Management control in General Jeans company

INTRODUCTION

General Jeans (GJ) is a well-established, market leader, with the worlds largest manufacturing capabilities. It is currently in a reconcile of flux, the changing business environment and consumer requirements have made it needed to adopt an innovative approach, they displace no longer trust solely on their existing products and markets. If a new go does not anticipate (changing requirements) organising itself to take advantage of the unexpected and unobserved markets, it is not totally market focused, if not market - driven, wherefore it will succeed only in creating an opportunity for a competitor. (Drucker 1986: 213)

Changes in the 60s pop culture impacted upon designs and manufacturing, GJ argon re - structuring to meet these changes. Jeans are not only worn-out for their practicality, but are also a fashion item, as exemplified by Levi who located a store on 5th Avenue. Continuous improvement and efficiency are threshold competencies, essential to compete within this market. The world - class manufacturer like a shot is applying manufacturing concepts designed to demolish the obsolete methods, systems and cultures of the past that have hinder its competitive progress. (Voss 1992:137)

SECTION ONE

EVALUATION OF ENTREPRENEURIAL SUBCONTRACTORS

During the 60s small manufacturers capitalised on chop-chop changing trends, by continual design changes and pattern renewal. This be a major problem for the larger manufacturer, who found it knotty to keep pace with this dynamic market.



Traditionally, manufacturers favoured long production runs, as it...gave a steady target of cost reduction payable to experience curve benefits. (Toone 1994:42) Consumer expectations forced many manufacturers out of business, make the proliferation of subcontractors. De Sanctis and Fulk (1999:422) describe a new organisational structure, relying on subcontracting and entrepreneurship. GJ has approximately 20 entrepreneurial subcontractors, producing one third of their merchandise.

Benefits

Successful supply chain management can determine organisational achievement, causing radical...

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