MODA TEXTILE FACTORY1 Bishkek, Kyrgyzstan - Case Study Example

Change witnessed in Olga and Sergei’s lives Sergei and Olga’s life changed far much positively financially, economically, and socially. From earning meager wages to a point of handling, a lot of cash is a greater financial leap. Economically, it is evident since they rose from an employed couple to an employing couple. Olga and Sergei climbed a social ladder when doing their business. they could afford getting out of the country to other countries to market their products and meet prominent personalities who they interacted with during the business trips.

Comparative advantage The greatest competitive advantage that Moda has is that it has been long in existence with workers who have a regular salary provision. In business, those that are in the long run tend to be stable since in the long run equilibrium of a firm, all factors of production can be varied to suit the dynamics that may otherwise terminate a firm in the short run. Factors that provide a stronger competitive advantage can also be attributed to quality assurance that has been consistent to the Moda Company.

The work force is notably highly motivated since their remuneration is kept steady and timely hence guarantees performances among competitors. Organizational structure of Moda Company This kind of structure that Olga and Sergei adopted can be considered as a line and staff structure. This is justified by the flow of the chain of command and to the chain lies a certain level of staff. the staff that moda adopted was mainly for specialization to help in the production process. Olga and Sergei being the major stakeholders have the staff directly answerable to them hence the direct chain of command.

Partnership to Olga and Sergei and enhancement of Trust Olga and Sergei are entrepreneurs and for partnership, they have to partner with one who has been an entrepreneur for some good time. In addition to that, that partner should have relevant knowledge and the country to have market for the goods produced by the Moda Company. The partner has to be experienced and stayed long enough in the business and must be able to understand and adhere to the dynamics in the market. Trust is more of a mutual act.

Due to the human nature trust often exists till a mishap emerges. It also attributed to factors like knowledgeability, potentiality and recent accreditation. Trust will be built by clearing doubts and this may mean to take such measures as transparency, legality and accountability of all transactions. Cash need concerns Addressing the cash needs of a business refers to basically observing liquidity of a business. They should first embrace plough back profits. One strength that Olga and Sergei have with respect to labor is timely payment of salaries irrespective of the sales in the period.

It is also good to cater for the remuneration by an approach like payment through commissions. Action plan ACTION PLAN purpose Production of women cashmere coats Aim for export to US, Europe and Russia Steps to take Establishing contact 6 months Marketing trip Making catalogues Web designing 2 months Challenges Identifying apatner(attending a training) Solicit funds(for producing catalogues,paying for the trip) Establish a web page on the SME trade center websiteE RESOURCES by sales thereby increased deliver of materials By action on what already he had thought of,sergei can now produce the cashmere clothes.

this is by making the trip,using the already made contact in Russia and designing the web page for marketing the business. Works Cited Prevosti, Renato. Moda & Company . New York: Cengage, 2010. Print