Assignment on Principles of Management

Topic: Strategic Planning Model A B C D (SWOT, PESTEL & GAP Analysis)

Assessment Organization: SQUARE Fashions Ltd

Prepared For:

Mainul Islam
Faculty, Executive development Program
Executive Development Centre (EDC), BUTEX

Prepared By:

Participant’s name ID
Amir Hossain 1909293
Uzzal Kumar 1909301
Md. Abdul Kader

Date of Submission: 25th May 2019

 SWOT Analysis of Square Fashions Ltd

Strength
Square Fashions Ltd is a rapidly expanding Company. After starting its journey in 1998 it has
already doubled the net turnover by the year of 2006. All the units of the factory enjoy higher use
of machinery that is imported from Germany, Switzerland, Italy & Japan. As a result it can
maintain a smooth rate of production. Well trained human recourses are strengths of the company.
They train up their key personal within the country and in abroad. In this way the company can
get some competitive advantages over the competitions. The HRM practice is also remarkable in
Square Textiles Ltd.

Weakness
Square Fashions Ltd is highly dependent on Cotton. And raw materials of cotton are becoming
expensive. Sometimes transaction time at Ports and transportation time create many problems
there. And the higher taxes, power and interest rates are also included in weaknesses of this textile
company.
Opportunity
There are bright opportunities for the Company in the overseas market. If it can communicate well
and capture a significant market portion in the Europe and USA market, it can be the leader in
textiles fields. Growth rate of Domestic Textile Industry is increasing. Besides this, Product
development and Diversification are also happening to cater global needs.

Threats
For Square Fashions Ltd. Competition level is increasing both in local and abroad market. And
the competition will be stiffer among the other foreign competitors like Srilanka, China, Pakistan
and India are prominent. To balance between demand & supply and price & quality are also
included in threats this company.

PESTEL Analysis of Square Fashions Ltd

Political

In Bangladesh, Political and legal forces are flexible in RMG sectors. Government policies
toward business are very necessary for any industry. Tax free export makes good opportunity for
investors. Business regulation: labor, environment is also flexible in Bangladesh. It makes low
cost for producing products in Bangladesh. On the other hand in developed countries
unemployment rate is very low, and for that reason they prefer import rather than production for
large level of labor cost. So it is also a great opportunity for Bangladesh develop in textile
industry.

Economic Segment

Economic segment is also very important for any industry. It can control the purchase behavior of
the buyer group. Family relationships can put impact on purchase behavior of an individual or
group as a whole. Attitudes about work and Living arrangements also fact for purchase behavior.
Lower living arrangement cannot be the high purchase condition. Developed countries are the
main importer of RGM products, and it is also the great opportunities for Bangladesh. Styles of
entertainment and changing life style also makes variation for purchasing habits and creates new
position for this sector. Attitudes toward health make impact in both ways positively and
negatively in this sector.

Socio-Cultural Segment

Socio-cultural segment is also very important for any industry. It can control the purchase behavior
of the buyer group. Family relationships can put impact on purchase behavior of an individual or
group as a whole. Attitudes about work and Living arrangements also fact for purchase behavior.
Lower living arrangement cannot be the high purchase condition. Developed countries are the
main importer of RGM products, and it is also the great opportunities for Bangladesh. Styles of
entertainment and changing life style also makes variation for purchasing habits and creates new
position for this sector. Attitudes toward health make impact in both ways positively and
negatively in this sector. Companies need to rethink about health care as well as they can also
introduce new organic clothing in the potential market.

Technological Segment

Technologies make the world closer and easier for everybody. Telecommunications and Internet
is the biggest issue for better communication. It also reduce cost of communication and the list
time consuming process. On-line training also the latest conceopt of trade in globally. R&D can
be very rich with new and innovative product and process become easier to innovations.

Environmental Segment

Size of population and growth rate is pretty good in this industry. Age distribution of population
also related and can make good impact. Cause target market of this industry can be the any aged
group. Education levels and income distribution also mass up with life style. Income distribution
and Ethnic diversity can be potential for this industry. Geographic distribution may potential for
this industry.

Legal Forces
In Bangladesh, Political and legal forces are flexible in RMG sectors. Government policies toward
business are very necessary for any industry. Tax free export makes good opportunity for investors.
Business regulation: labor, environment is also flexible in Bangladesh. It makes low cost for
producing products in Bangladesh. On the other hand in developed countries unemployment rate
is very low, and for that reason they prefer import rather than production for large level of labor
cost. So it is also a great opportunity for Bangladesh develop in textile industry
 GAP Analysis

A gap analysis is an examination of your current performance for the purpose of identifying the
differences between your current state of business and where you’d like to be. It can be boiled
down into a few questions:

 Where are we now?

 Where do we wish we were?
 How are we going to close the gap?

Major Findings from the internal GAP Analysis are as follows…….

 Lack of advanced technology-oriented types of machinery & production system

 Can’t go with the flow of product diversification & short lead time
 Lack of forecasting & hypothetical analysis of order taking
 Dependency on some specific buyer order leads to low FOB price
 Higher bank interest & insurance policy
 Lack of variety of knit fabric producing capability
 In-house design & development team are not strong enough
 Recent salary increments of garments worker
 Cost of utility & natural gas increases
  Not go with the flow of market & product diversity

Desire improvements to close the gaps in our department:

Now that we have discovered why the gap in your department is taking place, it’s time to figure
out the proper course of action to close it. Use the following guidelines to ensure the
improvements you come up with are solid:

 Base all improvements on the information you discovered while identifying the gaps.
For example, if your team is too busy doing custom work, it will be difficult for them to
step back and devise a new product offering. Perhaps if you stop taking on custom work
for a few weeks, that will free up your team to create a scalable product for your new
target clients.
 Consider the cost of implementation for each solution. Perhaps you don’t have the
capability to stop working with your current customers. Can you outsource the
development of a new offering? Maybe partner with another organization?
 Identify end dates when you’d like to have the gaps resolved. Without setting an end
date for improving the customer experience, it may end up being overlooked or ignored.
Set a completion date—even if it is years in the future—and then set milestones to ensure
success.

THANK YOU!