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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