Political

Government of South Korea has come under increasing global pressures to adhere to
World Trade Organization’s regulations on Apparel/Accessories industry.

Political stability in the existing markets – Young one operates in numerous countries so it has to
make policies each country based on the Apparel/Accessories industry specific requirements.
Given the recent rise in populism across the world I believe that South Korea can see similar
trends and may lead to greater instability in the South Korea market.

 Taxation policies – Over the last two decades Young one has benefitted from lower taxation
policies throughout the western hemisphere. It has resulted in high profits and increasing
spending in the research and development. The increasing inequality in South Korea can lead to
changes in the taxation policies. Secondly local governments are also looking into
Apparel/Accessories specific taxation policies to contain the carbon footprint of the Consumer
Cyclical sector.

ECONOMIC
 Downward pressure on consumer spending – Even though the consumer disposable income
has remain stable, the growing inequality in the society will negatively impact consumer
sentiment and thus impact consumer spending behavior.

Economic Performance of South Korea – I believe the economic performance of South Korea in
the near future 5-10 years will remain stable given – government expenditure, stable demand
because of disposable income, and increasing investment into new industries.

Economic Cycles – The performance of Young one in South Korea is closely correlated to
the economic performance of the South Korea's economy. The growth in last two
decades is built upon increasing globalization and utilizing local resources to cater to
global markets.

Social
 Demographics – For the Consumer Cyclical products, Young one has demographics on
its side. South Korea is a young country and growing. Young one can use this trend to
cater to various segments of the population.
Societal norms and hierarchy – the society of South Korea is different from the home
market of Young one. It should strive to build a local team that understands the societal
norms and attitudes better to serve the customers in South Korea.

 Power structure – There is an increasing trend of income inequality in South Korea. This
has altered the power structure that has been persistent in the society for over last 6-7
decades.

Technology
Intellectual property rights and patents protection – If South Korea have higher safeguards for
IPR and other intellectual property rights then more and more players are likely to invest into
research and development.

Latest technology-based innovations implemented by competitors of Young one – This can

provide a good insight into what the competitors are thinking and where Apparel/Accessories
business model future is.

 Technological innovation is fast disrupting the supply chain as it is providing greater

access to information to not only supply chain partners but also to wider players in the
Consumer Cyclical industry.

Environmental
Regular scrutiny by environmental agencies is also adding to the cost of operations of the
Young one.

Extreme weather is also adding to the cost of operations of the Young one as it has to invest in
making its supply chain more flexible.

 Environmental norms are also altering the priorities of product innovation. In many cases
products are designed based on environmental standards and expectations rather than catering
to traditional value proposition.
Legal
Health and safety norms in the South Korea and what Young one needs to do to meet those
norms and what will be the cost of meeting those norms

Business Laws – The business laws procedure that South Korea follows. Are these norms
consistent with international institutions such as World Trading Organization, European Union
etc.

Environment Laws and guides – The level of environmental laws in the South Korea and what
Young one needs to do to meet those laws and regulations.

Opportunities Threats

Strengths Strength Opportunities (SO) Strategies Strength Threats (ST) Strategies

Leveraging brand recognition in new Investing into R&D to thwart Consumer

segments Cyclical industry disruptors.
Weaknesse Weakness Opportunities (WO) Weaknesses Threats (WT) Strategies
s Strategies
Get out of the business and focus on growth
Investing into customer oriented services areas
and supply chain
Mechanistic
The organization we have chosen follows mechanistic organization
structure
A mechanistic organization is characterized by a relatively high degree of
work specialization, rigid departmentalization, many layers of management
(particularly middle management), narrow spans of control, centralized
decision-making, and a long chain of command.
In mechanistic organizations, authority reflects a well-defined hierarchy
where top-level managers make the majority of the decisions. Because the
environment is relatively stable, complex decision-making processes that
involve multiple parties are not required. Subordinates are expected to
follow the directions of management and not question their rationale.
Communication, much like decisions, also flows through hierarchical
routes, or from the top down.
Individualized job specialization is used to place employees into designated
tasks. In mechanistic organizations, it is typical for each person to be
assigned one task that is relatively stable and easy to control. As a result of
the stability of tasks, there tends to be low integration between functional
areas or departments in organizations that use a mechanistic structure.
Likewise, this creates a situation where, for the most part, functional areas
are not dependent on each other.
High specialization

Rigid departmentalization

Clear chain of command

Narrow span of control

Centralization
High formalization

Chairman

Managing Director (MD)

Vice-Chairman/DMD

Director

CEO-Chief Executive Officer/COO- Chief operating officer

General Manager (GM)

(Production, Quality, HR-Admin)

Manager
(All section)

Assistant Manager
(All section)

Senior Executive
 ↓

Executive

Officer

In-charge ↔ Line Chief
(Operational staff)

Supervisor (Operational staff)

   Worker↔Operator

Assistant operator

Labor

Effective Leadership in Garment Manufacturing

Management on the shop floor begins with supervisors

On a practical level, the day-to-day control and management of the direct
workforce is the responsibility of production managers and supervisors and
it is the performance of these people that will determine how well a factory
performs. This is true in every industry and a fact known to each of the
senior managers. But due to their overburdened schedules and lack of
motivation, majority of these managers are not able to devote sufficient
time, energy to prove their competence and capability.
The major factor in the underperformance of a factory is ineffective
leadership at the middle- and junior-level managers and supervisors. Paul
Collyer, a garment industry expert with over 37 years of international
exposure in production management, emphasizes on effective leadership
recounting his firsthand experience with the industry.
Supervisors are the first tier of management in a clothing factory and hence
ineffective management by them leads to beginning of
underperformance of the factory.
The often-quoted five needs of the managers discussed below are
considered as the first steps to effective leadership..
1. Agree with me the results I am expected to achieve
How many managers and supervisors know exactly what they are expected
to do and to what standards. The most commonly used method of agreeing
(not imposing) targets and work standards is through a job specification or
description with measurable Key Performance Indicators (KPIS). They do
not have to be complicated or in too much detail, indeed, the KISS
approach has much to merit it. (Keep It Simple, Stupid). An example of a
job specification for a line supervisor is shown below. It should be taken as
a guide as the role varies in every organization. 
Job specification 
Senior managers should determine the exact extent of the responsibilities
and authority of juniors including supervisors and these will be contained in
the job specifications Line supervisor reporting to production
manager. Summary of role to manage people, materials and equipment on
the line and to ensure all quality, output, delivery and cost targets are
achieved.
Key Responsibilities
  Plan new styles in conjunction with production manager and IE
department.
  Manage line on daily basis.
  Manage operators including motivation and discipline. 
  Ensure that the finished goods quantities sent to packing are correct.
  Manage quality to ensure customer requirements are achieved.
   Meet KPIS.
  Coordinate with higher authority and other departments as
necessary.
  Control housekeeping and machine cleanliness on section.
  Identify operator training needs and refer to production manager.
  Maintain needle replacement policy.

Quality problems should be handled with a sense of duty by the

supervisors
Key actions during style change would be
  Plan people, machinery, materials, layout and equipment three days
prior to style going onto line. Prepare initial balance in conjunction
with IE department.
  Report materials usage from first batch.
  Report operator training needs to production manager.
Key Performance Indicators
  Weekly calculate delivery output to packing at designated time
and dates (100%).
  Calculate weekly section average operator performance target
(90%), line efficiency (85%) and operator off standard targets (3%). 
  Calculate weekly percentage of reworks against output (maximum
5%).
  Biannually measure stock.

2. Give me an opportunity to perform

Senior managers should determine the exact extent of the responsibilities
and authority of juniors including supervisors and these will be contained in
the job specifications. Unfortunately, it is a common behavioral trait in
humans to retain as much power and influence as possible, not to delegate
and restrict subordinates to a role in which they are not a potential threat. A
manager responsible for lines containing 100 workers cannot possibly
know what they are doing or not doing in sufficient detail to influence their
performance. It is crucial that those lower down the command chain and
who work closer to the operators are given the opportunity to manage
people.
3. Let me know how I am doing
With measurable performance standards established, it is a simple task to
give feedback on a daily, weekly and ongoing basis as part of the
management system including daily production meetings. Additionally, it is
necessary to give an overall view of how individuals are progressing and
contributing to the business. This should of course be part of the
performance management system notably during appraisals.
It should be noted that it is not possible to give factual feedback or appraise
the individual’s efforts without first defining their role in job specifications
and standards of performance in KPIs. Any attempt to do otherwise will
inevitably result in dissatisfaction or conflict as reviews based no
measurable basis, i.e. “That manager does not like me” or “She is
the manager’s favorite”.
4. Give me guidance and training where I need it
From the details contained in the job specification, it is feasible to draw up
a list of key skills and knowledge needed to perform the role. During the
performance appraisal, individuals should not only receive feedback but
should also be assessed against the list, with emphasis on the skills
necessary to perform those tasks in which they have underperformed. A
training and development plan can be formulated and this becomes the key
outcome that should form a major part of any performance management
system.  All managers should be competent in guiding and mentoring
subordinates and these skills constitute a fundamental role of the manager
as a leader. 
5. Reward me according to my contribution
Whereas Maslow gives us a number of levels of motivation, the need for
appreciation and self-improvement can be covered in a well conducted
appraisal and we shall consider here the key motivation tool: Money!
It can be argued that production managers and supervisors work at their
hardest when the lines are performing the poorest when they are striving to
overcome difficulties. This should not, however be a deterrent from
implementing incentives and neither should the other often quoted reason:
quality will suffer!
Again, if the areas of responsibility for individuals are measured against
KPIs, it is possible to give a bonus for achievement that is clear and easy to
understand. A well-constructed scheme will allow for drops in performance
due to varying frequencies of style change.
Any bonuses or incentive payments will be based around performance
KPIs, most notably efficiency. To give an incentive based solely upon
reaching a production target of number of garments is very simple but can
be counterproductive as it may create the desire to hoard operators to
ensure that output levels are met without any concern for cost-
effectiveness. So we need to Reward them as per there target filling.