A Current and Future Perspective of The Dublin Shirt Company

Essay by zoey_00University, Bachelor'sA, September 2012

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The Dublin Shirt Company: A Current and Future Perspective

Table of Contents

Executive Summary…………………………………………………………………………………………………………………….1

1.0 Introduction………………………………………………………………………………………………………………………….2

2.0 Current Situation…………………………………………………………………………………………………………………..3

2.1 Customer Profitability Analysis……………………………………………………………………………………….4-5

2.2 Capacity………………………………………………………………………………………………………………………….6-7

3.0 Potential Future Development: Entering the Women's Sports Shirts Market in America ……...8

3.1 Target Cost and Product Features………………………………………………………………………………......8-9

3.2 Strategic and International Business Factors…………………………………………………………………...9

4.0 Conclusion…………………………………………………………………………………………………………………….……...10

References……………………………………………………………………………………………………………………................11

Appendices……………………………………………………..………………………………………………………………………….12-13

Executive Summary

The aim of this report is to explore the current and future development of the Dublin Shirt Company. The report concludes that in order for the company to improve its operations, measures should be taken to alleviate the underperforming Shop customer category and that capacity should be managed through activity based costing. On the basis of the company's potential plan to enter the women's sports shirt market in America, a holistic approach whereby the target cost, product features and strategic and international business factors should be considered to investigate the viability of the plan.

1.0 Introduction

The Dublin Shirt Company is an Irish based business which manufactures polo type sports shirts for the worldwide sports market, including major sports events such as the Super Bowl and Wimbledon. Whilst the Irish clothing industry has traditionally been an outsource location, in more recent times its high cost structures have forced many local and multinational organisations to close down their operations as they lose their business to more cost effective and competitive outsource locations such as Asia and Morocco. The Dublin Shirt Company has subsequently been affected by the diminishing Irish clothing industry and has generated a small loss for the most recent fiscal year. As a wholly owned subsidiary, its American parent has also issued warnings about its precarious financial position. In turn, the purpose of this report will serve to evaluate the current and future development of the company with an emphasis on customer profitability,