Orient garments introduction

As an established player in a very competitive industry, they strive to satisfy their customers
with excellence in service including sourcing of fabric and trims, design and product
development. Resulting from their service excellence and continuous commitment to deliver
on time quality products, they have been ranked as one of the Sri Lankas Principal Suppliers
by their main customers. NEXT, Tommy Hilfiger and Tesco. They also supply to Polo Ralph
Lauren and Burberry which are luxury global brands. The Companys total sales to Europe
and the US market is 90% and 10% respectively. Significant growth came through sales to
Tommy Hilfiger which grew by 69% and sales to Tesco which grew by 37% when compared
with the previous year. In the year under review the Company continued its excellent
performance by achieving a net profit of Rs. 111.23 million
Vission
To attain market leadership through unmatched quality,a diverse and unique product
mix,empowered emploees,world class systems,and the highest ethical and professional
standards.
Mission
To achieve consistent improvemet in the system of design,development and delivery and to
enhance customer/employee satisfacton through transparency and good governance.
Values

Reducing ur carbon footprint

Developing rural Sri lanka trough our island wide factories
To make Sri lanka a perferred manufacturing destination for leading global fashion
labels.

Objectives
Profitability
the gross profit of the company has recorded a colossal decrease from 12% to 1.93% in
2013/2014.Also net profit margin has decreased to a negative 16.52%-0.80% in 2013/14. The
primary reason behind the deadline in the gross profit margin is the escalating cost of sales.

Consequent to the negative net profit after tax, the company shows a result on return on
equity capital employed of a negative 72.5% in 2013/14 compared with a negative 3.29% in
2013/14.

Production capacity
with the hope of lessening fixed overheads and bringing the avrage cost per unit down,the
new mamangment took measures to integrate two more factories,increasing the total no of
factories from five-seven.From this was able to increase production capcty and whilst
incensement.

Quality:-Lean managment in a bid to arrive sustainable practice ethics and its

operations.
Added value:-Introuce new productivity enhasing manufacturing technoloy.
Industrial relations-Plans to achieve the goal of developing the right worker attitudes

and corparate culture.

Growth:-Plans to introduce effective new KPis to operations at all levels will be

driven and monitored.

Environment sustainability:reduction and mangement of hazardous factory wastes of all types.
Efficient Utilization of raw matrials,energy and water.
Maintaining cleaner and safer set of factories and gardens.
adopting environmentally friendly production approaches.
production process development emphasizing,standardizing,reducing,reusing and

recycling where possible.

Risk managment
Forex risk-Monitoring the trends ad taking steps to enter into forward contacts.
Interet rate risk:-Various finacial instruments to manage exposure and lowering
interests.
Risk of changing technology:-searching and being vigilant of industry related
technolgies and developments.
Competition:-attempted to ensure Value addition to clientele and increasing efficincy
trough cost reduction.

Risk of reliance external and internal suppliers:- Maintaning close relationship with
suppliers by way of verbal or JV agreements.

Need to write

Expo Lanka Pvt ltd.

Intoduction
Expolanka were established in 1978 as the Sri Lankan economy was liberalized and the flagship
company Expolanka Limited. The Group has diversified into exports, imports and trading, freight
forwarding & logistics, manufacturing, airline representation & operation, travels & tours and
information technology over the years. Today, Expolanka is a market leader in some of these fields
with strong international connections.

Vision
Regardless of our business acumen,what set us apart are our timeless principles of business ethics righteousness, integrity, dedication to quality, accountability and transparency

Mission
Envision a community of responsible and educated employees who are environmentally conscious,
practice social responsibility in their daily lives and inspire others to do the same. Strive to be a leader
in corporate citizenship and sustainable development, caring for our employees and stakeholders.
Seek to enrich the quality of life for the communities in which we do business and serve as good
stewards of society and the environment. Commit to operate in an economically, socially and
environmentally responsible manner whilst balancing the interests of diverse stakeholders. Foster
change for a global sustainable business and society
Values

Follows ethical business principles in transacting & managing busines

Caring for stakeholder's interests
Commitment to Excellence
Innovation & Entrepreneurship

Objectives

Odel Plc
Introduction
Odel Limited engages in the distribution of readymade garments, home-ware, and other accessories.
The company, through its subsidiaries, produces garments. The company also provides information
technology infrastructure services for the local market and offers maintenance services in connection
with computers and peripheral equipment and word processing and similar equipment. Odel Limited
operates 12 stores under a different brand. The company was founded in 1990 and is headquartered in
Rajagiriya,
Vision
To inspire the world

Mision
To provide complete mind, body and soul experince with a unparallel selection of fashion and
lifestyle products in an environment that is enjoyable and welcoming.
Values
we love,we serve,we style,we innovate,we give,we save,we enjoy and inspire.

Ownership- Sole proprietorship/

Orient garments

Expo Lanka Plc

Odel lanka Plc

PLC
Corporation

Corporation

Corporation

Public Limited

Public Limited

Public Limited

Company

Company

Company

Partnership/ Corporation/ Cooperative

Organisation sizesmall,medium,large,enterprice
Activity-primary sector/secondary
sector-tertiary sector
Commerical interest-non
profitable/profitable
Organisation structueFlat/Functional/product/Geographical
Legal ststus-public/private

1.2 Describe the extent to which an organization meets the objectives of different stakeholders.
Stakeholdeer
A stakeholder is any person, organization, social group, or society at large that has a stake in the
business.It can be groups or individuals who can affect or be affected by the achievements of a
business.
Expo Lanka PLC stakeholders
I.

External stakeholders-customers, suppliers, governments, communities,

environment,Media ,Regulators,

II.

Internal Stakehoders-employees,managmet, directors,owners, investors

Power
Stakehol
der
1.Invest
ors

Contribution

Legitimacy

HighKnowledge

2.Custo
mers

High

High-directly
affected to the
company.
Annual
General
meeting
Investor
feedback
form
Group
website
High
Customer
relationship
Meetings
with senior
management

3.Suppli
ers

High-to
balance cost
consideration
s with
sustainable
procument
practices.
Medium

high

High

4.Comm
unity

5.Emplo

Willingness

Value

Willingness to
engage
High-proactive

Influence

High
Daily
integrations
at operational
level
Social events

High
Hi-tech
transport
management
system
Overseas
offices in 17
countries to
enhance
customer
response

High -to
play the role
of partner in
the business
success of
customers

Medium
registration of
suppliers

high

Medium

Medium

Medium

Medium
Sponsorship
Employee
involvement
and
Volunteerism
in community
projects
High

High
engage with the
community
through CSR

Low

High

high

Low
relatively
unknown group

Necessity of
Involvement
Low
not an
outspoken
stakeholder

yees

open door policy

round table
discussions
Cross
functional
committees
Video
conferencing
surveys

creating
greater
interaction
amongst
employees
and all sectors
innovations

Stakeholder Mapping

High

Keep satisfied

Manage closely
3

Monitor(minimum effort)
Power

4.

Keep informed

Low
Low

Interest

High

Stake holders objectives

1.3 explain the various responsibilities of one of the selected companies and the strategies employed
by that organization to meet them.
responsibilities of strategic and business

formulates and implements a sound business strategy with a structured monitorining process

to ensure sustainability of the group.

Evaluate responsible descions in relation to new business ventures or restructuring of existing
companies.

Ensures the CEO and the management team posses the right skills, experience and knowledge

to implement the formulated strategy effectively with proper succession planning.

Appoints suitable members to the audit and remuneration committees.
Ensure all stakeholder interests are considered in corporate decision making.
Accounting policies are reviewed annually to ensure to compliance to involving accountancy
standards including convergence towards the new sri lanka financial reports standards.
Management responsibilities for financial statements
management is responsible for the preparation and fair presentation of these financial
statements in accordance with Sri Lanka accounting standards. This responsible includes
designing, implementing and maintaining internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement. Whether due to
fraud or error, selecting and applying appropriate accounts policies and making accounting
estimates that are reasonable in the circumstances.
Staragies
Preparied in accordnce with the Sri Lanka accounting standards.
Reasonable and prudent judgement and estimates have been made so that the form

and substance of transactions are poperly reflected.

Provided information required by and otherwise comply with companies Act no 7 of

2007 and the listing rules of the colombo stock exchnge.

Used appropriate acconting policies,whcich have been selcted and applied in a
consistent manner,and material departues,if any have been disclosed and explained.

Environmental responsibilities
This is responsibility of BP to protect environment in local where they
operate. It involves legislation and regulation, ecological relevant to business, green concerns.
Strategies

make comprehensible of whther and how the precautionary approach or pricile is addressed

by the organization.
Externally develop economic, environmental and social characters, principals or other

initiatives to which the organization subscribes or endorses.

Policy, practices, and proportion of spending on locally-based suppliers at significant

locations of operations.
Understand and describes signifiacnt indirect economic impacts,including the extent of

impacts.
Initiatives to provide energy-efficient or renewable energy based products and service, and

reductions in energy requirements as a result of these initiatives.

Initatives to reduce indirect energy consumption and reductions achieved.
Statgies,current actions and future plans for managing impacts on biodiversity.

Initatives to reduce greenhouse gas emissions and reductions achieved.

Social responsibilities
The obligations that the organization has towards the people and the environment in which the
company operate.
Strategies
As a solution for turnover, arrange retaining programs for employees.
Provide benefits to full time employees.
Education, training, counseling, prevention and risk-control programmes in place to assist
workforce members, and their families.
Programmes for skills management and lifelong learning that support the continued
employability of employees and assist them in managing career endings.
Operations identified as having significant risk for incidents of child labor, and measures
taken to contribute to the elimination of child labor.
Operations identified as having significant risk for incidents of forced or compulsory labor, of
forced or compulsory labor.
Lgal repsonsibilities

Task 2
2.1 Explain how economic systems attempt to allocate resources effectively.
An economic system is a system of production and exchange of goods and services as well as
allocation of resources in a society.
-en.wikipedia.org/wiki/Economic_system
The worlds economic systems fall into four main categories. They are,

1. Pure Market Economy

2. Pure Command Economy
3. Traditional Economy
4. Mixed Economy
Pure market Economy
This market economy is very similar to a free market. The government does not control vital
resources, valuable goods or any other major segment of the economy.
Market decisions rely on supply and demand for pricing. Governments role is to create a
stable economy for the market to operate properly
Characteristics of Pure market economy

Consumers decide what should be produced. They do this through the purchases they
make.

No government involvement in economic decisions. Private firms account for all

production

Businesses determine how the products will be produced. They must be competitive.
And price decides by the supply and the demand.

WHO buys the products? The people with the most money will be able to buy more
goods and services.

Some firms try to monopolize markets - conspiring and price fixing.

Pure Command Economy

Command economies have strong government control and totally controlled by the government. In
this government owns most of the industries and companies.
One example of a command economy is Socialism & Communism. True communism is a type of
economic system that doesn't allow ownership of private property.
In a government-directed economy, the market plays little to no role in production decisions.
Command economies are less flexible than market economies and react slower to changes in
consumer purchasing patterns and fluctuations in supply and demand. Electric and petroleum sector is
one of example for pure command economy in Sri Lanka.

Characteristics of pure command economy

Resources ownership is with the government.

One person or a group of officials decide what products are needed.

The government runs all businesses, controls all employment, and decides how goods
and services will be produced.

The government decides who receives the products that are produced.

In this economy Consumers get low priority.

Mixed Economy

An economic system where both command and market systems(private plus government) are
featured. A mixed economic system also known as a Dual economy. Its means its a combination of
economic systems. A mixed economy combines qualities of market and command systems into one.
In many countries where neither the government nor the business entities can maintain the economy
alone, both sectors are integral to economic success. resources allocated through the market and
others through the state. Theoretically, this system should be able to combine the best policies of both
systems, but in practice the proportion government controls and response to market forces varies.
Characteristics of mixed economy

Most of country economies in the world are consist with mixed .

Resources are owned both by the government as well as private individuals.

private sector business activity encouraged.

Taxes used to collect revenue to pay for state goods and services.

Expo Lanka Plc economic system

The Constitution of Expo lanka establishes under mixed economic system.
Sri Lanka government is a mixture of the presidential system and the
parliamentary system.
Government acts the major role in the economy while private sector also
involves
in economic activities.
In a traditional market socialist economy, prices would be determined by a
government
planning ministry, and enterprises would either be state-owned or cooperativelyowned and managed by their employees.

Criteria for Allocation:

Appropriate means of resource allocation are necessary to achieve optimal
allocation of the resource.
There are several criteria used to compare of water allocation @owe aelt, 1986.
Flexibility in the allocation of existing supplies, so that resource can be shifted
from use to use, place,
as demand change, thus allowing equating marginal values over many uses.
Predictability of the allocation process, so that uncertainty (especially for
transaction costs) is
minimized.

Equity of the allocation process should be perceived by the prospective users,

providing equal
opportunity gains from the resource to every potential user.
Political and public acceptability, so that the allocation serves values and
objectives of various
segments in society.

Allocate resources effectively:

The business plan plays a key role in allocating resources throughout a business
so that the objectives
set in the plan can be met.
Once you have reviewed our progress to date and identified our strategy for
growth, our existing
business plan may look dated and may no longer reflect our business' position
and future direction.
When we are reviewing our business plan to cover the next stages, it's important
to be clear on how we
will allocate our resources to make our strategy work.

The allocation of scare resources:

Allocation of scarce resources is a reality for health care professionals and
organizations. Resource
allocation issues can be particularly challenging for rural communities, where
resources are not enough
to meet all needs and fewer alternatives exist to resolve conflicts between
competing needs.
Flexibility
Security
Real opportunity cost

II.2 Assess the impact of fiscal and monetary policy on business originations and their activities.
Fiscal policy is by which a government adjusts its levels of spending in order to
monitor and
influence a nations economy. It is correlated strategy with monetary policy with
which a central bank influences a nations money supply. These two policies are
used in various combinations in an effort to direct a countrys economic goals.
Objectives of fiscal policy

Full employment- Unemployment reduces the level of production, and

hence the level of economic growth.therfore g ovrnment can take many actions

for increasing employment.

Increase its spending
Lower the personal income taxes
Lower the business taxes
Employ a combination of increasing government spending and decreasing taxes

Price stability- Both sharp rise and sharp fall in general price level are not
desirable. It is because sharp rise in prices makes many goods and
services unaffordable to the consumers whereas sharp fall in prices

discourages the producers to produce goods and services.therfore, price

stability is desirable.

Economic growth:- By means of higher rate of economic growth, the

problem of unemployment can also be solved. However, it may create
some problems in the maintenance of price stability.

Resource allocation: Resource allocation refers to assigning the

available resources of the economy to the specific uses chosen among
many possible and competing alternatives. It gives answer to what to
produce and how to produce-questions of the economy. Fiscal policy
should ensure the optimum allocation of the resources.

Increase in Savings: This policy is also used to increase the rate of

savings in the country. In the developing countries rich class spends a lot
of money on luxuries. The government can impose taxes on them and can
provide the basic necessities of life to the poor class on low rate. In this
way by providing incentives, savings can be increased.

Reduce the Regional Disparity: In the less-developing countries, the

regional disparity is found. Some areas are more developed while the
others are less developed. Government provides the infrastructure
facilities in less developed areas. The tax holiday incentive is also provided
in these areas which is very useful in increasing the per capita income.

Control Inflation: Fiscal policy is very useful weapon for controlling the
rate of inflation. When the expenditure on non productive projects is
reduced or the rate of taxes are increased then the purchasing power of
the people reduces.

Monetary policy
Monetary policy is the means by which a central bank seeks to achieve
macro-economic stability.

The decrease in the money supply will lead to a decrease in consumer spending. This
decrease will shift the aggregate demand curve to the right
The increase in the money supply is mirrored by an equal increase in nominal output,
or Gross Domestic Product (GDP).

The increase in the money supply will lead to an increase in consumer

spending. This increase will shift the aggregate demand curve to the left.
Foreign Exchange:-Interest rates and the value of the dollar have a distinct

relationship. When the Federal Reserve makes the cost of borrowing cheaper, more
money starts flowing in the economy. The more dollars that are out there, the less
each one is worth. The dollar value drops.
Inflation:-During a time of low interest rates and increased money flowing
through the economy, inflation can occur if economic production and
employment do not increase