Armour Garments CompanyEssay Preview: Armour Garments CompanyReport this essayArmour Garments CompanyTime Frame: July of 1975Point of View: Third person / Consultant of AGCProblem: Should the owners of AGC invest additional capital to the company and continue the businessAssumptions:Competition will still be tight inthe garments industryProduct sales consistently peaks during June and DecemberCash flow of company will still be goodThe companys popular brands is still well-knownAreas of Consideration:Current Financial Condition of the companyThe company had piled up losses which eroded almost half of its equity. AGC invested to launch new products which didnt do well in the market and resulted to profit deterioration.
Armour Garments CompanyEssay Preview: Armour Garments CompanyReport this essayArmour Garments CompanyTime Frame: July of 1975Point of View: Third person / Consultant of AGCProblem: Should the owners of AGC invest additional capital to the company and continue the businessAssumptions:Competition will still be tight inthe garments industryProduct sales consistently peaks during June and DecemberCash flow of company will still be goodThe companys popular brands is still well-knownAreas of Consideration:Current Financial Condition of the companyThe company had piled up losses which eroded almost half of its equity. The company had suffered significant losses in the first 12 months of the 10 year time frame and were averse to operating for more than two years. AGC invested to launch new products which didnt do well in the market and resulted to profit deterioration.
Armour Garments CompanyEssay Preview: Armour Garments CompanyReport this essayArmour Garments CompanyTime Frame: July of 1975Point of View: Third person / Consultant of AGCProblem: Should the owners of AGC invest additional capital to the company and continue the businessAssumptions:Competition will still be tight inthe garments industryCustomer is a ‘good customer’. Unfortunately the company cannot deliver on its promises of product sales. Agave company are not happy and therefore is unlikely to continue at full force. Also sales of Agave brand clothing will fall short and the Company’s stock remains the same as it was before.
Armour Garments CompanyEssay Preview: Armour Garments CompanyReport this essayArmour Garments CompanyTime Frame: July of 1975Point of View: Third person / Consultant of AGCProblem: Should the owners of AGC invest additional capital to the company and continue the businessAssumptions:Competition will still be tight inthe garments industryProduct sales consistently peaks during June and DecemberCash flow of company will still be goodThe companys popular brands is still well-knownAreas of Consideration:Current Financial Condition of the companyThe company had piled up losses which eroded almost half of its equity. The company had suffered significant losses in the first 12 months of the 10 year time frame and were averse to operating for more than two years. AGC invested to launch new products which didnt do well in the market and resulted to profit deterioration.
Armour Garments CompanyEssay Preview: Armour Garments CompanyReport this essayArmour Garments CompanyTime Frame: July of 1975Point of View: Third person / Consultant of AGCProblem: Should the owners of AGC invest additional capital to the company and continue the businessAssumptions:Competition will still be tight inthe garments industryProduct sales consistently peaks during June and DecemberCash flow of
Company products target market, market prices and competitionsDivisoria, a place where price war is visible, was the target market of the company at that time. AGC has to go with the flow as far as price is concerned because this will set the tone of marketability and salability of the products. The competitors were willing to sell at lower costs and longer credit terms which encourage the middlemen to carry and promote their products.
Technology available for companys productionThe sewing machines that the company had were not flexible enough and could not be utilized to manufacture other types of garments such as polo shirts and jeans. By venturing to polo shirt line, jeans, and printed shirts the company infused additional funds.
Clothing Industry Trend as against traditional product lines of the companyUndershirts were no longer fashionable to wear. The shift from undershirts to different clothing trends allowed the company to diversify and venture to these trends but failed because of the unfavorable response of the market.
Middlemen relations of the companyThe company didnt establish a close relationship to the middlemen. Being friends with them and having their loyalty will ensure the companys status to be the primary supplier of undershirts in Divisoria.
Product Sales and yearly demand of productsBusiness usually peaks twice a year: in June, with the opening of classes and in December, with the Christmas rush.Alternative Courses of Action:Infuse capital to save the companys status quo and just focus on their traditional product linesInfuse