Ayrshire Textiles

AYRSHIRE TEXTILES

Strategies

For change

Stuart Gallacher

AYRSHIRE TEXTILES

Strategies For change

Contents

Page 1.0 Terms of Reference

Page 2.0 Current Situation

Page 2.1 External Analysis

Page 2.2 Internal analysis SWOT

Page 3.0 Proposed Changes

Page 4.0 Analysis of Proposed Changes

Page 5.0 Proposed Strategies

Page 6.0 Conclusion

Page 7.0 Recommendations

1.0

Terms of Reference

Sponsor: Ayrshire Textiles

Objectives: To evaluate two possible strategies to aid in the implementation of change within the company.

Outcomes: A report submitted to the Management team of Ayrshire Textiles

This report will consist of the proposed changes and the strategies that are recommended to manage the proposed changes.

2.0

The Current Situation

The current situation of Ayrshire Textiles is that it’s a small family run manufacturing business producing industrial clothing.

However a decline in the number of manufacturing businesses in the UK has prompted the management to seek alternative areas to explore. The recognised growth in the leisure wear industry has attracted their interest, and the management are considering possible changes in the operations of the company to diversify into the leisure wear sector.

2.1

External Analysis

The organisational performance and effectiveness will be dependant on the successful management of the opportunities, challenges and risks presented by changes in the external environment. One popular technique of analysing the general environment is a P.E.S.T. Analysis.

Political

There are no known political factors affecting Ayrshire Textiles at the present time.

Economic

Ayrshire Textiles are being directly affected by the economic growth in the manufacturing industry with lower sales in the industrial manufacture of boiler suits.

With this increased economic growth comes the added potential within the leisure industry.

Social

Ayrshire textiles have a long standing relationship with the people within the surrounding area as all employees come from that demography. This in turn could have a direct effect on the company as they may not be getting employees with the skills and experience required.

Technological

Ayrshire textiles have lacked investment in new technology which could hinder their progress for change from industrial manufactured garments to that of the leisure industry.

2.2

Internal analysis SWOT

The company- A traditional family run business producing a range of industrial garments .i.e. Boiler suits for the manufacturing industry.

The company has been successful to date in terms of profit and growth; however the structure of the company will limit this success, as the company has a top down structure of management, as promotion has been within the company and staff turnover is low.

Workforce- Recruitment has mainly been from local schools and has been trained in-house. The workforce lives locally and shows loyalty towards the company as many of the staff has been with the company for thirty years or more, hence the low turnover of staff.

New management- The position of designer became available due to a retirement and has been filled with an enthusiastic graduate from Design School, who has new ideas on which possible direction to take the company.

Practices- There has been long established operating practices which have stood them in good stead over the years, but with falling sales and little investment on new technology and other related issues, this has prompted the management