Helen Croker owns Divine Denim, a growing company making made to measure, designer denim…
TASK
Read the background information on the fictitious business, Divine Denim Pty Ltd, and then apply
the knowledge you have gained in this subject to answer the various questions.
Background
Helen Croker owns Divine Denim, a growing company making made to measure, designer denim
jeans and jackets. She uses organic yarn-dyed cotton denim of different weights depending on
the garment that she is making. Although she prefers to take the measurements herself, she is
now making denim clothes for international customers using the self-measuring system she has
developed and put online. For her custom clients, she takes measurements or uses the
measurements supplied through her customers’ online application. She uses these
measurements to alter the pattern for the design chosen by the client. The pattern is sent to the
Cutting Department and the cut material then transferred to the Machining Department.
Helen has recently expanded into a Ready to Wear (RTW) collection which is made in Australia
and sold online at a cheaper price point than the made to measure clothing.
Helen designs the RTW clothes and sends the
designs to a pattern maker. She previously had
two machinists working for her and has just
expanded to 8 machinists and a cutter in an
expanded factory to manufacture the RTW
clothing. One of the machinists uses the riveting
and buttonhole machines. Helen has the latest
computerised machines enabling her to complete
a single setup for all machines from an iPad. She
has an administrator who manages the payroll,
orders, creditors, delivery and invoicing. An IT
expert works 2.5 days a week and manages the
company’s website, other IT issues and online
presence including monthly podcasts. A
bookkeeping service is used for basic bookkeeping, GST returns and preparing information for the
tax agent.
Helen decided that she needs better cost control and regular information and has asked your firm
of accountants, Good Numbers, to provide her assistance to maintain and grow her expanding
business.
Question 1 Business background (25 marks)
As part of your initial meeting with Helen, you are concerned to find out as much as possible
about the business and the strategies that she plans to use. To start this discussion, you explain
to her Porter’s Five Forces and Porter’s Strategy Model and how these can affect her costs and
sales. You ask Helen to explain to you how she thinks the forces in Porter’s model affect the
custom clothing and the RTW businesses and the strategies she will take with these different
products.
Required:
4/6/2020 S-ACC512_202030_SM_I @CSU
https://interact2.csu.edu.au/webapps/csu-serviceslink-BB5c1c4db3261aa/link?type=msi&course_id=_43908_1&mode=view 2/5
i. Prepare an explanation of Porter’s Five Forces model and of Porter’s broad-based
organisational strategies for Helen. (10 marks)
ii. Prepare a statement from Helen setting out how she sees the forces affecting both the
made to measure clothing and the RTW business and the general strategies that she is
adopting for each of these businesses. Ensure that you use the background information
above to support Helen’s approach to Porter’s Five Forces model and Porter’s broad-based
organisational strategies. (15 marks)
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