China Doll

FACULTY OF ECONOMICS AND MUAMALAT

FIRST SEMESTER 2013/2014

MDA4013

Integrated case study

Report on china dolls

PREPARED FOR:

PUAN AINULASHIKIN BINTI MARZUKI

PREPARED BY:

MUMTAZ BT MUSTAPA | 1100721 |

Group:

TMB 3

SUBMISSION DATE:

11 OCTOBER 2013

Executive Summary

The article of China Dolls is about the fashion designer by Haute Couture Fashions Bhd (HCF) of its history of establishment, an expanding, the problems and also the solution that were taken. They were facing problems regarding their two major clients from European fashion houses, Kiki and Houida looking into “contract manufacturer” to China because of the prices there were very competitive. Jeffrey was in a dilemma with his assumption of others clients would take the similar steps that would lead HCF had been experiencing dropping margins and profits would then be incurring losses. Jeffrey was thinking that he should also consider moving his operations to China.

HCF was established by Tan family, Tan Boon Kheong in Argyll Road, Penang in the 1974. He was skilled master cutter and was ran successful small business on tailoring men’s clothing. Then, HCF was successful expand by his son, Peter Tan who was study at Europe and become the talented designer and wealth of experience was interested in creating for both men and women’s fashion. HCF started its business by getting contract manufacturing deals with European fashion houses. Peter Tan had a good networking skill for HCF’s growth with the European people where he was studied before. By the late 1970s, HCF was expanded to Butterworth that much larger (three time larger) state-of-the-art factory to cater for the growing demand because of the production capacity in Penang was not longer big enough. By expanding their business to Butterworth, HCF continued to experience growth in annual sales from RM10 million to RM100 million. Its customers and profits were...