STRATEGIC MGT : CASE STUDY

Assignment on SWOT Analysis

Mr. Rezaul Karim, a young Graduate from IBA of Dhaka University, joined M/S Amin Fashionware Ltd. as a Merchandiser. Initially he did not like the job that much. But after sometime he found that it has been a very challenging as well as an interesting job. He worked there for about 10 years and promoted to the position of Dy. General Manager Sales. After his promotion there was mixed feeling; he was both happy and frustrated. Happy for obvious reason, but frustration? He has been superseded by his juniors twice. The hearsay is that he is very rigid, not much accommodating which is very much required now a days. He is straightforward and candid. There is also rumor about his poor communication skill. However, there is no question of his integrity, rather those who compromise with honesty and integrity, he very often opposes it. This attitude is neither liked by the labor leaders nor by the other managers of the factory. They think it to be a roadblock towards smooth running of the factory of 4000 workers. In fact, he is more professional than utilitarian; more idealistic than realistic. None the less, he can hardly develop relationship with anybody within a very short span of time. In any case, after his promotion he is now earning fat salary and maintaining a good standard of living. During his job tenure in the garment factory, he experienced ups and downs in the business including management problem and labor unrest. He visited many countries of Europe and one or two countries of North America where the garment items are exported. By this time he has also developed a sort of working relationship with other garment factory management people. As the garment factory he served was an export oriented factory, he has good rapport as well with many people working in banks, particularly related to credit and international trade.

We all know that garments industry has developed tremendously in Bangladesh over the last three decades. Now- a- days, about 80% of our export earning come from garments export. We are not a big cotton producing country like our neighbors India and Pakistan. Still then, we are competing with them and doing quite good. The reason is that we have comparative advantage as far as the labor force is concerned. In addition to the availability of comparatively cheap laborer, Bangladesh has long legacy of weaving and sewing. Our women has dexterity of sewing culture with their nimble fingers and sharp reasoning mingled with aesthetic sense. This is one of the reasons why most of the garment industry laborers are women.

Due to cheaper production cost, most of the European and North American multinational buying retailer companies prefer Bangladesh as one their garment sourcing countries. In order to meet their demand, our garment export businessmen expanded their production unit without giving much care to the overall environment issue, particularly labor safety, security, health and hygiene condition so on so forth. After a number of accidents like fire causing due to electric short circuit, structural deficiency of the factory building, the compliance issue came in the forefront. Big companies are mostly compliant, but many small ones are not. Small factories get sub contract from the big ones and most of them are housed in rented buildings, not properly built for the purpose. After the Tazrin havoc and Savar (Rana Plaza) tragedy, the Govt. BGMEA, BTMEA, BKMEA and other related organizations including buyers organizations abroad are also coming forward to help out the Bangladesh Garments industry. They are exerting pressure for ensuring safety and security of the laborers, and also better working condition. International citizenry as well as human rights bodies are becoming vocal regarding the poor wages of the workers and hefty profits of the owners and internal buyers. The USA has withdrawn GSP facility on the plea of workers right i.e. Trade unionism is not allowed in the factories in Bangladesh.

Against this backdrop, Mr. Rezaul Karim is planning to leave his present job and set up a garment factory with his close friend, a businessman who will provide him 80% financial support having partnership of 50:50 percent.

Make out a SWOT Analysis

At least 3 point for each part.