Comparing two companies - "New look" and "Next" - Coursework Example

After analyzing the management styles of the two companies, how they communicate in the company and the organizational structure that is followed by the company it seems as a conclusion top the report than NEXT is a better investment option as compared to NEW LOOK. The garment industry is one of the oldest industries in the world. The industry has been the main foreign exchange earner for many countries in Asia. However there are several challenges and management issues that this organization is facing recently.

Some of the management issues being faced by the organization are advanced technology, Product life cycle, competition, consumer behaviour etc. The recent figures that tell the story of world economy tell that condition of the world economy is not so good. Among different industries the garment industry is also a victim of the poor performance of the global economy. The rising levels of unemployment in Europe and USA has forced the consumers in being selective regarding what are the things that they purchase.

As the consumers in these countries have become choosy regarding what they purchase, this has adversely affected the countries like Bangladesh and Pakistan for whom the garment industry was one of the most important opportunities to earn foreign exchange. In the late 2008 and early 2009 the retailers of garment in the Europe and USA reported margin losses of as high as 30% in some cases. The consumers have changed the purchasing habits; have postponed purchases in some cases, and in some other cases have driven hard bargains.

This in turn has led the producers of the garments, the garment retailers increasingly become more and more competitive. This means the industries need to increase their efficiency in order to keep up their profitability and compete successfully in this market place. Another important management