Case Analysis : Balagny Clothing Inc.

Just like other manufacturing, the company I worked had moved to China following the flow of manufacturing business. After researching the trend of future jobs in

Sales for the Executive Shirt Company are constituted of only a few basic styles and colours. Hence the company has a limited number of varieties to produce. So, it has large batches of each kind of shirt (size and color).

This report has been created with the intent to analyze the athletic apparel industry with a specific focus on Lululemon Athletica, Inc., further refered to as Lululemon. In this report you will find that the strengths and weaknesses of Lululemon’s current strategies and future goals are analyzed and compared to that of its closest competitors. In conclusion to the analysis, recommendations have been made to potentially guide Lululemon Athletica, Inc. in a positive direction in regards to its future endeavors. The following

It is impossible to beat a cheap price. In today’s world, finding a sought after item at a dirt cheap price is one the main motivation American’s get in the car and battle the craziness in the mall. And as the basic American human beings that we are, it is never possible for us to be complacent with the amount of stuff we currently have. Eventually, we will come across a friend that has the next must have item that will cause us to run to our local mall and purchase a similar item at the lowest price possible. With all that said, it is no wonder why the industry of fast fashion has taken off over the past decade. Felipe Caro and Victor Martínez-de-Albéniz, researchers for UCLA’s school of supply chain coordination, define fast fashion as “a business model that combines four elements: (i) fashionable clothes mostly for consumers under 40; (ii) affordable prices in the mid-to-low range; (iii) quick response; and (iv) frequent assortment changes”. Retailers like H&M, Forever 21, Target, and Wal-Mart have been able to take this business model and make a fortune. But while all these quick trends and cheap prices are great for the consumer, its cost on the foreign worker and the environment does not go uncovered. In the book Overdressed by Elizabeth Cline, she presents many arguments supporting the claim that fast fashion is unethical based on

Moreover many precautions are also being taken in order to stop the use of child or forced labour in making of products but still you cannot be sure.

In January 2003, Michael Pogonowski, the chief financial officer of Aurora Textile Company, was questioning whether the company should install a new ring-spinning machine, the Zinser 351, in the Hunter production facility. This new machine has ability to produce a finer-quality yarn that would be used for higher-quality and higher-margin products. In deciding whether or not to invest this new machine, NPV and the payback period are critical factors. Firstly, we need to forecast the cash flows that the Zinser 351 will generate in the future. After calculation, the ten-year NPV will be $3, 172,582. Secondly, we use the payback period to analyze the acceptance of this project. Based on this analysis,

In 2013, Lululemon Athletica Inc found it succession of problems that damaged the company’s reputation, these included the following: (i) quality control was top on the list as there was a recall of 17 per cent of the company 's Luon pants, (ii) lawsuits issues with investors, (iii) withdrawal from the Canadian stock exchange, and (iv) bad publicity (Huang, 2014, p.5-7).

In this assignment, I have chosen to research Hollister to find out if they are discriminative to customers and in recruiting staff, and if they attract the target market. Hollister is an American brand found on July the 27th, 2000 by Abercrombie & Fitch. They welcomed their first store on July 27th in 2000, Columbus, Ohio.

Labor is one of the largest and in certain sectors the most expensive component in the production of goods. Outsourcing acknowledges the labor cost to produce a particular product is cheaper if the manufacturer were to produce the same product in-house where the cost per unit is significantly higher. Stable labor costs are important for long-term revenue projections to be relied upon by managers because they are a precursor of where a company is trending financially. It is this efficiency-in-scale that confirms the benefit of the division of labor memorialized by Adam Smith. As a result of the wage disparity between the costs of American workers versus Chinese workers, hundreds of U.S. based firms relocated all or part of their operations to China, taking advantage of the inexpensive labor market and the many cost-saving incentives offered by the Chinese government.

facing are the high prices of their product and change of the quality of the garments. In 2012 the

American Apparel (AA) is a well-known United States clothing brand that has gained recognition among the retail industry. American Apparel headquarters is located in Los Angles, California where it manufactures and distributes its clothing products. It is known in today’s society, to be sweatshop free and has a strong belief of workers’ rights. However, American Apparel has had a downfall in the retail industry losing revenue. This research of American Appeal will provide feasible reasons why the company should enter China international market to improve on sales revenue.

She had only browsed the store for a couple of minutes when she came across the perfect skirt. It was a short, cherry red fringed skirt made of the finest Italian cotton. She disappeared in the fitting room for a couple of minutes to try it on. Camera flashes light up the hallway as she takes pictures of herself modeling the skirt from different angles. However, the more she fell in love with the skirt the more hesitant she became of the pricey $400 price tag. Unable to justify the price of the skirt, she walked away empty handed towards a different store. After scanning multiple isles at Zara, a skirt very similar to the one she tried on earlier appeared for a fraction of the price. Sure the skirt had some loose threads and the quality of the cotton was cheaper, but the look was spot on, and was a much better purchase. Now while most of us would agree that a price reduction on a pricey item this big might seem like a savvy and economical choice, but these low price tags come with a much larger expense to others that people are not aware of. These unaccounted expenses vary from the pollution of water and air, down to the soil where these factories are built and established. It doesn’t stop there either; the fashion industry is also responsible for the destruction of land and even the deaths of individuals who work in the production segments.

The company known as Classic Knitwear, Inc. operates in a $24.5 billion market of non-fashion casual knitwear. Casual knitwear are T-shirts, sport shirts, sweatshirts, fleeces, and so on. In 2005, the company reported revenues of $550 million. Of this, 75% ($412,500) were to wholesalers and the remaining 25% ($137,500) was sold as private label merchandise. The firm has low production cost due to a state-of-the-art offshore production hub in the Dominican Republic. This manufacturing center, in combination with the economies of scale from high-volume, low SKU production runs result in lower operational expenses. Therefore, Classic Knitwear currently enjoys a moderate cost advantage over other US producers. The Board of Directors as well as CEO are seeking opportunities for growth. It was determined that Classic’s problem lies within their low gross margin, 18%, compared to the competitions’ 30% to 40%. The company wants to increase their GM to 20% in 2006. In order to do so, Classic is deciding whether or not to partner with the chemical firm Guardian, Inc. to produce a new insect repellent line of shirts.

I chose the article “Under Armour is Crushing it, Thanks to Steph Curry.” The article began by explaining how Under Armour recently became a dominant company in the sports apparel industry. Footwear sales are up 64% from the first three months of 2016, and overall sales have increased by 30%, largely due to overseas business. The reason for this continued success? Stephen Curry. In 2013, Curry’s contract with Nike expired and he chose to endorse Under Armour instead. Picking up Curry as its celebrity endorser placed Under Armour back on customer’s radar and allowed it to surpass its competitors.

Third world countries often need the opportunities that the textile and clothing industries provide to them. The textile and clothing industry has helped various third world countries in the past. Even so, it also causes a lot of damage to the worker’s lives, their environment, and their economy. Workers benefit from the textile and clothing industry, but suffer form it as well. It is up to Canada and the U.S to push the textile and clothing industry to provide workers with higher wages, better working conditions, and policies that will protect the