Hurbank plc

Hurbank plc is a long established British producer of luxury clothing and accessories.Heavy investment in marketing,extensive use of British image in it's promotions and good media coverage have positioned Hurbank as a premium brand.Therefore,this brand supply giffen goods.

According to the table of details of Hurbank plc,annual pay of factory floor staff is 18000 pounds per annum,which is generally suitable for the floor staff.Annual labour turnover 3% per annum which is very low,and a big benefit for the company.Percentage of shirts returned by customers last year due to defects is 0.01% and it's very very beneficial!According to that data we can conclude that their products are high quality products and may have a good reputation.

According to appendix B unemployment in the region of the new factory in China is 14%.Well China is a coutry which is over popullated ,therefore 14% of unemployment is quite high in my view.So it could be a benefit for the company because it will be easy to recruit wokers there.Average annual pay within Chinese region and average proposed annual pay for the staff in Chinese factory is very low.So the cost of labour is reduced a lot.But I'm not sure about the lead time to retailers is benefiacial or not.Because it's 4 weeks...So it's 4 times longer than in Cellton factory.So if the lead time is too long,the quality of the product and the trust of customers will be reduced.

In appendix C Sales and profit has been improved .And may have a positive trend so the financial problems to open up in China is quite not a big deal.But percentage of shares owned by international investors including pension funds and banks is 55%,so therefore 45% is a share for manageres and authorities,which in my view is quite low

But in overall,Investing and opening a factory in China is beneficial for the company,and I would invest on this :D