I.

POINT OF VIEW

The point of view of the chief executive officer (CEO) should be considered since he / she is in the best
position to make major decisions and changes to the company, being the highest-ranking officer in a
corporate business structure. In this case, Armour Garments Company is in the form of corporation.
The CEO manages the operations and resources of the company as he/she serves as the liaison to the
board of directors and corporate operations while also being the figure head of the company.

II. PROBLEM STATEMENT

The central problem of the case revolves on the lack of vision of the company to keep up with the
fast-evolving clothing line industry to better cater to the consumer’s preference while making sure
that loyalty of their partners which are the middlemen is strong. The company fails to adjust with the
general environment and their task environment by exerting too much focus on their current top
products. Therefore, the major problem of the case is as follows:

What strategies should Armour Garments take to keep up with the growing competitive market?

III. CASE FACTS

Internal

 Strengths
- The company is already established.
- The company produces high quality products.
- The company is the pioneer in the market.
 Weaknesses
- The company has only one target market
- The company has only a limited selection of products.
- Middlemen are not loyal to them.
- The company has a lack of vision for future trends.

External

 Opportunities
- The company has a wide untapped market
- There are new fashion lines that are trending to consumers.
 Threats
- The company’s competitors are increasing.
 - The trend of wearing undershirt is outdated.
IV. ALTERNATIVE COURSES OF ACTION

Alternative 1 PROs CONs

Reintroduce Blossom
Alternative 2
Offer longer credit terms
Alternative 3
Create new product line and
expand market girls, grown-up
women and elderly women.
 Experience suggests that
the Blossom brand sells
more.
 Less cost to implement
 Middlemen will
recommend and promote
company’s products
 No additional cost to
implement
 Women spend more than
men when it comes to
clothes
 Market will still be the
same.
 Other companies might
offer same payment terms
 Accounts receivable
turnover will lengthen
 Prone to doubtful
accounts
 Additional costs – buying
new machines to
accommodate
manufacturing women’s
clothes

V. RECOMMENDATION

a. Rationale
Based on the analyses made, the best alternative for the CEO is to choose Alternative 3. Since
the competitors are rapidly growing, it is best to cater to a wider market. Women are a great
addition to the company’s market because they are not satisfied with just a single style of
clothing and spend a lot on clothes. Being a pioneer brand, the company can gain trust from
the women that they will also offer high quality garments for them.
b. Implementation
For the implementation process, the first step of the CEO is to meet with the top management
and brainstorm on what kind of clothes to manufacture. They should hire a design consultant
if necessary. Second, is to meet with the employees and advise them of the plan of introducing
a women’s line. Armour Garments in this case, will rebrand that their garments is available to
all and not just for the males. Third, is to buy the necessary manufacturing machines and hire
new employees that are already skilled in manufacturing women’s clothes. Trainings will also
be provided to existing employees so they will learn how to manufacture women’s clothes.
Fourth, a timeline of the goal shall be set.

c. Contingency
The second-best alternative is Alternative 1. Reintroducing the Blossom brand will only add
few costs. No additional machines will be bought, and no additional trainings will be held. The
company just needs to market the product more and possibly look for other distributors to
maximize profits.