University of the west of

Scotland

Master of Business Administration

International Business

Strategic Management & Innovation

Table of Contents Page No

01. Executive Summery…………………………………………………………………………….. 02

02. Company Introduction…………………………………………………………………………… 02

03. Organizational Strategy Analysis ………………………………………………………….... 03

04. Organizational Culture Analysis ……………………………………………………………. 04

05. PESTEL Analysis……………………………………………………………………………….. 06

06. Profitability Analysis of the Industry ………………………………………………………….. 09

07. Value Chain Analysis by Porter ………………………………………………………………… 11

08. SWOT Analysis………………………………………………………………………………… 13

09. Future Product/Process Development Possibilities …………………………………… 15

10. Alternative Strategy Recommendation …………………………………………………… 16

11. Ideal Cultural Web Recommendation ……………………………………………………. 17

12. Conclusion……………………………………………………………………………………... 18

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Executive Summary

The MAS tradition began when Mahesh, Ajay, and Sharad Amalean brought lingerie manufacturing to South
Asia in 1987. What began as a foray down an unusual route has culminated in MAS being a leader in the
clothing industry.

MAS is one of the world's most well-known design-to-delivery solution providers in the garment and textile
manufacturing industries, with a portfolio of enterprises. It is also South Asia's largest garment and textile
company. Furthermore, this study proposes a different strategic plan as well as the most suited cultural
aspects for building long-term competitive advantage.

I conducted an external examination of the firm using analytical approaches such as PESTEL analysis, Porter's
Five Forces analysis, Value chain analysis, Cultural Web analysis, and SWOT analysis to understand the current
organizational culture and strategy. In addition, I will give product or process innovation proposals.

02. Company Introduction

MAS Holdings is South Asia's largest intimate apparel maker. Mahesh, Sharad, and Ajay Amalean formed the
firm in 1987, and its name is derived from the three brothers' abbreviation. MAS Holdings began as a maker of
form-fitting garments and then expanded into sportswear, functional clothing, and swimwear. MAS Holdings is
one of Sri Lanka's leading apparel manufacturers, with a reputation for ethical and sustainable working
practices. MAS Holdings employs about 93,000 employees in 53 manufacturing sites across 17 nations and
regions. New York, London, Hong Kong, and Colombo are among the company's design and development hubs.
Victoria's Secret, Nike, Lululemon, and PVH are among the global brands served by MAS. Fabric and
accessories have been produced as a result of the Backward Integration approach, which also supply
competing manufacturers. IT, brand, and business in industrial parks are all part of MAS Holdings' present
portfolio. MAS was named the second most admired business body in Sri Lanka in a 2017 study sponsored by
LMD Magazine and Sri Lanka Nielsen. MAS Holdings' main competitors are Ace and Clover.

MAS Holdings' mission is to "inspire, innovate, generate value, and respect mankind." Its purpose is in line with
their beliefs, key competencies, and culture. Intimate, athletic, athleisure, and nightwear are all part of the
MAS product line. Due to excellent partnerships with brands, such as joint ventures with Speedo and strategic
partners such as Nike, Makes & Spencer, Victoria's Secret, and Gap, MAS might be considered a successful
corporation. Because MAS is a corporation that emphasizes environmental and social sustainability, its green
manufacturing facility project demonstrates its status as a worldwide client. This recognition will help the firm
attract and keep consumers, resulting in a better connection with the world's leading brands under
sustainability strain. It will also help the company optimize revenues by recruiting and maintaining customers.

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03. Organizational Strategy Analysis – Michel Porter’s Generic Strategies

We must first study MAS's existing strategy before we can see its current organizational design in operation.
Long-term success has been achieved by the provision of distinctive and high-quality products and services
through the use of innovative technologies and a well-known brand name.

An organization's current and relevant strategies can be categorized into three classes, according to Michel
Porter's Generic Strategies. Three of the most important characteristics are low costs, inventiveness, and a
well-defined plan.

MAS focuses on both local and global markets to extend their businesses globally while differentiating their
products and services through brand awareness, high quality, smart technology, and innovation.

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 Porter’s generic strategy model

04 Organizational Culture Analysis – Gerry Johnson’s Cultural Web Model

Using Gerry Johnson's Cultural web approach with six categories, I examined MAS's culture.

Figure 02 - Cultural web model

Stories and Myths

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This section describes how the company was created, who the founders are, and where the company is
headed.

Symbols

Symbols are visual manifestations of a company's identity. The

theme colors are provided, in addition to dress regulations and logos.

When it comes to brand recognition, the MAS symbol is well-known in Sri

Lankan society.

Power Structures

The power structure of MAS is overseen by the Board of Directors and the Senior Management Team. The
Senior Management Team is led by other employees and is governed by the Board of Directors...

Organizational Structure

The organizational structure of MAS is mixed.

3 founders

Board of Directors.

Senior Management team.

Control Systems

MAS employs several distinct types of control systems. MAS incorporates cost control, internal quality control,
financial management, product development methodologies, and environmental conservation strategies.

Rituals and Routines

Everyday activities and conduct reveal what is most important to the company's leadership and how they deal
with problems. MAS has demonstrated long-term business ethics and honesty throughout its history of doing
business. The public has reacted favorably to a concentrate on CSR programs, laws, and environmental
standards rather than a focus on massive profits. These corporate routines and procedures have also
contributed to the brand's growth and progress over time.

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 05. PESTEL Analysis

Political Technological

Government decision-making processes that affect

business outcomes are influenced by political
P T
infrastructure that could accumulate legal implications.
The country will attain digital technological improvement
through the effective usage of cloud computing systems
because of the technological durability with the norm on
innovative networks.

Economy Legal

Businesses' various commodities are greatly E L The legal fact in employee retention and labour
affected by economic systems, including management
inflation and GDP rates in relation to income
positioning.

Social Environment

It is quite accurate to have social connections with those S E Environment friendly work stations and mass impact CSR
who are more likely to have a middle-class income and projects
those who have the most money in the country.

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 06. Analysis of Industry Profitability – Porter’s 5 Forces Analysis

PORTERS FIVE FORCES

HIGH HIGH
Threats of New Bargaining Power of Buyers
Entrants

Brandix and Hydramini are two of MAS's local

Rapid changes in customer demand are impossible to
competitors. International competitors include
forecast. According to McKinsey (2020), customers
Reginar and Clover. Because the items do not
are shifting from traditional clothing purchasing to an
differ significantly, the market is very competitive
instant pick-and-choose approach (Forbes, 2018)
and dangerous.
Historically, manufacturers could forecast future
season demand. Manufacturers, however, do not have
a precise prognosis due to customer demand. To
manage fast and rapid production, processes must be
robust. This is a critical strategic dilemma for MAS.

Moderate
Threats of Substitute
Products & Services

Bargaining Power of Low

Clothes are a basic product that customers require in order to live.
Suppliers
However, with the advancement of technology, stylish apparel has
HIGH been supplanted with virtual clothes. Customers do not go out to
MAS could invest in a foreign institution or research firm to perform wear stylish clothes when they have Pandemic. Customers can use
market surveys and forecast future desires and fashions. Social a phone application to substitute garments in a virtual world.
media analysis will also provide valuable information about future
season trends. Customers use social media to influence color and
pattern choices. MAS may reduce leadtime and make clothing faster
than competitors by forecasting future demand.

Rivalry among the Existing

Competitors
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 Through modern technologies,
international brands such as Regina
and Clover have enhanced their
innovation potential and cost
competitiveness. Regina is a set of
firms created by the Chinese
government to provide all
information infrastructure. Regina is
now one of the world's most
influential brands. MAS has an
excellent CRM. This must be
capitalized on in order to retain
clients.

Overall, five forces show that

customers and competitors pose a
high risk. These risks could be
mitigated by MAS by managing
suppliers and replacement products.

07. Porter’s Value Chain Analysis

Porter's Value Chain Analysis helps to describe MAS's full value creation process for its customers. This model
is concerned with how inputs are converted into outputs that buyers purchase. This notion divides primary and
secondary activities into two components. Primary activities and value creation are inextricably linked, while
support activities help primary activities create value.

Primary Activities

01. Inbound logistics

It is because of MAS's strong eco-system and wide choice of suppliers that MAS has tremendous
bargaining leverage with suppliers. Clients may, however, choose and choose their own vendors. MAS
is in a weak position compared to these suppliers.

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 02. Operations
03. Centralizing the branch network's operations and ensuring that service standards are met
04. Outbound logistics
Marketing products and materials

05. Marketing and Sales

06. Public relations and advertising efforts aimed towards a broader audience
07. Services

The company may set up a hotline to deal with issues that arise as a result of the product's use and to solicit
customer feedback. Customers' social media replies should be recorded as well, and customer service actions
should be implemented swiftly.

Support Activities

01. Firm Infrastructure

The growing trend of start-up brands is posing a risk to MAS. MAS must invest in these new
consumers in order to safeguard its future. When these customers expand in size, MAS may be able
to grow alongside them. However, there is a substantial possibility of the start-up failing.
MAS must have a solid process in place to identify company concepts or models that have the
potential to grow. These high-potential start-ups may be eligible for MAS investment and assistance in
growing their businesses. MAS can leverage innovative business endeavors or models that provide a
larger return than traditional business.

02. Human Resource Management

Employees leave MAS due to the firm's great competitiveness and global exposure. This has evolved
into a serious issue for all industry. Generation Z and subsequent generations will not work for more
than five years. MAS could lessen the impact by providing a more agile and comfortable work
environment. MAS structures must be redesigned to meet the needs of future generations. Gen Z is
more willing to work in a stress-free atmosphere and in a creative environment. Traditional company
environments must become more adaptable and tailored to new employees. MAS is constantly
concerned with human capital.

03. Technology Development

To build simpler and more cost-effective goods, MAS must focus on innovation and technological
skills. Customers, particularly in the garment sector, want lower-cost items. MAS will not be able to
survive if it exclusively focuses on revolutionary items.

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 04. Production procedures
MAS's manufacturing techniques, machinery, and technology are all at the cutting edge of their
respective industries. A dedicated research and development team has been established.

05. Procurement
This strategy is aimed at achieving new start-up enterprises as well as larger brands in the e-
commerce sector. Focus customers include ASOS, Amazon, Alibaba, Zolando, and Bohoo. Innovative
and technological competence will assist MAS in attracting new clients.

08. SWOT Analysis

Strength Weakness

Cost of product: Compare to competition MAS products are

Brand name- The MAS Holdings brand has a long history of 25
costly. This is mainly due to high overhead cost. When
years with Sri Lankan fashion and always been known for
competitors move to cheap labor sources such as Bangladesh or
providing its customers with quality fabrics and durable clothing
Vietnam Overhead cost drastically reducing for a garment. Sri
(MAS, 2019).Unique style of MAS Holdings is one of the most
Lanka per day rate is higher than competitive countries. With
popular trademarks in the world. MAS represent global brands such
as Victoria Secret, NIKE, Lululemon, Adidas etc.,
W this Product cost is much higher than competitors.
Leadtime: MAS production lead time is high due to unique
Innovation – MAS has huge reputation for Innovation and new
designs. This is one core competence that MAS use to defeat
S and complex products. Competitors such as China able to
produce a garment much faster than MAS (Good trade web,
competitions (MAS, 2019). MAS has developed entire supply
2020). With 25 years’ experience comes with traditional
chain, infrastructure support including digitization to back end
process. These processes are stringent and hard to change.
value stream (Annual report, 2029). This has given strength to
MAS even to survive in pandemic situations. SWOT Poor manufacturing diversification: MAS has specialized in
Knit garments. Currently customer demand is moving to
woven, bonding and 3D printing. MAS do not have capabilities
in these areas.

O
Threats T Opportunity

Competition from other brands: Challenges from other players such as
Brandix, Hydramani and Regina around the world are a major threat to MAS
Holdings. Cost competitive offerings have highly impact MAS future sales.
Also, with high lead time customers will cancel the orders or reduce order
volumes (Kuratko & Hornsby, 2018).
Changing customer's lifestyle: Lifestyle changes and fashion trends continue
to be a major threat to this business as fashion evolves in life. With COVID
consumer spending on clothing has reduced significantly (McKinsey, 2020).
Growth in ECOM market: Customer demand for more quality lifestyle. Customer
demand is changing rapidly (Dougherty, 2016). After COVID 19 consumer demand
shift from fashion products to casual wear. Virtual market or ecommerce is growing in
raid phase.
Demand growth in sustainability and Medical apparel: sustainable and medical
apparel market is growing in rapid phase (Boland & Collopy, 2004). Both are niche
markets where MAS have high opportunity to capture sales. MAS has invested high
on digital technologies with COIVD 19, all business moving to virtual platforms. This
could be bigger opportunity to MAS to capture more customers

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09. Future Products/Process Innovation Opportunities

There are three types of innovation that MAS has used in the past, according to a recently published report.
There are three sorts of innovation: new products, new processes, and new business models.

Product Innovation

Three types of product innovation are available. The methods listed below can be used by the
company in the development of future developments.
The creation of a new item
While MAS is known for its product innovation, there are numerous opportunities for new product
development in emerging markets both locally and globally.

enhancing a current feature of a product through inventive thinking

An upgrade to an existing product that includes new features

Innovation in the process

An organization's processes have been reinvented when it comes to how products and services are created
and delivered to customers. With the deployment of cutting-edge technology, MAS is always on the lookout
for innovative ways to improve its operations. By automating the manufacturing process, the corporation is
reducing production costs and increasing efficiency. By 2020, MAS plans to spend Rs 1,408 million on digital
infrastructure.

10. Recommendation of Alternative Strategy

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01. How to compete?

We can gain a better understanding of how a company might gain a competitive advantage in the market by
using Porter's generic strategy. Porter's generic technique distinguishes between three sorts of facts. It is
impossible to exaggerate the significance of cost leadership, uniqueness, and a laser-like focus. For example,
you may get a wide range of unusual and high-quality products at the MAS. Because differentiation strategy is
their present strategy, the Ansoff matrix model can be utilized to update their differentiation strategy without
focusing on other strategies.

02. Where to compete?

This matrix has four main strategies: market penetration, market expansion, product development and
diversification.

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Market Penetration

It explains how to boost sales of products existing on the market in established markets. As a result of its
successful forays into new markets, MAS has been able to steadily grow its revenue. It's critical that they keep
up the momentum and work to increase their market share.

Product Development

These companies create and sell new items in order to increase their market share and earnings. Most of
MAS's product-creation strategy is focused on this distinct area of differentiation.

Market Development

"Market development" refers to the process of bringing existing products to new markets. A rise in revenue
and market share is expected as a result. We are growing our consumer base while still retaining our unique
brand identity at MAS

Diversification

Diversification refers to the process of creating or developing a new product for a different market. This is a
risky situation for a business. MAS is currently implementing a successful diversification strategy based on
distinctiveness.

11. Recommendation of Ideal Cultural Web

We can see and understand the various influences on company culture through the Cultural Web. The Cultural
Web, created in 1992 by Gerry Johnson and
Kevan Scholes, is an example of this
approach. An organization's
corporate culture is established through six
distinct components of the cultural web. When
looking at rows five through seven, one can
see the impact of modern MAS's cultural web.

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 Recommended Alternative Strategy

1.1. Key Strategic Challenges & Recommendation

Below are few critical strategic challenges that MAS will focus on 2022. With the COVID pandemic and global
challenges MAS face critical strategic challenges that impact the future of MAS.

1.1.1. Fluctuation of Macro-economic factors

Apparel Brands will slowly move to cost competitive manufacturers, even though strategies are developed to
reduce the impact on cost competitiveness. MAS Main factories are situated in Sri Lanka. Key strategic
challenge is the fluctuation of inflation, depreciation of dollar, recession, and high living cost in Sri Lanka. MAS
can sign off exchange rate fluctuating agreement with Bank to reduce the risk in Macro economic factors. This
will enable MAS to reduce the growth of raw material import cost and increase the sales value. Trade
agreements with foreign governments also could help to maintain cost fluctuations. GSP+ is one of the
benefits offered by European union. These benefits help MAS to compete international Brands by reducing the
import taxes.

1.1.2. Consumer demand

Rapid changes in customer demand cannot be predicted. According to McKinsey (2020), customer moving
from traditional apparel buying to instant pick and choose model (Forbes, 2018) Traditionally, manufactures

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 could predict the future season demand. But due to customer demand, manufacturers do not have clear
prediction. Processes need to be strong to manage agile and rapid production. Which is a key strategic
challenge for MAS.

MAS could invest in foreign university or research company to conduct surveys in market and identify future
demands and fashions. Social media analysis will also give huge insight for future season trends. Customers use
social media and influence on the colors and patterns. Through understanding future demand, MAS could cut
down the Leadtime and produce garments faster than competition.

1.1.3. Employee Retention and satisfaction

With the strong competitive firms and global exposure, employees move out from MAS. This has become one
critical challenge for all industries. Gen Z and new generations will not be stay in job for more than 5 years.
MAS could reduce the impact by creating more agile and comfortable workplace. MAS need to re-design
structures to cater new generations’ needs. Gen Z would more willing to work in stress free culture and willing
to work with creative environment. Traditional business environment need to be more agile and customized
for new employees. MAS always focus on Human capital.

11. Conclusion

MAS is one of Sri Lanka's major clothing retailers. According to the macro and microenvironments, MAS has
potential for growth. Threats, on the other hand, are far more ferocious and powerful. MAS could design 07
strategies by assessing internal strengths, weaknesses, opportunities, and threats. These tactics will assist MAS
in seizing opportunities and reducing dangers by leveraging MAS's capabilities.

The key hurdles for MAS are macroeconomic challenges, volatility in consumer demand, a high failure rate for
new businesses, and personnel churn. To mitigate these issues, MAS might enter FEC contracts, survey
analytical results, and create a new business environment for the next generation. By tackling these issues and
tactics, MAS may be able to compete more effectively.

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