Ateneo de Manila Graduate School of Business

Middle Managers

M03 Human Resources

A Case Analysis on Vor-Tex

Submitted by:

Tessa Marie Ancheta

Kathrine Amores
Noriel Zachary Apaya
Miguel Sergei Joson

Professor:
Dr. Marcial Balgos
Instructions:
The Vor-Tex (A) case is about a textile company that you and your cohorts have
recently acquired. Since you already own the company, you are given the carte
blanche to do as you will with the company, starting with its new strategy,
structure, etc.

You and your business partners have just acquired Vor-Tex, Inc., a mid-sized company
exporting children’s garments mostly to Europe. The family that owned Vor-Tex (the late
founder’s name was Virgilio O. Ramos; thus, the company name) was forced to sell it
because of financial problems brought about by massive bank borrowing in order to
modernize the factories. Unfortunately, the orders from European clients plunged
because of cheaper products that could be sourced from Bangladesh. Prior to your
purchase, the company was forced to retrench 30% of its employees. As a courtesy to
you, all managers (including the family members holding management positions)
tendered their resignations. You and your partners are now free to reconfigure the
structure of the company to what you think will be best, to design the jobs to meet the
needs, and to hire the right types of people.

Incidentally, you and your partners have decided not to take any management roles in
the company, since none of you have any relevant experience in the industry. You will
all be in the board of directors, though.

Guide Questions:
1. What management positions should you put in? What structure will you choose for
Vor-Tex? Illustrate this. Why will you choose this type of structure?
2. Draft a core process of Vor-Tex using a flowchart.
3. List down at least 4 positions that you would need. Rank these according to
Experience, Skill, Education, and Responsibility.
4. Using a provided Position Analysis Questionnaire (PAQ), perform a job analysis on
these job positions.
5. Using the data from the PAQ, prepare the job description and job specification for
these positions.

______________________________________________________________________
A. The New Strategy

As new owners of Vor-Tex, our first step is to re-assess the company’s existing
strategies in order to address the challenges posed by increased competition
from cheaper products sourced from Bangladesh, along with the company’s
financial difficulties. Thus, it is advisable for the company to make adjustments
and implement turnaround strategies that focus on a combination of cost
optimization and product differentiation, operational excellence, and market
repositioning. These strategies are important for reorganizing and revitalizing the
business. This recommended measures include the following:
1. Expand distribution territories to developed countries by building supply
chain networks in the regions and marketing launches for brand and
product awareness.
2. Maximize digital platforms by offering product portfolio through
e-commerce to increase sales and distribution
3. Strengthen market stance in Europe by offering affordable premium
children garment.
4. Leverage the company’s modernized factories to streamline operations
and enhance efficiency, and produce innovative products that stand out in
the market.
5. Position the company as a provider of affordable premium, ethically
produced children’s garments, emphasizing a strong focus on quality and
sustainability.

B. New Vision and Mission Statements

Vision: Bringing the best quality clothing wear for the youth at a reasonable
price.

Mission: To be a global player in the child garment industry.

C. Key Management Positions and The New Company Structure

a. Key Management Positions

Considering that the family members who held management positions

have resigned, it provides an opportunity to reconfigure the company's
structure. Based on the given information, the following management
positions should be considered:
1. Chief Executive Officer (CEO): The CEO will be responsible for
overall strategic planning, decision making, and ensuring the
company's growth and profitability. Given the company’s current
situation, the CEO is responsible for developing and executing the
turnaround strategy, and ensuring alignment with its goals and
objectives. This position should be held by someone with extensive
experience in the industry and strong leadership skills.
2. Chief Financial Officer (CFO): Given the financial problems faced
by Vor-Tex, it is important to have a CFO who can effectively
manage the company's finances, budgeting, and financial planning.
The CFO will help develop and implement financial strategies to
optimize profitability and cash flow. This position should be held by
someone with expertise in finance and accounting and knowledge
in risk assessment and management..
3. Chief Operations Officer (COO): The COO will be in charge of
overseeing the day-to-day operations of the company and will take
an active role in streamlining its operations, especially now with its
modernized facilities, for improved efficiency. This is expected to
result in reduced costs and improved profitability. This position
requires experience and knowledge in garment manufacturing and
operations management.
4. Chief Marketing Officer (CMO): As the company needs to
revitalize its brand, regain its market share and attract new clients,
a CMO will be responsible for developing marketing strategies,
brand promotion, and expanding the customer base. The CMO will
also conduct market research to identify customer needs, trends,
new distribution channels, and competitive positioning. This
position should be held by someone with strong marketing skills
and experience in the fashion industry, particularly in the children’s
segment.
5. Chief Human Resources Officer (CHRO): Given the recent
retrenchment and the need to hire the right types of people, a
CHRO will be responsible for talent acquisition, employee
engagement, organizational development, and also for creating a
positive and supportive work culture. This position requires
expertise in human resources management and understanding of
the company's culture and values.
6. Chief Technology Officer (CTO): Considering the importance of
technology in today’s business operations, and the potential impact
it can have on the company’s strategy to revitalize the business, the
 CTO will be responsible in leveraging technology to drive
innovation, improve operational efficiency, and enhance the
company’s competitive advantage.

b. The New Company Structure

We recommend adopting a functional organizational structure for Vor-Tex,

Inc., as this will align well with the company’s needs:
● To effectively address its financial and operational challenges and
focus on rebuilding its operations, adopting a functional structure
may be more appropriate for Vor-Tex as this will allow a focused
approach, wherein each department is led by professionals
experienced in their fields.
 ● Because the company is facing financial challenges, a functional
structure will also promote cost efficiency. By centralizing functions
within specialized departments, resources can be allocated more
effectively, resulting in elimination of redundant tasks, streamlined
operations and reduced costs.
● Since Vor-Tex was formerly a family-owned business, and family
members held management positions, transitioning to a functional
structure will establish clear reporting lines, well-defined roles and
responsibilities. Each department will be headed by the respective
manager who oversees the activities within their functional area,
ensuring accountability and decision-making.

A functional structure allows for clear lines of communication and

accountability, and ensures that each functional area is effectively
managed and supported.
D. Core Processes of Vor-Tex
 E. Job Analysis and Design
a. 4 Key Positions Needed

Experience Skill Education Responsibility Average

Regional Sales 5 5 4 4 4.5

and
Distribution
Head

New Business 4 4 4 4 4
Head

Marketing Head 5 5 4 5 4.75

Supply Chain 5 4 4 4 4.25

Head

Market 4 3 4 4 3.75
Research and
Product
Development
Head

Average 4.6 4.2 4 4.2 4.25

Rating 1 to 5, 1 being the lowest, 5 being highest

Regional Sales and Distribution Head

In charge of ensuring all products to are sold and distributed in particular regions:
- Europe
- America
- Asia Pacific
- Middle East
New Business Head (Digital)

In charge of ensuring digital presence of all product in all online platform in

different regions.

Marketing Head

In charge of pushing the brand and product awareness globally.

Supply Chain Head

In charge of ensuring smooth flow and availability in supporting sales direction.

Research and Development

In charge of ensuring continuous improvement of products.

b. Analysis using a PAQ

Organizational Structure

There are five major departments that make up the organization -

Sales and Marketing, Operations, Information Technology, Finance
and Human Resources. Divisions were also identified to ensure
smooth operations of the whole company.

Position Descriptions and Responsibilities

Job description and duties are clearly laid out. Each unit has a
distinct responsibility and obligations that ensures the company
works harmoniously.

Skills and Qualifications

Given the industry of Vor-Tex (Importing and Exporting of Textile

Products), the company places a great focus on industrial
 knowledge and experience, technical abilities, educational
background, and the ability to carry out one’s responsibility - these
factors are specified in Section E. The abilities, however, need to be
revisited on a regular basis to ensure being at par with the
requirements in the ever-changing demand of the market.

Training and Development

Like any other companies, employees benefit from continuous

training and development programs. This ensures that the workforce
are well-equipped with the tools and skills needed to carry out their
responsibilities.

Performance Evaluation and Feedback

To ensure sustainability, Vor-Tex should also promote performance

evaluation and feedback, as well as, establish clear key performance
indicators (KPI).

c. Job Design (Description and Specification)

Job Position Key Responsibilities Job Specification

Description Summary

Market Research Responsible for ● Conduct market ● A bachelor's degree in

and Product directing market research activities and
Development research initiatives, analysis
Head identifying consumer ● Lead the new product
insights, and driving development
the creation of new ● Manage the product life
goods in line with the cycle of products and
company's strategic find opportunities for
goals. product line extensions
● Conduct regular
competitive analysis
● Collaborate with design,
● Competent in market
production, and
marketing teams
business, marketing,
fashion design, or a
related field is required,
with proven experience in
market research, product
development, or related
roles within the children's
garment industry
research methodologies,
data analysis, and
interpretation of market
trends
 ● Creative and innovative,
with excellent written and
verbal communication
skills and has a deep
knowledge of the
children's garment
industry, including market
trends, competitors, and
consumer preferences

Marketing Head In charge of creating ● Develop and execute ● A bachelor's degree in

and executing comprehensive marketing, business
successful marketing marketing strategies and administration, or a
plans that strengthen
planning related field is required,
the company's
brand, foster ● Develop, maintain and with proven experience in
consumer manage the company's marketing management
interaction, and brand roles and proficient in
expand market ● Oversee the digital marketing
share. development and platforms, tools, and
execution of digital channels
marketing and ● Has a strong creative
advertising campaigns thinking and storytelling
and stay up-to-date with abilities to develop
marketing trends compelling marketing
● Develop and manage campaigns and think
the company's marketing strategically
communications
strategies

Regional Sales Tasked with ● Develop and implement ● A bachelor's degree in

and Distribution increasing sales, regional sales strategies
Head overseeing and action plans
distribution methods,
● Manage and develop
and ensuring
effective product relationships with
distribution within a distributors, wholesalers,
given area. retailers, and other
channel partners in the
assigned region
● Lead and manage a
regional sales team and
set sales targets and
goals
business administration,
marketing, or a related
field is required with
proven experience in
regional sales
management roles,
preferably in the garment
or fashion industry
● Has an in-depth
knowledge of sales
techniques, sales cycle
management, and
distribution channel
 ● Build and maintain
strong relationships with
customers
New Business In charge of driving ● Develop and implement
Head initiatives for new new and comprehensive
businesses, business developments
examining
● Identify and establish
unexplored areas,
and growing the strategic partnerships
clientele for the ● Develop and execute
business sales and marketing
strategies
● Act as a brand
ambassador and build
and maintain strong
relationships with
potential key
stakeholders to facilitate
new business
opportunities
● Develop strategic plans
for business expansion
Supply Chain Has the ● Develop and implement
Head responsibility of strategic supply chain
managing and plans and initiatives
enhancing the full
aligned with the
range of supply
chain activities, company’s objectives
including purchasing, ● Oversee procurement
production planning, activities and collaborate
inventory with suppliers
management, ● Coordinate with
logistics, and production teams in
supplier relations.
planning and implement
production control
measures
● Develop and implement
inventory management
strategies
● Oversee logistics
operations and
distribution
dynamics, excellent
leadership skills and
strong analytical thinking
and problem-solving
capabilities
● A bachelor's degree in
business administration,
marketing, or a related
field is required with
proven experience in new
business development,
sales
● Has excellent networking
and relationship-building
skills and think
strategically
● Demonstrated ability to
set and achieve
ambitious sales and
revenue targets
● A bachelor's degree in
supply chain
management, logistics,
operations management,
or a related field is
required with proven
experience in supply
chain management roles
● A supply chain expert
● Has a strong analytical
thinking and
problem-solving
capabilities to identify
supply chain issues,
evaluate alternatives, and
make data-driven
decisions and with
excellent leadership skills