Community Relations of MAS holdings

Community Relations of MAS holdingsIn any(prenominal) connective, the greatest challenge is managing the worry sector. To support this end, a beau mondes relationship with the association plays a pivotal role. In terms of corporate social responsibility MAS Holdings has done a considerable amount of work towards uplifting Sri Lankans in a social context. It has in addition worked to save customer affection done achieving their targets and moderateing customer compliance standards by ensuring the employees work in a safe operative environment. This report illustrates MAS Holdings relationship with the community and provides recommendations for improve community throng relationships for business well-being.Company BackgroundMAS Holdings is a phoner, which has focused on the apparel manufacturing business for the last 20 years. It has great victor to encounter with a consolidated turnover of approximately more than 400 million USD and has a massive growth in operations . The majority of the success has been achieved inwardly the US market, which accounts for almost 60% of sales. Europe and UK provides the majority of the balance. In terms of customer focus, the company gains 50-55% of turnover from Victoria Secret, 14% from Gap another 10% from mark Spencer. In terms of global presence, the company is present in more than 5 locations globally, including China, Vietnam, Indonesia, Mexico, India, Hong Kong, United Kingdom, Maldives and US. The company is build of multiple investments mostly in the take a hop of joint ventures in Intimate Apparel Manufacturing, Elastic Manufacturing, Knit Fabrics, Lace, Bra Accessories and recently Design Development.Key stakeholders and their level of influence and impact on the company2a). Benefits of stakeholders analysis for MAS HoldingsUndertaking a taking stakeholder analysis benefits the company as follows,Opportunity to identify the intimacy of the all stakeholders on the companyRecognizing the group s that affect or affected by the companyThe reason level of each stakeholder and charges to reduce negative impact on the companyIdentifying the stakeholders who pro want decrease association with MAS and getting them pertain in company events at particular stagesIdentify potential issues that might disrupt the companyIt also helps to visualize the risk factors and visualize strategic responses2b). Key community groups and their impact on the companyStakeholder mapping provides insight in to which parties be possessed of the most impact on the company (See adjunct 2). Described below is the influence and impact of each stakeholder.CEO and The Board of Directors (High hobby + High Power)This includes companys major players and potential stakeholders. In it consists of the chairperson, Mahesh Amalean and the board of broadcastors which includes the other deuce Amalean brothers and 7 directors. (Refer appendix 2 figure)From the beginning MAS was a benchmark for being a superio r employer. All the main key players of the company are trustworthy for sustain susceptibility in community development. By reflexioning at the signifi bay windowt steps that have been taken by them to develop the community and their employees it is clear that they have made a big difference. As per Ajay Amalean it was the right thing to do. We had absolutely no idea that 20 years down the road, the things we were doing would be called CSR.Venture Capital and Customers of (High Interest + High Power)According to the power participation mix (Refer appendix 2 Figure 2) there is a clear indication that this is a category with higher(prenominal) interest and power. With come let out these key individuals or groups, such as joint ventures, with Speedo and strategic partners such as Nike, Makes Spencer, Victorias Secret and Gap MAS Holdings part of the business operations would not have its current success.When MS selected MAS for their parking area manufacturing plant project (As mentioned in appendix 2 page ii) it demonstrated their recognition as a global customer that MAS is an organization that is conscious of environmental and social sustainability. This recognition allow for results in better relationship with worlds direct brands that are under pressure to maintain sustainability and it leave alone help to maximize the profit of the company by deplumateing new customers and through customer retention.Employees (High Interest + Low Power)The higher management at MAS Holdings has treated its employee objectives which are called as KPIs (Key performance indicators). However the drivers of these main KPIs are the employees themselves. It is noticeable in the Mendelows matrix (Refer appendix 2 Figure 2) this category holds high interest and low power on decision making. This group includes the executives and the machine operators of the company.In MAS, 92% of the employees are women. Focusing the women in the company MAS has launched an puting broa dcast which is called Women Go beyond (Refer appendix 2 page v). The men, who are on the job(p) at MAS, enjoy the same benefits as women. These activities result in company growth through employee attraction and retention. Thus recruiting process is easier and the annual labor turnover is much less. As mentioned in appendix 2 these activities also results in higher fruitivity of operations, which is a one of the main achievements of a manufacturing plant.Community ( Low Interest + Low Power )As mentioned in the mendelows matrix this category has a low interest and a power, but the company point of view its important to have a close relationship with the communities MAS operators. Hence they need more man power for their operations and its a great advantage when having a close relationship with the community specially in recruiting populate and also in retaining them which entrust be discussed future in the report.How MAS use relationship selling and approach the community thro ugh its concept3a). Relationship marketingRelationship marketing refers to all marketing activities directed towards establishing, maturation and maintaining successful relational exchangesMorgan hunt 1994It is important to understand the benefits of maintaining unplayful relationships with the community groups. Not only in FMCG companies but also within business to business companies, manufacturing plants benefit by having close relationships with the community groups that are relevant to them through the practice of sustainability within these communities. Though it doesnt have a direct impact on the company with regards to profits, sustainability, helps to increase the company standards, re projectation and profits in a way that is mutually beneficial to the community and the company. By developing such enduring relationships the company can gain trust within the community, build employee commitment and loyalty towards the company. These things generate long lasting benefits to the company. MAS Holdings is a company that gets these positive results out of such community relationships.3b). What MAS Holdings does to attract their community groups and reach their heartsWhen building a relationship it should be done from a crew of Trust, commitment and cooperation.TrustAccording to Morgan hunt trust is defined as confidence in an exchange partners reliability and integrityTrust can be seen as a long term investment for the business. It works as glue in building business relationships with all stakeholders. Building trust among the customers and suppliers of go forth allow the MAS business to gain the upper hand to improve business with the US and European countries.In the same way MAS holdings most important resource is labor. As mentioned before 92% of the employees are women. Sri Lankan women are very particular in selecting the working place. Considering the culture, tradition of Sri Lanka, its important for women to have a safe working environment i n manufacturing plants which will enhance their trust and the trust of the community. For an instance when started prototypical EPZ in Katunayake and the country is declared as a at large(p) wad area most of investors started garment factories in those areas. 90% of the works beget women, most or 18 25 of age and they came from rural area of the country, lived in boarding houses near the factory. In this period most of the employees suffered from sexual harassment and assault. They also had long working hours even without prior notice. Breaking through these grayish clouds MAS run short one of the outstrip employers in Sri Lanka by creating a safe working environment. In addition the Amalean brothers made sure that their work force worked in an air conditioned environment, had free meals, and were given transportation to and from the factory.CommitmentThis is one the most important element which confirms relationship marketing. As per Morgan and hunt, commitment is an endur ing proclivity to maintain a valued relationship (Morgan and Hunt 1994, 23) Commitment could be considered in different ways, 1.Commitment towards the organization by the employees, commitment towards the brand or the product also the commitment towards the community etc.In order to foster this commitment MAS Holdings, created incentives based on service period giving gold coins to employees that had undefiled 5 years of service, providing increments each year so that an employee knew that if they stayed one more year their salary would increase and giving bonuses based on performance which promote the employees to be committed to continuous improvement.Co-operation with community groupsIn order for a business to operate in a geographic location it is important that the people living there are ready to accept the presence of this business. As MAS Holdings has many plants in many locations it has found it useful to co-operate with various community groups in order to establish thei r presence.For example through the Shadeline factory in the remote area of Mahiyanganaya, various projects were undertaken. These included assistance in building houses livelihood for patriarchal education and assistance in social welfare. Some of the community assistance was provided through the Buddhist synagogue in the area which provided access to large portions of the community. shape up to that association with the topical anaesthetic police and welfare societies provided inroads to the lives of the people.The Level of influence and impact applied by pressure groups on MAS Holdings4a. Pressure groupsPressure groups are organizations that assay to influence government the public and private business or arouse a cause. Often they advance a political or ideological goal. These groups can be placed in to two main categories.Sectional Pressure groups causative Pressure groups4b. Sectional Pressure groupsSectional pressure groups represent a section of society. The pressure c ause by these groups is often directly beneficial to the fractions.Religious groups (High impact) -Often in the rural areas of Sri Lanka where several of the MAS Factories are situated the Buddhist temple in that area is the central meeting place and many decisions are made there. MAS as an organization is encouraged to follow the local customs and heathen habits.The Employers Federation (High impact) -is a legal organization that MAS is part of. Adhering to the guidelines set by this organization is beneficial for MAS Holdings goal of ethical hiring and employment4c. Causal Pressure groupsCausal Pressure groups are associated with a set of ideas rather than people. The agendas they pursue may not be directly beneficial to their members.As a member of accredited key groups MAS must adhere to standards they set. Some of these are listed belowThe Joint Apparel stand Forum (JAAF) (Low impact) is the leading umbrella organization concerning the apparel industry in Sri Lanka. Makin g Sri Lanka the number one ethical destination for garment manufacturing (the Garments without Guilt initiative) is one of its chief objectives. MAS Holdings is a special invitee to this Forum and is judge to conform to the directives set by this forum.Several milling machinery organizations are part of the JAAF.FAAMA Fabric Apparel Accessory Manufacturers AssociationFTZMA Free Trade Zone Manufacturers AssociationNAEA Apparel Exporters AssociationSLAEA Sri Lanka Apparel Exporters AssociationSLCGE Sri Lanka Chamber of Garment ExportersSLGBOA Sri Lanka Garment Buying Offices AssociationVarious SBUs of MAS Holdings are involved in many of these sub organizations as well.Worldwide Responsible Accredited Production (WRAP) (High impact) -MAS Holdings is a member of and must adhere to their standards as well.The Board of Investment of Sri Lanka (Low impact) As a member MAS must adhere to certain standards.While these organizations are quite influential in Sri Lanka, MAS has lead th e way in Ethical and Responsible employment therefore it is MAS that often sets the standards for these organizations.New communities that MAS can expand their services fro the betterment of the societyIn the tradition of MAS to lead in the area of CSR in Sri Lanka and sometimes the world, this could be taken for further by analyzing new community groups will always give the opportunity to connect to the community.Its proven that MAS is one of the fast growing companies in the world. Its very important to have a good relationship with the local government, society that they operators since it need more man power and carry out their operations in the respective communities.MAS has been doing all community projects targeting the employees and society such as women go beyond and other CSR activities (Refer appendix 2, page v vi). It needfully to look in to future prospect in terms of building a close relationship and the target audiences of the new community groups are,Skilled futur e genesis for SrilankaTarget Group -School leavers of MAS employeesProviding educational opportunities to the community in areas of English language education and ITLets tally the importance of environmental sustainabilityTarget Group -Schools (Students)Achieving sustainability Practicing and teaching environmental sustainability4 a) Why MAS should choose these two community groupsSince MAS is targeting on the community itself it gives greater results to the company and the country when considering future leaders, minds in the country. By providing education which is required in the current business world it helps the young extension to foundation their calling paths. By creating a strong and stable generation, it will eventually strengthen the communities of Srilanka, starting from the area that, MAS manufacturing plants operators. This will also benefit the country. When face company point of view this programme will not directly impact, but this will increase imagine and the good will of MAS among the communities which will help the company in recruitments and also in retaining employees.As per the 2nd community group, by lot the schools and spreading the massage about the importance of environmental sustainability by teaching them from their small ages it will give a give impact in their face-to-face lifes as well as the country, environment. Also as mentioned before by establishing the name of MAS in their hearts by doing a worthwhile project to their lifes and the community MAS always be company that is socially responsible. Hence most of the MAS customers are particular on the CRS projects that MAS does, these kinds of projects gives positive marks and will strength the relationship with the customers as one of the responsible suppliers in the world which will attract more customers around the world.4b Skilled Future generation for SrilankaProviding educational opportunities to the community in areas of English language education and ITMAS co mpetes in the global market and deals mainly with the US and Europe. In order to communicate with its customers the most relevant language is English. No business that is global can survive without information. MAS recognized this need early in the game and is dependent on Information Technology for all information needs both internal and external. While there have been government initiatives to foster the teaching of English and IT these have often failed due to a lack of funding or will power. Having a community that is fluent in English and adept in IT provides MAS with a greater pool of individuals to select from for employment.Before looking at the all the school leavers MAS could target on the family members of employees at MAS. The selection criteria of this could a relative of a employee at MAS, who is 18 -27 age and has completed G.C.E advance level 2 passes and unemployed. While providing primary education to these communities can be carried out by supporting the governmen t initiatives, family members of employees can be chosen out of the community to provide scholarships for further education. In this way MAS can give back to those who support the business while building trust, commitment and sustainability in the community.4c Lets learn the importance of purlieual sustainabilityAchieving sustainability Practicing and teaching Environmental sustainabilityMAS was the first company to recognize the need for Environmental sustainability as a key global concept and put this knowledge into action by creating the first green plant in Sri Lanka. In order to take this message to the community in general MAS will have to create alive(predicate)ness and provide education. Currently there is no provision in the Sri Lankan school curriculum to teach environmental sustainability.Target group could be taken as 15-18 year old students hence it is the best age group that can be thought the importance of environmental sustainability and make it their way of life. To communicate this massage to the selected audience would be schools which are located in the areas that MAS manufacturing plants. As this area of education is most relevant to the future generation it is important that this area of study be included in the Schools curriculum. It is possible that MAS can team up with experts in the field from the United Nations Environment political program (UNEP) to get government approval and support to introduce this vital area of education. By conducting this program in schools, MAS is creating educated youth to the community and also who will be a example to the society and a person who carries a massage on how important sustainable development. These will also benefits MAS indirectly by establish a reputation among the community which the plant operates.Coordinated Communications mix for new community groups projectsIn order to have success in these two ventures it will be necessary to have a coordinated communication plan. The communica tion theory mix must target all the relevant stakeholders. As these are non-profit initiatives the communications mix must be adapted to suit the situationInternal stakeholders Management, EmployeesExternal stakeholders- Community, Government, Partners, Customers5a. Internal stakeholdersManagementIn order for both these initiatives to be successful the management must be aware of them and back them. As most of the decisions for funding will come from this group of individuals it is recommended that direct get hold of is made (personal selling) and the use of presentations would be advisable.An e-newsletter sent directly to their e-mail account and linked to a website with Links on Facebook and Twitter will provide them with any additional information they need and provide regular updates on the status of these projects.Management can also form a committee or working group to oversee and monitor the process of teaching and the progress of these initiatives. This group will report b ack to the management.EmployeesThe employees too can receive the same newsletter and management can communicate the needs and progress to the employees at meetings. Making it possible for the employees to get involved in the teaching programs and funding is also recommended so that there is a greater employee ownership for these initiatives.5b. External stakeholdersCommunityBy far the most effort and resources must go to making the community aware of these initiatives and the benefit thereof. While the employees in the community will take part of the message by word of mouth assuring that the correct communication is conveyed will require further effort on the part of MAS Holdings.At the inception of these initiatives the best option would be to start with a public relations suit which includes press conferences, announcements at town meetings and branding. Having a Brand ambassador (such as one of the members of the Sri Lankan cricket team that work for MAS and are highly regarded by both urban and rural communities)would give a face to these initiatives.The most important part of these communities are the individuals that will receive the benefits of these programs. The teachers and students will receive their curriculum via an pass government syllabus. But programs and workshops can be organized (personal selling) to assure that quality information is available to theses two groups. Having exams to streak English and IT competency and contests to select the best idea for environmental friendliness with prizes awarded t best student or best idea will assure the students interest in these subjects (promotions).GovernmentThe shareholders of MAS have demonstrated their goodwill and capability they will not find it difficult to obtain government approval for these initiatives. Recently the government too took the stand that the way forward is through English education and IT. Furthermore if it is demonstrated to them that environmental sustainability is the w ay forward they too will join the process of becoming green direct selling is the most efficient method of communication here.PartnersA great strength of MAS in carrying out a project is working unneurotic with partners who have the expertise. Involving The British Council for English education, Microsofts teaching services for fundamental IT education would provide a first step in these areas. For environmental sustainability United Nations Environment Program (UNEP), the Consumer Citizenship Networks (CCN) and the Looking for Likely Alternatives (LOLA) toolkit provide information and know-how. Having joint ventures with the above organizations would be beneficial to MAS and will lean credibility to the efforts.CustomersMany customers are provoke in the CSR projects undertaken by MAS. In MAS communiqus it is possible to include the websites and social networking sites so that the customers can access more information about these projects. Allowing the customers to get involved th rough sponsorship will afford them an opportunity to pass on to their customers or the end customer the knowledge that they are not only receiving guilt free environmentally friendly products but also part of the purchase is going towards community building and the education of the less fortunate. The garments could carry labels such as produced in eco-friendly factories, or your purchase provides for the education of a child in Sri Lanka.Measuring the success of the communications mix for both new community relationshipsIn order to measure the success of the communications mix the standard evaluation criteria must be adapted to reflect the non-profit nature of this venture.Quantitative MeasuresManagements and employees contribution both financially and through time allocation can be easily quantified. That can then be used as an indicator of the success of the marketing communications.In the long run the number of individuals that are retained by MAS that have attended these progra ms can be counted and both the success of the internal communication strategy and the success of the programs can be evaluated.Community awareness can be measured by the number of individuals attending the programs. Also the exams that are held for the individuals and the response to the contests will give an indication of the success of the community communication strategy. Using benchmarking tools that the partners have developed over the years it may be possible to measure the success of the communications that have been carried out.For Government, Partners and Customers the main indication of the success of the communication strategy will be their financial participation. Targets must be set for the anticipated contribution and cadence the success of achieving these targets will give a clear indication of the said success.Hits on the website can also be used to quantify interest and communication success.Qualitative MeasuresFeedback can be obtained from Management and Employees as to their perception of the programs through an e-mail survey.Feedback can also be obtained from the students to ascertain their perceptions and attitudes towards the program. Furthermore community inquiries regarding the program can be accumulated and categorized to measure and determine the success of the communications mix.Conversations with the partners and customers can indicate their observations and thoughts on the endeavor. All this information can be used to measure the success of the marketing mix.RecommendationContinue doing community projects more which will support to sustain the relationship with the community and will also visualize the organization as a good responsible citizenInternally set key performance indicators to measure the amount of CSR projects completed and the quality of the program and the no.of impacts in order to understand value of the programs and can forecast the type programs should given to the communityConduct programs for male members in the company while carrying out women go beyond for the female team members to all employees motivatedManage communication campaigns to the new community groups in a strategic way to attract them to the projects conducted and built trustworthiness among the companyPrepare booklets, including CSR projects that has made a difference in the community and also use modern technology to spread the good will of MAS holdings and attract customersAlways keep the employees informed on the CRS projects that are done by the company and make feel them that they work for a socially responsible organizationImplement a system to collect feedback from all the participants of the CSR projects. Also for new ideas for new projects from employees as well as external groups terminalIts very important to maintain a mutually beneficial relationship all the stakeholders since each of them are directly or indirectly involve with the company. MAS has become one of the best multinational companies in terms of busi ness also in community relationships they have maintained. By establishing a good reputation among the communities they operators, local government, customers also the pressure groups it has been easy to execute their business activities anywhere in the country and the world.ReferencesAppendix 1Company BackgroundIt was in 1987 when the three brothers, Mahesh, Sherad and Ajay Amaleans took their first step to begin as a small entrepreneurial and to make it one of the largest south Asian intimate apparel manufacture and a belligerent sportswear provider in the region. Now a company, with an annual turnover of USD 700 million. MAS Holdings which operates globally includes design studios, and 28 world class manufacturing plants. Thus giving career opportunities for over 45000 people to, excel through their talents and capabilities. MAS Holdings consists of quaternary main divisions namely Intimates, Active, Fabrics, and Investment which are overseen by Corporate Solutions which centra lizes the operation in all four strategic business units. Furthermore MAS Holdings has taken a step forward by launching its own lingerie brand Amante in fall 2007 and have made it their strategy to be the premium lingerie brand in Asian region.Vision and the Mission ofVisionNo.1 preferred partner of the world is leading brands of Intimates Sportswear with a turnover of USD 1Bn by 2010MissionWe provide the worlds leading brands of Intimates Sportswear with reliable innovative design to deliver solutions.Strategic partners and customer portfolioMAS has become one of the strategic vendor for some of the best brands in the world such as Victorias Secret, Nike and Marks Spencer also it services other global brands as Adidas, Reebok, Columbia, Lulu lemon, Banana Republic, Ann Taylor, Lane Bryant, Soma Intimates, GAP and Speedo and much more. Victorias Secret Stores and Nike selected MAS as Vendor Partner of the Year 2006.One of the key factors of MAS success is the ability to forge p artnerships with the leaders if the industry such as The Limited Inc,Triumph International, Speedo International, Stretchline UK, Noyon Dentelles, Prym Intimates Group, Dogi International, Textprint SA and Brandot International.Product range portfolioMAS products can be categorized as below.Competitors of and the market partAs a large manufacturing company MAS has international and local competitors. Internationally competitors would be Ace which is a large intimate manufactures in Hong Kong, Clover, Luen Thai which operates in several countries and Tefrone the main competitor in the seamless market and Brandix apparel which is the local rival.Victoria secret positions MAS as their main preferred vendor and the company is regarded as one of the the top 10 intimate manufactures in the world.Analyzing all the information motioned above its clear that MAS holding is a successfully driven family owned company. The brothers decided to stick to their joint venture criteria of choosing p artners who brought in technology expertise, marketing knowledge or access to certain markets.Background for Best Ethical practicesMAS holdings as a history of ethical business practices that predate the concept of CSR. In addition, it ensures a healthy and safe work place, which regarded as a good business practice. However, the ethical approach to manufacturing is setting the organization apart from the competitive apparel sector. To support the vision of itself developed their own CSR strategy called MAS Go beyond, this program empower the organizations 92% of the female workforce also develop a sustainability-mined n youth, future employees and leaders of the organization.Source Company website, Researches on the web, Company Magazines