Cotton Chic1

COTTON CHIC

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Executive Summary

Numerous organizations have faced numerous problems in recent years, both internal and

external, that have impacted their performance in either a positive or negative way. This article

discusses Cotton Chic, a company that specializes in the development and marketing of clothing

lines. It has faced a number of unpleasant negative issues, the majority of them stemming from

management and leadership. This comes after the twins were given leadership roles by their

mother, who had always been a positive force in the business. It makes recommendations on how

to help the organization rehabilitate and reclaim its former status. The recommendations

primarily center on changing management and leadership or on management being more aware

of how they handle the organization's problems in terms of decision making, customer service,

employee relations, and improving the relationship between the organization and the immediate

community. The recommended approach addresses the issues from both an external and internal

perspective. Additionally, the organization could revert to offering high-end, affordable luxury

clothing for which they had developed a reputation and for which their customers recognized

them. The solutions proposed in this paper will benefit the organization significantly, as adhering

to them previously under Heather's leadership ensured that the organization ran smoothly. Proper

leadership, customer focus, and staff involvement are critical components of an organization's

success. Strict adherence to this principle results in a favorable impact on the organization's

overall performance.

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Aim

 The purpose of this paper is to assess Cotton Chick in light of the obstacles it faces and

to propose ways for it to reclaim its former position.

Historical Achievement

Cotton Chic, led by Heather, accomplished a great deal during a twenty-five-year span.

Heather and her management team were able to effectively open thirty Cotton Chick locations

around the world, including Europe, Bangladesh, and Greece. She had led them with the best

business talents and enabled them to weather the world's most severe economic restraints, such

as Greece's economic crisis in 2009, during which many organizations crumbled (Mavridis,

2018). It was a rising and competitive in the fashion industry being a brand spread in many

countries (McKinsey & Co 2019). Among the organization's accomplishments was the

establishment of the kindergarten and Lady Cotton schools in Bangladesh in order to foster a

positive working environment for its employees by assuring the safety and well-being of their

students. Proper and timey decision making was a key role in the growth and development of the

organization helping it climb to the largest category (Calabrese, 2018). Additionally, it helped in

increasing the rates and earnings of employees at the clothing manufacturing company in

comparison to other manufacturing companies in Bangladesh. The organization was able to

provide employment opportunities for members in both direct and indirect ways, including those

working in farms, industries, managerial positions, and teachers who would teach in the schools

it had established as a means of promoting and assisting its employees.

Among the organization achievement was that it was indeed a pillar in the struggle for

chemical-free organic cotton, making a significant contribution to the environmental discussion,

protecting employee safety, and preserving the brand's authenticity (Pang et al., 2020). Through

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Heather, the business was able to establish and maintain a very strong brand identification and

loyalty with customers and the rest of the globe by providing superior staff care and

intercommunity organization contact.

Current Strengths and Weaknesses

As a result of the new leadership age, the Cotton Chick is currently confronted with more

obstacles than opportunities. The largest obstacle that has seriously weakened it really is the

twins who serve as the organization's chief executive officers. They continue to make unwise

business decisions without consulting others, which has had a significant impact on the

organization. Improper and unjust employee treatment has also had a significant impact on it

since the majority of employees have quit and others have been laid off, resulting in the closure

of the majority of branches in a number of states. The COVID-19 pandemic has been one of the

organization's greatest challenges, as it has had a significant impact on the economy via the

shutdown (Walmsley, 2021). The pandemic-induced shutdown resulted in the closure of the

majority of branches since the move to online purchasing did not go as well as anticipated

(Goolsbee & Syverson, 2021). The organization has produced few achievements recently, as its

history indicates that it is falling and incurring losses. The organization's sole accomplishment is

that, despite the fact that the majority of customers abandoned the brand and the COVID-19

pandemic struck hard, it retains certain branches, unlike some other organizations such as J.

Crew (Bottan et a., 2020).

Threats and Opportunities

Numerous threats have directly impacted Cotton Chick and significantly increased the

likelihood of its closure. The attempt to shift in brand and taste from inexpensive luxury to cheap

labels has also posed a danger, as there are organizations that specialize in low brands and have

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mastered that segment, making it difficult for Cotton Chic to topple them. The involvement of

other cities and organization has posed as a threat which has facilitated unhealthy completion

which is one of the greatest factors leading to the downfall of the organization (Van Den Berg,

2018). Additionally, COVID-19 has posed a significant danger to the organization. The

resignation of employees who have been in the vanguard of fighting for the organization, such as

Michelle, has been a significant threat, as the organization's decision-making and planning

functions will inevitably worsen. This has resulted in the organization's depreciation, which

means that unless action is taken, the organization will crumble. Opportunities have existed

because the fashion market is still substantial and is being embraced globally (Brydges, 2021).

The advancement of the transportation sector and the increase in the number of socialites implies

that their market or commodity is now global, and they can export it to any place they like

(Enlund & Nilsson 2021). The reopening of markets and the economy following COVID-19

provides them with another opportunity to reclaim their original and loyal clients.

According to an article by Celine Peterkin about the causes of failure in leadership, it's

not about having a big office or the power to make crucial company choices to be a leader. Great

leaders understand that their capacity to lead and inspire their teams determines whether they

succeed or fail (5 Causes of Leadership Failures, n.d). This is a significant difficulty for leaders

because keeping employees and workers interested in their employment necessitates a specific

quality. This has not been observed recently in Cotton Chic and this has been a greater challenge

and problem that might lead to the collapse of the organization.

Change and Leadership Priority

To resurrect the organization, particular procedures must be taken. The types of change

required in a company are transformational and personnel. The two twins must either be replaced

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by a more competitive team or alter their approach and strategies for running the firm. Prior to

making decisions, the leadership team must conduct thorough planning and qualitative critical

thinking (Intezari & Pauleen, 2018). The interaction between employees and management must

be strengthened as they play a critical role in the firm. All internal and external factors affecting

the business must be identified, examined, and resolved sequentially. One of the major

difficulties that must be addressed is the community's relationship with the organization, which

must be restored to the way it was previously, when each and every member of society was

always supportive of the organization. The organization leadership should be goal driven and

ensure they have plans and ambitions set aside that should be achieved within a certain specified

period of time (Ahmad & Raja, 2021). To ensure a business's success, both external and internal

elements affecting it must be thoroughly investigated (Seo & Lee, 2019). The management team

should ensure and promote work teams that are capable of listening to advice from other

members of the organization and weighing their perspectives prior to making decisions in order

to ensure they make the best choices possible. After watching these developments and ensuring

the twins receive leadership skills from Heather, they will be able to remodel, restructure, and

assist in reviving the firm, restoring it to its previous market share position.

According to an article by Dan on why organic cotton is the best choice it is evident that

the company should just maintain the use of organic cotton as a strategy to outdo other fashion

companies. According to the article organic cotton is of better quality and is safe to the skin

compared to inorganic cotton (Dan, 2020). It is also ecofriendly and this makes it more attractive

to the customers on general. Everybody will like a brand that is produced from cotton which has

no negative effects to the environment or to the farmers. This will also create a sense of health

security to the employees in terms of their health issue and this might bring back the past urge of

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every graduate willing to work with Cotton Chic hence improvements in the management and

production will be observed.

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References

Ahmad, M.R. and Raja, R., 2021. Employee job satisfaction and business performance: the

mediating role of organizational commitment. Vision, 25(2), pp.168-179.

Brydges, T., 2021. Closing the loop on take, make, waste: Investigating circular economy

practices in the Swedish fashion industry. Journal of Cleaner Production, 293, p.126245.

Cotton Campaign 2020; Uzbek Forum Key Findings 2020 Cotton Harvest;

http://www.cottoncampaign.org/uzbek-forum-key-findings-2020.html; (Date accessed

11/3/2022)

EJF 2010; White Gold: Uzbekistan, A Slave Nation for our Cotton?;

https://ejfoundation.org//resources/downloads/ejf_uzbek_harvest_WEB.pdf; (Date

accessed 11/3/2022)

Enlund, E. and Nilsson, J., 2021. Sustainable Decision-Making in the Fashion Industry: How to

influence the fashion industry to adopt more sustainable packaging solutions.

Fashion United 2018; Rise in Demand for Ethical Fashion;

https://fashionunited.uk/news/fashion/rise-in-demand-for-ethical-fashion/

2008101633122; (Date accessed 11/1/2022)

Goolsbee, A. and Syverson, C., 2021. Fear, lockdown, and diversion: Comparing drivers of

pandemic economic decline 2020. Journal of public economics, 193, p.104311.

Human Rights Watch 2021; Uzbekistan: Forced Labor Linked to World Bank;

https://www.hrw.org/news/2017/06/27/uzbekistan-forced-labor-linked-world-bank; (Date

accessed 10/3/2022)

Intezari, A. and Pauleen, D.J., 2018. Conceptualizing wise management decision‐making: A

grounded theory approach. Decision Sciences, 49(2), pp.335-400.

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Mavridis, S., 2018. Greece’s economic and social transformation 2008–2017. Social

Sciences, 7(1), p.9.

McKinsey & Co 2019; The State of Fashion 2019; A Year of Awakening;

https://www.mckinsey.com/industries/retail/our-insights/the-state-of-fashion-2019-a-

year- of-awakening; (Date accessed 11/3/2022)

Pang, D., Wang, C.C., Wang, P., Liu, W., Fu, H. and Zhao, C., 2020. Superior removal of

inorganic and organic arsenic pollutants from water with MIL-88A (Fe) decorated on

cotton fibers. Chemosphere, 254, p.126829.

Radhakrishnan, S., 2017. Sustainable cotton production. In Sustainable fibres and textiles (pp.

21-67). Woodhead Publishing.

Seo, Y.W. and Lee, Y.H., 2019. Effects of internal and external factors on business performance

of start-ups in South Korea: The engine of new market dynamics. International Journal

of Engineering Business Management, 11, p.1847979018824231.

Van Den Berg, L., Braun, E. and Otgaar, A.H., 2018. City and enterprise: corporate community

involvement in European and US cities. Routledge.

Voora, V., Larrea, C. and Bermudez, S., 2020. Global market report: cotton (p. 16). Winnipeg:

International Institute for Sustainable Development (IISD).

Walmsley, T.L., Rose, A. and Wei, D., 2021. Impacts on the US macroeconomy of mandatory

business closures in response to the COVID-19 Pandemic. Applied Economics

Letters, 28(15), pp.1293-1300.

Calabrese, M., Iandolo, F., Caputo, F. and Sarno, D., 2018. From mechanical to cognitive view:

The changes of decision making in business environment. In Social Dynamics in a

Systems Perspective (pp. 223-240). Springer, Cham.

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Bottan, N., Hoffmann, B. and Vera-Cossio, D., 2020. The unequal impact of the coronavirus

pandemic: Evidence from seventeen developing countries. PloS one, 15(10), p.e0239797.

Tofier, Cotton Chic Brands Private Limited, 2022 Accessed on 11th March 2022

https://www.tofler.in/cotton-chic-brands-private-limited/company/U85110KA1994PTC0

15185

Vunela 5 Causes of Leadership Failures, n.d, Accessed on 11th March 2022,

https://www.vunela.com/5-causes-of-leadership-failures

Dan, 2020 Whole, people 5 Reasons Why Organic Cotton Is The Better Choice, Accessed on 11th

March 2022, https://wholepeople.com/why-organic-cotton

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Appendix

Details about the profile of Cotton Chic Company

CIN

U85110KA1994PTC015185
INCORPORATION DATE / AGE
03 February, 1994 / 28 yrs
LAST REPORTED AGM DATE
30 December, 2020

AUTHORIZED CAPITAL
INR 50.0 Lacs
PAIDUP CAPITAL
INR 50.0 Lacs
INDUSTRY*
Health and Social Work

TYPE
Unlisted Private Company
CATEGORY
Company limited by Shares
SUBCATEGORY
Non-govt company
REGISTERED ADDRESS
NO. 54/3, EJIPURA MAIN ROAD
VIVEK NAGAR
BANGALORE - 560047
Karnataka - India

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