borenstein did not fire his employees when sales figures decline. This also shows aspects of Borenstein’s ability and inability to properly perform his HR duties. On one hand, as he understood that they would have to rehire staff if sales figures started back increasing, however, when deciding the way forward whilst facing declining sales, there are ways to maintain workforce but reduce