Corporate strategy for Hamlin Industrial Corporation

Hamlin Industrial Corporation engages in the volume production of ready to wear apparel for the local and export market, operating on a per job order basis. They cater to medium to high end buyers mostly in the US market. Some of their current customers are Ann Taylor, Liz Clairborne, Calvin Klein, and J. Crew. They specialize in the manufacturing of Knit shirts, jackets, jogging suits and pants. Hamlin belongs to the Apparel industry, unfortunately, the industry in the Philippines is losing its competitiveness against other competitor countries with lower manufacturing costs and reliable textile industry. But developments like the tariff liberalization program under the Asian Free Trade Agreement provides an opportunity to the industry to regain its competitiveness by reducing costs of imported materials thereby reducing cost of production. In the same manner, quota allocation from quota country increase during the phase-out of the Multi-Fibre Agreement, giving the industry more opportunity to increase production and at the same time shield them from other competitors. One of the biggest threats of the industry is its dependence on imported raw materials because of the poor state of the domestic textile industry. Likewise, the rising costs of labor and labor problems are contributing to the waning competitiveness of the industry. Considering the industrys threats and opportunities and the companys strengths and weaknesses, the following strategies were proposed: the automation of the pattern making and cutting facilities of the corporation to further improve quality, additional capital investments to be infused by either the owners or new investors in order to make the company financial stable, loan restricting of their short-term notes payable to lone-term. It was suggested that the company develop the essential capabilities to reduce production lead-time