Esquel Group, a leading manufacturer of high-quality shirts, sought long-term partnerships with often exploited farmers in Xinjiang (western China) negotiate procure a superior cotton variety. I am looking for a wide range of specialty cotton in an ethical and socially responsible manner to ensure, Esquel undertook a major initiative in 2002 to negotiate value-creating contracts among themselves, local municipalities and Xinjiang cotton farmers. Aware that the enforcement of contracts in China can challe … Read more »

Esquel Group, a leading manufacturer of high-quality shirts, sought long-term partnerships with often exploited farmers in Xinjiang (western China) negotiate procure a superior cotton variety. I am looking for a wide range of specialty cotton in an ethical and socially responsible manner to ensure, Esquel undertook a major initiative in 2002 to negotiate value-creating contracts among themselves, local municipalities and Xinjiang cotton farmers. Aware that the enforcement of contracts in China can be a challenge, offered the Esquel region poor farmers often wary attractive extended financing, guaranteed minimum prices and other generous terms in return for an agreement to sell their harvest only to Esquel. The case ends with the specialty cotton crop shaping up as very good, while the demand for the premium cotton fibers seems to be stronger than ever.
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from
James K. Sebenius,
Cheng (Jason) Qian
Source: Harvard Business School
9 sides.
Publication Date: Nov 12, 2010. Prod #: 911031-PDF-ENG
Esquel Group: Building a Sustainable Partnership with Cotton Farmers in Xinjiang (A) HBR case solution

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