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GARMENTS
COMPANY
A. MAJOR
How does Armour Garments Company develop strategies in the
changing taste and preferences in the market?
B. MINOR
Is it a wise decision for the owners to infuse additional funds to the
company?
STRENGTH
AGC is in the business world for 21 years which means they have
already established legacy.
AGCs products are in a superior quality and twice more durable than
others.
The companys style and designs are from Hong Kong.
WEAKNESSES
The companys products become obsolete or unfashionable because
of the changes in the taste and preferences in the market.
OPPORTUNITY
AGC is to invest additional capital to improve their equipments and
also to develop new design and style for their products.
THREATHS
They might have bigger losses which will totally leads to bankruptcy.
Cost-Benefit Analysis
It is desirable for the company to maintain Blossom in the market as
long as it maximizes the profit of AGC.
Cons: Its hard to ask for big funds if the company has a bad record in
the past.
Cost-Benefit Analysis
The higher the risk, the higher the return.
3rd Alternative: Extend credit terms and enhanced trade
discounts.
Pros: Their distributors will be attracted to it and AGC will be their
consistent supplier. The company then can compete in the market.
Cost-Benefit Analysis
The Company will benefit in this situation because their distributers will
be faithful to AGC and the consistency of the company to their
distributors is a good indication of a good relationship.
Cost-Benefit Analysis
The planning and implementing of the new idea and strategies might
be costly but if effective, it can increase companys sales.
V. RECOMMENDATION
1. Yes, the owners of Armour Garments Company should infuse funds to the
company so that the factory and product quality could be improved that will be
their biggest advantage from other competitors. The company badly needed the
additional fund in order for them to remain in the business world.
2. The Company could have avoided the company losses if they continue to
enhance their product and the business marketing strategies. AGC could
have avoided losses if they carefully think of the decisions they make at
the first place.