A strategic management paper for Sunshine Corporation: (A company in the ready-to-wear apparel-garments industry)

• Main Author: Cervantes, Eleanor S.
• Format: text
• Language: English
• Published: Animo Repository 1997
• Subjects: Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/2104
• Institution: De La Salle University

Crest is the trademark of Sunshine Corporation. It symbolizes the fulfillment of its founders dream of creating a Filipino fashion brand that would appeal to the young Filipino market. Its first store opened in 1987. The company is into the production and sale of ready-to-wear apparel and accessories, and exclusive distribution of imported fashion labels. Its prospective markets are those in the A, B and C groups. The companys products are widely distributed locally and it also has international outlets in Japan, Singapore, Kuwait, Saudi Arabia and Brunei. As an organization, it aims to offer premium, quality products at relatively affordable prices. It has a vision of carving a niche in the global market. As an entrepreneurial organization, the structure is quite simple. These are a few not top managers and a group of operators who do the basic work. The work of these operators are coordinated by a few operating line managers. Little of the behavior in the organization is formalized and minimal use is made of planning, training or the liaison devices. There are few middle managers because so much of the coordination is handled at the top. Even the support staff is minimized, the structure kept lean, and the organization flexible. Sunshine Corporation is in a very competitive industry which not only have many existing players already but it always faces the threat of new players as the industry has very low barriers to entry. Competitors involve not only local firms but foreign players as well who are flooding the market. Differentiation is the generic strategy adopted by the company. The company uses design and brand image to differentiate its products. As such, the Creative Department is tagged as its most important department. Marketing and Advertising also plays a major role for the companys success. This strategy of differentiation can be improved by looking at Porters uniqueness drivers or the underlying reasons why an activity is unique. Of all the drivers, the firms policy choices about what to perform and how to perform them are the most crucial. Differentiation by way of increased efficiency particularly in the delivery of its goods and services can be enhanced with policy choices and implementation. Strengthening the firms linkages within the value chain and with its suppliers is also very important for the timely delivery of its products to the customers. Toa achieve its vision of global retailing, the company has to remain strong locally. One of its weaknesses is its financial position. Crest is generating reasonable revenues. In 1995, its sales achieved a growth rate of 64%. However, most of its income go to the servicing of its debts. This situation can be improved with an increase in capitalization. Financing of expansion through franchise arrangements will lessen the burden of costs incurred in developing an outlet. It also is a source of cash as franchisees pay a reasonable amount of franchise fee. Aggressive marketing to generate more sales and more should be done. Operations Group will work for increasing in store sales and the Franchise & Exports Groups will look for more distributors outside. In line with this geographic expansion, the company should look also inside its stores and evaluate its products. Product rationalization is another of Mintzberg strategies that can be applied. Lastly, to guide the company in all its strategic moves and decisions, careful planning beyond plans and forecasting should be done and started.