FASTECH FASHIONS: A STRUGGLE FOR SURVIVAL
CASE STUDY SOLUTION
e
pl
SYNOPSIS
m
Sa
Fastech Fashions Private Limited (Fastech Fashions) was established in 2017 in Rourkela, India by Abhijeet
Sahoo (Sahoo) and Biswojeet Kiro (Kiro). In 2022, the firm generated an annual revenue of $237,221. 2
Sahoo was motivated by a desire to support traditional Odia weavers and improve their standard of living.
With this goal in mind, Sahoo opened Fastech Fashions, selling T-shirts as the firm’s initial product. The
n
firm subsequently expanded into the sale of school uniforms, traditional handicraft products, professional
clothes, and athleisure. Sahoo strove to encourage weavers by sharing a generous percentage of the profit
tio
and thus improving their living conditions.
The firm faced a setback during the COVID-19 pandemic, but Sahoo overcame this hurdle by diversifying
lu
its product portfolio. Investors put pressure on Sahoo to maximize profits for the company. He, on the other
hand, wanted to invest his company’s profits toward the broader goal of supporting the weavers. Fastech
So
Fashions was now offering several products, but due to the weavers’ profit margins, the organization’s
survival was at risk. Furthermore, Sahoo was under constant pressure from Kiro and the investors. Should
he concentrate on the profitability of his business, or on his primary goal of engaging in philanthropy by
uplifting weavers? How could he overcome the emotional and logical barriers to decision-making? Sahoo
had to figure out what to do and how to go about it as soon as possible.
OBJECTIVES
• Identify the challenges faced by a budding entrepreneur and ways to address them.
• Explain the differences between social entrepreneurship and profit-making ventures.
The Case Solution Starts From page 5
,ASSIGNMENT QUESTIONS
1. What are the challenges faced by budding entrepreneurs? How can these challenges be overcome?
2. Identify the differences between social entrepreneurship and a profit-making entity.
3. As an entrepreneur, should Sahoo focus on profit-making, or on his purpose of supporting weavers?
4. Calculate the CM for a product offered by Fastech Fashions and its effect on the firm’s revenue.
5. What are the emotional and logical barriers faced by leaders when making company decisions? In
what ways can these barriers be overcome?
e
pl
m
Sa
n
tio
lu
So
ANALYSIS
1. What are the challenges faced by budding entrepreneurs? How can these challenges be
overcome?
Entrepreneurs usually face several challenges in the initial stages of their careers. From a personal
perspective to an organizational one, these challenges can be quite demanding. ask
students to make a list of the challenges faced by Sahoo. These challenges can then be placed in the
following categories:
The Case Solution Starts From page 5
,5. What are the emotional and logical barriers faced by leaders when making company decisions?
In what ways can these barriers be overcome?
Making decisions is crucial for a leader’s professional life. Some of these decisions are significant and have
an impact on people’s lives, careers, and well-being. Leaders are bound to commit mistakes along the road.
For decision-making, leaders rely mostly on two innate strategies.17 Human brains employ pattern
recognition for analyzing what is going on, and then respond to that information—or ignore it—based on
emotional barriers retained in earlier experiences (see Exhibit TN-2).
Emotional barriers
Emotional barriers are a process through which feelings and emotions are associated with thoughts and
experiences that are stored in a person’s memory. Previous actions, whether rational or not, are preserved
in an individual’s thoughts with emotional tags, which serve as landmarks that may influence future
thinking. When the brain remembers an event or action, it also recalls the emotion connected with that event
e
or action. This is referred to as “emotional tagging.”18
pl
Logical barriers
m
A logical barrier may be defined as pattern recognition, which is the process of synthesizing information
Sa
n
tio
lu
So
The Case Solution Starts From page 5
, EXHIBIT -1: PRODUCT PORTFOLIOS AND CONTRIBUTION MARGINS IN 2022
Traditional
T-Shirt T-Shirt School
Product portfolio Office wear handicraft Athleisure
(regular) (customized) uniform
merchandise
Quantity of units 8,856 1,552 4,580 7,500 500 245
sold
Cost incurred per $3 $7 $9 $12 $23 $18
unit
Total cost $26,568 $10,864 $1,220 $90,000 $11,500 $4,410
Price per unit $5 $8 $11 $15 $25 $21
Annual turnover
e
pl
m
Sa
n
tio
lu
So
The Case Solution Starts From page 5
CASE STUDY SOLUTION
e
pl
SYNOPSIS
m
Sa
Fastech Fashions Private Limited (Fastech Fashions) was established in 2017 in Rourkela, India by Abhijeet
Sahoo (Sahoo) and Biswojeet Kiro (Kiro). In 2022, the firm generated an annual revenue of $237,221. 2
Sahoo was motivated by a desire to support traditional Odia weavers and improve their standard of living.
With this goal in mind, Sahoo opened Fastech Fashions, selling T-shirts as the firm’s initial product. The
n
firm subsequently expanded into the sale of school uniforms, traditional handicraft products, professional
clothes, and athleisure. Sahoo strove to encourage weavers by sharing a generous percentage of the profit
tio
and thus improving their living conditions.
The firm faced a setback during the COVID-19 pandemic, but Sahoo overcame this hurdle by diversifying
lu
its product portfolio. Investors put pressure on Sahoo to maximize profits for the company. He, on the other
hand, wanted to invest his company’s profits toward the broader goal of supporting the weavers. Fastech
So
Fashions was now offering several products, but due to the weavers’ profit margins, the organization’s
survival was at risk. Furthermore, Sahoo was under constant pressure from Kiro and the investors. Should
he concentrate on the profitability of his business, or on his primary goal of engaging in philanthropy by
uplifting weavers? How could he overcome the emotional and logical barriers to decision-making? Sahoo
had to figure out what to do and how to go about it as soon as possible.
OBJECTIVES
• Identify the challenges faced by a budding entrepreneur and ways to address them.
• Explain the differences between social entrepreneurship and profit-making ventures.
The Case Solution Starts From page 5
,ASSIGNMENT QUESTIONS
1. What are the challenges faced by budding entrepreneurs? How can these challenges be overcome?
2. Identify the differences between social entrepreneurship and a profit-making entity.
3. As an entrepreneur, should Sahoo focus on profit-making, or on his purpose of supporting weavers?
4. Calculate the CM for a product offered by Fastech Fashions and its effect on the firm’s revenue.
5. What are the emotional and logical barriers faced by leaders when making company decisions? In
what ways can these barriers be overcome?
e
pl
m
Sa
n
tio
lu
So
ANALYSIS
1. What are the challenges faced by budding entrepreneurs? How can these challenges be
overcome?
Entrepreneurs usually face several challenges in the initial stages of their careers. From a personal
perspective to an organizational one, these challenges can be quite demanding. ask
students to make a list of the challenges faced by Sahoo. These challenges can then be placed in the
following categories:
The Case Solution Starts From page 5
,5. What are the emotional and logical barriers faced by leaders when making company decisions?
In what ways can these barriers be overcome?
Making decisions is crucial for a leader’s professional life. Some of these decisions are significant and have
an impact on people’s lives, careers, and well-being. Leaders are bound to commit mistakes along the road.
For decision-making, leaders rely mostly on two innate strategies.17 Human brains employ pattern
recognition for analyzing what is going on, and then respond to that information—or ignore it—based on
emotional barriers retained in earlier experiences (see Exhibit TN-2).
Emotional barriers
Emotional barriers are a process through which feelings and emotions are associated with thoughts and
experiences that are stored in a person’s memory. Previous actions, whether rational or not, are preserved
in an individual’s thoughts with emotional tags, which serve as landmarks that may influence future
thinking. When the brain remembers an event or action, it also recalls the emotion connected with that event
e
or action. This is referred to as “emotional tagging.”18
pl
Logical barriers
m
A logical barrier may be defined as pattern recognition, which is the process of synthesizing information
Sa
n
tio
lu
So
The Case Solution Starts From page 5
, EXHIBIT -1: PRODUCT PORTFOLIOS AND CONTRIBUTION MARGINS IN 2022
Traditional
T-Shirt T-Shirt School
Product portfolio Office wear handicraft Athleisure
(regular) (customized) uniform
merchandise
Quantity of units 8,856 1,552 4,580 7,500 500 245
sold
Cost incurred per $3 $7 $9 $12 $23 $18
unit
Total cost $26,568 $10,864 $1,220 $90,000 $11,500 $4,410
Price per unit $5 $8 $11 $15 $25 $21
Annual turnover
e
pl
m
Sa
n
tio
lu
So
The Case Solution Starts From page 5
