Business management · 2007 · Paper 1 · HLSL · Case study

 IB DIPLOMA PROGRAMME PROGRAMME DU DIPLÔME DU BI PROGRAMA DEL DIPLOMA DEL BI M&N07/3/BUSMT/BP1/ENG/TZ0/XX/CS BUSINESS AND MANAGEMENT CASE STUDY: GLADRAGS LTD For use in May and November 2007 INSTRUCTIONS TO CANDIDATES • Case study booklet required for Higher Level Paper 1 and Standard Level Paper 1 Business and Management examinations. 2207-5001 ; 8807-5001 8 pages M&N07/3/BUSMT/BP1/ENG/TZ0/XX/CS 2207-5001 ; 8807-5001 – 2 – 5 10 15 20 25 30 GLADRAGS LTD History Gladrags manufactures clothing and is based in the United Kingdom (UK). The firm was founded in 1965 by Naseem Singh, an Indian immigrant. As a teenager, Naseem was impressed by the range of business opportunities in the UK. He left college well-qualified, but unsure of what he wanted to do. He managed, through an uncle, to get an apprenticeship in a clothing firm and for five years he worked his way up through the firm becoming production manager. During this time he saved the majority of his earnings with the intention of setting up his own business. He lived in the East End of London in an area called Mile End where there were a number of small firms making and distributing clothes, many of them owned and run by members of the immigrant Indian community. Naseem was never quite satisfied working for someone else. By 1965 he had saved $4000 and felt ready to launch his own business. He identified a gap in the clothing market. Most of the firms in the East End focused on large production runs, aiming to benefit from economies of scale, so there was an opportunity for a firm producing small batches of more individualised clothing. He believed there was a significant group of older Indian immigrants who were looking for the more traditional styles of clothing they previously bought when living in India. Naseem decided to manufacture and distribute his own clothes and therefore looked for a location appropriate for both production and retail sales. After a long search he found suitable premises in the East End of London and opened Gladrags, producing specialised Indian clothing from locally sourced (UK) fabrics and selling the clothing through a factory shop. He chose this location