PRESENTED BY: PIYUSH KUMAR

JAISWAL

 Ram Gupta and his wife Rita had opened a tailoring shop two years ago. Ram Gupta had worked as an accountant before his marriage to Rita, who was graduate from the fashion design Institute, having topped there. Rita has worked in the top two boutique as a designer but she resigned before her marriage after which she started making special dresses for their family member the friends of whom gave her the idea of open a designer dress business.

 Practically they dont have any business experience ,the USP of their shop was the quality of their designs and dresses on which they never had made compromise. As their dresses became popular and known they have also got invitations from several boutiques to make clothes for them and get indirectly into retail trade.

 The Guptas has started with wedding dresses but due to pressure from the customers, included dresses for teenage girl and kids. As they were running the business on their own they had to work ten hours for six- seven days a week to keep the supply schedule of the orders received. In the initial years their business went into huge loss due to investment made in air-conditioning, the workshop, purchase of sewing machines, and the high rate of interest charged by the bankers.

 Rita was with a view to increase the production, hire a tailor and put him on the evening shift when she was not using the sewing machine. In short she wanted to change the custom-built tag to that of mass production which Ram was not in much favor of and he wanted to concentrate on only two products with best profit margin-wedding dresses and the little girl dresses. The crux of the case is when they got order from top airline company to make and supply uniforms for its air and ground crew and had to make quick response whether they are going to accept it or not.

 Ram basically focused on four key issues in operations of marketing his dresses: Customer-driven services as they had being doing so far Expand in a limited way to cater to the airline order with a view that if they didnt get repeat purchase they could still bear the loss and consider expanding to outstation customers.

Add machines and increase production of nearby markets which had heard good reports of the products and shown an interest in them through retail outlets of those towns. Increase rather than reduce the product range by adding mens suits and blazers.

1. According to you, which one of the options detailed below should be selected by Rita dresses?? Give reasons. a) Go for expansion without accepting the airline order. b) Go for expansion and accept the airline order c) Continue to make custom-built dresses for chosen customers

 Sol- According to me, the second option i.e Go for expansion and accept the airline order is best available option for them. Some of the Reasons supporting my view are Accepting airline order can not only provide them opportunity for future repeat order from same or similar industries but it can also enable them to strengthen the loyalty of their existing customer as well as attract new customer base. The word-ofmouth which it will create will help them to built-up their brand image Expansion is best suited if there is a future scope. we have seen in the case that their product range have shown a positive demand by their customer and so far they have been able to satisfy their customers on the quality of their design and material used.

 Rita and ram both are in a view to expand and accept the airline order. Rita where on one hand want to change his custom-built tag to that of mass production Ram on other also wants to expand in a limited manner in a way to accept airline order. As we also know from the last part of the case that several international brands were also encroaching in their local market and could sweep them away with their established and respected brand. So here stability strategy here can lead to death of their business.

2)- Depending on your answer to question I. Draw up a comprehensive strategic plan to execute the option chosen by you for the continued success of Rita dresses

 Vision
To outburst competition and make Rita dresses as top designer wear.

Mission
To continuously strive for quality in design and use best material and accessories in producing them.

Objective
Satisfying customer with latest design and fashion in use with key focus at wedding and kid dresses.

The Strategic plan here is directly related to the four operations which Ram had told in marketing their dresses which is to cater directly to chosen customers and expand in a limited way to cater to the airline order. So strategic plan here is hire some workers, purchase some new machinery and cater order to a particular extent and outsource the rest to the other tailoring shop nearby .

STRENGTH Can save the cost of machines, workers, space and another financial requirement in catering airline order which will help him to complete the order within stipulated time. Can continue with their custom-built dresses and provide quality to customers. WEAKNESS The quality may differ as per the set standard of airline.

OPPORTUNITY To outburst competition and make Rita dresses as top tailoring shop in their area. Repeat order from same or similar industries. THREAT- Possibility of delay in order.

 The basic assumption in this strategic plan is that airline continues his order by the time of formulation of the plan. There is an environment of healthy competition where other tailor shop will accept to outsource. Another assumption is that there is not much difference between the due date of airline order and the outsourced firm. Another assumption is that accepting the airline order will improve their future brand image.

 He can either outsource the whole order or can cater to a particular extent and outsource the remaining order. For this Ram have to expand his business by hiring some workers, more machines, etc. For finance they can use the advance money which they can ask from airline and if required Ram can also get loan from his friend Ramesh as they were planning.

The leadership role in strategy will be performed by Ram Gupta which include-budget allocation, assigning task ,accounting, negotiation, control etc. The decision regarding the design ,material to be used, its quality size etc will be provided by Reeta. All the operational work will be done by outsourced firm. Any financial and other assistance if any, can be taken from Ramesh.

 Strategic alliance where Ram can unitely cater to order with other tailor shop. The basic characteristics of which is that it is done for specific purpose and after completion such set goals the two firms work independently Ram can make Ramesh as a active partner in his business and can go for expansion by accepting airline order.

Receiving order from airline

Allocating budget to the plan

Aligning resource to strategy Strategic plan outsourcing Payment and Receiving order on due date Delivery to airline on due date Evaluation and control

Structural implementation of plan

THANK YOU