Family Fabrics Corporation - Case Study Example

Family Fabrics Corporation – Case Analysis AFFILIATION: Family Fabrics Corporation – Case Analysis Introduction of Family Fabrics Corporation Family Fabrics Corporation is the leading textile company in UK that has been making valuable contribution in the growth of the local region i.e. Farnsworth, Massachusetts. In that area, it has been producing apex quality “ArcticCloth” which is created from the recycled materials. The company has been supplying the material to the top ranked apparel companies that have been operating in UK industry for many years. Overview of the scenario The current scenario that needs to be addressed by the owner of the corporation i.e. Jake Farnsworth is that its factory has got fire and a plan has to be immediately developed and implemented for handling the situation. The consultant’s main role is to analyze the factors that can impact the business activities of the company and recommend an appropriate strategy that will be aligned with the corporation’s primary objectives. The UK apparel and textile industry is undergoing drastic changes to provide favorable conditions to the players of the sector (“Textile Industry”, 2010). Textile Industry Analysis In UK, the textile industry is among the major contributors in its economic growth and it employs more than 340,000 people (Macbeth & Miln, 2012). It has been reported by Rogers (2012) that Gross Value Added (GVA) of UK textile sector is about 11.5 billion pounds and clothing manufacture, textile manufacture, dry-cleaning and footwear services are worth one billion pound within the sector (Begum, 2012). As the barriers for trade have been reduced along with decline in transportation cost, the manufacturing plants are shifted to lower cost areas such as China and India (“Textile and Apparel Compendium”, 2012). In the UK textile sector, there has been a sharp decline in the domestic manufacturing of goods as majority of the textile companies have moved to offshore destinations. Despite the relocation of these plants, the sales and design capacity of the sector has remained constant (Rogers, 2012). The foremost reasons for the surging demand of UK based textiles is that the apparel is manufactured with strong emphasis on high value products that allow the customers to get their goods designed in a customized way (Norris, 2012). As a result of the Industrial Revolution in the global textile industry, the Techtextil has become the latest norm in the textile sector. It encompasses a wide variety of taxonomy that is utilized by all the players operating within the industry (Goworek, 2010). Plan for Family Fabrics Corporation In order to address the key challenge faced by the company, it has become imperative to analyze the alternatives that can be availed within the industry. It is evident from the case that the main stakeholders who will be impacted by this incident are the suppliers, customers, state government and entire community. The loss of the factory infrastructure along with all the supplies will create obstacles for the firm’s growth. Since the premise has been destroyed, people will remain unemployed until a new factory is set up and the economy will be impacted as this firm was the major contributor in its GDP. Since a professional consultant is hired, the expert has ensured that an in-depth and detailed assessment is done for the corporation. The major drawback for the firm was reliance on traditional methods of operations which was causing problems for the entire industry. Due to technological developments, the machinery used in the textile industry has been updated by a great extent and the latest trend in the market is of Techtextil (Shen et al., 2012). As a result of the advancements in the field of clothing, it has become mandatory for the firm to revamp its organizational structure and reconsider the operation systems so that it is more competent and aggressive in its approach. Options Available in the market Considering the matter in hand, it is evident that UK textile industry is performing at an exceptionally high level. As locating the manufacturing plants in cost-effective areas is a smart and strategic choice employed by the players of the industry; Family Fabrics Corporation can shift its factory to any EU country that has low cost of production. One of the feasible options is relocating in New England that is providing the companies with ample opportunities for availing the subsidies offered by the government. In this way, the people of Farnsworth, Massachusetts will get their jobs back and enhance their standard of living. Other option that can be availed by the corporation is to avail the opportunities available in the Asian region by outsourcing its production facility (Su & Gargeya, 2012). By availing this choice, the company will be able to cut down its operating expenses and enhance the quality of final products by a significant level. It can even consider offering its products in Asian countries by introducing cloths for warm season in these regions. Hence, outsourcing is an attractive choice for the company as it will be able to expand its business on a global level. Immediate action required After evaluation of the present situation, the owner will have to first organize a press conference to give a briefing about the actions that will be taken by the company to restore its functions as soon as possible. By taking this step, it will be able to reduce the tension that is being experienced by the citizens of the region. Simultaneously, it will start getting access to the outsourcing service providers so that it can review the options available in the Asian countries. In order to ensure that an effective decision is made, a separate team will be created to carry on this project. This team will be responsible for evaluating the business feasibility in the new region and present a report within a month to Jake Farnsworth about the likely success of this decision in the long-run. Contingency plan Since every strategy is surrounded by a wide range of risks especially in the textile industry (DEFRA, 2009), a contingency plan will be developed to ensure that if the desired results are not achieved then an appropriate set of actions can be taken. As the company is considering outsourcing its manufacturing facility in Asian country, the second option is to rebuild the damaged premises by entering into a contract with one of the well-known construction companies. The new facility will be equipped with the latest technology so that the apparel is designed in highly efficient manner by making use of the top quality recycled materials. Conclusion Hence, Family Fabrics Corporation will have to reconsider its business strategy by utilizing the latest and innovative choices available within the UK textile industry. The companies that are using the Techtextil concept are able to reap the benefits offered to the players. Of course, new developments will continue to take place in the business environment but they have to be successfully incorporated within the business’s well-set goals and objectives (Goworek, 2010). In order to tackle the situation with precision, the company will have to change its business techniques so that it is competitive and successful in its respective industry. References Begum, S. (2012). Brands look to rebuild British textile manufacturing. Retrieved April 13, 2013 from http://www.manchestereveningnews.co.uk/business/business-news/brands-look-to-rebuild-british-textile-678662 DEFRA. (2009). Maximising reuse and recycling of UK clothing and textiles. Retrieved April 13, 2013 from http://www.oakdenehollins.co.uk/pdf/defra_173_summary_issue_4.pdf Goworek, H. (2010). An investigation into product development processes for UK fashion retailers: A multiple case study. Journal of Fashion Marketing and Management, 14(4), 648-662. Macbeth, M., & Miln, J. (2012). UK textiles. Retrieved April 13, 2013 from http://www.thegrowthfactory.co.uk/sectors/textiles/#.UWjqpbWmhMk Norris, L.W. (2012). Factory of broken dreams: the demise of Britain’s textile industry is leaving behind impressive buildings. Retrieved April 13, 2013 from http://www.independent.co.uk/news/uk/this-britain/factory-of-broken-dreams-the-demise-of-britains-textile-industry-is-leaving-behind-impressive-buildings-8206081.html Rogers, C. (2012). UK textile industry’s vital statistics. Retrieved April 13, 2013 from http://ei.wtin.com/article/1zGBl8jjMb/2012/10/12/uk_textile_industrys_vital_statistics/ Shen, B., Wang, Y., Lo, C.K.Y., & Shum, M. (2012). The impact of ethical fashion on consumer purchase behavior. Journal of Fashion Marketing and Management, 16(2), 234-245. Su, J., & Gargeya, B. (2012). Strategic outsourcing, sourcing capability and firm performance in the US textile and apparel industry. Strategic Outsourcing: An International Journal, 5(2), 145-165. Textile and Apparel Compendium. (2012). Retrieved April 13, 2013 from http://www.texprocil.org/images/168/Final%20Compendium%20Textile%20&%20Apparel%202012.pdf Textile Industry. (2010). Retrieved April 13, 2013 from http://www.economywatch.com/world-industries/textile-industry.html Read More