Case Study Axil Textile Company

875 Words 4 Pages
The company is working on the time required for completing the process of manufacturing per unit. The time required depends on the market need and how it should respond to the competitiveness in the market. The issue revolving the textile industry is essential whereby the company seeks to improve in production (Fitz-enz, 2000). Exportation and destination of the product in the international market is essential and should be on the time limit. Therefore, management seeks to improve in the production and transportation of the products to market.
Divestiture, liquidation, and bankruptcy
Divestiture involves reduction of some assets for financial purposes or even sales of the existing business by the firm. The major issues revolving
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There are various factors that lawfully contributes to dissolution and termination of the company. On this case, Axil Textile Company has no intention of closing its production and marketing rather seeks the alternative approach to increasing the market size. The management and stakeholders have a strong background and hence no threat of dissolution of the company.
Bankruptcy identifies a person or a company that is unable to repay the business loan. The Axil Textile Company has decisive measures that are used while acquiring a business loan to ensure it can repay it within stipulated timeframe. The management is also seeking to restructure the company 's conditions whereby it should outsource half of the amount required in development from the stakeholders before getting a commercial loan. This structure and amendment of the company 's condition would enable the firm to reduce chances of getting huge financial debt in future.
Joint venture and Strategic
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The low-cost strategy has made the company more attractive to the customers. The company has embraced economies of scale whereby it has large production unit at a reduced price. A differentiation is another strategy that Axil Textile Company has employed. It enables the firm to have different products that customers can easily distinguish in texture, quality and outlook (Harrington & Harrington, 1995). The company has developed its products in a specialized manner for easier identification. Finally, speed based strategy involves increasing the rate of production per unit to get into the market timely. The Axil Textile Company has employed these strategies with the aim of increasing sales, competitive advantage through economies of scale and targeting large market

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