Westward Exports Case Study

WestWard Exports Limited

Brief Introduction… ►

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Westword Exports was a private garment export company established in the year 1971, a family run business, all four directors being brothers. Over the past 14 years the exports of company had grown from Rs. 0.71 million (1972) to Rs. 59.76 million (1984). Company owned no manufacturing facility of any kind, it purchased cloth from six different textile mills and had the cloth dyed and printed and then passed on to 138 switching subcontractors. The company was expanding the product line and by the year 1983 it was exporting about one million garments in over 100 basic designs.

Introduction contd…… ►

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Since the company got things done through subcontractors the managerial control of the operations became quite challenging. The directors felt the heat of the changing situation and decided to hire some professional assistance to bring more control over the operations. As a result Mr. Mahmood who had about 15 years of marketing and sales experience was hired in the year 1983 to be the general manager. Mr. Mahmood determined that if company was to remain in the business it must eliminate haphazardness in its operations like no proper costing, no scheduling, no status reports and no follow up charts etc.

Introduntion contd…… ►

However when Mahmood started to implement some new systems and procedures, but Mr. Saleem who joined the company in the year 1973 the senior most supervisor of the entire manufacturing process refused to go along with him.

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Mr. Saleem views were like all these luxuries are alright for big companies but not for companies like us.

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But Mahmood was confident that company did need a change as soon as possible and he would not be able to do the job unless he could overcome Saleem’s reluctance to accommodate his new systems.

YES - Westward Exports needs change ►

Mr. Mahmood concluded that the company was all so nebulous – not clear in operation.

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A proper system to cure the lack of control is required. Hence change is important.

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If you want to truly understand something, try to change it. - Kurt Lewin.

EFFECTS OF CHANGE ►

A proper system of control can bring proper costing, schedules, balance sheets and follow-up charts.

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Improves business and managerial challenges can be met.

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Company can overcome any problems easily in the long run with better control.

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It will be capable to withstand the tough competition in the export industry.

Mr. Mahmood’s Mistake ►

Mr. Mahmood failed to convince the importance of the new system and started implementing them directly.

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Should have gained the trust of Mr.Saleem since he is the senior supervisor and close to the directors.

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Lack of self- confidence and doubtfulness in his experience.

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Should not bring drastic change,it won’t be a adoptable by the employee,he has to take a step by step changes to implement management information system.

Handling the current situation ►

Since Mr. Mahmood has been facing opposition from Mr. Saleem for implementing his new systems so he should first explain the importance of the new system and advantages of having such system in the company.

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Mr. Mahmood should try to convince Mr. Saleem saying that thought he is capable enough of handling the company without any specific system, but on a long run prospective there is a necessary for a particular system which company needs to follow to remain in business.

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Hence thereforth without any specific system company cannot depend on an individual for a long time as he\she will leave the company after retirement.

SALEEM’S NOT FOR US THOUGHT ►

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CONTROLLING MEASURES and INFORMATION GATHERING (or) GIVING is independent of size of the company. Small companies also need all these aspect as much as big companies. Coordination with employee and the subcontractors is the main key to improve the company. Clerical work to employee is not a burden,its inevitable one. If there is a problem in the company- physically means we have to see the blue print of the company, managerial means we have to see the follow up chat,if both are not available ,think out the problem arise.

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