Case Study: Armour Garments Company

I. Point of View

In this case, we have chosen the perspective of a top-level manager. Top-level managers play a crucial role in the decision-making process of a firm, especially for this particular situation wherein the firm currently experiences losses. How the top-level managers would handle this situation would define the firm’s future, including the choices they make and the strategies they would employ.

II. Analysis of Case Situation

A. Industry

There were several factors in the firm’s industry environment that affected its sales and profits, mostly disadvantageous. For one, several competitors surfaced which offered a reasonably lower price than the firm. Since the firm’s market was mostly wholesale, most of the middlemen (in Divisoria) were not loyal to the firm, resulting to lower sales.

B. Firm

The firm focused on the quality of the product. The firm only makes products exclusively for male consumers only. No major investments were made before the 1970s.

III. Problem Statement

How could Armour Garments Co. have avoided its losses?

IV. SWOT Analysis

A. Strengths

Despite their situation, the firm still has their fair share of advantages. Ultimately, they are the pioneers of the production of these undershirts. No only are they pioneers, they also produce it of high quality. Aside from that, the firm also has a vast amount of manpower, which grew from 25 to 250 workers since the start of their operation and production. One good advantage of the firm compared to other competitors is that they designed their products according to that of Hong Kong undershirts, which gives it an edge among the others in the country.

B. Weaknesses

Sadly, in spite of its strengths, the firm also had a lot of disadvantages and drawbacks. One is that in terms of machineries, the sewing machines they had wasn’t flexible, that it was just suited for making undershirts only. The firm also had a limited market, which only caters...