Dressmaking Production Strategy and Recovery Plan

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Table of Contents

My production and outsourcing strategy
Backup strategy
Works Cited

Dressmaking is a lucrative venture. However, several dressmaking companies have recorded poor business performances (Haugen, 45). The affected companies may recover, stagnate, or close down, depending on the production strategy adopted in such challenging situations (Busi & Ronan 185). Concerning my product, I will be required to adopt an appropriate production strategy to remain competitive in the market. As such, I must restructure my production units. My recovery plan focuses on international versus domestic production strategy. The paper below compares and contrasts my preferred method.

My production and outsourcing strategy

To lower the cost of operation in my company and remain competitive in the American market, I will outsource products from my home country to China. I will consider China rather than the United States because the government has a cheap source of labor, lower capital cost, manufacturing efficiencies, and cheap raw materials. Subsequently, the country is close to other Asian and European markets.

By relocating, I will be able to cut down on the cost of labor needed in the production of dresses. In the US, work is blamed for the increased cost of producing dresses (Long 37). On the other hand, labor in China is cheap and readily available. Equally, the relocation will reduce the overhead charges related to operating a dressmaking firm in the United States. The overhead costs comprise fuel, power, water, machinery maintenance charges. In China, the cost of manufacturing a dress is reduced by 40-70% compared to manufacturing in the United States (Linda 34). By relocating, I will be able to save on the labor cost. I will be able to direct the saved funds towards the expansion of my business.

With respect to equipment, specialties, and capacity, China is my preferred relocation country. For the last few decades, China has risen progressively to be a major manufacturer of industrial goods. In this regard, the cost of acquiring dressmaking equipment in China will be reduced compared to receiving them in the USA (Jayaraman 2). Similarly, the country has a large number of garment experts, unlike the USA. Given the abundant source of garment specialists and reduced labor costs in China, I will be able to cut production costs through relocation. With reduced costs, I will be able to construct a large dressmaking factories in China. The factories will have increased capacity.

By relocating, I expect to encounter a number of challenges, which could be avoided in the USA. The challenges comprise infrastructure and logistics issues. Unlike in the USA, the western and central parts of China are poorly developed (Busi & Ronan 186). In the region, transportation, communication, and technology do not match that of the USA. Therefore, the cost of logistics will be increased. Currently, the Chinese government has passed economic policies to encourage investment in the regions (Jayaraman 4). Through the procedures, the financial institutions are encouraged to give priority to companies having projects in the area. Similarly, another policy aims at relaxing restrictions on investors operating in the regions. Through the above guidelines, local governments seek to attract several multinational companies in their area to create jobs and a sustainable tax base. In my relocation plan, I will transfer my dressmaking plant to the above regions to tap on the incentives and recover the increased cost of logistics.

Likewise, economic, political, and legal risks in China will act as significant challenges during the relocation. The USA government is very democratic. In this respect, companies have less economic and political difficulties. However, in China, the government exercises total control over lawmaking and economic and cultural organizations (Jayaraman 3). Owing to this, my dressmaking company may be subjected to a number of regulations and bureaucracies. With respect to legal challenges, I expect to encounter a number of gaps in their patent laws. In the USA, patent laws are substantial. Therefore, my dress patents are more secure in the USA than in China.

With respect to cultural issues, I expect to encounter a few leadership issues. In the USA, I am expected to seek a consensus with my employees during the decision making process. However, in China, I will be expected to make decisions and implement them independently (Jayaraman 3). Another major issue I wish to face when I relocate to China is quality control. Unlike American dress manufacturers, Chinese manufacturers have challenges in satisfying international safety and quality principles. As such, the country is not experienced in quality manufacturing (Busi & Ronan, 189). To ensure that the Chinese dress manufacturers make dresses that meet the clients’ expectations, stricter quality control measures should be formulated. In my outsourced production units, I will contract independent inspection firms to assess my dressmaking partner’s plant on a regular basis. Similarly, I will ensure that production managers adhere to international quality controls and production standards.

Through my strategy, I will be able to venture into new markets in China and its neighboring countries. In the USA, my dresses have a considerable market share. However, to increase my international market share, I must venture into the Asian and European markets. My relocation will enhance my initiative as the cost of production will be decreased, enabling my products to compete with the products from local manufacturers in the region. In my endeavor to break into the Chinese markets, I expect a number of challenges related to trade barriers (Busi & Ronan 187). In China, I have to evaluate the country’s economic stability and plan my company to be resilient to a number of risks that might be encountered due to differences in financial and monetary policies (Busi & Ronan 188). The country’s economy heavily relies on exports. A considerable percentage of these exports are manufactured goods. For that reason, a drop in the Chinese currency against the dollar can have a negative impact on the profitability of my dressmaking firm.

Backup strategy

If my strategy to relocate fails, I will consider hiring a number of fresh graduates and college students in my dressmaking firm other than hiring experienced employees. The new employees will work under the supervision of skilled employees. Through this plan, I will be able to minimize operating costs. As such, fresh graduates and college students do not demand huge salaries like the experienced employees (Busi & Ronan 185). Similarly, I will consider using employees from other agencies. Through this, I will be able to reduce the cost of having a vast number of workers on my payroll. With the strategy, I can be able to regain my firm’s competitiveness without outsourcing.

Works Cited

Busi, Marco, and Ronan Mcivor. “Setting the Outsourcing Research Agenda.” Strategic Outsourcing: An International Journal. 2.23 (2013): 185-97. Print.

Haugen, David M. Outsourcing. Detroit: Greenhaven, 2009. Print.

Jayaraman, Karthik. “Doing Business in China: A Risk Analysis.” Journal of Emerging Knowledge on Emerging Markets 1.1 (2013): 1-9. Print.

Linda Chelan. Rural Tax Reform in China: Policy Process and Institutional Change. Milton Park, Abingdon, Oxon: Routledge, 2012. Print.

Long, William J. Economic Incentives And Bilateral Cooperation. Ann Arbor: University of Michigan, 2006. Print.

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Dressmaking Production Strategy and Recovery Plan

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