Group No: 10RJT/PGDM/2014/057 Samanthy SivapiragashRJT/PGDM/2014/029 Hanitha VijeyaratnamRJT/PGDM/2014/058 R. Prasanna Ruwan KumaraDissanayakeRJT/PGDM/2014/042 Perinpanathan Rajkumar

Management Information SystemsPGDM 1233

Company HistoryMAS is the largest apparel manufacturer in South Asia by

providing employment opportunity for over 60,000 people in 34 manufacturing facilities which are situated in various part of Sri Lanka and worldwide.

MAS was named using the first letters of 3 Amalean brothers who are Mahesh, Ajay and Sharad.

MAS Intimates Vidiyal is the 33rd production facility with providing job opportunity for 800 employees in North of Sri Lanka which have been badly affected by the ethnic war. It was declared open on the 19th of January 2012.

Environment of the Organization

Internal Stakeholders and their level of influence and importance

Stakeholders defined as those persons and organizations that have an interest in the strategy of the organization.

Stakeholders normally include shareholders, customers, suppliers, staff and the local community etc.

MAS Intimates Vidiyal as a grass root Strategic Business Unit (SBU) of MAS Holdings, it’s very important to treat their internal stakeholders.

Mendelow’s Matrix

External Stakeholders

CommunityMAS Intimates Vidiyal is the 33rd production facility with providing job opportunity for 800 employees in North of Sri Lanka which have been badly affected by the ethnic war.

GovernmentMAS  export industry is the most significant and dynamic contributor for Sri Lanka’s economy. The garments industry is a key foreign exchange earner and, with factories being set up all over the country, provides employment for a large number of people ensuring better income distribution.

CustomersSharing a long standing strategic partnership with Victoria’s Secret, the company currently manufactures for Victoria’s Secret, Marks & Spencer, La Senza, GAP, Soma, DBA, H&M, Lululemon, Oysho, and athlete.

Strategic PartnersOur joint venture partners include:

MAST Industries, Inc., USA

Triumph International Overseas Limited, HK

Speedo International Limited, UK

Stretchline (UK) Limited, UK

Ets Lucien Noyon Et Cie, France

Prym Intimates Group Ltd, HK

Brandot International Limited, USA

Labyrinth Solutions Holdings, USA

Tradecard, Inc., USA

NSL Infratech (Private) Limited, India

High Employee turnover rateLimited fund available for expansion since it is a privately owned group

Export Supporting policies by the governmentDevaluation of the rupee against foreign currency making MAS products cheaper abroadTechnological advancements and break through within the industryExpansion opportunities

Volatile exchange rates that could hinder salesSevere competition from overseas SuppliersChanging government policies with regard to foreign tradePolitical instability with in the country and international pressure that could discourage other countries to engage in trade with Sri Lanka

SWOTS W

O T

PESTLE for MAS Intimate Vidiyal

Political•Government policies regarding international trade•Political instability in the operating countries Eg: Bangaladesh•Tax Benefits given by BOI•Trading Blocks: NAFTA curtailed the export opportunities of Sri LankaEconomical•Volatile exchange rates affect revenue•Volatile interest rates affect borrowing ability•Inflation within the home country and raw material importing countries increase the production costSocio Cultural•Attitudes in the each country towards the Garments industries•Cultural barriers: Women work force

Technological•Automation: Reduce the production cost and increase the productivity•Advance technology: Gives a competitive edge to the company•Fast technological advancement: Makes some workers redundantLegal•Maximum working hours•Minimum wage rate•Lows prohibiting the use of child labor•Rules and regulations of WTO and EU and other international bodiesEnvironmental

• Waste management laws• Sustainability policies of the government• EU – Carbon foot print rules

Porter’s five forces for MAS Intimate Vidiyal

Rivalry : Number of

competitors, Industrial

growth, Capital

Investment, Exit Barriers

Threats of New entrant: Economic of

scale, Government policy, Brand

identity

Threats of Substitutes: Switching

costs, Buyer

propencity to

substitute

Bargaining power of

buyers: Size and sccale of

customer, Switching

costs, Presence of substitutes

Bargaining power of supplier:

Differentiation of inputs, Switching costs, The company's ability to backward integrate

Business Strategies and Information system

In 1997 MAS become only the fourth apparel manufacturer worldwide and the first in Asia to implement an SAP enterprise resource planning (ERP) solutions for the apparel industry.

Today, MAS utilizes SAP to run its core manufacturing process, integrate with banks, suppliers and customers, with direct processing of customer orders and business intelligence.

Application of SAP in MAS

Application of SAP in MAS

Value chain for MAS Intimate Vidiyal

Primary Activities

Prescribes fabrics to be bought from a specific Supplier

Customer places the orders specifying Fabric

Prescribes MAS own Fabric to be used

The supplier is contacted and an order is placed

A store requisition is made to be ware house

Fabric is issued to production line

Fabric is received by MAS stores

Inbound Logistics

Production

Fabric is received from the ware house

It is washed and tested for quality

Fabric is cut by the cutting department

Fabric is sent to printing department

Fabric is sent to stitching department

Apparel is sent to ironing department

Final Quality check

Apparel is sent to packing Department

Destruction Processes

Out bound LogisticsThe carriage outwards and shipments are tone by MAS holding and the cost is affect to the final selling price.

Marketing and SalesMAS Holdings use direct marketing strategies and obtains sales based on past dealing with customers. It also uses its website as a tool for affecting potential customers.

ServicesBeing and apparel manufacturer MAS Holdings does not provide extensive after sales services. However it guarantees the Quality of its Products and contacts rewards activities on any rejected or substandard items.

Supportive Activities

Firm InfrastructureThe physical layout at the factories uses lien, Kaizen, TQM principlesThe Management Since the founders remain as the senior management at the firm. Their core value Prevail.Well Established processes and rules exits that need strict adherence

Human Resource Management“Our People are our pride and power Attitude “Treat its employees as a valuable resource and uses many motivational tools to ensure that these are satisfied.

Technology DevelopmentThe company uses advanced technology in order to delight its customers through innovative product such as sweet absorbing apparel, high performing shoes, fabric that monitor one’s heart rate and stress level etc.Procurement Most major customers specify the supplier from whom the fabric must be bought. They usually have already made arrangements regarding the quality of the Fabric. MAS bear the cost at fabric but pass it down to the customer through the Quoted Prices.

A well established, export oriented manufacturing industry.A ready supply of raw material and an expanding resource base.A literate, trainable workforce.Geographical location & infrastructure advantages.Compliance with the best international labor and environmental laws and practices.Market and investor friendly policies of the government.

Competitive Advantage

An array of attractive incentive extended for the textile/apparel industry.Unlimited quota free access to the EU markets.Preferential access to Indian market including duty- free concessions provided by the Free Trade Agreement between Sri Lanka and India.

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