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EU Designˇ¦s Rise in the Apparel and Fashion Industry: Formalising Management and Incentive Systems  
Product Ref: 09/462C Company: EU Design

Product Type: Case Industry: Apparel, Accessories and Luxury Goods

Related Product(s): Teaching Note
EU Design is an increasingly important trim supplier for various companies in the apparel and fashion industry in both New York and Hong Kong. Since its establishment in 1999, the company has grown gradually, attracting more customers and employing more staff. By 2009, however, further growth has been obstructed by an informal management style, an inappropriate organisational structure and a simple incentive system that is suitable only for a small company. The situation has been worsened by the global financial crisis. With falling margins, there is a need for expanding the customer base and for staff to become more sales-oriented. With limited funds, EU Design's owner needs to decide how to transform the company and which management control systems to implement first.
Functional Area : Accounting & Control
Management of Information Systems
Strategy & General Management

Learning Objective: To explore the problems small but rapidly expanding companies might face internally. To educate students on the advantages and disadvantages of informal management styles. To explain the need for organisational change when companies grow. To encourage discussion on the influence of incentives for staff members. To evaluate how system dynamics modelling can be used to facilitate change initiatives.
Length: 13 pages Country: China (People's Rep. of)
Hong Kong SAR
United States of America

Pub. Year: 2010 Level of Difficulty: 2
This product type is available in the following language(s):      English
Related Information: N/A
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