A Case of Poor Planning

Jaya Halepete
Revised by: Nancy J. Rabolt , Judy K. Miler

Business Case
Source: Bloomsbury Fashion Business Cases
DOI: 10.5040/9781474208796.0037
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Abstract

An experienced merchandiser at an apparel manufacturer left his good position to be a senior buyer at an apparel retail chain and being successful at this job, was promoted to divisional head. With experience at both wholesale and retail, he was ready for a bigger challenge and decided to quit his job and start his own apparel export business. Start-up money from friends was used for production equipment and a showroom. Through contacts he got good orders from an international retailer, but they were sporadic, so a new overseas buyer was found. Business was good and he decided to expand more by producing merchandise for his own retail venue and converted the showroom to retail. Then problems with his growing business started: large orders were placed at the same time for his two international customers resulting in one order being fulfilled and the other one being late. A down turn in the market and no contract signed with his international customers resulted in the loss of the first order and the loss of good relationships with the second customer. In addition, as he was busy with his manufacturing challenges, the retail store was neglected. All of a sudden there was no revenue coming in and he had his financial backers to repay. Clearly sound business planning was missing from the equation.


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