Helper Menswear Case Study

1265 Words 6 Pages
Register to read the introduction… The United States is a huge market, which Garry Helper Menswear can use to improve from middle-sized company to leading industry entity. The financial plans put forward by the company are sound and can manage the risk associated with the two contracts at hand. To begin with, halfway outsourcing from China was a wise move since it reduces production cost. However, questions arise in the production time, and logistic process after the goods have been placed ready for shipment. GHM is looking for financial help in February while the first delivery is due on July. Besides, Liang in China has to provide the first bunch of Pertly finished garments on May the same year, yet Garry Halper has not met their demands of prior payment. On top of that, shipment from China to Canada will increase the anticipated production cost and time. The desire to meet the July deadline of Sutton first delivery means GHM, will have to hire more workers to speed up finishing of the suits. Therefore, time-related costs would further increase manufacturing price of the …show more content…
With that in mind , weighing up the options at hand by considering cost, time, and viability, it is best for GHM to only consider the Sutton’s deal if Confederation bank agrees to their operating loan request. In practice, managing to finish production and shipment from Japan to Canada for value addition and again to United State seems an impractical. Worse, the company is yet to resource for operation funds. On that case, the organization can decide to manufacture the first bunch of suits in Canada and the rest of Japan. In addition, using air transport instead of water could be an option, though it increases operation cost. Alternatively, GHM can decide to stick with Metropolitan loan plan, borrow there, and invest on a personal premise and remaining funds used to bankroll the Italian market

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