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Similarly, PLM can’t be the responsibility of the Service department, because Service isn’t responsible for the product all the way across the lifecycle, for example, when it’s under development. PLM can’t be the responsibility of the Information Systems Department, because IS isn’t responsible for a company’s products at any time. PLM can’t be the responsibility of the Finance Department, because Finance isn’t responsible for a company’s products at any time. Due to the unclear responsibility and enterprise-wide scope of PLM, it can be difficult to get a PLM Initiative started.
In the following years, the Levi’s brand became an American icon, and Levi Strauss & Co. became one of the world’s leading branded apparel companies, marketing its products in more than 100 countries worldwide. In September 2003, it announced that it would close its remaining manufacturing and finishing plants in North America as part of the shift away from owned-and-operated manufacturing. Production was shifted to its global sourcing network. 10 New Company Structures 29 ‘‘In order to remain competitive, we need to focus our resources on product design and development, sales and marketing and our retail customer relationships’’.
New approaches are needed to manage and work effectively in the new environment of networked and fragmented research, development and support. The Extended Enterprise may sometimes appear as a convenient way for large companies to reduce headcount and increase shareholder returns. However, it also provides small and medium companies with the opportunity to increase their sales and to grow their profits. Initially, a small company may just supply one component to a large company. Later it can develop and produce more components for 28 2 Complex and Changing Environment that company, supply it in more regions, and then supply similar products to other large companies.