Classic Knitwear, Inc. Essay

Tucker Hansson, the owner of Hansson Private Label, is struggling in whether to execute the $50 million investment proposed by his manufacturing team. Under this situation, the subject of this report is to evaluate the potential investment of expanding production capacity at Hansson Private Label (HBL) and make a recommendation to Tucker Hansson. In this report, I will specifically focus on analyses of the project’s free cash flows (FCFs), weighted average cost of capital (WACC) and net present value (NPV). With a sensitivity analysis, it can help us to observe how change in some key project variables

WeaveTech, formally known as Johnson-Ware is a military and security apparel company entering into the high-end performance clothing market. Before the acquisition by CVX Partners, WeaveTech which was formed in 1905, relied exclusively on the military (70%) and security (30%) customer base. The need to change the company’s customer base from military and security to high-end performance clothing market apparently arose from the allure of the later market segment and the dwindling growth of the military and security market (Beer & Swiercz, 2015). The departure of Jack Davidson, a retired US Navy Rear Admiral, and WeaveTech CEO from 1983 to 2012 in addition to the conclusion of the Afghanistan and Iraq Wars meant that the traditional market was losing its reliability. Due to the unreliability, there was a need to redesign the customer base and to take advantage of the high-end market segment.

Patagonia’s diverse product line combined with an increase in the interest in sustainability will help retain current customers and acquire new ones. “Use business to inspire and implement solutions to the environmental crisis” (Patagonia, 2017). From their mission statement, this provides a clear and concise message of the company’s intention. The “more down jackets and cotton fleeces the company sells, the more it can do for the planet” (The Drum,

First research objective was to determine whether it is profitable for J.Crew to shift their brand focus to a ‘sustainablity’ business model instead of resuming their position in the fast fashion industry.

Eddie Bauer yielded the lowest net income among its competitors like The Gap, A & F and Land’s End. It achieved similar gross profit margin but got a poor performance on overall net income at 1% because it suffered from high expenditure on SG&A in both retail and catalog operations which accounted for 37% of its total net sales. This is extraordinary high while compared with its main competitors like A & F, and the Gap whose SG&A amounted to 22% and 27% of their net sales respectively (Table 1). A & F and Eddie Bauer are similar in size,

Of the hundreds of named brand clothing that form part of the retail and fashion industry I chose to compare, for my analysis, Abercrombie & Fitch, Forever 21, American Eagle, and H&M. These stores are prominent, well-known for selling apparel, shoes, and accessories by the means of offering sales and promotions to their customers. This is a clever strategy for attracting customers, allowing them to believe that they bought goods at affordable, convenient prices – and not to mention the prestigious name prescribed to the clothing brands. Using keyhole.co as my main source, I obtained relevant and valuable information regarding the status of these brands. My intentions were to compare a period of 14 days, however, due to the limited access that I received from my free trial, the program only allowed me to see fewer of the dates than I anticipated. I want to take this opportunity and mention ahead of time that due to the various and distinctive products that are sold from these stores, when looking for the “spending capacity” I decided to focus on shirts/ jeans for men and women and compare the prices among them since each of these retailers carry those items and as a way to make this report easier to contrast and comprehend. Also, when approaching the section of “setting”, I screen-shotted some of the images on Instagram and made them into a collage to separate the type of clothes and trends that each of these brands sell currently. In the following modules

company has been in existence for a little over 15 years and has made huge strides in the textile,

62.667% of the rollers are with proper specification. 37.333% of the rollers are oversize and need reworked. No roller is below the limit. That means no cam roller will be scrapped.

Question: What is the economic rationale of the venture? Prince Geographic location Located in Mediterranean region, attractive to Jersey because of manageable source of goods Preferential investment policies in Tunisia:  Unrestricted remittance of dividends  Capital repatriation in case of liquidation  Modified regulation to avoid double taxation of dividends Jersey Headquartered in UK, access to the European market for garments Jersey had multi-national manufacturing and sourcing experiences, great opportunity for Prince to lower its business risk through diversification Jersey can provide:  state-of-the art fabric technology  recognized design competence  well established brand

Patagonia Case Study “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.” Since being founded in 1973 by outdoor enthusiast Yvon Chouinard, Patagonia has gone to great measures to follow their mission statement and build a brand based on quality, trust, sustainable practices, innovation, and loyalty. By becoming a pioneer of using organic cottons in its product lines and using environmentally sustainable processes to make its products, Patagonia has managed to appeal to a certain yet growing consumer base. The consumers are men and women between the ages of 18-40 primarily in North America (West Coast and North East) who are active, outdoor nature lovers, and are supporters of sustainable and environmentally friendly practices. In addition, they are the ones who try to live a healthy lifestyle by eating organic products and attempt to reduce their environmental impact by

The true variable costs to Beauregard Textiles include the Direct Labor, Material, Material Spoilage, and Direct Department Expense. By excluding those expenses not related to the production of T-30, we can calculate the contribution margin for Beauregard using unit sales price and unit variable cost. Contribution margin is a measurement of the profitability of a product and is an excellent management tool to help determine whether to keep or drop certain aspects of the business. A positive contribution margin means that the company should produce the product, a negative contribution margin means the company is likely to suffer from every unit it produces.

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SUPPLIER POWER – MEDIUM: Many producers of textiles, raw materials for apparel, large apparel companies would catch their attention. However some apparel in this industry is

In addition, the price of this new product will remain on the higher priced side because of results from a survey that concluded no difference in price options. Consumers that are interested in this type of product will be willing to pay a higher price point for it. However, Classic needs to keep in mind that with a higher pricing strategy, the ability to purchase a second shirt is reduced. With the high price of these shirts, Classic ultimately can provide a higher margin for the trade at about 45% keeping them in the same boat as Classic in wanting to promote the product to get the best return. Classic has the advantage of low production costs due to the state of the art offshore production hub in the Dominican Republic. Classic also has an advantage of economies of scale from high volume, low SKU

The case explains that for 10 years, Shanghai Fabric Ltd., a Chinese fabrics company, and Rocky River Industries, a United States textile manufacturer, have been part of a 50-50 joint venture to produce dye and fabric. This venture, called Shui Fabrics, produced dye and coat fabric for domestic and international sportswear markets. Ray Betzell, general manager for five of