oximately 65 percent of the total production of Artemis Sportswear Company. The company sells its products under its own brand names through department stores, mass retailers, and specialty boutiques. The sportswear companies for which Artemis Sportswear Company provides finished products market the sports clothing department stores, mass retailers, specialty boutiques, catalogues, and their own retail outlets (Hoover's, Inc., Jones Apparel Overview, 2004; Hoover's, Inc., Kellwood Company Overview, 2004).
Artemis Sportswear Company possesses some important organizational strengths. Among these strengths are the following (Jones Apparel Group, Inc., 2004; Kellwood Company, 2004):
The quality of the company's products are rated highly by consumers, retailers, and sportswear companies purchasing finished goods from Artemis Sportswear Company
The company consistently is able to manufacture sports clothing to the design specifications of contract customers without encountering major operational problems
The company's designers are effective in keeping abreast of fashion trends
Artemis Sportswear Company also is characterized by internal weaknesses. Among these weaknesses are the following (Jones Apparel Group, Inc., 2004; Kellwood Company, 2004):
The company's collective bargaining agreements with workers in its American manufacturing facilities restrict the flexibility of management in the modification manufacturing processes that might lead to more efficient production
The company's collective bargaining agreements with workers in its American manufacturing facilities create a labor cost floor for the company that makes it difficult for the company to compete on the basis of price
The company's manufacturing facilities are not as modern as are the manufacturing facilities of many of its competitors
C. Comparative Profitability, Operational, and Expense Ratios
The company's financial operating position in r...