Kreative Kasual

Kreative Kasuals Inc. BUSM35436 Business Cases

Case Marking Rubric

Case Summary / Key Events

Gary Masters is the owner and president of Kreative Kasuals which manufactures textiles. The company has primarily supplied the Ministry of Community Safety and Correctional Services with coveralls, shirts and boxers. The company was greatly affected by increasing competition from offshore companies and the period of decreased export levels to the US during the economic recession. The past year and a half had taken a financial toll on the industry and Masters now needs to decide on which government tender to bid on. Two tenders of interest were the RCMP, supplying washable trousers or the Ministry supplying uniform dress shirts and cargo pants.

Issue Statement

* Masters needs to decide whether to bid on a Ministry tender or an RCMP tender and which tender would be more profitable for the company.

* There is increasing competition from offshore companies located primarily in China, India and Pakistan.

* The US economic recession resulted in a decrease in exports level to the US.

* There was significant interest in the RCMP tender (highly competitive).

Situation Analysis

The strengths of this situation out-weigh the weaknesses. Even with a weak economic situation in North America, Kreative Kasuals is well positioned in this industry at a 23% profit margin.

Strengths | Weaknesses |

- The company is well established- 2% increase in profits from previous year- Masters has more expertise with the materials required for the polyester/rayon-based and the polyester/cotton-based garments- Faster turnaround time compared to other companies - Higher quality of product because employees don’t feel rushed to complete items | - Majority of employees are part time - No job security, employees can be hired and dismissed at any time - Employees are paid per hour, compared to other companies which are paid piece work. |

Opportunities | Threats |

- A...