syed momem textile company private ltd

8/6/2019 Syed Momem Textile Company Private Ltd

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April 10, 2009

1Strategic Management Process

2009

Syed Momem

Syed Momem Textile Company Private Ltd.

4/10/2009

Strategic Management Process


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2 Strategic Management Process

April 10, 2009

Syed Momem Textile Company Private Ltd.

Syed Momem, ERC Institute ofSingapore

Singapore - Textile Industry

One of Singapores pioneer industries since the national industrialization action, whichstarted over 40 years ago, is the textile and apparel industry. Today, in terms of sourcingvolume the island ranks as the second largest textile and apparel business and sourcinghub in Asia-Pacific after Hong Kong. The estimated sourcing volume in total is about USD2.5bn to USD 3bn.The retail sector consists of 2,408 apparel retailers who make $1.6 billion insales.


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April 10 2009

Indus

ri

s / Siz

of Oper tingReceipts

Est blishments(No.)

Workers(No.)

Oper tingReceipts

($*000)

ValueAdded

($*000)

Textile & Apparent Wholesale and

Retail 3,964 19,334 5,559,657 739,865

ES

ABs with < $1 m 3,379 10,527 1,077,406 194,435

ES

ABs with $1 m - >$5 m 393 4,059 740,563 167,929

ES

ABs with $5 m and above 192 4,748 3,741,688 377,501

Source: Department of Statistics 2005

In t l t , t n in t ti t f Singaporean textile andapparel. owever, t ere i till opti i about t e industrys ontribution into t e

islandseconomy. ough Singaporeancompanieshave theirproductionmostlyoutside the country, headquartersandmainbranchesstayon the island. Furthermore, the industry hasamultipliereffect onothersupporting industries li e logisticsorbanking.

Background info forbusiness

Sincemanygarment manufacturersmoved theirfabricationabroad, Singapores textile andapparel industryhasconverted toaregional fashion, sourcing andmarketinghub. he

extileand Fashion Federation ( aFf), which is thesuccessorof the textileandgarmentassociation forover years, issupporting the industry toobtainandremain these targets.

heobjectivesof aFfare tosupport

y Manufacturing:educate & provideregulations toencourage industry tosafeguard

y Marketing: issue the ASEAN regionandbeyond to Singapore textile & fashion

apparel design

y Sourcing:give information to local producerswhere in ASEAN andbeyond tosource

formaterials

y esign:put upaplatform forSingaporeandesignersandbrands toexhibit & sell their

designs.

COMPANY MISSION STATEMENT

A companyprovidingquality textile productsandmaintaining anexcellent level ofethical and professional standards .

COMPANY VISION STATEMENT

obecomea leaderof textileproducts in the local and international markets and toachievethehighest level ofsuccess .


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ThecurrentTextileIndustryeconomiccrisis

At present, theeconomiccrisis isevident. of Bangladeshsmajorexport markets,the European nionand the S, plunged intoaneconomiccrisisofhistoricproportions. heEuropean nion, where percent of Bangladeshs textileproducts (7 percent ofknitwear)arebeingexported, is facingadifficult economicdown turn. he fifteen-nation Euro Zone is

nowofficially inrecession, showingapainful shrinkageofeconomyby . percent in lasttwoconsecutivequarters. Moredisturbingnews is that the Euro Zoneperformance isevenweakerthan that of the nited States , whereoutput fell . percent in thequarterandgrewby . percent inannual terms. he S retail figures for ctobersaw theworst monthlydroponrecord, down . percent, and the fourthconsecutivedecline inmonthlyretail sales.

hecredit market in the S sei edupasconfidence in the financial systemsebbedandunemployment isrisingat analarmingrate, neverseen in last years.

What does it mean to Bangladesh if the textilemarket takes the toll on Europeandthe S due to thecurrent economic turmoil? Analystssay that apparel pricesmaygodownand thedemand forlow-pricedapparelswill beon therise. It isanticipated that thecountrieslike ChinaandIndia, where labourandenergycostsaremuchhigher, will havedifficult timetocopewith thesechallenges. Several accountssuggest that anumberof Europeanorders

havealreadybeendiverted from China to Bangladesh inrecent months. Bangladesh, beingasuccessful producerof low-pricedgoodquality textileproducts, maysee thisa sanopportunity, but, ofcourse, not without challenges. Bangladeshmust position itself toconfront thesechallengesbybecomingmoreproductiveandcompetitive. fcourse,Bangladeshsuccessfullyweathered twogreat challenges in thepast, September and thequota-freeregimesince January . owever, thecurrent global economiccrisiscannotbe taken lightly. While textileexport accounts for7 percent ofourtotal export, thepresentcrisis isnot just achallenge fortextile industrybut it sho uldbe treatedasanational securitychallenge forBangladesh. istorically Bangladeshput most of itseconomiceggs inasinglebasket, whichseems toput theentirecountry inaprecarioussituation. herefore,diversificationofexport productsandmar kets isamust.

Asa Bangladeshi myself, byseeing theway themarket isrun, Ibelieve that

Singaporehaswhat it takes tobe in the leagueof the superpowers in the textile industry. Itnot onlyhelpsbymaking the Lion Cityintooneof Asiasmajore xport markets, it will bring inemployment toassist in thisglobal economycrisis.

The SWOT Analysis ofthe Syed Mo mem TextileCompanyPri ate Ltd.

Thestudyof thisSWOTanalysisshows that the strengthsand opportunities far

outweigh weaknessesand threats. Strengthsandopportunitiesare fundamental and

weaknessesand threatsare transitory. Any investment ideacandowell onlywhenyouhave

threeessential ingredients:entrepreneurship (theability to takerisks), innovativeapproach

(inproduct linesandmarketing) andvalues (ofquality/ethics).

All that needs tobedone is: to innovate, convert products intocommerciallyexploitable ideas. All the timekeep remindingyourself: Benjamin Franklindiscoveredelectricity, but it was themanwho invented themeterthat reallymade themoney!

ere is the Action Planafterthe SWOT Analysisof the Syed MomemTextile CompanyPrivate Ltdasshown in Exhibit : -

Strength Maintain lowoverheadbychangingpaystructure tobalancebasicpaywithperformancebasedbonuses. As theapparent andcotton fibre industryhas large


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varietiesandexports, theremust bemanufacturing flexibilityandstability tooverseetheoverall productions.

Weakness-Implement new technologies to increaseproductionsof thecompany. Bybeing involvedwith theTextileand Fashion Federation (TAFf) of Singapore, thecompanywill beable to tap intootherpotential market aswell asbeing protectedbylaborlaws.

pportunities- Byexpanding the textilebusiness, salesquotasand incomewillincreaseaswell asoutside investments. Byopeningnewmarket, it allows thecompany todevelopnew ideas, new technologiesand latest trendsof the textileindustry.

Threats- Choose theright locations forthecompany tobeplaced inand tocreate good PRsandquality improvementsbetween the local andoverseasauthorities forthegoods tobesoldat anaffordablepriceaswell as thedemandsofcu stomers.

COMPETITION

Singapore facesrisingcompetition from theregiondue to lower labourcostsandaready

supplyofskilledworkers. Indeed, therealityof thecompetition it faces isvividly

demonstrated in thestrengthof the Asianexhibitors it has in itsmidst right hereat the

AAMA-TEX Exhibition 7.

The textileandapparel industry in Singaporehasbeenresilient andundergonestructural

changes. Garment manufacturers in Singaporearechanging theirbusinessmodel in

response to thecompetiti on. Manymanufacturershaveset upproductionbases inother

countriessuchas Chinaand Vietnam to leverageon theirlow labourcosts. At thesame

time, thesemanufacturerscontinue toretain theirproductionbases in Singapore tocarryout

highervalue-addedactivitiessuchasdesign, prototyping, productionplanningandsourcing

to leverageonourhighqualitystandardsandefficiency fora fasterturnaround.

PLAN 2012

ForSingapores textileandgarment industry to flourisheven further, weneed to expand

beyondourshoresandcapitali eon thenewopportunities in the international

marketplace. ata from the WorldTrade rgani ation shows that theworldgarment and

textile tradegrew invalueby . percent in , with the total valueof trade reaching

S 7 billion ( S 79 billion). The latest update from the Asian evelopment Bank (A B)

indicates that overthe first fourmonthsof , theperformanceof Asianproducers for

textilesandclothing improvedsignificantly. The A B affirmed that thisstrongperformanceofdeveloping Asianclothingproducerswill continue. Trendshaveshown that South Asia

and Southeast Asiahaveemergedas important sourcingbases forbuyers from the S and

E , the two largest markets in theworld.

With the inte nsityof the textile industry, thecompanyplans tobuildon itscompanys

progress into the Asianmarket beforeexpanding to therest of theworld. Bybuilding the

base in Singapore, it intends tooversees its technological manufacturingaswell asbeing


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certified by the Singapore Quality Award SQ and maintain its standards as one of

Singapores textile mainstay.

THE FUTURE

Apparel Singapore

represents established

Singapore-managed

apparel companies, with

a proven 40-year track

record working with

international retailers.

Tapping on our

extensive global footprint, Apparel Singapore provides uncompromised quality, a highly

integrated supply chain and ensures product integrity from design to manufacturing to on-

time delivery. Our English-speaking companies are well-known in the apparel industry as

reputable, integrated, customer-focused, adaptable and responsible- key attributes to help

our customers mitigate risks and improve efficiency in global sourcing.

Brand Ambassadors of Apparel Singapore are selected based on a stringent set of criteria.

Our ambassadors consistently uphold and abide by the Brand Attributes ofReputable,

Integrated, Customer-focused,Adaptable & Responsible and they demonstrate

commitment towards supporting the Brands goals and attributes through contributing to or

participating in the Brands marketing and promoting activities. You can recognize a Brand

Ambassador, by the Apparel Singapore Brand ame and Trademark on the companys

collaterals, business publications, website or even hangtags & labels.

As part of the company management, the company hope to be listed as Singapore

incorporated company with ultiple Overseas anufacturing acilities and with accreditation

by SA8000 / AP /ILO O ompliant with any International Buyers ompliance odes to

be given first access to all customer enquiries on apparel manufacturers in Singapore,

Apparel Singapore and its group of companies as well as opportunities to leverage the brand

and its marketing efforts to make greater in-roads into the relevant markets.

REFERENCES

E INSTITUTE. 200 . Entrepreneurship and Intrapreneurship. Strategic Ma

ageme

t

Pr

cessSteps 1-9 Pages 1-1

O PA E INFOBASE. uly 2008. India rafts. SWOTA al

sishttp://www.india-

crafts.com/business-reports/indian-textile-industry/swot-analysis.htm

LYNDSAY S INTON. 8thFebruary 2005. How To Do A S OT Analysis: Strategic Planning

ade Easy. http://www.mftrou.com/how-to-do-a-S OT-analysis.html


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S OT ANALYSIS OFINDIAN DAIRY INDUSTRY. 26th September 2005.http://www.indiadairy.com/ind_swot.html

R S. IS ARAN. 20th arch 200 . The th Asia Apparel achinery & AccessoriesExhibition. OfficialOpe i g fAama-Tex 2007http://app.mti.gov.sg/default.asp id=148&articleID= 501

TaFF & SPRING SINGAPORE. 200 . Apparel Singapore. Ab

ut ApparelSi gap re

http://www.apparelsi

gap

re.c

m/i

dex.html

Textile in

ehouse

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