Submitted by: Submitted by 03560354
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Words: 504
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Category: Business and Industry
Date Submitted: 01/09/2016 01:05 PM
Case Study: R D Textiles Limited
In 2000, R D Textiles Limited was a UK-based textiles manufacturer that manufactured and provided
finishing processes for a variety of inexpensive fabrics that were used in outerwear and home
furnishings. The company had managed to survive the internationalisation of textiles and in particular
the movement of production to developing countries by retaining a number of large domestic and
international customers; that a number of the company’s production processes were automated had
allowed it to keep production costs relatively low. However, increasing energy and utility prices,
together with comparable production companies in developing countries and the wider presence of
export processing zones had begun to have an effect on R D Textiles Limited’s margins and
competiveness. The loss of a key customer in early 2000 had a significant effect and R D Textiles
Limited suffered a significant loss; the long-term future for R D Textiles Limited looked uncertain.
Shortly after the turn of the 21st Century, R D Textiles Limited appointed a new Managing Director
(MD) who, together with a newly-assembled senior management team, undertook a thorough strategic
review of the company’s operations and customer base. The newly-appointed MD recognised the
potential of emerging niche markets in technical textiles; the decision was made to re-focus R D
Textiles Limited towards these. A convincing business case was developed and the company
attracted investment that allowed it to upgrade or replace a significant portion of its plant and
equipment; the company divested itself of plant and equipment that was redundant and reinvested the
funds generated. Natural wastage and eligibility for retirement of a number of its employees meant
that R D Textiles Limited could also reduce its personnel. R D Textiles Limited was now ready
compete in niche markets of technical textiles, focusing chiefly on high-performance textiles for use
in...