Facing problems
Background information
Consultant’ report
company introduction
The specific scheme terms of settlement
Fortune Garment, one of Hong Kong’s oldest trading groups makes high quality clothing. It has become a global company: it has over 3000 suppliers in 17 countries , and employs staff from all over the word in its head office and factores. It is expanding rapidly in foreign markets with sales of over US$ 1.8bn.
Terms of settlement
1、As far as possible without increasing the cost, increase the quality inspection .
2、Before placing orders, careful patient to ask the customer requirements, once making half-way don't change.
Consultant’ report
Michael Chau is aware that morale is low among managers and lower-level staff. He has asked a business consultant to investigate the reason for this. Here are the consultant's main findings. These findings suggest different behavio rs within the two subject communities.
3、Company to train a group of designers, and regular training, strengthen the exchanges between them, the intellectual development of the new type . 4、Improve the wages of the workers, and clothes to daily circulation, give workers more freedom . 5、Appropriate to expand company size or lay off .
Design
When the company was smaller, it had the same lowpricing strategy, but the design of its clothing was outstanding. However, nowadays, the company seems to have lost its creative energy. Its latest collections were described by a fomous fashion expert as ‘boring, behind the times and with no appeal to a fashionconscious buyer’. Other experts agreed with this opinion. The problem is that ideas are not shared between the company’s designers. According to one designer, ‘there’s not enough contact between designers at the different production centers, The designers never meet or phone each other, and they rarely travel abroad’.
3.Administrative staff said their office are overcrowded and badly ventilated. 4.Supervisors form head office are of different nationality form their staff. This causes communication problems. Many factory workers said they did not always understand their supervisors’ instructions.
Factory workers and administrative staff
1.Staff turnover is high in most factories. Industrial accidents are common, mainly because health and safety regulations are not being properly observed. 2.Factory workers complain about their wages. They are paid according to local rates, which in some countries are very low. They are often expectde to work overtime without extra pay.
1、Management
2、Factory workers and administrative staff
Management
1.Managers of subsidiaries say they are underpaid. They are demotivated and feel their contribution to the group’s profits is undervalued. 2.The majority of managers say they should have a share in the profits of their subsidiary (5%-10% was the figure most commonly mentionde ). 3.All managers reported that they did not have enough freedom of action. They want more autonomy and less control from head office over finance, pay and sources of materials. 4.Managers need more advice on quality control and would like more contact with staff from other subsidiaries.
Quality
control
Many subsidiaries make ciothing from materials supplied by several of the company’s plantes. Although this helps to lower costs, the materials are often of poor quality. This has resulted in cancelled orders. Recently, a German distributor refused a consignment of 50,000 blouses, Cancellation of the order cost Fortune Garments half a million dollars in lost sales.
With the development of society and economy, the sales of the products is facing three marol
2、 Responding to customer needs 3、 Design
背景介绍 Background information
Michael Chau, is proud that his company can usually accept a major order and deliver the goods to a customer within four weeks. However, globalisation has brought problems in the company’s overseas plants, and this is having a bad effect on its share price. A journalist from the Eastern Economist Review suggested recently that the company could become the target of a takeover if didn’t sort our its problems soon
Responding to customer needs
Orders have also been cancelled because Fortune Garments’ subsidiaries are not responding quickly to customers’ needs . When custmers what lastminute changes te clothing, the plants cannot meet custmers’ tight deadlines. For example, an Australian fashion chain cancelled an order because the US plant was not able to make minor changes to some silk jackets in time for their summer sale, The lost sale cost Fortune Garments over US$ 400,000.