Armour Garments Company
I. Central Problem
How to cope with the changing environment
1. To entice middlemen to patronize AGC’s product 2. To be able to compete with its competitors to earn profit 3. To improve their fashion line and machinery
4. To handle their pride
III. Alternative Courses of Action
1. Add investments and lower costs
· The equity would be higher resulting to better capability of coping with losses. Investments cover up losses. · Lowering the costs of materials used would lower expenses and gain more profit from the output products (if sold at the same price). · Lowering costs would mean lowering the prices of the products resulting to better sales. · Adding investments would help improve their machinery to bring delightful and surprising products. Disadvantage/s:
· Adding investments is a risk. There is no assurance of gain. · Lowering costs MAY lower the quality.
2. Negotiate longer credit terms and better trade discounts Advantage/s:
· More middlemen will patronize the products. · More middlemen will be AGC’s “suki” and will prefer to promote and carry their products. · The middlemen can pay AGC at their respective due dates according to the credit terms. Disadvantage/s:
· Competitors will be more competitive and have their credit terms longer. 3. The brand, “Blossom” should be made available again in the business introducing a new line of garments for women and also venturing into different and modern product lines Advantage/s:
· Garments like lingerie may help increase sales since women shop more than men. · This will introduce the company again when opening this line. · Opening a new line of fashion would attract more customers especially if they are fashionable like having different styles and colors. · They will be able to figure out what...
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