Summary
This case study is
about a manufacturing and designing organization Shirt masters, CEO tony
appoints an external management consultant to analyze the performance and
identify key strategic and operational problem and recommend solutions.
ShirtMaster was established
in 1950’s by Howard master who was a skilled tailor and thus he opened this
organization with the purpose of manufacturing and designing men shirts and ties.
By 1960’s the firm had
grown over to 2000 small retailers which dealt with all men accessories and
clothing, helped by the extensive and expensive advertising campaign of the ShirtMaster,
not only did this help but the Fashion Lead of London also boomed the business.
By 1996 the firm was
took over by tony master who worked as CEO of the ShirtMaster brand and managed
the operations of ShirtMaster division
ShirtMaster is
divided into two categories.
The ShirtMaster
division and corporate clothing division, The ShirtMaster division as mentioned
is directly managed by tony master, this division deals with the retail
business, since the beginning ShirtMaster division had the lead business and
market share but due to the changing market and competition it is losing market
share and profit.
This division international strategy is to
penetrate in the European markets followed by the Asian Growing markets, but to
enter the European markets this division need to strategically align with a
European partner in distribution or retailing.
Corporate clothing
division works independently, dealing in work wear for large corporate
customers, in the start this division was not profitable and had small market
share and profit, but since then its market has grown. Major contracts have
been gained with banks, airports and the police, fire and ambulance services.
Its designers work closely with the buyers in its large customers and divisions
sales revenue benefit from the regular introduction of new styles of uniforms
and work wear.
This division has also
developed its manufacturing base along with IT systems to satisfy the
cusomters.It is particularly proud of its computer-aided design and
manufacturing (CAD/CAM) systems, which can be linked to its customers and
allows designs to be updated and manufacturing altercations to the introduced
with its customer’s approval. They also follow the customer service package.
This division is also
going to penetrate in the European market with a strategic aligned partner.
Shirt master group future strategy.
Shirt master group future strategy.
The CEO is determined
to re-establish ShirtMaster as a leading shirt brand in the UK along with
launching the European countries.
The initial feedback
meeting with the management consultant has confirmed the concern that he is not
delegating sufficiently. The consultant commented that Tony’s influence could
be felt throughout the shirt master division. Managers either try to anticipate
the decisions they think he would make or alternatively not take the decision
until he has given his approval.
The end result is a division not able to meet the challenges of an
increasingly competitive retail marketplace. And losing both money and market
share
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