Case Study Report.pdf

l2III. Recommendation:The recommendation for the course of action to take is semi-traditional and semimodem,that is integrating the best aspects of modem and traditional in sort to helpGladrags out of its troubles. It involves outsourcing of production, new machinery andmarketing techniques that target the young and old generation to maintain both types ofclientele.This alternative course of action will help solve the main problem by tackling all thevariables presented through the advantages and disadvantages.All the variables are interdependent and mutually connected, as presented in the diagram.Stability poses many advantages for the opposition between the traditional and modemview of the company, which is a source of conflict and stress within the company and canpossibly become an asset, if both the traditional approach is maintained and the modernone is developed. This would constitute as an advantage for the company allowing it tobe more versatile; when one sector in production that focused on a specific age targetwould decrease, the other would increase, this leading to a safe balance and a constantsource of profit. For efficiency, in order to enhance it, organized trainings should bemade, where only two or three veteran employees would teach the new one. This wouldmaintain a large number of employees working while trainings were being given thusmaintaining efficiency. As soon as profit shifts from a deficit to revenue, newinvestments should be made into acquiring new stores in downtown. This could stand asa great opportunity to attract the younger demographic and to spread the company'simage and name. Another opportunity is the Olympics planned to come to London in2012. This could result in a profit of the company seeing an influx of potential customersif Gladrags change their style to appeal to the young and old tourists. As a companyexperiences a growth in profit, employee relations will experience an increase positivelyas more profit is dispensed on employment and salaries. The choice of keeping thetraditional style would assure customer loyalty while keeping the older clientele that wasalready loyal to their style. However, in order to acquire loyalty from the youngercustomers, investments should be made in advertising, promotions should be effected thatwould be attractive for the youth, and the idea of associating their products with Indianmedia stars should be applied. Furthermore, research should be conducted in establishingthe percentage of traditional and modern consumers. This would help produce moreefficiently since they know how to segmentheir production. Ultimately, efficiency,production and profit are therefore also positively affected. As for the market growthopportunities, regardless of the trends to come, the company would be ready to adapt andseize the opportunity that the Olympics may bring for instance. Also, the changes in themanagement structure that would allow for a more flexible company would be an asset inentering the modern and competitive market. With the new machinery, or the possibilityof outsourcing production, which is an important problem for the firm, would be resolvedhelping them further penetrate the market.However, going semi-traditional semi-modern may cause a few problems. IfGladrags decides to outsource, some employees who have been there for a long time,12