Business Overview of GoldTex Garments - Assignment Point
Business Overview of GoldTex Garments
Subject: Management | Topics:

Business Overview of GoldTex Garments

Golden Crown Enterprises International Ltd is the mother company of the GoldTex Garments Ltd. Golden Crown is a professional manufacturer of caps and hats with more than thirty years of experience in the field. Golden Crown was established in 1976, and has grown enormously in the past thirty five years. It is a Hong Kong based company with 100% self-owned factory in China and Bangladesh.

Golden Crown Enterprises International Limited is operating his business in Dhaka Export Processing Zone at Savar. It has consisted of seven units. They are:

  • GoldTex Garments Ltd,
  • South China Bleaching and Dying Factory,
  • GoldTex Ltd. (Weaving Division),
  • South China Washing Plant,
  • Actor Sporting Ltd. (Garments Division),
  • Actor Sporting Ltd. (Head Ware Division),
  • Global Attire Ltd.

GoldTex Garments Limited was established in 2007 in DEPZ of Savar, Dhaka for meeting the demand of good quality garments worldwide. The unit started operations in 2007 and its production capacity fulfilled the expectations of the management and proved as a successful venture.

At early years GoldTex garments had to pass very difficult time. It still exists only for its honesty, integrity, moral scruples and for its business ethics. And for that reason now this organization is in a successful and stable situation in the subsequent years.

This organization is also adapting some important policies like getting official approval of ISO Quality Standard practices, ensuring total compliance of various Code of Conduct requirements of prestigious buyers across the world, prioritizing the need for creation of ideal work conditions for the workers and ensuring proper health care & safety for them.

GoldTex garments never miss to meet future challenges. This organization always tries to give its best to achieve professional competence and reliability.

It always tries to give something better than its customer’s expectation. For this reason it’s not only treated as a trusted supplier of readymade garments but also as a caring partner toward all its buyers and customers.

History and Background of the GoldTex Garments Ltd.

GoldTex Garment Limited an offspring company of M/S Golden Crown Head– Wears Factory Ltd, Hong Kong, has gone into commercial production in the year 2007 in Dhaka Export Processing Zone (DEPZ) & has been meeting the growing demand of quality Trouser, Shorts, Skirts, Shirts, Blouse etc. of customized designs. The state-of-the-art JUKI & BROTHER brand machineries & highly professional local & expatriate technicians have developed an in-built means for optimum for productivity with superior quality.

 

Top Policy Makers:

Mr. Ngan Hung Tak (President), a national of Great Britain has over 38 Years of proven Senior Management experience. He is the Founder of

“M/S Golden Crown Head-Wears Factory Ltd.”, Hong Kong. The company graded as number one Cap Exporter of China in 80’s. His miraculous achievements speak about him.

Mr. Calvin Ngan (Managing Director), a national of Great Britain is highly qualified and widely recognized rising entrepreneur.

Aga Mohammad Shafiul Azam (General Manager), a national of Bangladesh has over 16 Years of proven Senior Management experience and highly qualified and the youngest general manager of DEPZ.

Corporate Headquarter: M/S Golden Crown Enterprises International Ltd. 4th Floor, Winner Building, Block C & D 36, Man Yue Street, Ma Tau Wei Road Hung Hom, Kowloon, Hong Kong.

Bangladesh Office: Goldtex Garment Limited. Plot No. 98-100 Dhaka Export Processing Zone, Ganakbari, Savar, Dhaka – 1349.

Products Customer, Supplier, and Machineries

Company information:

  • of Sewing Lines: 15 Nos.
  • of Employees: 2350
  • Total Floor Area: 185538 square feet
  • Major Product: Trousers/ Shorts/ Skirts/ Shirts/ Blouses etc.
  • Production lead time: 60-90days.
  • Production per year: 3,000,000 pcs.
  • Annual Volume: USD 30,000,000.00

Major customers: Hagger, M&S, Perry Ellis, PVH, Polo Ralph Lauren,

Jos-A-Bank, Tom Tailor, BHS, Lands End.

Fabric sourcing (Local): South China Bleaching and Dying Factory Ltd, EOS Textile, Shasha Denim, Hyopshin Bangladesh Ltd.

Fabric Sourcing (Import): China, India, Pakistan, Taiwan, etc.

Fabric Inspection System: 4 point system

Garments Inspection System: AQL 2.5

 

Machineries:

(a) Sewing: Basic, Double Needle, Over Lock, Barteck, Kansai special, Button Hole, Eyelet Button Hole, Button stitch, Pocket welting, Hemming, Flat Lock, Feed of the arm, Top stitch, Velcro Attach, Blind Stitch.

(b) Cutting: Fusing Machine, Band Knife, Cutter Machine, Lay Cutter Machine.

** Auto Spreading: 6 Tables and 2 sets Cutter machine (Lectra -MH). Cutter Machine

** Cutting Table (Manual): 5 Nos.

(c) Finishing: Vacuum Iron, Trousers Finisher, Thread Sucking,

Cartoon Binding, Needle Detector, Button Pull Test, Auto Tag gun, Metal Detector, Trimming Machine.

** Wrinkle Free Process: Pressing Machine (Topper- 17 sets & Legger-12 sets), Curing Oven (Nagi Shing -1 set, Sussman-1 set), Two (2) Cooling Room.

(d) Fabric Inspection Machine: Shiaw Tai Tong (Two Sets)

(e) Computer Pattern & Marking Software Name: Lectra

Trade Term: FOB.

  • L/C Requirements: Irrevocable L/C at sight.
  • FOB Price Range: USD 7 to 12 / pc.
  • Bank Details: 1) the Hong Kong and Shanghai Banking, Corporation Limited. SWIFT: HSBCBDDH A/C # 050-000116-096

 

Other sister Concern:

**South China Bleaching and Dying Factory,

** Goldtex Ltd. (Weaving Division),

**South China Washing Plant,

**Actor Sporting Ltd. (Garments Division)

** Actor Sporting Ltd. (Head Ware Division)

** Global Attire Ltd.

Organizational Organogram:

  • Goldtex Garments Ltd maintains several departments as follows:
  • The Human Resources Department (HRD)
  • Marketing Department
  • Production Department
  • Commercial/Shipping Department
  • Accounts Department

SWOT analysis of GoldTex Garments Ltd.

A SWOT analysis is overall evaluation of the company’s Strength, Weakness, Opportunities and Threat. Strength and Weakness are the internal values creating factors such as assets, skills or resources etc. And Opportunities and Threat are external values creating factors a company unable to control. The SWOT analysis of GoldTex Garments Limited is given below

Strengths

  1. Own Land: Factories of GoldTex Garments Limited are established in its own land.
  2. Effective Manpower: Factories are well equipped with skilled, expertise and productive manpower. They are doing their level best to deliver timely shipment and exporting 100% quality garments.
  3. Outsourcing: No need to outsource fabric, dying, printing, embroidery, and washing plant.
  4. Innovative product line: Product lines are producing a unique & innovative garment which is a very good sign for the industry.
  5. Proper Management: Employees of GoldTex Garments Limited manages all the paper work quite nicely; supervises the production from start to end and helps to ship the good s as per the requirement of buyers.

Weaknesses

  1. Sample delivery: They delayed to deliver the sample.
  2. Lack of modern and automated equipment: They don’t have modern equipment in all section only cutting section they have modern and automated equipment,
  3. Subordinates absence in policy making: The subordinates do not take any decision or take part in policy making in meeting. The decision always comes from the top management which is de motivating.
  4. Share Building: They have building in their own land but they share this building with their sister concern South china dying and bleaching Ltd.

Opportunities

  1. Diversification: GoldTex Garments Limited can expand their business by establishing the yarn, woven & knitting factories. It will help them to minimize the risk.
  2. Hiring dynamic & fresh Graduates: GoldTex Garments Limited can hire dynamic, young & fresh Graduates who can generate innovative ideas & can lead to greater profit.
  3. Attending Trade Fairs: GoldTex Garments Limited can take part in different trade & textile fair to get public attention and can get new ideas related with today’s business.

Threats

  1. Absence of Spinning Plant: Most of the big Garments industries who are wellestablished have their own Spinning Plant. As a result they can sell their product more cheaply but GoldTex Garments Limited doesn’t have any Spinning Plant. For that reason their cost of production is high.
  2. Competitors’ smart move: Competitor industries are constantly offering innovative and substitute a product which is a big threat for this industry.
  3. Trade barriers: Increased trade barriers and quota system withdrawals are the major threats such as cancelation of GSP facility.

 

Job Part

Compliance Officer

Ensuring the companies complies with its outside regulatory requirements and internal policies. A compliance officer may review and set standards for outside communications by requiring disclaimers in emails, or may examine facilities to ensure that they are accessible and safe. Compliance officers may also design or update internal policies to mitigate the risk of the company breaking laws and regulations, as well as lead internal audits of procedures.

Duties and responsibilities of a compliance officer

  • Checking mails and need to give the reply within the day based on priority.
  • Visiting the floor at least twice a day.
  • Ensuring workers fire safety, fire prevention, fire equipment.
  • Ensuring workers health safety & comfortable environment at work place.
  • To Aware the workers about personal protective equipment.
  • Receiving grievance, complain, demand and suggestion from the workers.
  • Try to find out emotional problem of an employee. The problem may be work related or personal or family which affects his/her work performance.To provide supportive counseling the sick worker for medicinal support on the worker’s requests, complain or situational demand.
  • Try to make aware the existing workers about by company provided all facilities and necessity of compliance.
  • To perform during social compliance audit.Making and following up aisle mark free, fire extinguisher no blocked emergency exit free, fire equipment free and stair free from carton in the floor.
  • To check all production related register if any date mentioned of holiday or not.
  • Conducting orientation program for newly appointed worker.
  • Motivating and making employees conversant with the company objective, rules and regulations, buyer code of conduct & local laws.
  • Briefing the employees about all facilities of company, mandatory safety instruction including all “do’s & Don’ts”.
  • Making aware the employees about leave procedure.
  • Making aware the employees about maternity benefits.
  • Making aware the employees about working hour & over time system according to local laws.
  • Making aware the employees about personal health & hygiene, HIV/ AIDS/STD.
  • Conducting awareness programs to the pregnant workers about safe motherhood.
  • Ensuring that no employee is maltreated mentally or physically abused.
  • Worker should be treated with respect & dignity.
  • Any other work assigned by the Management.

Daily activities of Compliance officer

  • Checking mails and needs to give the reply within the day based on priority.
  • Visiting the floor at least twice a day.
  • Ensuring workers health safety & comfortable environment at work place.
  • Receiving grievance, complain, demand and suggestion from the workers.
  • Try to find out emotional problem of an employee. The problem may be work related or personal or family which affects his/her work performance.
  • Making and following up aisle mark free, fire extinguisher no blocked emergency exit free, fire equipment free and stair free from carton in the floor.
  • Ensuring that no employee is maltreated mentally or physically abused.
  • Worker should be treated with respect & dignity.

Weekly activities of Compliance officer

  • Ensuring workers fire safety, fire prevention, fire equipment.
  • To Aware the workers about personal protective equipment.
  • To provide supportive counseling the sick worker for medicinal support on the worker’s requests, complain or situational demand.Try to make aware the existing workers about by company provided all facilities and necessity of compliance.
  • To check all production related register if any date mentioned of holiday or not.
  • Briefing the employees about all facilities of company, mandatory safety instruction including all “do’s & Don’ts”.
  • Making aware the employees about leave procedure.
  • Conducting awareness programs to the pregnant workers about safe motherhood.

Monthly activities of Compliance officer

  • To perform during social compliance audit.
  • Conducting orientation program for newly appointed worker.
  • Motivating and making employees conversant with the company objective, rules and regulations, buyer code of conduct & local laws.
  • Making aware the employees about maternity benefits.
  • Making aware the employees about working hour & over time system according to local laws.

My activity

As I was working as an assistant merchandiser for one month and compliance officer for two month in GoldTex Garments limited, so I got the opportunity to learn lots of things about merchandising and compliance. In this time I have done different merchandising and compliance related task in the company. Task I have performed in the facility are categorized below:

Assistant Merchandiser

  • Preparing and maintaining fabric swatch card
  • Scanning documents
  • Proper filling the documents
  • Sample follow-up
  • Taking the photos of samples
  • Mail communication
  • Collecting production information
  • Reporting to concern supervisor
  • Meeting with the fabrics and accessories supplier
  • Making accessories list
  • Meeting with the buyer and buying houses
  • Meeting with the production people
  • Meeting with the quality people and pattern master

Compliance Officer

  • Visiting the floor at least twice a day.
  • Checking mails
  • Making corrective action plan (CAP)
  • Giving the reply of mail within the day based on priority.
  • Ensuring the CAP requirement
  • Making salary sheet
  • Making maternity bill
  • Conducting internal audit
  • Conducting the vendors audit
  • Providing training on fire safety issue and environmental issue
  • Providing training on threat awareness program
  • Making different register to maintain the record
  • To perform during social compliance audit.
  • Motivating and making employees conversant with the company objective, rules and regulations, buyer code of conduct & local laws.
  • Making aware the employees about maternity benefits.
  • Making aware the employees about working hour & over time system according to local laws.
  • Making aware the employees about personal health & hygiene, HIV/AIDS/STD.
  • Briefing the employees about all facilities of company, mandatory safety instruction including all “do’s & Don’ts”.
  • Ensuring that no employee is maltreated mentally or physically abused.
  • Receiving grievance, complain, demand and suggestion from the workers.
  • Following up everything to ensure compliance issue in the facility.

Problems faced during internship

During my working period one of the major problems faced by me was that sometimes facility persons were not flexible to work with interns. Another problem was that as GoldTex didn’t provide me any formal briefing or any kind of workshop so it’s become really difficult for me to understand the work.

Recommendation

My recommendation is that management needs to be organized and they need to ensure the chain of command which is very week.

Generally I have given the concentration on compliance performance of GoldTex Garments Limited. I would like to recommend the following areas that should be improved immediately to achieve the desired goals-

  • Instead of short-term relationship, Merchandisers need to develop long term relationship with the key parties – buyers, buying houses and suppliers etc.
  • Director should clearly share his mission with manager and all the staffs because a clear mission statement guides the employee to work independently and to achieve the organizational objectives.
  • GoldTex Garments Limited should identify their position based on the product life cycle and the position of competitors so that they take corrective action to compete & stay in the business.
  • GoldTex Garments Limited can establish their own design section and from there they can create unique and innovative products design for marketing. And in this purpose they can contract with professional fashion designer in Bangladesh and abroad to get the maximum results.
  • GoldTex Garments Limited can use internet as an efficient promotional tools for buyer awareness about their business. In this purpose they can develop their own website with detail information about their business.
  • It should allow its employees to participate in decision making process so that it will help to get more productivity & commitment to work.

Conclusion

The RMG sector is expected to grow despite the global financial crisis of 2009 and political instability of 2014. As China is finding it challenging to make textile and foot wear items at cheap price, due to rising labor costs, many foreign investors, are coming to Bangladesh to take advantage of the low labor cost which is really a good sign for this industry as well as for GoldTex Garments Ltd.

Management of compliance is a big job and is a complex one. Social responsibility and Working conditions are of fundamental importance in Garments. Workers are the most important factor in their business and they have to meet and keep their commitment towards their workers by complying with all local laws and regulations in all locations where business is conducted. GoldTex is fulfilling these issues very efficiently. Now they have to follow up these issues to sustain in the long run because in near future compliance will become a great threat for this industry in Bangladesh. So if it can maintain its quality and standard it can have a huge business potential.

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