A STRATEGIC BUSINESS PLAN

WESTWARD EXPORTS Ltd.

CASE AT A GLANCE
 Westward Exports Ltd. was a private garment export company
established in the year 1971, a family run business, and 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).

EXPORTS TREND
( IN MILLIONS)
70  Company owned no
60
50 manufacturing facility of
40
30 EXPORTS TREND any kind, it purchased
20 cloth from six different
10
0 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.
 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.
 However, when Mahmood started to implement some new systems and
procedures, 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.
 Mr. Saleem views were like all these luxuries are alright for big
companies but not for companies like us.
 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.

MANAGEMENT PROFILE
 It was a family run business and all four directors were brothers.
 Mr. Mahmood was hired in late 1983 to be the new general manager. He
was an agricultural graduate who had about fifteen years of marketing
and sales experience with a multinational organization. He also had
attended more than a dozen management development courses.
 Saleem joined the company in 1973 as a production officer, nearly the
lowest rung in the company’s hierarchy. He distinguished himself
because of his hard work and was promoted to be a supervisor. By 1982,
Saleem, under direct supervision of the directors, was looking after
every activity in manufacturing.
 There are other 200 employees working in the organization.
PRODUCT DEVELOPMENT

PURCHASE COTTON CLOTH FROM SIX

DIFFERENT TEXTILE MILLS

HAD THE CLOTHE DYED & PRINTED

THIS FABRIC THEN PASSED TO 138

STICHING SUBCONTRACTORS

THEN FINALLY EXPORT IN OVER 100

BASIC DESIGN

MARKET ANALYSIS
 SWOT ANALYSIS:
 STRENGTH: Hard working and experienced staff.
 WEAKNESS: Lack of coordination among employees and there
may be duplication of efforts. There is no proper information
available.
 OPPORTUNITIES: Being an exporting company, a huge market
is still unexplored. (As they are exporting 90 percent of their
exports to USA only)
 THREAT: Danger of facing cut throat competition from existing
companies of same line and may be from new one also.

 PEST ANALYSIS:
 POLITICAL FORCES: It includes areas such as tax policy,
labour laws, environmental law, trade restriction, tariff etc. Any
 change in export duties by the government may have a great
impact on the volume of exports.
 ECONOMIC FORCES: It includes economic growth, interest
rates, exchange rates, inflation rates, etc. Any increase in the
inflation will result in the rise in the cost of material and products.
In the exports business, any appreciation in the domestic currency
rates will results in losses.
 SOCIAL FORCES: It includes the cultural aspects and includes
health consciousness, population growth rate, age distribution,
career attitudes and emphasis on safety. Any change in the trends
and fashion will force the company to deviate from the existing
designs.
 TECHNOLOGICAL FORCES: It includes technological
aspects such as R&D activity, automation, technology incentives
and the rate of technological change. Furthermore, technological
shifts can affect costs, quality, and lead to innovation.

NEED FOR
IMPLEMENTATION OF MIS:
 “If you want to truly understand something, try to change it” - Kurt
Lewin.
 Mr. Mahmood concluded that the company was all so nebulous – not
clear in operation.
 A proper system to cure the lack of control is required. Hence change
is important.
 As the size of company had increased enormously it requires a proper
information system to maintain consistency in future growth.
 MIS will result in cost reduction and improved controlling as
inventories will be reduced, more accurate decision can be taken and
better projection can be made about future.
 Complete reliance on one person might have led to frauds and
dominance.
 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, it’s 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.

BENEFITS OF MIS:
 A proper system of control can bring proper costing, schedules, balance
sheets and follow-up charts.
 Improves business and managerial challenges can be met.
 Company can overcome any problems easily in the long run with better
control.
 It will be capable to withstand the tough competition in the export
industry.
 Stable future and ease in managing company when Saleem retires.

POSSIBLE PROCESS FOR IMPLEMENTATION:

 Proper training of employees is required for successful implementation
of MIS.
 Proper financial plan should be made as implementation of MIS requires
huge amount of funds.
 Educated and experienced employees should be hired with good
knowledge of computers.
 Proper coordination with suppliers and customers is required for
accurate flow of information
 MIS should be based on internet for instant flow of information and
efficiency in the process.

Mr. Mahmood’s Mistake:

 Mr. Mahmood failed to convince the importance of the new system and
started implementing them directly.
 Should have gained the trust of Mr.Saleem since he is the senior
supervisor and close to the directors.
 Lack of self- confidence and doubtfulness in his experience.
 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.
 He could have approached the directors with the proper presentation.

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.
 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.
 Hence there forth without any specific system company cannot depend
on an individual for a long time as he\she will leave the company after
retirement.
 CONCLUSION:
 A factor, thing, element, or course involving uncertain danger,
possibility of suffering harm or loss is parts of business we usually
called them Business risk.
 If in that condition they are not going to take risk they would close the
Westward Export. A great idea, design, policies, planning and strategy
make the company stronger which Mr. MAHMOOD was thinking.
 Actually Mr. Mahmood made premises for future happiness. He worked
late hours to comprehend fully the nature and scope of the company’s
business and its coordination and working relationships with the
outsiders. He knows if I am bringing a new strategy which is may be
difficult but we must take risk but to make future of the company
brighter and more certain.
 STRATEGIC BUSINESS PLAN

WESTWARD EXPORTS Ltd.

Submitted By:
Vivek Kansal
Surbhi Jain
Puneet Gupta
(BFIA-I B)

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