I. Central Problem
How can Armour Garments Company adopt to the changing surrounding?
a) To encourage middlemen to be loyal to AGC's products b) To be able to compete with other companies in order to gain profit c) To further develop their products and equipments
III. Alternative Courses of Action
1) Allow longer credit terms and offer better trade discounts
Advantages: More middlemen will be loyal to its products AGC will be their consistent supplier and middlemen could advertize their products
Disadvantage: Competitors might copy AGC's strategy and agreement with the middlemen and therefore offer longer credit terms.
2) “Blossom” brand should be maintained in the business and AGC should produce a new product for women of all ages which is a modern trend
Advantage: Products for women will be more saleable because women are shoppaholic than men.
Disadvantage: AGC might have a hard time adjusting with the marketplace 3) Invite more investors of the company
Advantage: It would help their financial needs if these investors would agree to invest more capital
Disadvantage: It would be hard for AGC to invite investors because of their background and failures in the past
4) Do not give discounts during peak season
Advantage: Obviously more buyers will avail to their products even if its not yet peak season
Disadvantage: AGC would have less profit
IV. Recommendation with Action Plan
The group has decided to recommend the alternative courses action numbers 1, 2, and 4 only.
If Armour Garments Company would apply our recommendations, the course of their business will completely change which could most probably result to the increase in their net income. AGC would also be able to adopt the changing surrounding.