Case Study on Cba Garments

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Holy Cross of Davao College
Sta., Ana Avenue, Davao City

Master in Management
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Financial Management

Ruel T. VargasApril 13, 2012

CASE STUDY: CBA GARMENTS Manufacturing Corporation

Executive Summary

CBA Garment, Inc. started as a single proprietorship. Over the years, it evolved into a corporation whose shareholders are mostly family members. The company specializes in making wedding ensembles from the gown of the bride to the dainty attires and accessories of the maid of honors, the flower girls down to the ring bearers. The company specializes particularly in the manufacture of ready-made bridal gowns.

CBA Garment has opened its market internationally which by then, CBA Garment has expanded to include the complete wedding ensemble from the bridal gown to gown and accessories for the rest of the bridal entourage. The new marketing strategy triggered more export orders. By then, bulk of their gowns were being exported to the United States of America concentrating on the East Coast areae; Central America, Canada, the United Kingdom and Europe.

The plant and office of CBA Garments is located in a 5,300 square meter lot at Golden Miles Industrial Park in Carmona, Cavite. Its factory is a one-storey building occupying a floor area of 4,500 sq.m. with a mezzanine that serves as office space.

The CBA Garments office is fully automated. The office is equipped with capital assets such as computers, copying machines, telephones, delivery vans and other electronic devices necessary for export-oriented operations.

CASE PROBLEM:

1. How can CBA Garments compete with competitors in a more dynamic and changed globalization trends? 2. What are the problems of the company that needed to be resolved? 3. How can CBA Garments continuously perform as key player in the garment industry? 4. What are strategies that needed to be applied in order to resolve issues and problems in the company?

OBJECTIVES:

* To identify problems in the company which employees has confessed. * To make a strategy involving the company’s weaknesses and threats. * Create a SWOT Analysis of the firm.
* To give recommendation on the company’s issues and problems.

AREAS OF CONSIDERATION:

* Manuel Afable, President and CEO of CBA Garments Manufacturing Corporatioin is concerned with the company’s competitive edge. * Manuel Afable urged to take a hard look at the company’s present situation and draw a strategic business plan. * Competitors are aggressive most especially the competitors from China which offers a much low prices but with a low quality of garments as well. * CBA Garments has an initial capital of Php 50,000 and now has a worth of Php 200,000 in assets. * CBA Garments Manufacturing Corporation specializes in made-to-order bridal dresses catering to a captured female market segment. * The company promotes its products through its web site. * CBA Garments is making good use of e-commerce to showcase its products abroad. * The firm is highly dependent on the buyer or contractor in terms of volume, design, style and accessories. * CBA Garments does not have its own brands.

* Advertising and promotion is done primarily through referrals. * The company does not have a strong corporate image and its logo is not particularly impressive. * There are not written job descriptions for workers and tasks are assigned verbally. * Demand is at its peak from November to February.

* Mr. Afable has expressed difficulty in getting creative and able designers and the scarcity of reference materials to update fashion trends and styles. * The company lacks system control to manage subcontractors’ actions and work quality.

SWOT MATRIX

STRENGTH| WEAKNESS|
* CBA’s bridal gowns are well designed and crafted high grade imported textile materials * High export markets * Offers complete wedding...
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