Custom Tailoring make men’s, women’s and children’s pants and shirts. The goal is to provide quality pants and shirts, and satisfy customers with design, size and price. Custom Tailoring is located at 1577 Atlantic Blvd, Neptune Beach, FL 32266. Custom Tailoring operates as a sole proprietorship. This form of business could have advantages to other forms of business because: •Custom Tailoring has fewer than 50 people
•Manager can easily control the business and make decisions quickly •Manager can respond quickly to competitive business condition and economic changes •Easy formation and taxation
•Freedom from government regulation.
•Easy to close
The owner manages the business and the owner is the manager at the same time. The owner prices, does the accounting and tax and helps customers. In addition, the owner controls cutting and sewing. Figure 1 shows organizational chart. Figure1. Custom Tailoring organizational chart
CUTTING EMPLOYEESEWING EMPLOYEECUSTOMER SERVICE EMPLOYEE
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This organizational structure has direct lines of authority from owner-manager to employees. The chain of command in this structure should give an opportunity for the manager to make decision quickly. Custom Tailoring operates on a local market area. The local market area includes Neptune Beach. Neptune Beach is a city in Duval County, Florida. Neptune Beach area includes 241 sq. miles. Competitive Analysis
There are no serious competitors to Custom Tailoring in the Neptune Beach area. The key competitors are the TJX Companies, Inc., Gap, Inc. and Ross Stores Inc. According 2008 Annual Report, “The TJX Companies, Inc ,the largest off-price apparel and home fashions retailer in the United States and worldwide, is a Fortune 200 company operating under eight nameplates with over 2,600 stores approximately 133,000 Associates” (The TJX Companies, Inc., 2009, page IFC). “Overall for 2008 net sales were $19.0 billion, a 4% increase over the prior year, and consolidated comparable store sales increased 1%. Net income from continuing operations was $915 million. Adjusted diluted earnings per share from continuing operations were $2.01, a 4% increase over the adjust $1.93 in the prior year. Overall, we grow total square footage by 4%, netting 123 stores to end the year with 2,652 stores”. (The TJX Companies, Inc.,2009, page 2). This store located 24 miles from Neptune Beach. Gap, Inc. is “a global specialty retailer offering clothing, accessories, and personal care products for men, women, children and babies”. (Gapinc.com, 2009, page 16/94, para.2). Custom tailoring 4
Operating results ($ in millions) in 2008 are net sales $14,526, gross margin 37.5% and net earnings $967. (Gapinc.com, 2009,page 28/94). This stores are located 21 miles from Neptune Beach. “Ross Stores is the nation’s second largest off price retailer, with 904 Ross Dress for Less stores in 27 states and Guam and 52 dd’s discounts locations in four states”. (Ross Stores, Inc., 2009, page 3/74). In 2008 total sales were $6,486,139, net earnings $305,441 and return on average stockholders’ equity was 31%. (Ross Stores, Inc.,2009, page 2/74). This store is located 20 miles from Neptune Beach. A product life cycle can be divided into several stages:
Product development is incubation stage of the production life cycle. There are no sales and Custom Tailoring prepares to introduce the product. In the introduction stage, sales will be low until customers become aware of the product and its benefits. During the introduction, Custom Tailoring primary goal is to establish a market and build primary demand for the product line. The growth stage is a period of rapid revenue
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growth. During the growth stage, Custom Tailoring goal is to gain consumer preference and increase sales. The maturity stage should be...