Men's Wool Sweater

1 Get rid of 10 old machines and buy 10 new modern one;10 old one continue to manufacture the inventory of acrylic/wool sweaters and increase ‘Big and tall’ size;10 new ones would used to produce high-gauge sweaters and mixed cashmere sweaters.

The Apparel industry in general and particularly the Sweater industry is facing problems of declining sales and increased overheads. Steinhouse operates in the higher price band and this sector is dominated by named brands such as Polo and others and departmental stores and the customers prefer such brands over the lesser-known brands such as Steinhouse. Large retailers such as Walmart, prefer to buy directly in bulk from low wage countries such as Bangladesh, China and others. The US market has a very high potential and trade barriers are not present meaning that the company can sell their products freely in the market. They are also allowed to sell in Europe and sales would depend on their quality, brand and price.

Production operations played a huge role on whether to allow more production in North America, or more in Europe-Africa. After many decisions, we begun to notice that North America, and Europe-Africa were our main consumers and had stronger demands for our products, we suddenly realized that we should offer the other more compensation to raise the production. We than decided to offer Asia-Pacific, and Latin America a larger discounts, and longer return dates, to increase the demands.

Merino sheep originally came from the country of Spain and were highly recognized for their amazing wool. In 1797 the first merino sheep from the royal flocks, were introduced to Australia. Although these sheep had come from Spain they were well suited to life on Australian soil. More breeding by Australian farmers soon produced an even better wool that would soon be known all over the world for its amazing quality. One of the farmers that colonized merino wool in Australia were john and Elizabeth MacArthur. John and Elizabeth produced the finest wool in Australia, john decided it was best to sell it back in England so he took all the wool he could and went to sell it at the popular markets, leaving Elizabeth

Following the Heckscher–Ohlin Model, Australia is a competitive market due to suitable conditions for beef manufacturing. Land is one such advantage. Australia has both a large quantity and the appropriate quality of land for having livestock and

“Beauty is not in the face; beauty is a light in the heart” was a quote by Kahlil Gibran. This quote has to deal with the story called the “The Slip-Over Sweater” because a guy named Shan mainly focuses on impressing a girl named Jo-Anne. Important to realize, that Shan is in love with Jo-Anne because of her looks and not realizing his friend Grace's inner beauty. In “The Slip-Over Sweater” passage there are many differences and a few similarities that Shan sees between Grace’s and Jo-Anne’s outer beauty but only one main difference in Grace’s inner beauty.

2. Richard M. Johns (2006). The Apparel Industry. 2nd ed. UK, London: Blackwell Publishing Ltd.. 1-124.

* As some producers such as Ice-Fili wanted to keep their product’s quality level, they imported specific raw materials, but they didn’t have a problem in finding new suppliers.

Another alternative should be to create a plant in Europe so now they don’t have top ay all the taxes they have to pay so they can export their products, in that way they will be able to give better prices to their clients, and they will supposed to have a better service and more quality because they where the pioneers in those products.

Labor costs in the United States are much higher than in many parts of the world. Consequently, the costs of production for labor-intensive manufacturing can be significantly reduced by moving factories overseas mainly to third world countries this is a common practice of Nike who outsource there manufacturing to other companies in countries such as Thailand and Indonesia.[ ]

This can be seen from Fig 3 that the export and import during 2005 and 2006 have significantly increased and it is foreseen that the future global trend would be increasing. Also, in order to lower the production costs, lots of international companies will transfer part of work in some countries with lower labor and material costs. This kind of out-sourcing activity enhances the global cooperation as well.

Moreover, even though producing in Vietnam would suppose a strong saving in cost in the labor-intensive processes, the risk of mold duplications and counterfeits is high. The imitation of the company’s products would eliminate the differentiation that allows them to charge a much higher price than the local manufacturers (15$ compared to 3$). Also, the company lacks of experience establishing a wholly owned subsidiary in a new country.

It delivered clothes from European distribution center by air to distribute in the U.S market.

Classic Knitwear, a publicly traded company, is a manufacturer and distributor of unbranded casual knit apparel. Some of their products include T-shirts, sport shirts, sweatshirts, fleeces, and many others. Classic focuses on the non-fashion casual knitwear that has gained the company $550 million in revenues in the year 2005. Classic had concentrated its’ market on this segment of casual knitwear because CEO, Ortiz and CFO, Chong had believed it offered faster growth potential than ordinary retail.

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