Crescent Textiles Weaving Mills

Topics: Economics, Value added, Costs Pages: 3 (761 words) Published: March 4, 2010
Crescent Textile: Mills Weaving Technology Decision
The corporate Strategy of crescent textile mills has two components: CTM Marketing Strategy
CTM Operational Strategy
For effective business philosophy the two component of CTM must have strong alignment. Integrated marketing and operational strategies have to be the basis of the decision CTM is going to take for achieving the maximum profits and delivering the quality products to its growing international clientage. CTM MARKETING STRATEGY

CTM is keeping “quality of its products” the core objective of its business philosophy. It is targeting the higher value added segment of the product design to cater the demands of international Market. Identifying the product requirements and demand patterns of new trends in textile industry lead to technological advancement in production processes and improving efficiency in operations. Competitive prices for the customers for defect free cloth and consistency in quality is what CTM commits with the industry. Since, international market demands versatile product so CTM has to match its processes and product mix with changing trends of the market. CTM OPERATION STRATEGY

Financial perspective
Market perspective
Organizational perspective
Financial perspectives of the decision
Capital Investment
Variable Cost
The variable cost of air jet looms is Rs135 per 100m fabric whereas projectile looms variable cost is Rs 55. However, the fixed cost for air jet looms is higher that can be minimized by achieving the economies of scale. Maintenance Cost

Power Consumption
The weft waste in air jet is ranging from 3 to 6 %but projectile looms have no weft waste. Zero percent weft waste not only makes them economically preferable But the 10% higher efficiency can lead to more production and more financial output for the firm so despite of weft waste air jet looms are still more financially...
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