Kathryn from and Bravado Case Study - Gm560

Kathryn From and Bravado! Designs Case Study

Exercise #1

| Before | After | Impact |

Design | Create own product with in-house designers | Partnered with two well-known designer companies | Expanded product line |

Materials requisition | Find sources of material and pay for them; suppliers will require a cash outlay six months before delivery | Paid on 30-day terms when garments were completed | Increase/stretch cash availability to invest in other business ventures |

Materials | Receive material and store them in our offices. Some raw materials have been checked for quality before sending them to the factories | Purchased fabric & bought garments instead of buying raw materials | Saved time by not producing raw materials and money on paying less overhead |

Distribution | Ship material to three to five local factories | Relocated two factories to Mexico | Increase production at a lower production cost |

Garment Assembly | Factory handles this part of the process | Partnered with two well-known designer companies to handle the garment assembly | Increase quality assurance of the product |

Quality Control | Verify quality of final garments before shipping them | Staff checked a percentage of garments by lots | Increased the quality of the product |

Exercise #2

Is a financial or banking relationship still necessary for Bravado!?

A financial or banking relationship is definitely necessary for Bravado! Because they may want to expand their business ventures to other markets and with the positive impact that Bravado has made in just and few months, they are in a better financial position for bankers and other creditors to extend additional credit to Bravado!.

Explain. If so, do you recommend debt or equity financing?

I recommend debt and/or equity financing if Bravado! Designs plans to continue to grow and become one of the top lingerie companies worldwide. This means that From will have to give up...