Essay on Kota Fibers

Dhruv Dar, Sanjay Kumar and Vijay Aggarwal wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of

Oswal Woolen Mills Ltd., the flagship company of Nahar group began its operation in 1949 in Ludhina, Punjab. Initial focus was on hosiery and textile fabrics. In 1972 it set up its wool combing unit sensing the huge business opportunity in the domestic readymade knitwear. Then in 1984 when Monte Carlo was launched as a brand, which was a significant step in the evolution of branded garment industry in India.

The Indian textiles chart showed how India used machines to produce greater yarn and cloth amounts in 1914 as compared to the production in 1884. As well it demonstrated how the amount of people using machine made textiles had greatly increased opposed to hand made textiles (Doc 1). In 1916 Radhakamal Mukerjee, an Indian economist, explains how that handwoven textiles cannot keep up with the machine made textiles, and therefore is on a decline (Doc 6). This identifies how India is moving towards

The stakeholders are the shareholders, managers, and employees. The current situation has caused a dilemma that affects all stakeholders equally. When the business is at risk, everyone involved should be concerned about the future of the organization. However, the responsibility falls to the senior leaders of the organization to solve the current issues. However, holding 80% of the company’s stocks is concerned not only about the organizations current issues but also with the value of his investment, as he gets closer to retirement. This creates an ethical dilemma due to his personal finances and retirement being directly affected by the company’s performance. In addition, the CEO believes that the status of the organization is not as bad as some of the senior leadership team would say. The shareholders interest is purely profit. The impact of how Huffman Trucking runs the business and implements change has a direct reflection on the company’s image.

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

Third, there is resistant to across-the-board employee cuts. Many offices were already operating with a very tight staff whereas other offices were allotted a larger employee budget. Fourth, there was strong perception among line workers within the organization that senior management, who were generously rewarded, would not effected by the difficult decisions that had to be made. Last, the CEO of Broadway Brokers was proposing to release a memo to all employees explaining the decisions that had been made. The management teams was asked to look over both the concerns highlighted above as well as consider and prioritize a list of suggestions for change. The team would meeting for the next few days and needed to have a tentative plan in place for top management in three days.

Clear Directions – It’s evident, and mentioned multiple times in the videos, the company lacks clear vison and directions. The management may be aware of the directions they would like to take the company is (although it’s doubtful) however, it’s not clearly communicated to the employees. As it was mentioned in the videos, employees didn’t feel involved or having ownership.

It is the company’s obligation to recognise and work towards the legitimate interests of its stakeholders but some practices seemed to deviate from that viewpoint. Key management personnel share reduced from 11.5% to 7.3% in 2015. Anchorage’s usage of earnings management and manipulation to influence market opinion worked against the code of ethics and is subject to senate inquiry. The company’s poor corporate strategy promised that

The Company’s managing directors; Jodee Rich and Richard Keeling made wrong strategies and failed to exercise their duties properly, in accordance to the section 180 of Corporation Act 2001. They failed to manage company effectively and thus did not succeed

The flip side of this issue is really the same thing. Management has a fiduciary responsibility to keep the company operational and profitable. While the ultimate decision lies in the hands of upper management, they would be wise to listen before making their final

With manufacturing moving overseas, we should realize that with it moves the dyed chemical water. Countries such as Bangladesh dump their wastewater in ditches that can be see when driving to textile mills and manufacturing plants (Cline, 2012, pg. 123). With environmental forces such as global warming, we are overlooking the waste the fashion world is creating. Instead of donating to The Salvation Army or Goodwill, “a tremendous amount of clothing is in fact not getting recycled but getting trashed” which means consumers aren’t realizing where their used garments are really going (Cline, 2012, pg. 123). Cellulosic fibers seem to be environmentally friendly because they come from cotton, flax, and bamboo. Even though these fibers start off

The company motto is “Live the Dream” and they aim to fulfil their customers need and desire for comfortable clothes and equipment for travel and adventure sport. Kathmandu has described quality and performance as the key to their new design initiatives and they invest substantial resources that focuses on design, quality, technical development, merchandising and supplier management functions. They develop products that are

Guna Fibres, Ltd is a textile manufacturing company founded in 1972 and situated at Guna, India. Ms Surabhi Kumar is the managing director and principal owner while Mr Malik is the bookkeeper. This company utilizes the technology and domestic raw materials to expand its franchises. It supplies fibre yarns used to weave colourful cloth for saris, a traditional wear of Indian women. Guna Fibres usually utilized a line of credit from All India Bank & Trust to finance its business during its peak sale season which is usually on summer.

For starters there are no well-drawn management plans within the firm. A leading example is the fact that Chinh and Anh have no well spelt out roles within the firm. It is apparent by the fact that the two have in fact just assumed roles in accordance to what over time become their roles and interests within the organisation. This leads to lapsing of duties and lack of clear guidelines as to the course of action in case of any eventuality as is the case here. Any developments within the business have become unmonitored and where there is failure, there is no one mandated to take up responsibility to detect and act accordingly.

Faruqui, M. (2014, July). Nobody can beat Bangladesh in price and quality. Retrieved from http://www.textiletoday.com.bd/magazine/873