Far Eastern Textiles Ltd., now a large company in Taiwan, is a successful refugee from Communism. Originally incorporated in Shanghai in 1942 by Hsu Yu-hsiang, Far East relocated to Taiwan when the China Mainland fell. "Honesty and Industriousness First" is still the company's motto, carried forward by Hsu's 39-year-old son Douglas Tong Ssu—now general manager.
With an advanced degree in economics from Columbia University in hand, the younger Hsu took over overseas marketing. When the world economy slumped in 1978, Far East had developed markets in over forty countries, reaping a record US$100 million in sales; in 1979 the figure was $147 million; last year's overseas sales amounted to US$156 million, earning a lot of foreign exchange for China. His marketing successes won him his present position as general manager.
One of Hsu's major management guidelines is that business must "do the right things at the right times." A clothing manufacturer must keep up with changes in clothing colors and fashions. "You must be able to predict market trends and understand consumer psychology in order to make correct and profitable decisions," says Hsu.
He uses computer analysis techniques to help survey and develop overseas markets. Each step taken must be seen as pointing out the next steps: "The results of a decision may not be immediately clear but may be the basis for future developments.
Recently, Hsu led a group to Eastern Europe to investigate export possibilities. He found economic conditions and living standards under severe limitations, indicating limited market potential and a risky venture. Hsu must carefully weigh the pros and cons, never forgetting the sharp competition in all the company's present markets.
The manufacturing-production process at Far East, from raw material to finished product, requires five months. This lead time places a burden on predictions and future decisions. In that time, almost anything can, and does, happen—for example, costs almost tripled during the 1979 oil crisis. Far East still supplied goods ordered at the originally agreed-upon prices. It suffered a loss, but weathered the storm.
Hsu feels systematization must be extended within the company to raise efficiency and production levels. He counts on psychological methods to keep open lines of communication between his employees and himself and assure sensitive management. New training programs have been set up in the company to offer improvement opportunity. Company policy prohibits strong action against employees not involved in very serious offenses. These and other policies ensure smooth internal functioning of the business through enhanced employee loyalty.
Hsu must keep up with business developments by constantly reading a number of Chinese and English publications. Since the telephone began to replace correspondence and telex, he has felt compelled to work constantly on business and technical English skills.
One of Hsu's ultimate goals is large-scale introduction of Chinese type designs to Western consumers. He desires not just to produce Western designs, but to influence the Western market. In this way, not only will a larger market be possible for Far East, but the country's influence and prestige will be enhanced as well.
[Picture Caption]
1. The Manager of FETL, Hsu Dung. 2. A view of one of FETL's factories, surrounded by employee athletic fields. 3. Constant improvements in design keep FETL products i n fashion. 4.5. Automated looms.
FETL is actively concerned about the welfare of its workers. 1. Recreation facilities for employees include a swimming pool and modern athletic equipment. 2. Just opened this year, the factory infirmary is inexpensive and services, excellent. 3. An amusement park.
A view of one of FETL's factories, surrounded by employee athletic fields.
Constant improvements in design keep FETL products i n fashion.
Recreation facilities for employees include a swimming pool and modern athletic equipment.
Just opened this year, the factory infirmary is inexpensive and services, excellent.
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