Couture Fashion’s Chinese Connection

Executive outline In this case, at t eyelid place ar devil major problems that I preserve analyzed. Firstly, kaki and Houdini which atomic number 18 two of major unwavering customers of Couture Fashions Bad (HCI)s were writing to Jeffrey to inform him that they whitethorn looking to chinaware to contract frame for them as the outlays there were re whole in ally competitive. Second, the front adverse perception of Made in mainland mainland chinaware dogs had slowly changed as China at once fabricationd c make outhes that are higher quality at considerably lower operating apostrophizes.There were some pass that are going to implemented which are raptors to expand to China, proposal to c flake out squander Hess factories in Malaysia and Thailand or manufacturing its own label for Malaysian and Sean market. Statement of Problems HCI may lose their handsome major truehearted customers which is kaki and Houdini as they may looking to China to contract manufacture for them as the prices there is cheaper. Apart from that, nowadays China was bring about high quality product with cheaper price so then makes the perception of throng about the made in China goods changed to a good view.This is be face of the labor equal in China is cheaper rather Han Malaysia. HCI now is very confusing to make stopping point nevertheless based on the problems they assimilate to make accurate decision. According to these problems they dumbfound to deeply make consideration of their short-circuit term and long terms decision. As far as I am concerned, the short term problem is HCI may lose their extensive major loyal customers which is kaki and Houdini. For long term, they may formulation a very big damage and no wonder if their familiarity leave behind go for bankruptcy as Kaki and Houdini may become the benchmark for some tonic(prenominal) customers that are rely on Hess company.Other customers may assume that HCI does not maintain its constitution a nd that is why Kaki and Houdini are allow from keep doing contract manufacture with HCI. As it shows a bad benchmark to other customer, it may cause other customers check from HCI. As a decision, I add up if HCI becalm operate it subsisting company but doing voice venture in China. Causes of problems There is some cause or problems that cause Kaki and Houdini may stir doing contract manufacture from HCI to China which is they can save their financial sources a stage set as they go forth study cheaper sum up from China rather than what was offered by HCI.Apart from that, in 1997 Malaysia had face economic downturn and mutation or gold exchange. Rather than buying with higher price, Kaki and Houdini may tucker some more loses in currency exchange. To make an accurate decision, I favor HCI to use PESTLE theory. PESTLE is change integrity into six categories which are political, economic, social, technology, ecological, and legal. Based on political and legal, to puddle untested pulverisation in China is not an motiveless way as HCI nonplus to stick out he permission from the government and similarly put one over to fully understand and happen the rules and regulation to incept natural factory in China.So it may take a very long period to face all the procedures. In term of economic, HCI may get lack of financial resources to take a crap natural factory as not establish can sell both of their quick companies. Even they can sell both it is still not enough to meet all the cost to build new factory in China. Based on social view, HCI may lose their specialiser once they move to China as some of them may not motivation to leave Malaysia which is their country. To find new specialist in China is not thriving and may incur a big cost as HCI have to drawstring them hale to become professional enough.Their menses workers also may lose barter as they will be layoff if HCI cheeseparing their current company and move to China. In term of ecological, by building new factory it may cause pollution to the environment, so it relates to the government policy, rules and regulations. HCI may build a factory but in rural area that may cause the shipping cost to send all the goods to its customer become higher. In addition, from technical view, I can see hat in China the technology is various from Malaysia, so HCI once again have to incur a big cost to train all the workers with new technology.Decision Criteria and utility(a) Solutions Based on the problems and alternative solution, I am totally condition if HCI still continue its process in Malaysia but in the same while doing pin venture with any other lovesome and well known company in China. This is because by doing enunciate venture HCI will not incur a lot of cost rather than doing Greenfield which is building a new factory there. Apart from that, by doing critical point venture OVA) with well-known company, it is uncomplicated for HCI to find new prospec t of customers from China thus in the same clip HCI can increase their customers.If HCI want to build new factory, it may incur a lot of cost and if HCI want to manufacture its own label for Malaysian and Sean market, it is sturdy to brand new label and incur a lot of cost in addition as they have to advertise it new label. Recommended Solution, Implementation and unspoiledification As a conclusion, I am totally agree if Jeffery Echoing continue it operation in Malaysia UT in the same time doing Joint venture with strong and well known company in China.To operate that HCI not lose their current big major loyal customers which is Kaki and Houdini, HCI have to as soon as realizable doing Joint venture with China. By doing Joint venture, HCI can directly continue operation in China without need to take after with government policy, legal restriction and value if they are build new factory. They Just continue follow the regulation of its Joint venture partner. Once again I am tot ally agree if HCI doing Joint venture and still continue its existing operation.