MAS Holdings

Student Name – Kavinda Thilakawardena

Module Name – Business Strategy
Module Code – BM5155

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Content
1.0 Introduction...........................................................................................................................................3
2.0 Strategic Purposes.................................................................................................................................4
2.1 Vision................................................................................................................................................4
2.2 Mission..............................................................................................................................................4
2.3 Objectives and Goals.........................................................................................................................4
2.4 Company Profile – MAS Intimates....................................................................................................5
2.5 Values and Culture............................................................................................................................5
3.0 Stakeholder influences and planning.....................................................................................................7
i. Internal Stakeholders.......................................................................................................................8
3.1 Minimal Effort (Low interest, Low power)....................................................................................8
3.2 Keep Informed...............................................................................................................................8
3.3 Keep Satisfied................................................................................................................................8
3.4 Key Players....................................................................................................................................9
ii. External Stakeholders....................................................................................................................10
3.5 Customers....................................................................................................................................10
3.6 Government, Employees & Community......................................................................................10
3.7 Strategic alliances........................................................................................................................10
4.0 Internal Environment...........................................................................................................................11
5.0 External Environment..........................................................................................................................16
7.0 Conclusion...........................................................................................................................................23
8.0 References...........................................................................................................................................24

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1.0 Introduction
MAS is a pioneer of premium clothing in association with prestigious brands across the world
with the largest manufacturing facility in the world whilst dominating the local apparel market,
simultaneously. It focuses on the fields of intimates, athletic wear, and sportswear. Strategic
agreements with international corporations Victoria's Secret and Nike, as well as world-
renowned brands including Marks and Spencer, DBA, lululemon, Soma, Columbia Sportswear,
Ralph Lauren, and Banana Republic, are among MAS's customer portfolio. Global design
studios have become a critical value addition for MAS, and the company is converting into a
lean enterprise, bringing speed and agility to customers, by incorporating lean manufacturing
principles through the MAS Operating System (MOS).

Strategy is a quintessential victory component towards profit. Strategy defines an organization,

the purpose whilst providing maximum direction at minimum cost. Building strategy may appear
as a luxury yet with growth it poses more potency in the recipe of wider profit margins. With
strong labour, MAS has managed to create stronger customer relationships of higher productivity
and low turnover. As MAS ‘takes work to workers’, i.e., providing maximum flexibility and
convenience, the dominance over the socio-economic faculty remains stronger.

The following report entails the strategic components that route to the success of MAS Holdings
using multiple theories, detailed analysis and references from published academic criteria. The
report covers my internship at MAS Intimates and a basis application of understanding and
factual theory to support the following paper.

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2.0 Strategic Purposes
2.1 Vision
To be a pioneer in consumer-driven innovation, acknowledging human capital, the environment,
and financial stability as critical pillars for sustainability.

2.2 Mission
To empower people to make a positive impact on the world.

To innovate products that are both human-centered and sustainable.

Collectively, to develop relationships in order to excel and accomplish ambitious profitable

growth.

(n.d.).

2.3 Objectives and Goals

- Facilitate end-to-end, online, and real-time information and data integration of MAS entities
with the value chain, including customers, logistics providers, and vendors.

- Improve ease-of-use and automation, allowing for improved control, cost savings, and more
efficient time-saving techniques.

- Utilize a single platform to ensure operational excellence for both MAS management and all
system users.

Goals - MAS management defined two primary strategic targets. By 2025, MAS intends to
dominate the position of apparel exports in Africa and the Middle East. By 2025, MAS focuses
on being the primary supplier to the well-known brand NIKE.

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2.4 Company Profile – MAS Intimates

The company was found in 1987, and currently is renowned for the garments and disposables
produced. Over the last three decades, MAS Intimates has become a preferred partner of global
brands such as Victoria's Secret, PINK, La Senza, Calvin Klein, Marks & Spencer, Gap, Athleta,
Hanes Brands International, Soma, Thinx, H&M, MeUndies, and Tchibo due to its continuous
spirit of innovation in product, service offering, and process. MAS Intimates employs
approximately 37,000 people worldwide, with design and development headquarters in New
York, Hong Kong, London, and Sri Lanka, as well as 14 manufacturing plants in Sri Lanka,
Bangladesh, India, Kenya   and Indonesia (2011).

2.5 Values and Culture

Values Core strength Culture

Honesty and Integrity People Entrepreneurial & creative

Humility Partnerships Collaborative Teamwork

Passion for Excellence Product Focus Prudently Aggressive

Freedom with Accountability Process Participative Management

Trust and mutual respect Profitability

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2.6 MAS Intimates Pvt. Ltd
Subletted under MAS Holdings, the center of Intimates, specialized in intimate wear is in
Ratmalana. Members of Intimates partner association are,

- Victoria’s Secret
- Pink
- La Senza
- Calvin Klein
- GAP
- Marks & Spencer
- Athleta
- H&M
- MeUndies
- Thinx
- Tchibo
- Hanes Brands International
- Soma

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 3.0 Stakeholder
influences and planning
Stakeholders are defined as those who are interested in the organizational strategy. Stakeholders
comprise of customers, shareholders, suppliers etc. As a grass root of business strategy, it is vital
for MAS Intimates to treat their stakeholders, justly. Audrey Mendelow introduced a Power vs
Interest Matrix to understand the importance of stakeholders and their interest and influence in
the organization.

Interest
Low High

Low Minimal Effort Keep Informed

- Contractors (Janitors, - Logistics sector
Security, Canteen staff) - IT staff
- Contract Staff (Drivers - Merchandizers and
and others) Planners
- Interns and trainees - Community
- Customers - Government
Power
- Employees
Keep satisfying Key Player
- MOS Staff - Directors
- Consultants - Operational Staff
- Finance team - Management
- HR and Admin staff
- Strategic alliances
High

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 MAS Intimate’s Mendelow’s Matrix

i. Internal Stakeholders

3.1 Minimal Effort (Low interest, Low power)

Contractors such as Janitorial, Security, and Canteen will not be actively involved in the business
and will instead follow management's instructions. Similarly, contract employees, such as
drivers, are hired for a specific duty and then terminated from the company. Trainees and interns
are another category with low interest and power as a result of their limited involvement in the
business process.

3.2 Keep Informed

While reaching their KPIs of 100% on-time fulfillment and 0% complaints, Logistic has a higher
degree of interest in the business. To manage the milk run system according to the minimalist
principle, they require additional information on shipments and deliveries. Support workers, such
as Quality, Lab, IT, Work Study & Engineering, and others, are more interested in improving
business efficiency and effectiveness by installing or upgrading new systems. However, they
have less power to influence decisions. Merchandisers and planners are two more categories who
are more interested in the business because their ultimate purpose is to satisfy the end customer's
needs. However, they have limited authority to make SBU choices and assist the business with
their limited resources because they are solely involved in the sampling process, procuring raw
materials, and loading plants based on availability.

3.3 Keep Satisfied

Finance has a little interest in the firm because they are solely responsible for the accountancy of
the plant's spending. However, because they are putting out the organization's financial
strategies, they have a lot of clout in influencing decisions. Consultants, on the other hand, have
more clout in influencing decision-making when it comes to proposing processors and offering
new technologies and processes to the organization. Even while the impact on MAS is bigger

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when considering the SBU, the impact on direct business is minimal due to processers and
standards. MOS's primary responsibility is to ensure that SBU processes and standards are
followed in a lean manner. MOS has more leverage in decision-making and has little interest in
direct business.

3.4 Key Players

Directors have more influence in the commercial world, especially when it comes to the SBU's
business strategy and profitability. As a result, they are more interested in business and have
more ability to make choices and implement them throughout the SBUs, which may range from
one to the other depending on the business model. Management will have an impact on the
profitability of SBU through influencing the implementation of strategies advised by consultants
and MOS personnel. Since MAS is used in the service business, the HR & Admin department
becomes a significant role because they oversee managing human capital, which is the most asset
in this industry. HR decisions have an impact on staff motivation, productivity, and labor churn.
As a result, HR has more decision-making authority over HR-related concerns as well as
business models. Operators, as the textile industry's most-valuable asset, can have an impact on
decisions because all decisions are made with the operator's behaviors and attitudes in mind. If
decisions are made that negatively affect the operators, the result may be a less motivated
workforce and higher labor turnover, which will have an impact on the SBU's efficiency and
profitability.

(n.d.).

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 ii. External Stakeholders

3.5 Customers
Customers can be classified as stakeholders with minimal power and interest. Customers, in any
case, have little leverage against a firm unless they are organized against it. Customers will also
be less interested in the company's operations if they receive their product or service from it.

3.6 Government, Employees & Community

Both these parties have strong interest towards the corporation but not much power because of
hierarchical aspects (employees) and privatized affiliations conducted, i.e., lesser influence over
the organization. However, they must be kept informed of decisions made as it impacts their
distinctive processes. The community the corporation exists within are offered occupational
possibilities and growth, personally and economically, which stirs significant interest yet not
high influence. However, it is key to keep the community aware of the company’s activity to
ensure they loyalty to the company remains constant.

3.7 Strategic alliances

These stakeholders carry strong influence and stronger interest as they are in direct affiliation
with the organization. Each change made requires conversation and involvement from initiation.
As they are the ‘main customers’ prior to publicity, the involvement in and out of procedures
remain high.

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 4.0 Internal
Environment
Porter's Value Chain examines systems and how inputs are transformed into consumer-purchased
outputs. Mas Apparel's value chain is part of the industry's bigger value system, which includes
businesses that are either upstream (suppliers) or downstream (distribution channels), or both.
The following is MAS Holding’s value chain system of resources, capabilities and competencies
in the line of apparels (n.d.).

Firm Infrastructure
(Finances, Planning, Investor relations)
Value
Human Resource Management
Supporting Activities What
[Grab your reader’s attention with a great quote from
(Recruiting,
the documentTraining,
or use thisCompensation)
space to emphasize a key buyers
are
Technology Development willing
to pay
(Product design, Process design, Market research)

Margin
Procurement
(Service, Advertising, Machines, Data)

Inbound Operations Outbound Marketing After

Logistics Component Logistics and sales sales
Customer creation, brand Order Sales force,
services
access, Data management processing, promotion,
and assembly Installation,
collection, warehousing, advertising,
data customer
Incoming proposal support,
preparation
material writing, complaint
storage, website resolution,
service repair

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Primary Activities
 Primary Activities
- Inbound Logistics - These Mas Apparel tasks relate to receiving, storing, and dispersing
product inputs. Material handling, physical product warehousing, and architecture to
accept and store client information for a digital media corporation are all possibilities.
Mas Apparel currently outsources most of its inbound logistics.

- Operations - Activities that aid in the transformation of raw materials into final goods.
For the purposes of this article, the term "plastic molding" refers to the process of
molding plastic to create items, as well as the use of customer data to offer adverts to
clients based on their usage patterns.

- Outbound Logistics - These actions are carried out by Mas Apparel in order to deliver
finished products to channel partners and final buyers. Order fulfillment, warehousing,
distribution network, processing, and scheduling are all examples of outbound logistics
tasks.

- Marketing and Sales - Mas Apparel engages in these operations in order to provide a
mechanism for a buyer to purchase a company's products. Channel selection, advertising
and promotion, marketing, sales force management, pricing, and so on are examples of
these tasks.

- After Sales services - Mas Apparel must give after-sales services and maintenance for the
product to be used successfully. Mas Apparel's service activities may include product
forward and backend software alignment, part supply, training, post-sale maintenance,
and installation services (n.d.).

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 Supporting Activities
- Firm infrastructure – The physical layout of the faculties uses Lean, Kaizen and Total
Quality Management. Well established processes and rules exist that requires strong
adherence. Mas Apparel, for example, manages finance and planning at the corporate
level, while quality management, accounting, and legal issues are handled at the business
unit level.

- Human Resource Management – MAS provides the best tools to portray strong and fair
treatment towards their employees as they are the pride and power of the organization.

- Technology Development – Feature design, process engineering, field-testing,

component design, and technology selection are all examples of technology development
at Mas Apparel. Some examples are sweat absorbing materials, heart rate monitoring
fabrics and high performing shoes.

- Procurement – Most customers specify of their preferred vendors. MAS complies, bears
the cost yet quotes the tax of payment from the customer.

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 VRIO model – MAS Holdings (Intimates)

The VRIO framework is a technique that can assist in identifying the

aspects of an organization that provides a long-term competitive edge.

Resources Value Rare Imitation Organization Competitive

Advantage
Ability to Manage Yes No Can be imitated by Yes Not a critical
Regulatory and competitors factor
Legal
Requirements
For a successful Yes Yes. Other Can be imitated by Yes Provides a
execution, MAS competitors must competitors sustainable
needs access to attempt to competitive
critical raw understand the advantage
materials. firm's market
dominance
Retailer and Yes, MAS has Yes, it has Difficult to imitate Yes, and it was Sustainable
wholesaler strong relations dedicated channel but not impossible used effectively Competitive
position – firm with retailers and partners Advantage
name retail wholesalers
strategy
Customer Yes, more than Yes, the company Attempted yet The company is Providing strong
network and 84 percent of has put money into deemed making competitive
loyalty sales revenue developing a solid unsuccessful effective use of advantage
comes from 23 consumer base. consumer
percent of loyalty.
customers.
Intellectual Yes, to thwart Yes, IPR and other Risk of imitation is Till now, the Providing strong
property, competition rights are less low however, company hasn't competitive
copyrights and prominent, so given the industry fully used its advantage

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trademarks competition cannot margins, intellectual
copy disruptions are property and
high other assets.
Financial Yes No All the closest Sound financial Temporary
resources rivals have access status Competitive
to financial Advantage
instruments and
market liquidity.

(Edwards, 2018)

In summary MAS’s strengths and weaknesses are as follows:

Strengths Weaknesses
- Number one apparel and intimate wear - High employee turnover rate
manufacturer in South Asia
- Strong brand name and loyalty - Limited funds for expansion as it is a
- Skilled Employees private corporation
- Superior technology
- Strong brand name and loyalty

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 5.0 External
Environment
PESTLE Analysis
This model helps to analyze the macro environment to find new opportunities and threats.
Enables contingency plans and other precautionary actions to be taken. This identifies the
political, economic, socio-cultural, technological, legal and environmental effects on the
business.

Political Economic Socio-cultural Technological Legal Environmental

Government policies Volatile Attitudes Automation Maximum - Waste
regarding international exchange rates toward reduces working hours Management –
trade affecting Authority - production What is the
revenues Varied cultures costs and potential market's
have different increases waste
attitudes toward productivity management
authority in policy, and how
different parts can Mas Apparel
of the world. meet the market's
Before waste
initiating a management
marketing requirements?
campaign for
its products and
services, Mas
Apparel should
thoroughly
assess the
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 attitude toward
authority.
Political instability in Shifts in Demand Power structure Advanced Minimum wage - Recycling
the operating countries from the Goods in the society technology rates Policies —
(Bangladesh) to the Service based on provides a recycling policies
Economy – In income competitive in the target
comparison to the edge to the market and how
manufacturing, organization Mas Apparel can
products, and comply.
agriculture
sectors, the share
of services in the
economy is
steadily
expanding.
The government has a Inflation between Birth rate is a Pace of - Securities How
strong track record of the affiliated strong trait to technology Legislation – Environmental
adhering to countries determine leads to What is the Regulation
international treaties affecting the future demand employee country's Affects Industry
signed with a variety production cost redundancy securities law, Absolute Cost
of foreign partners. due to the raw and what are the Advantage
This is ensuring that material cost requirements for Dynamics
the rule of law and increase listing a
regulations are company on a
consistent. national or
regional stock
exchange?

Trading blocks of Income and Gender Unity Mas Apparel's - Protection of

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NAFTA curtailing the Savings Rate of in the technology Intellectual
export opportunities of Households – Workplace Mas transfer and Property Rights
Sri Lanka People don't have Apparel can licensing Mas Apparel
enough money to utilize the difficulties - the should analyze
save, thus the gender mix of laws and the amount of
culture of saving the labor culture of IPR protection that
has been crushed. market to and other intellectual
Mas Apparel determine the digital asset property rights
must be cautious society's level licensing receive under the
while developing of liberality, should be country's legal
a marketing plan women's rights, thoroughly system.
that relies on and women's examined so
"Purchase on voice in that Mas
Credit" customer societal Apparel can
behavior. concerns and avoid
purchasing shakedowns
decisions. and IPR thefts.

Tax benefits given by - Cost of - Judiciary

the BOI (reduced tax Production and Independence
rate of 14%) (BOI, Trends – Mas and Government
2021) Apparel should Relative
determine what Influence –
the economy's Judicial
cost of independence
production frequently
trends are, as reflects the
well as the strength and
extent of trustworthiness
automation. of the country's
Manufacturing institutions.

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 and production,
we believe, will
be the industry
most disrupted
by
technological
innovation in
the near future.
(n.d).

Porter’s Five Forces

Porter's Five Forces is a framework for examining the competitive environment of a company. A
company's profitability is influenced by the quantity and power of its competitive rivals, possible
new market entrants, suppliers, consumers, and replacement products.

Rivalry Threats of new Threat of Bargaining Bargaining

(High) entrants substitutes power of power of buyers
(Medium) (Low) suppliers (Medium)
(Medium)
Number of Economies of Scale Changes in customer Customers Powerful customers
competitors – High experienced by preference to brands sometimes have as they are
Brandix, Penguin, MAS acts as a that are not preferred vendors international
Hayleys, Orit barrier for entry manufactured by which creates companies with
Apparels, Jay Jay MAS can recede the inevitable demand strong bargaining
Mills Lanka) orders received by power
the organization
Relatively High Difficulty to obtain Customer propensity The process Expectation is
capital investments international orders to substitute is demands high speedy, high-quality
must be made relatively lesser due quality fabric, fabrics and garments

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towards due to inexperience to loyalty and lack of skilled labour and that cannot be
technology to desire to share trade smart technology purchased elsewhere
discourage secrets with different
competition. vendors
Government MAS has its own
encourages more fabric mill as well
entrants to expand
industry potential,
where entrants are
welcomed

(Ariyadasa et. al, 2014)

In summary of MAS’s opportunities and threats:

Opportunities Threats
- Exporting support policies by - Volatile exchange rates hinder sales
government
- Devaluation of the rupee cheapens the - Constant change of government
price of the product internationally, policies in terms of foreign trade and
allowing higher sales and a more severe competition from overseas
diversified market vendors
- Opportunities to expand - Political instability in the domestic
country discourages other nations to
trade with Sri Lanka

6.0 Business Position

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(BCG Matrix)
The BCG Growth Share
Matrix is a highly useful
tool for analyzing Mas
Apparel's strategic
positioning and strategic
possibilities in the many
industries in which it
operates.

Not only should the

BCG analysis include
the industry's growth
share and the Mas
Apparel business unit,
but also Mas Apparel's
total profitability, debt
level, debt-paying
capability, growth potential, expansion expertise, shareholder dividend requirements, and overall
competitive strength.

In the BCG matrix of MAS Holdings Strategic Corporate Social Responsibility in the Apparel
Industry, the financial services strategic business unit is a star. It works in a market that has the
potential to grow in the future. This SBU contributes a large amount of revenue to MAS
Holdings' Strategic Corporate Social Responsibility in the Apparel Industry. As this Strategic
business unit has potential, it will be able to produce higher earnings as a result of this. For this
SBU, MAS Holdings' Strategic Corporate Social Responsibility in the Apparel Industry should
implement a product development plan, in which it produces novel features on the product
portfolio through research and development. By attracting more clients and increasing sales,

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MAS Holdings' Strategic Corporate Social Responsibility in the Apparel Industry will be aided.
In the next five years, the total category is predicted to increase at a pace of 5%, indicating that
the market growth rate will remain high. To break into the market, MAS Holdings' Strategic
Corporate Social Responsibility in the Apparel Industry should employ its current products. This
might be accomplished by increasing its distribution channels, which will allow it to reach out to
hitherto untapped markets.

In the BCG matrix of MAS Holdings Strategic Corporate Social Responsibility in the Apparel
Industry, the supplier management service strategic business unit is a cash cow. This has been in
operation for decades and has generated significant money for MAS Holdings Strategic
Corporate Social Responsibility in the Apparel Industry. Although MAS Holdings Strategic
Corporate Social Responsibility in the Apparel Industry has a large market share, the total
market is shrinking as firms manage their suppliers instead of outsourcing them. The proposed
plan for MAS Holdings' Strategic Corporate Social Responsibility in the Apparel Industry is to
stop investing in this business and continue to operate this strategic business unit as long as it is
profitable.

In the BCG matrix for MAS Holdings Strategic Corporate Social Responsibility in the Apparel
Industry, the local foods strategic business unit is a question mark. Consumers are increasingly
focusing on local foods, according to recent market trends. As a result, this market is
experiencing rapid growth. In this area, however, MAS Holdings Strategic Corporate Social
Responsibility in the Apparel Industry has a small market share. Investing in research and
development to come up with novel features is the advised strategy for MAS Holdings Strategic
Corporate Social Responsibility in the Apparel Industry.

Synthetic fibre products strategic business unit is a dog. The market for such products has been
falling, and as a result, MAS Holdings' Strategic Corporate Social Responsibility in the Apparel
Industry has been losing money for the previous three years. It has a market share of less than
5% as well. To avoid future losses, MAS Holdings' Key Corporate Social Responsibility in the
Apparel Industry recommends divesting this strategic business unit (Morgan, 2018).

7.0 Conclusion
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It was a fantastic opportunity to work in a competitive and diverse atmosphere. I was fortunate
enough to be chosen as an intern at MAS Intimates. Their unique sustainable development model
has propelled them to the top of the commercial world, despite fierce competition. The garment
sector has remained robust to date, thanks to market leader MAS Holdings' commitment to the
society and the country's earnings. The above theories and formats explain in diverse detail of the
current status and its greatest potentials for it to further dominate the rest of the world’s apparel
sectors in the longer run.

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8.0 References
1. Ariyadasa et. al, 2014. MAS Holdings PVT LTD. [online] forbes.com. Available at:
<http://forbes.com/sites/jessicahagy/2016/08/25/the-three-laws-of-emotion/
#4ca00762462f> [Accessed 24 February 2022].
2. Edwards, Z., 2018. VRIO Analysis of MAS Holdings Providing Design to Delivery
Solutions to the Global Apparel Industry. [online] Case48. Available at:
<https://www.case48.com/vrio-case/4078-MAS-Holdings-Providing-Design-to-Delivery-
Solutions-to-the-Global-Apparel-Industry> [Accessed 23 February 2022].
3. EMBA Pro for Executive MBA Professionals. n.d. MBA PESTEL : MAS Holdings:
Strategic Corporate Social Responsibility in the Apparel Industry PESTEL / PEST
Analysis. [online] Available at: <https://embapro.com/frontpage/pestelcase/7792-mas-
apparel> [Accessed 23 February 2022].
4. Investsrilanka.com. 2021. Investment Incentives – Investment Opportunities – Board of
Investment of Sri Lanka. [online] Available at: <https://investsrilanka.com/investment-
incentives/> [Accessed 25 February 2022].
5. Mindtools.com. n.d. Porter's Value Chain: Understanding How Value is Created Within
Organizations. [online] Available at:
<https://www.mindtools.com/pages/article/newSTR_66.htm> [Accessed 22 February
2022].
6. Morgan, S., 2018. BCG Matrix and VRIO Framework for MAS Holdings Strategic
Corporate Social Responsibility in the Apparel Industry. [online] Case48. Available at:
<https://www.case48.com/bcg-case/7792-MAS-Holdings-Strategic-Corporate-Social-
Responsibility-in-the-Apparel-Industry> [Accessed 24 February 2022].

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7. Our Purpose | MAS - Change Is Courage. Retrieved 12 February 2022, from
https://www.masholdings.com/our-purpose.html
8. prezi.com. n.d. MAS Holdings Pvt Ltd. [online] Available at:
<https://prezi.com/fy4g4mzbprj4/mas-holdings-pvt-ltd/> [Accessed 23 February 2022].
9. Slideshare.net. n.d. Mas (2). [online] Available at:
<https://www.slideshare.net/PerinpanathanRajkumar/mas-2-42704839> [Accessed 19
February 2022].

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