So .... Golden Bear Ltd gets the contract to produce the official mascot for the 2012 British Olymic Team, and decides labor costs - excuse me, labour costs - are way too high in England to make them there. So they make them in China and, as a result of 26p per hour Chinese labor is able to sell this thing for $20 (12.99 pounds).
Meanwhile, West Paw Design in Montana makes something called a Spring Chicken - 2" bigger and filled with recycled material (instead of God knows what Golden Bear's Chinese friends put in the Lion), pays something like $15 an hour and sells it for $14. West Paw is a profitable, rapidly growing, enterprise.
Maybe the difference is that British accountants are mostly a serious, professional bunch who would not be caught dead working without a suit and tie, and just maybe those ties are choking the flow of oxygen to their brains, while the last West Paw accountant I saw was wearing blue jeans and a sweat shirt to work.
Maybe the problem is that Golden Bear has to factor the cost of their "Hong Kong office which, co-ordinates production and oversees quality in the manufacture of product.", while West Paw "coordinates production and oversees quality" through kanbans and hiring the best people Bozeman has to offer.
Or maybe the problem is that I have never seen Golden Bear - or any other British company for that matter - at the Lean Accounting Summit while West Paw sent a small army last year. West Paw seems to have 'labour' in a bit better perspective.
In all seriousness, there is no excuse for a manufacturer in England, the USA or anywhere else, making critical decisions based on traditional accounting.