Case Study

I. Point of View

Because the problem being faced by the Armour Garments Company requires expertise and general knowledge of the company in the survival of the whole firm from tight competition and continuous declining profitability, the point of view taken in this case study is of the manager. The situation calls for strategic planning and crucial decision making in order to save the company thus approval has to come from someone who has the ability to weigh the possible outcomes and risks of the course that will be undertaken.

II. Analysis of Case Situation

A. Macroenvironment

● Because of declining world market, Philippine economy experienced adversity in early 1980's.

● The business was quite profitable during its first 10 years of operations. There was 900% increase of workers in 13 years.

● Product sales is seasonal and peaks twice a year which is during Christmas and opening of classes

B. Industry Environment

● There was a tight competition in undershirts starting in mid 1960's since more business establishments engage on garments industry. It threatened AGC because wholesalers from Divisoria, who are not loyal to brands, tends to patronize other manufacturers who offers products comparably at lower price.

C. Firm Industry

● The company started in 1954 and was popular for Armour and Marca Troca brands.

● The production department has 4 sections and is operating with specialized sewing machines which has limited manufacturing capability.

● The company sell their products to wholesalers in Divisoria.

I. Problem Statement

What courses of action can be implemented to save the Armour Garments Company?

II. SWOT Analysis

A. Strengths

● Manufactures high quality products

- They are established to produce undergarments of superior

quality known to be as twice more durable than other brands in the market....