style and trend case

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style and trend case

  1. 1. UMA HANI SAEED
  2. 2. Startup  Decision making  › To work together  Markets and operations(1992-1996) › Applied loan for S & T with the help of Tariq family firm asset  Entering in Saudi Arabia(Al-Markaz) › › › › › › In mid 1993 a Saudi acquaintance visited mushrooms Offered partnership to them Start small setup in Saudi Arabia 30% share S&T, 30 percent Saudi national investment, two shahazad family member(live in Saudi Arabia) invested 15% each
  3. 3.  Mushroom growth › Sale increase 10%(1994) › Establish 6 shops in 4 major cities › Shahazad handle activities and establish basic goals
  4. 4. TAJALA MAQSOOD
  5. 5.  integrated unit finance issues › Direct payments of almost Rs.15 million(from late › › › › › 1993 to mid 1994) Exhibit 4 Another payment of 2.5 they get from NDFC In June project cost increased up to 37.5 million Started construction of the factory bought land for plant Cost of equipment rise
  6. 6.  Options for the 20 mile plant of styles and trend › (1995) need more money › Shahazad want to work with his mother › Mushrooms chain handed over to › › › › Nadira(shahazad opinion after some time Tariq agreed) (1n 1995 ) they want to sell plant of 20 mile No buyer were found Tariq invested 15 million and become major shareholder(69%) Nadira invested 1.6 million(16% share)
  7. 7.  Operations(1996 to 1999) › Shahazad had complete control of › › › › › › › operational and financial issues Nadira become non working partner(because of personal life) Loan amount from NDFC was 30 million Shahazad hope of rescheduling loan. Installed dying and knitting after getting loan from NDFC Shahazad change the approach of limited design Introduce new design every two week. Sell left over stock with exhibition
  8. 8.  Mushrooms in 1999 › Grown to 12 stores all over the county › 8 were company owned › 4 franchised › Nothing in written on franchise › › › › › agreement(because of trust on tariq) Frances paid 250,000 to 400,000 Company get 25% from franchise revenue Started mushroom club in 1996 8,000 customer were member in 1998 No nation wide competition till 1999
  9. 9.  Products › Mushroom retail outlet  Target at New born baby to 12 year  Both boys and girls  For main two seasons summer and winter  Shahazad wife handled design  Production Garment produce in makeshift factory Located in shahazad home From small begging 1999 have 80 worker(in production and packaging) › No accounts department › No H.R department › › › ›
  10. 10.  Al Markaz( Saudi Arabia operation) › Shahazad brother in law managed al- Markaz import logistics › Price at Saudi Arabia 50% higher then Pakistan › Sale took place in Sami permanent bazaar in Saudi Arabia › good idea reasons  Less inventory  Give profit  Introduce Pakistani products in Saudi Arabia.
  11. 11.  Event after Tariq death › Tariq died of liver disease in London (April 1999) › Loan recovery of NFDC thread  The situation in July 1999 › Shahazad send written notice to Nadira and Tariq’s father to resolve loan problem › Nadira interested to buy mushroom but she didn't purchase it because of further issues › Shahazad want to continue mushroom
  12. 12. HUMA RIAZ
  13. 13.  Mushroom › Independency of stores and franchise › Nothing in written on franchise agreement › no of account department › no H.R Department › No R&D department › Delay in shipment
  14. 14.  Style and tend › Loan from NDFC was Rs.30 million › Not generating profit › Need more money for development › Have to pay loan amount › How to pay loan › Death of Tariq › Partnership issues › Nadira did not take interest in problems › Shahazad did not have enough money to solve problems
  15. 15. Tariq and Nadira did not take interest in company issues  Lack of action on small problems  All activates handling by Shahazad  Undefined structure of company  Lack of strong leadership  Lack of planning of money execution  Quick decision of integrated unit 
  16. 16. Sale S&T  Public shares  Partnership  Expansion plan defects  Divestiture (opposite to investment) 

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