Page 10 - OCS Workbook - Day 1 Suggested Solutions (May 2018)

CIMA MAY 2018 – OPERATIONAL CASE STUDY

CHAPTER FIVE – E1

1 SUMMARY OF CASE - SWOT

Strengths Weaknesses

• Mansako (M) is a manufacturer of high • High levels of inventory.
quality, leather bags and accessories. • High levels of payables.
• Products can be sold at premium prices • Digital business managed using “generic
aimed at the “affordable luxury” sector. software”.
• Ranked within the top 15 global • Vertical integration may make it hard to
manufacturers of luxury bags and adapt to change.
accessories. • Lack of governance awareness? - e.g. no
• Brand and logo is associated with NEDs.
affordable luxury. • Limited product range.
• Vertically integrated ensuring good control • Low skilled staff in distribution centre - also
of all aspects of the supply chain. temp staff used.
• Seen as a good employer. • Distribution centre was designed to service
• Successful apprenticeship scheme. stores channel, not online
• Senior management team is young, • Need to improve efficiency and
enthusiastic and engenders a culture of effectiveness of company systems
creativity and innovation.
• Joseph Carelli (Creative Director) seen as a
rising star in the industry.
• “Made in Lowerland” label seen as a badge
of quality.
• Has worked with the same suppliers for
years, resulting in strong relationships,
helping to ensure quality / deliveries.
• CRM system in place
• Integrated information systems.
• Functioning mobile phone app.
• Green credentials – e.g. having code of
conduct for suppliers, using renewable
energy where possible, reducing waste,
recycling etc.
• Store staff highly trained.
• Well-situated stores.
• Strong digital presence.
• Omni-channel strategy success to date.
• Operating profit increased by 20% last
year.
• Healthy cash flow and cash position.
• No gearing.

52 KAPLAN PUBLISHING