Esquel Group, leading manufacturer of quality shirts, sought to negotiate long term partnerships with often-exploited farmers in Xinjiang (western China) to procure an exceptional cotton variety. Trying to fix a sizable supply of specialty cotton in an ethical and socially responsible manner, Esquel undertook a major 2002 initiative to negotiate value-creating contracts among local municipal governments that were in Xinjiang itself, and cotton farmers.
Conscious that contract enforcement in China can be challenging, Esquel offered the region's poor, frequently-distrustful farmers alluring advanced funding, guaranteed minimum pricing, and other generous conditions in return for an arrangement to sell their crop alone to Esquel. The case concludes with the specialization cotton crop while demand for the superior cotton fiber seems to be more powerful than ever shaping up as very great.
PUBLICATION DATE: November 12, 2010 PRODUCT #: 916S02-HCB-SPA
This is just an excerpt. This case is about STRATEGY & EXECUTION
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