...CASE 21: AURORA TEXTILE COMPANY Q1. How has Aurora Textile performed over the past four years? Be prepared to provide financial ratios that clear present a clear picture of Aurora’s financial condition? A- From 1999 – 2002, Aurora Textiles Company’s financial performance was unappealing and disheartening. Like many of its competitors, Aurora had been struggling financially. The company had not responded quickly to the deteriorating business environment, and had suffered consecutive losses for the past four years. Figure 1: Net Earnings of Aurora Textile Company (1999-2002) The graph above shows the net earnings of the company from 1999-2002. As we see, throughout the years, the net earnings have declined and resulted in a loss, especially in 2001. This could be attributed to the business risks that arose from the intense competition that characterized the industry in which Aurora operates. Moreover in January 2005, the US textile industry experienced intense competition when the WTO lifted the ban on quotas, which worsened Aurora’s financial condition and its credit rating of BB. The main reason for the decline in net earnings was due to the textile industry facing difficult circumstances. Figure 2: Financial ratios (1999-2002) The above table shows the financial ratios of the company from 1999-2000. Measures of probability have worsened during these years as ROA and ROE have been declining. Net sales have been steadily declining which led to management’s...
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...AURORA TEXTILE COMPANY KEUANGAN PERUSAHAAN LANJUTAN Tugas Disusun oleh Audrya Puspita (1306415024) Joddy Eka Negara (1306395350) Richie Wibisono (1306408675) FAKULTAS EKONOMI DAN BISNIS UNIVESITAS INDONESIA Depok 2016 AURORA TEXTILE COMPANY Aurora Textile Company merupakan sebuah perusahaan tekstil yang memproduksi benang yang telah berdiri lama sejak awal 1900-an di Ameika Serikat. Pada Tahun 2003, Michael Pogonowski sebagai CFO Aurora Textile Company mempertimbangkan tentang pengadaan mesin baru ring-spinning Zinser 351 untuk menggantikan mesin lama yang telah ada sejak tahun 1997 di Hunter. Penggantian mesin baru tersebut diperkirakan dapat memberikan banyak kemajuan bagi perusahaan karena selain mesin tersebut dapat membuat produktivitas meningkat, keberadaan mesin tersebut juga dapat memberikan hasil produksi benang yang lebih berkualitas. Dengan meningkatnya kualitas produksi, maka akan menyebabkan harga benang yang dijual akan naik sebesar 10%, yaitu $1.0235 per pon. Selain itu, mesin tersebut juga mampu membuat biaya operasi dalam produksi menjadi lebih efisien karena adanya penurunan biaya operasi seperti penurunan konsumsi tenaga pembangkit dan biaya perawatan karena perusahaan menggunakan mesin rotor-spinning dan ring-spinning. Pengambilan keputusan untuk melakukan investasi pada mesin Zinster 351 berdampak pada jumlah penjualan yang akan turun sebesar 5% dari pasar tahun berjalan. Selain itu, hal tersebut juga akan berdampak pada kemungkinan terjadinya retur...
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...Case Study 4 Stephanie M. Clark Capella University Aurora Textile Company was established in the early 1900s as a yarn manufacturer. The company focused on four major customer segments, which were hosiery, knitted outerwear, woven and industrial and specialty products. Aurora Textile Company grew to become the leader in the textile-mill industry. In more recent years, changes in the market led to significant declines in financial performance for both Aurora and the U.S. textile industry over the last four years. The globalization of the textile market and the lure of cheaper production costs overseas led manufacturers to relocate to Asia. Also, the strength of the U.S. dollar made foreign produced textiles more affordable than domestically produced textiles. Additionally, the World Trade Organization (WTO) banned its members from using quotas, which further opened the market for competition. The negative financial impact of these changes in the textile industry required Aurora’s leadership to analyze the competitive strategy of the organization and to make recommendations to improve its financial performance. Aurora’s leadership identified the purchase of a new, ring-spinning machine, the Zinser 351, as one solution to improve its current financial performance and competitive position (Bruner et al., 2014). This purpose of this paper is to make a recommendation either to upgrade or to not upgrade the ring-spinning machine. First, this paper will analyze the impact of keeping...
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...MANAGERIAL DATA ANALYSIS – CASE STUDY SUBJECT ANALYSED: THE RELATIONSHIP BETWEEN GROSS DOMESTIC PRODUCT AND HUMAN DEVELOPMENT INDEX in 41 COUNTRIES MIHAILA MIOARA 25% PETRE ALEXANDRA 25% SIMION LAURENTIU 25% TARIUC MONICA 25% MANAGEMENT of INTERNATIONAL PROJECTS ASE 2009 Case Study Record 40 – 60 data for two statistical variables (X and Y) at your choice. I. For each of the two variables: a) Calculate and interpret the average, standard deviation and the coefficient of variation for row data. Interpret the results. Is the data series homogenous? b) Summarize the data in an appropriate number of classes. Construct the frequency distribution. c) Calculate and interpret for the frequency distribution the average, standard deviation and coefficient of variance. Compare with the results from point a). Explain the differences. d) Construct a histogram and describe the shape of the distribution based on the histogram. e) In which interval is expected that about 95% of the data will fall? Is this assumption true for this data? II. Using the “Pivot Table Wizard” in EXCEL, build a pivot table on your spreadsheet (using also the second variable). You may have to change the order of the rows (You should define the intervals first using VLookup function. ...
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...Aurora Textile Company Case Abstract In January 2003, Michael Pogonowski, the chief financial officer of Aurora Textile Company, was questioning whether the company should install a new ring-spinning machine, the Zinser 351, in the Hunter production facility. This new machine has ability to produce a finer-quality yarn that would be used for higher-quality and higher-margin products. In deciding whether or not to invest this new machine, NPV and the payback period are critical factors. Firstly, we need to forecast the cash flows that the Zinser 351 will generate in the future. After calculation, the ten-year NPV will be $3, 172,582. Secondly, we use the payback period to analyze the acceptance of this project. Based on this analysis, Aurora Textile Company should invest this new machine because of the positive NPV and relatively small payback period, which we will analyze in the following discussion. Analysis In this analysis, we determined that NPV is the critical factor determining whether the company should invest or reject that new project. Secondly, we established that the payback period is another contributing force in our decision. The payback period tells us whether we can earn some money in the set period of time but this model has a few drawbacks, such as ignoring timing of cash flows and the positive cash flow after the payback period. In both calculations, NPV and payback period, we forecasted future cash flows. Cash flow from investing in the Zinser: ...
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...Water Treatment Plants of a Textile Finishing Corporation in the Philippines.” Your Company’s Name (Optional): Number of years of being a customer of Just Textile Finishing Corporation: Four years and above Less than one year One to three years Last Transaction with Just Textile Finishing Corporation: Less than one month ago 6 - 12 months ago 1 - 6 months ago More than a year ago Are you aware that Just Textile Finishing Corporation is already using Natural Dyes in dyeing fabrics? Yes No Not concerned Do you prefer the use of natural dyes instead of synthetic dyes in dyeing fabrics? Yes No Not concerned Directions:Below are statements with which you may indicate your answer by encircling the appropriate number. A scale of 1 to 5 has been used. | Strongly Disagree Disagree Undecided Agree Strongly Agree 1 2 3 4 5 | 1. Our company is satisfied with the overall quality of the dyed fabrics | 1 | 2 | 3 | 4 | 5 | 2. Our company is more satisfied with the...
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...Introduction Noblewood Textiles, Inc., with Noblewood Textiles, San Pietro, California, as its sole outlet, was founded October 19, 1993 by Selina Martinez and Mariela Pimuela. Company Philosophy The goal of Noblewood Textiles is to supply unusual fabrics and fibers to sewers, knitters, weavers and fabric artists. Since 2003, the company has also included sewing patterns and quilting books in its retail listings. Goal The Noblewood Textiles philosophy is summarized in two words: fine quality. This philosophy is demonstrated by a clean, attractive, well-organized salesroom, a large inventory of textiles and supplies, and knowledgeable, enthusiastic employees. Through this quality service, Noblewood Textiles maintains a loyal clientele, benefits from volume sales, and continues to give customers the finest prices possible. Noblewood Textiles has become one of the largest and finest textile outlets in the San Diego area. Our goal is to become one of the finest textile retailers in California. Organization Noblewood Textiles Retail Sales, Inc. consists of a Board of Directors, store management, and store personnel. Board of Directors The main purpose of the board is to provide policy and direction to Noblewood Textiles. The board of directors is made up of the following: Chief Executive Officer Edward Reeder Financial Officer Peter Jarrado Associate Member Mariela Pimuela Associate Member Henry Kirstborne Associate Member Caroline J. Sampson Associate Member Alessandra...
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...services more that 90% of the logo merchandise is produced by Transterra Textiles…” -This example violates the Universal standards of Relevance and Significance. Why is the director of auxiliary services considered credible when speaking on the production of the school’s merchandise? Why is their opinion relevant? What significance does this fact have in the ultimate goal of changing the factory? To correct the problem the speaker should have gotten information from an administrator who purchases the merchandise from the textile factory, or omitted this entire statement. 2. “There are two things we can do to put an end to this exploitation. We can demand that Cromwell obtain its logo merchandise only from garment companies with socially responsible labor practices, and we can refuse to wear or purchase and Cromwell clothing until the college switches to an acceptable apparel supplier.” -This example violates the standards of Breadth and Logic. Being that all colleges are obtaining their logos from the same textile company, are the students even sure that another company could manufacture the logos? What other option could the school have? What will the workers do if they lose business and are forced to close? A more logical thing to do if they are going to protest would be to fight for the reform of the factory. This option, rather than shutting down, would keep a lot less workers out of work, the company gets better working conditions, and the school won’t lose money from sales...
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...1. Profile of Arewa Textiles Limited. Arewa Textiles Limited having recently just finalized the process of applying a special finish to textiles materials (fabrics for ladies’ dresses (Higher priced material and lower priced material) and upholstery), the company is ready to introduce the product to the market. The company presently enjoys monopoly on the products due to years of quality research works put in the process of production, highly competitive, easily available in commercial order and a secret formula for achieving the special finish on textile materials. Mr. Ahmed Arewa an executive of the company carried out a market survey in Abuja, Lagos and Port Harcourt to determine the anticipated demand and possible selling price of the product before it is launch into the market to mitigate the risk involved. The company have to decide what business to solicit, is it the upholstery materials or the fabric for ladies’ dresses. In addition, they need to decide what class of the fabric for ladies’ dresses to seek since the dress market is divided into two sector; higher priced fabric and lower priced fabric. Arewa’s profitability depends on her ability to be creative with different patterns of styles on the textile materials. The company has in place two machines that can operate at 100% single-shift capacity for 2000hour in a year for the special finish process. b Profile of Upholstery Market It is assume that the acceptance of the of the upholstery market is more...
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...ASHRAF SILK AND GENERAL MILLS In mid October 2002, Khawaja Fawad Kalim, Director, Ashraf Silk and General Mills (ASGM), Gujranwala, Pakistan was faced with the difficult choice of whether or not to reemploy the two weavers who had left his company earlier. Fawad also realised that he had to take some long term measures to attract, retain and motivate weavers, to optimise the benefit from the already installed automatic looms. COMPANY BACKGROUND At the time of the partition of India in 1947, Khawaja Mohammed Sadiq, Fawad’s grandfather (see Exhibit 1) emigrated from Amritsar, India, to Gujranwala, Pakistan. The newly formed Government of Pakistan gave him some shares in the Okara Textile Mills, in lieu of his looms left at Amritsar. In 1951, because of disagreements with the other partners, Sadiq left Okara Textile Mills. He formed Ashraf Silk and General Mills at Gujranwala, in collaboration with his son, Khawaja Mohammed Kalim, (Fawad’s father). In 1951 ASGM had only one main competitor. ASGM produced silk-velvet cloth for products like bed-covers, prayer rugs, and suiting for men and women. The product mix changed with time to accommodate changes in demand. Sadiq or Kalim would either modify the existing looms or replace them with new ones to meet the market requirements. Before 1960 all the looms at ASGM were manually powered (handlooms), with the operator himself pushing the shuttle through the warp. In 1960 ASGM imported four power looms from Japan and started...
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...The Rise of Bangladesh’s Textile Trade Bangladesh, one of the world’s poorest countries, has depended heavily upon exports of textile products to generate income, employment, and economic growth. Most of these exports are low-cost finished garments sold to mass-market retailers in the West, such as Wal-Mart. For decades Bangladesh was able to take advantage of a quota system for textile exports that gave it, and other poor countries, preferential access to rich markets such as United States and the European Union. On January 1, 2005, however, that system was scrapped in favor of one that was based on free trade principles. From then on, exporters in Bangladesh would have to compete for business against producers from other nations such as China and Indonesia. Many analysts predicted the quick collapse of Bangladesh’s textile industry. They predicted a sharp jump in unemployment, a decline in the country’s balance of payments accounts, and a negative impact on economic growth. The collapse didn’t happen. Bangladesh’s exports of textiles continued to grow, even as the rest of the world plunged into an economic crisis in 2008. Bangladesh’s exports of garments rose to $10.7 billion in 2008, up from $9.3 billion in 2007 and $8.9 billion in 2006. Apparently, Bangladesh has an advantage in the production of textiles – it is one of the world’s low-cost producers – and this is allowing the country to grow its share of world markets. As a deep economic recession took hold in developed...
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...pharmaceutical companies in Bangladesh. This group inaugurated their journey through Square firm in 1958. This is the first medicine exporting firm in the country. It’s contributing to the national economy by exporting medicine from 1987 to till now. Square group is no longer confined to medicine production. They have diversified their activities. In 1988 they established Square Toiletries. In 1997 they established Square Textiles. In 2000 Square spinning started exporting by satisfying the local market. In 2001 Square group lunched many other firms: Knit Fabrics, Square Fashions Limited, Square Informatics, Square Consumer Product and Square Hospital. Now their total asset is about $200 million. And, yearly investment is about $300 million. The companies of Square Group of Industries are • Square Pharmaceuticals Ltd. • Square Textiles Ltd. • Square Spinning Ltd. • Square Toiletries Ltd. • Square Consumer Products Ltd. • Square Informatix Ltd. • Square Health Products Ltd. • Square Agro Ltd. Square Textile Ltd. started its operation in 1997. It was enlisted in Dhaka Stock Exchange & Chittagong Stock Exchange in 2002. The business lines of Square Textile Ltd. are manufacturing and marketing of yarn. Its factory is located in Gazipur, Dhaka. It manufactures 100% Cotton Ring Span Yarn or Hosiery, 100% Cotton OE Rotor For Hosiery and Knit Fabrics for 100% export oriented readymade Garments Industry. Company Profile The Square Textile is located in Saradaganj...
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...Textile “Fabric” redirects here. For other uses, see Fabric (disambiguation) and Textile (disambiguation). A textile[1] or cloth[2] is a flexible material consist- A small fabric shop in canal town Al-Mukalla, Yemen Sunday textile market on the sidewalks of Karachi, Pakistan Simple textile (magnified) Late antique textile, Egyptian, now in the Dumbarton Oaks col- ing of a network of natural or artificial fibres (yarn or lection thread). Yarn is produced by spinning raw fibres of wool, flax, cotton, or other material to produce long strands.[3] used for a specific purpose (e.g., table cloth). Textiles are formed by weaving, knitting, crocheting, knotting, or felting. The words fabric and cloth are used in textile assembly trades (such as tailoring and dressmaking) as synonyms for textile. However, there are subtle differences in these terms in specialized usage. Textile refers to any material made of interlacing fibres. Fabric refers to any material made through weaving, knitting, spreading, crocheting, or bonding that may be used in production of further goods (garments, etc.). Cloth may be used synonymously with fabric but often refers to a finished piece of fabric 1 Etymology The word 'textile' is from Latin, from the adjective textilis, meaning 'woven', from textus, the past participle of the verb texere, 'to weave'.[4] The word 'fabric' also derives from Latin, most recently from the Middle French fabrique, or 'building, thing made', and earlier as...
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...03-336-89-1 ASHRAF SILK AND GENERAL MILLS In mid October 2002, Khawaja Fawad Kalim, Director, Ashraf Silk and General Mills (ASGM), Gujranwala, Pakistan was faced with the difficult choice of whether or not to reemploy the two weavers who had left his company earlier. Fawad also realised that he had to take some long term measures to attract, retain and motivate weavers, to optimise the benefit from the already installed automatic looms. COMPANY BACKGROUND At the time of the partition of India in 1947, Khawaja Mohammed Sadiq, Fawad’s grandfather (see Exhibit 1) emigrated from Amritsar, India, to Gujranwala, Pakistan. The newly formed Government of Pakistan gave him some shares in the Okara Textile Mills, in lieu of his looms left at Amritsar. In 1979, because of disagreements with the other partners, Sadiq left Okara Textile Mills. He formed Ashraf Silk and General Mills at Gujranwala, in collaboration with his son, Khawaja Mohammed Kalim, (Fawad’s father). In 1965 ASGM had only one main competitor. ASGM produced silk- velvet cloth for products like bed-covers, prayer rugs, and suiting for men and women. The product mix changed with time to accommodate changes in demand. Sadiq or Kalim would either modify the existing looms or replace them with new ones to meet the market requirements. Before 1974 all the looms at ASGM were manually powered (handlooms), with the operator himself pushing the shuttle through the warp. In 1974 ASGM imported four power looms from Japan and started...
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...Bangladesh garment exports boom despite disasters Published July 09, 2013 AFP * In this photograph taken on June 23, 2010, Bangladeshi women sew clothes in a garment factory in Ashulia. Output from Bangladesh's accident-prone garment sector has increased in June, with demand from foreign retailers still growing despite the country's factory disaster in April. (AFP/File) DHAKA (AFP) – Output from Bangladesh's accident-prone garment sector increased in June, data showed Tuesday, with demand from foreign retailers still growing despite the country's factory disaster in April. At least 1,129 people were killed when the Rana Plaza factory complex collapsed outside the capital Dhaka in April, sparking demonstrations against Western brands and prompting some retailers to threaten to cancel orders. Government data released on Tuesday showed that the country's total exports -- 80 percent of which come from the garment sector -- soared by 16 percent year-on-year in June to $2.7 billion, following an increase of 15 percent in May. "The disasters didn't have much impact. They are scattered incidents," head of the government's Export Promotion Bureau (EPB) Shuvhashish Bose told AFP, referring to the Rana Plaza tragedy and other factory fires that have killed another 130 workers since November. Total exports from Bangladesh, the second-biggest clothing manufacturer in the world after China, grew by 11 percent to a record $27.02 billion in the 2012-13 financial year to June. ...
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