Running head: [Shortened Title up to 50 Characters] 1 Strategy and Change Management Plan Jai'Leigh M. Hathaway Southern New Hampshire University
[Shortened Title up to 50 Characters] 2 For the intent of this project, I have chosen to study American Apparel Inc, and the many challenges the company has been faced with. Since 1998 Dov Charney founded the clothing corporation, leading it for many years and even achieving the retailer of the year award in 2008. In its prime American apparel was one of the most prolific fashion entities coming second to the mega Corp that is Nike. With success seeming imminent the eventual financial downfall of American Apparel was unforeseen; I will explain the challenges American Apparel faced during its decline while acknowledging the mission and values of the company. A mission statement explains a company's purpose, for American Apparel this mission is "to make great quality clothes without using cheap "sweatshop" labor and exploiting workers "(Mehta 2016). This mission statement aligns with the company's values which are vision, "passion, intensity, brand-free, sustainable, fair wages, solar power, recycling, creativity and the can-do spirit" (Mehta 2016). The mission, vision and values of a company are important to consider when assessing the challenges that are being presented, when these values aren't upheld things like employee turnover increase leaving the company grasping at straws to fill positions. TOWS Matrix for: American Apparel List of Strengths: 1. established brand name 2. loyal customer base 3. International clientele List of Threats: 1. decreased profits 2. labor termination 3. competition Implement a customer loyalty program that shows appreciation to the standing customer base. friendly, and accessible to a wider audience. List of Opportunities: 1. online sales platform 2. create new merchandise 3. attract new investors Update the existing online sales platform to be more customer
[Shortened Title up to 50 Characters] 3 List of Weaknesses: 1. personal conduct 2. plan implementation staff are appropriately placed in open 3. financial positions. management Appropriately check the background of incoming employees to ensure Utilize the online platform to generate revenue, allowing managers to gain control of the financial crisis. Employee turnover is just one of the many challenges American Apparel faced during its decline. The company also faced with decreased profits seeing a 92% decrease in operating profit and a 93% decrease in net profit in one year (Mehta 2016), as well as the loss of liquidity being saved by bankruptcy by investors at the last possible second. It would be easy to assume that the company only faced financial issues, but they were also faced with competitors growing substantially due to financial power provided by an outsourcing model that allowed the companies to spend less on the clothes they were selling. The company faced threats from the internal and external sources, the stiff competition from others in the apparel industry such as Gap, Urban Outfitters, American Eagle and Express (Mehta 2016), as well as the threat of not being able to recover from the mass termination of