Charlotte’s Designer and Tailoring Shop

Charlotte de Jesus enrolled in a designing and dressmaking class to be productive while her
husband was in the office and her children, in school. As her classes progressed, she learned to
sew curtains, pillow covers, table runners, and baby dresses. Eventually, she learned to design
and sew beautiful dresses. After her class ended, Charlotte sewed for domestic needs but soon
thereafter, her friends started asking her to design and make clothes that they could wear in the
office during special occasions. Today, Charlotte manages and operates Charlotte’s Designer and
Tailoring Shop. What started as an activity to pass time, has become a revenue-generating
enterprise. Charlotte De Jesus, now a dressmaker and designer, plans to grow her shop through
proper management. Charlotte started with Php300,000 from her savings and Php100,000 from a
bank loan. She used the bank loan to purchase sewing machines. She also used some money for
the construction of the tailoring shop. She bought sewing materials and supplies which included
textiles, threads, zippers, buttons, scissors, and tailor chalk, etc. She also hired two sewers. With
these resources, she sought to at least break-even in her first year of operations. She set her price,
target sales, costs, and expenses. She divided work between the two dressmakers/tailors,
motivated them, and checked their progress. At the end of year 1, Charlotte had Php62,500 in net
income and Php168,500 in cash. Henceforth, she plans to cater to a more diverse set of
customers and expand her business.
Charlotte did the following activities during the first year of operations of her business: 1. Define
the target market 2. Set sales targets 3. Set cost and expense targets 4. Set profit targets 5. Hire
and train dressmakers/tailors 6. Set compensation of dressmakers/tailors 7. Set production quota
for dressmakers/tailors 8. Assign machines and supplies for each of the dressmaker/tailor 9.
Provide a commission scheme to sewers 10. Coordinate activities of dressmakers/tailors 11.
Appraise performance of dressmakers/tailors to check alignment with organizational goals.
Charlotte’s Designer and Tailoring Shop expanded rapidly in the last three years by building a
solid reputation for excellent quality of service. Recently, the dressmakers and tailors formed a
union. Some workers quit because of issues on salary. Around the same time, Charlotte’s cousin
was hired as assistant production manager. Considered quite abrasive, this manager is in constant
conflict with the dressmakers and tailors. She has fired several employees at whim. She is also
disliked by the workers. More and more customers are availing of their services and yet, profits
have declined. Clothes are being returned for poor quality or failure to meet customer
specifications. Deliveries are delayed. Performance and morale of employees have likewise
declined. There are a lot of raw materials wasted. Turnover and absenteeism are high. Determine
where the problem is and to offer solutions.