Westward export ltd

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WESTWARD EXPORT LTD. CASE STUDY ON

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Transcript of Westward export ltd

Page 1: Westward export ltd

WESTWARD EXPORT LTD.

CASE STUDY ON

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COMPANY BACKGROUND

Westward Exports is a private garment export company established in the year 1971, a family run business, all four directors being brothers.

Over the past 14 years the exports of company had grown from Rs. 00.71 million to Rs. 59.76 million between 1972 to 1984

Company owned no manufacturing facility of any kind, it purchased cloth from six different textile mills and had the cloth dyed and printed and then passed on to 138 swithching subcontracters

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CONT…

Company was expanding the product line and by the year 1983 it was exporting about one million garments in over 100 basic designs

Since the company got things done through subcontractors the managerial control of the operations became quite challenging.

The directors felt the heat of the changing situation and decided to hire some professional assistance to bring more control over the operations

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OPERATIONS

As a result Mr. Mahmood who had about 15 years of marketing and sales experience was hired in the year 1983 to be the general manager

Mr. Mahmood determined that if company was to remain in the business it must eliminate haphazardness in its operations like no proper costing, no scheduling, no status reports and no follow up charts etc.

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CONT…

However when Mahmood started to implement some new systems and procedures, but Mr. Saleem who joined the company in the year 1973 the senior most supervisor of the entire manufacturing process refused to go along with him

Mr. Saleem views were like all these luxuries are alright for big companies but not for companies like us

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CONT…

But Mahmood was confident that company did need a change as soon as possible and he would not be able to do the job unless he could overcome Saleem’s reluctance to accommodate his new systems

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WHAT IS THE NEED FOR CHANGE

For many ppl these changes are inconvenient, as they require adaptation, but when it comes to the health of companies, changes are incredibly important for a variety of reasons,especially if they want to keep go along.

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CONT…

Accommodation of Growth Address problems Keep up to date New Income streams

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ACCOMMODATION OF GROWTH

As a company grows and expands: The structure that was in place prior to this

growth inorder to keep operations going Growth can force a company to make

structural changes to accommodate the new workload

Without like these, an organization could quickly become disorganized and overwhelmed.

Ex: more people may need to be hired to coordinate the worker’s efforts,

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ADDRESS THE PROBLEM

As an organization continues to operate and the environment it operates in continues to evolve, it may find out that one of the processes it's been relying on no longer works as effectively as it could.

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KEEP UP TO DATE

Another motivation for change in an organization may be the need to keep up to date on market trends and technology. Technology is changing at an incredibly rapid pace, and a failure to keep up with it can have devastating effects.

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NEW INCOME STREAM

A company takes a risk every time it introduces a new product or service to the market. However, these changes are also some of the only ways to develop new avenues for revenue generation. By making changes, expanding production or adding a new department to an office, you can diversify the sources of income for your company, helping the bottom line

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WESTWARD EXPORT NEEDS CHANGE

Mr. Mahmood concluded that the company was all so nebulous – not clear in operation

A proper system to cure the lack of control is required. Hence change is improtant

If you want to truly understand something, try to change it. –Kurt Lewin

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EFFECTS OF CHANGE

A proper system of control can bring proper costing, schedules, balance sheets and follow-up charts.

Improves business and managerial challenges can be met.

Company can overcome any problems easily in the long run with better control

It will be capable to withstand the tough competition in the export industry

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QUESTION FOR DISCUSSION

Do you agree with Mr. Saleem that “ such luxuries are for big companies, but not for us”? Why or why not?

What mistake did Mr. Mahood make? How should Mr. Mahmood handle the

current situation?

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Mr. SALEEM’S MIRAGE

Implementation of information management system is not a “luxuries” but it’s a need of the company

As a company grows and expands, the structure that was in place prior to this growth may have been sufficient to keep operations going, growth can force a company to make structural changes to accommodate the new workload

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MR.MAHMOOD’S MISTAKE

Mr. Mahmood failed to convince the importance of the new system and started implementing them directly

Should have gained the trust of Mr. Saleem since he is the senior supervisor and close to the directors

Lack of self-confidence and doubtfulness in his experience.

Should not bring drastic change, it won’t be a adoptable by the employee, he has to take a step changes to implement management information system.

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HANDLING THE CURRENT SITUATION

Since Mr. Mahmood has been facing oppositon from Mr. Saleem for implementing his new systems so he should first explain the importance of the new system and advantages of having such system in the company.

Mr. Mahmood should try to convince Mr. Saleem saying without any specific system, but on a along run prospective there is a necessary for a particular system which company needs to follow to remain in business

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CONT…

Hence thereforth without any specific system company cannot depend on an individual for a along time as he /she will leave the company after retirement.

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JUSTIFICATION OF IMS

Controlling Measures and information gathering (or) giving is independent of size of the company

Small companies also need all these aspect as much as big companies

Coordination with employee and the subcontractors is the main key to improve the company

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CONT…

Clerical work to employee is not a burden, its inevitable one

If there is a problem in the company physically means we have to see the follow up chart, if both are not availble, think out the problem arise.

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THANK YOU…

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QUESTIONS…?