Challenges to the Apparel Industry in Sri Lanka

Challenges to the Apparel Industry in Sri Lanka Apparel Industry of Sri Lanka â€Å"Garments Without Guilt† 1.0 Objectives of the Assignment Study and analyze a Sri Lankan export oriented apparel industry in order to Identify the nature and the challenges faced by the apparel industry. Identify the domestic and international policies in relation to the apparel industry Make recommendations based on the future trends for the sustenance of the industry. 2.0 The Apparel Industry of Sri Lanka at a Glance Figure 1: Fashion Garments from Srilanka Source: Next Annual Report, 2010The textile and the garment industry of Sri Lanka, established in the 1950s as an import substitution industry initially catered to the domestic consumption. With the introduction of the open economy and liberalization policies in year 1977 paved the way for the textile and the garment industry to enter the world market. The supportive measures adopted by the government by granting concessions, duty rebates, free import of raw material and machinery, lowe r taxes and tax holidays as well as the establishment of Free Trade Zones in the areas of Katunayake, Biyagama and Koggala contributed to the expansion of export apparel industry of Sri Lanka. C:UsersuserDesktopnext-clothing.jpg Being one of the leading exporting industries in Sri Lanka, the industry itself at present contributes to US $3.2 billion to the net foreign earnings in 2009. The GDP contribution from the industry in year 2009 is 10%. At the present context 350 – 400 factories are existent, providing direct employment opportunities to 330,000 which amount to 5% of the total workforce of the county. 3.0 Challenges Faced by the Apparel Industry of Sri Lanka Besides the withdrawal of the quota system & trade policies, inflexible labour markets, high competition from the other foreign countries, the apparel industry of Sri Lanka should survive and sustain its position in the world market. We have identified the below mentioned to be challenges faced by the apparel indust ry. 3.1 Over Dependence on Few Export Markets The apparel industry of Sri Lanka is only focusing on few export markets which consists of countries such as USA (64%) and European Union (30%). The other export markets accounts for 4% of the total apparel exports to Canada, Australia, China, Japan, Switzerland and Israel. Though, over 94% of supply is to USA and EU, Sri Lanka’s garment exports account only for 2.3% and 0.9% of USA and EU apparel import volumes respectively. With the prevailing global economic recession, faced by the main two above countries, the demand for apparel export has severely declined in the recent past, and a drastic reduction in the volumes consumed has been noted. 3.2 Insufficient Product Diversification Unavailability of diversified range of products in the apparel sector is identified as another major issue at present. The garments exports accounts for more than 90% of the total exports of the industry and has been identified to be a similar figure for the past two decades. Source: Brandix Annual Report, 2009 Figure 2: Production Section Sri Lanka yet focuses on four major types of items in the product coverage, which can be identified as shirts, blouses, trousers and jackets. Though 50 new items were introduced to the product coverage in year 2000, still the industry is highly concentrated on a few product categories. The quota restrictions imposed by major importers now limit the export of these popular items further.C:UsersuserDesktopimages.jpg

The Diplomatic Views of Benjamin Franklin Essay

The Diplomatic Views of Benjamin Franklin - Essay Example It was important according to Benjamin Franklin to have virtues that remind you of your humanity and help you carry out your civic duty. He was known for being proud and humility was a virtue he worked on attaining. Humor was considered by Benjamin Franklin to be important especially for one in a position like himself, having to make important decisions that affect both the individual and the society. Humility would in his opinion bridge the gap between those in power, that is the politicians and the general public. Benjamin Franklin sought to express this virtue openly to demonstrate its effect on private citizens much to the objection of other elected officials. Our opinions are not in our own power, they are formed and governed much by circumstances, that are often inexplicable as they are unstable. This was a comment made by Benjamin Franklin in a letter to his son after the revolution. Thus he stresses the importance of the citizen and formulation of laws that are passed by the government and the role they play in making sure elected officials act in accordance with law for the good of the country. Armed with the knowledge that those in public office do not necessarily act in the best interest of the community as evidenced today, Benjamin Franklin's vision was to empower the everyday man with the freedom to voice opinions. As most regular folks assume, the government does not usually have the best interests of the general public at heart. Today's society feels an increase in national insecurity, due to recent events.

International Financial analysis of Michael Kors Research Paper

International Financial analysis of Michael Kors - Research Paper Example The company has expandedits portfolio in recent years, it has received several likening to allow it sell other fashion related stuffs.The company has a retail network where it sales its products. The company operates an online platform where its customers can purchase from any part of the world. In this paper, the financial analysis of Michael kor’s firm shall be discussed. It is not always easy to start a fashion design firm. It is a business that takes a lot of time before it picks up. The Michael Kors firm has been rapidly growing over time ever since it was launched 30 years ago. The enterprise has picked up in the international platform. What began as a personal incentive operates in more than 95 countries. The firm has had a good financial fortune from the international stage. The firm’s online platform makes it easier to sell its products with ease. The Michael Kors firm was incorporated\at the end of 2002. It is known as the global luxury company that is producing various fashion designs for many people especially the celebs. The company operates on three basis that is: silencing basis, retailing and wholesale. It also has many global store where its sales its products. The company strives to expend to other parts of the world as soon as a ready market target emerges. The many internal store help the company make a lot of revenue. There are over 2,497 department, 1233 departments are in the other parts of the world. The Michael Kors firm was officially launched in 1981. It was associated with women ware. It was a Michael Kor’s initiative to start the business after dropping out of Fashion institute of technology only 5 months after enrolment. In 1993 the firm experienced bankruptcy, it later came back to feet four years later. A product of lower price was launched to help the firm recover from bankruptcy. The firm was known to be the first-ever producer of lady’s ready

Internet and Direct Marketing Essay Example | Topics and Well Written Essays - 1500 words

Internet and Direct Marketing - Essay Example t marketing has evolved as an important tool for organizations which seeks to eliminate the presence of â€Å"middle man† from the promotion process of an organization. Direct marketing acts as a tool by which marketing messages of organizations can be directly provided to potential consumers. It comprises newspaper advertising, door-to-door selling, and also selling over the telephone by organizations. It involves selling goods and services directly to customers rather than through retailers. Zenith Electronics LLC is a major producer of electronic consumer products, including television receivers, radios, and stereo equipment. Each of these product lines is the responsibility of a product manager. The product line of modular stereo systems of Zenith is called the Allegro line. Each system consists of an AM-FM tuner/amplifier plus phonograph plus tape deck and separate speakers. The company offers 13 different models that sell in the $ 150-$ 400 range. A modular stereo system differs on the one hand from stereo consoles, in which all of the components are built into one cabinet, and on the other hand from audio component systems, where consumers select unrelated but compatible components to make up the systems they want (Chaffey et al, 2012, p. 51). The company also produces a line of stereo console units, but the console market is in a state of decline as consumers switch to smaller sound systems. Zenith does not produce audio components but has considered it from time to time. The main goal of the company is to increase its market share and profitability in the modular-stereo-system market. Direct marketing strategies of an organization should begin with a reliable database of consumers (Tapp et al, 2014, p. 71). The strategies with regard to direct marketing must be able to build consumer value through the adoption of an approach that is considered as more personalized and also more customized for service and product offerings. The distribution processes of the

In What, After All, Does Happiness Consist for Aristotle Is He Right Essay

In What, After All, Does Happiness Consist for Aristotle Is He Right - Essay Example In other words, moral virtue, however it is attained, will bring happiness. He divides goods into three classes, A person who loves justice, or virtue will find pleasure in carrying out just or virtuous acts. Thus a virtuous person will find happiness in both himself and in acting upon his own goodness, and then be happy. Aristotle further explains that such happiness needs 'external goods' because a person must be equipped with certain other ingredients to perform noble acts. He cites friends, political power and wealth, which can be used to achieve this happiness, and includes certain aspects which might be described as living a 'charmed life' in modern terms. Having noble birth, beauty, good children and so on, all help to enable a person to live well, (think virtuous thoughts, do good acts) and so make a person happy. The inference then is that if someone is ugly, childless, poor or lonely, they have little chance of happiness. be in. However, he does believe that to study and become of good character is the preferred method, leading to noble acts, complete virtue and a complete life. Aristotle acknowledges that changes encountered throughout life might overturn the happiness but concludes that the virtuous activities of man are the most long lasting and permanent, for by thinking virtuously and acting so, he is truly good, and by inference, and in fact, happy. Such a person, described in Chapter 10, will be able to take what life throws at him, handle it because of his 'nobility and greatness of soul' (Bk. 1 Chp. 10, 350BC), always be happy, even in the afterlife. In Chapter 11 he says 'the blessed dead will not be affected by good or bad fortunes of those left behind, their happy state is preserved' (Bk. 1 Chp 11, 350BC). (He considered that what happens to the living impinges on the dead). The hypothesis here would seem to be that thinking good thoughts, doing noble and virtuous acts, staying happy, secure in the knowledge that one is thinking well and living well, makes for happiness, in this life and the next. The soul, being the rational aspect of a human being, will ensure obedience and the production of such virtue will result. His non-evolutionary concept of the universe, (nature is as it is) and how man exists within it, made his ethics fit well with the teachings of the Catholic Church and later, with Christianity as a whole. Serious challenges only arose with the Enlightenment of the 18th Century and the ideas preceding it during the 17th. From Galileo to Darwin, and many others, overturned his views, suffering at the hands of religious leaders in the process. Now, in the 21st Century, surrounded by the knowledge of man's physical, psychological and scientific

Federal National Mortgage Association(FANNIE MAE) and Federal Home Essay

Federal National Mortgage Association(FANNIE MAE) and Federal Home Loan Mortgage Corporation (FREDDIE MAC) and the Housing Crisis - Essay Example It allowed for banks charging low mortgage interest rates to encourage anyone interested in buying a home. It led to the creating a secondary market for mortgages. In this market, companies like Fannie Mae borrowed money from foreign markets at minimal interest rates since they were financially supported by the US Government. This enabled Fannie Mae to give fixed rate mortgage that have a very low deposit to any home buyer. Fannie Mae monopolized the secondary market for the first thirty years after its inception. In 1968, the Vietnam War created great fiscal pressure. This led to Fannie Mae’s privatization and its removal from the national budget by President Johnson. This is when it started to operate as a Government Supported Enterprise, GSE. It made profits for its shareholders and at the same time enjoyed being exempted from tax and oversight, despite being backed by the government. To prevent any further monopoly, another Government Supported Enterprise was formed in 1970. It was known as Freddie Mac. These two companies currently command a 90 per cent of the national secondary mortgage market. GSEs have experienced great growth financially over the years. Their combined asset base is currently at 45 per cent more than those of the biggest bank in the country. However, their combined debt equals 46 per cent of the present national debts. This high growth as well as over-leveraging has caused concerns in the Congress, the SEC and the Justice Department regarding their financial practices. Freddie Mac and Fannie Mae happen to be the only corporations in the Fortune 500 league that do dot abide by the requirement to furnish the public about any difficulties in finances they undergo. In case they collapse, the taxpayers will have to foot the multi-billion dollar outstanding debt. A recent probe into Freddie Mac by the SEC and the Justice Department discovered accounting errors to the tune

Business to Business Marketing Term Paper Example | Topics and Well Written Essays - 2750 words

Business to Business Marketing - Term Paper Example Marketing is a broad spectrum of activities that define the function of a market – technically, markets provide grounds for the exchange of value. In past days, it was goods vs. goods i.e. the barter system while in present days, its goods vs. monetary terms – the money value. In simpler terms, the seller puts a price tag on the products and services, buyers reach, negotiate, and purchase – this is a simple market cycle/activity. Marketing includes all these activities and beyond as well – activities that start from attracting the customer to the point of sales, completion of transaction, and relationships beyond to ensure repeat purchases. Prior to pouring deep into the project and research of the said paper, it is important to understand the forms of markets that exist. The fundamental form of division of markets based on the customer type is the area of interest for this research paper. In accordance with Hooley (2007), there are mainly two types of mar kets that exist across the broader scale in marketing terms; Consumer Markets & Industrial Markets – the latter is also known as Business Markets. The further description and analytics of the two are discussed in the forthcoming sections. Industrial Markets According to Doyle (2006), Industrial Markets, also known as B2B (i.e. Business to Business) Markets involve the sales of goods and services between businesses – not aimed directly at the customers. These may include examples such as: Selling raw material from one organization to another e.g. wood seller to furniture maker like IKEA Selling final products from one organization to another e.g. a firm purchasing Blackberry handsets from RIM (Research In Motion) Corporate Wing Corporate Sales of Services Outsourcing deals such as call centres Manufacturer to Whole-seller, Whole-seller to Retailers i.e. the intermediary set up Thus, if in a transaction, the buyer and seller both are businesses, then the arrangement is k nown as a B2B market/structure/arrangement. According to Aaker (2007) B2B markets have a small number of buyers, with larger requirements; for example, Wal-Mart may purchase a number of laptops from IBM or Dell, but an individual consumer may purchase just one – so fewer transactions but individually, the worth of a single transaction is on the higher side as more units are involved (Menon, 2005). B2B purchases are generally a lengthy, systematic, and structured process that involves at least one department and a number of individuals from either side. Other than routine purchases that involve regular order placing, the process starts by raising an RFQ (Request for Quotation), to which firms respond with an EOI (Expression of Interest); generally, the supply chain or procurement department analyzes the quotations with a variety of processes, and then gradually the purchase is made (Wardell, Wynter, and Helander, 2008). The different processes include searching, shortlisting, discussions, negotiations, sampling, contracts, order placement, order delivering, replenishment, etc. With long term commitments, strategic alliances are formed between the businesses. Payment terms are also negotiated – the transactions generally do not have a quick outflow of cash but credit terms. For each product being sold, there are a number of suppliers and manufacturers involved behind the product’s formation.