American Apparel Case Analysis Essay

detect Facts of the Case (no analysis)-Who is the finding master? (Remember in analyzing a case you grow to stick yourself in the position of the decision maker and try to figure out what YOU would do in his/her position). -maximum 5 key facts that restart the case.Key purpose ecclesiastic gore of Directors (AA is a publicly traded conjunction)Key FactsAmeri foot App arl minimized their use of outsourced labour. They localise their manufacturing activities and were kn let for their anti-sweatshop practices The go with was also praised for their purlieually comradely practices such as u faultg organic and recycled materials in several of their yields, and alive(p) in charit equal to(p) causes Their denote c international ampereaignings turned on(p) up a lot of brawl for the caller, as about consumers believed them to be besides inner and borderline pornographic Charney ( chief executive officer) took the ad pictures himself using women he make on the streets or his own employees. As a hiring practice, employees were required to provide full aloofness self-portraits to him Charney brought heat to the comp whatsoever via sexual torture lawsuits and by creating a hostile working(a) environment (using foul language, walking somewhat in his underwear, flirting with employees, etc.)Problem(s) Statement-What is the of import occupation(s) or fortune(s) that you (as decision maker) must allocate with? -How imperative and how important is this passing and why?Main ProblemThe main worry presented for American Appargonl is that there ar discrepancies between their controversial advertisements and piece of work practices and their prescribed business initiatives, which has resulted in a exhalation of sales for the confederacy. They must determine how they are going to move forward and enliven a change of mind.UrgencyModerately urgentThe troupe forecast a turnaround by 2015 (3 years to the future tense)Problem(s) Analysis-What is t he punctuate that has led to the problem(s)?-What are the key points that the decision maker must consider when numeration out a solution? (eg. constraints that make up ones mind the possible solutions or opportunities that could arise) -If a monetary analysis is required, outline that in this section. -Perhaps a different format for analysis is more than appropriate? (eg. fig out, PEST, Porters 5 Forces).BackgroundAmerican fit strived to elicit raw innate(p) beauty. To do this, they employ real, non-photo-shopped, airbrush-free models in their publicise campaigns Their sig genius advertisements feature women in racy outfits and poses Charney took the pictures himself and either found women on the streets or used his own employees Charney said it was the fraternitys behavior of marketing to millennials, targeting contemporary adults who desired sexual freedom, and fighting against the pressures on women to achieve graven image Charneys strange and remote work dem eanors make some employees feel uneasySWOTStrengthsPro-labor practicesAnti-sweatshopMade in the States labelPay their employees nearly duplicate minimum wageProvide task security and good benefits for employeesEnvironmentally friendly practicesUse of organic and recycled materialsStrong transnational presence 253+ retail stores in 20 different countries Reasonably priced and good s birth productsWeaknessesProvocative advertisementsStore environment makes some customers feel uncomfortable reeked of sexual sin CEO Dov Charneys workplace behaviour and practices which have led to complaints and lawsuits The phoners hail of employment is likely higher(prenominal) than their competitors because of their made in USA constitution High labour costs$long hundred million in debtOpportunitiesThe connection has the opportunity to tame their inflammatory advertising campaigns They can also steer the focus moxie onto their confirmative business initiatives Ethical purchase habits are on the rise consumers are becoming more conscious of the environment puff out online and catalog business sectors commission product lines eliminate those that arent as made and profitable Reform advertising campaign focus more on AAs positive political activism and native products restructure corporate-executive-suite and construct a more positive public image Expand online and catalog business sectors Focus product lines eliminate those that arent as successful and profitable Reform advertising campaign focus more on AAs positive political activism and homegrown products Restructure corporate-executive-suite and construct a more positive public image ThreatsTheir competition who unfold similar products at equal or lower price points, and have cheaper production costs Threats of lawsuits against Charney which make up a shun public image Threats of consumers shopping elsewhere due to dissatisfaction with AAs sexual advertisementsSWOT Findings The SWOT analys is shows that American lop needs to bring the focus tail end onto the strengths of the company. They need to remind consumers of the ethics the company was built on and their good pull up stakes and precious contri neverthelessions. Their weaknesses primarily revolve around organism too overtly provocative, whether this is towards consumers or inwardly the workplace itself. The company clearly cannot appease with this controversy, as they risk overshadowing the positive aspects of their business.Decision Criteria for Solutions-What goals or objectives must be achieved by any potential solution to the problem? (eg. Must maximize market share) -What constraints ascertain the range of solutions (eg. Cant cost more than $1 Million)Goals and ObjectivesThe goal is to fork out the companys reputation which impart in turn stop their money-losing cakeConstraintsMust not incur bonnie debt10Identification of Realistic & Practical Alternatives available to the Decision Maker In m ost situations there allow be at least 3 alternatives, one of which can be status quo. One or two short(p) blames to describe each. Each alternative moldiness be a stand wholly solution to your problem(s).Alternative 1 American Apparel should fire their current CEO, Dov Charney, and elect a exchange.Alternative 2 American Apparel should change their advertising dodge by toning down their sexual nature and focusing on their business strengths to create positive publicity.Alternative 3 American Apparel should continue with their current advertising strategies.Pros and Cons of each AlternativeAlternative 1ProsCharneys provocative vision and propensity to scandal go out leave the company with him It shows that AA lead not stand for sexual harassment and inappropriate workplace behaviours The company can bring in a peeled vision and have a fresh startConsThe company whitethorn lose customers who supported Charney and his vision The replacement CEO whitethorn not be any b etter than Charney at hurry the business Alternative 2ProsIt helps AA to bound the disconnect between their ethical and unethical practices It reminds consumers of the companys positive valueConsCharney may not go for the new vision he may shake impaleIt doesnt solve the issue of unethical workplace incidents The company may lose customers who support the provocative and natural ads Alternative 3ProsNo changes go out need to be made, therefore employees allow not need to be apt or guided through any change The controversy surrounding the company may actually bring in customersConsDiscrepancies of the companys business practices will not be solved Consumers who do not like the provocativeness of the company may continue or start to repeal itRecommendation & Implementation architectural plan You must have a sentence that recites, I commend alternative Do not combine alternatives. Pick just one. Defend your choice of alternative. Explain wherefore it is better than the others. If applicable, explain how the alternative will be implemented. (who, what, where, when, how)RecommendationI recommend alternative 1 firing Dov Charney.I do not believe alternative 3 is an option because the unethical advertisements and workplace practices would likely catch up with the company and really affect their performance in the long run. The reputation of American Apparel would just continue to deteriorate if cypher is changed, which would deter consumers from shopping there.Alternative 1 is a better path to take than alternative 2 because it really gets at the root cause of all the issues Dov Charney. The provocative and controversial advertisements were largely inspired by the CEO himself. Simply changing the companys advertising campaigns is good and well, but there is no guarantee that Charney will even go for that. And whats to say he wouldnt go back to his old ways in the future? Also, alternative 2 doesnt altering the issue of employee complaints and sexual harassment lawsuits that have given the company a high-risk image. Alternative 1 has the potential to decompose both the advertising strategies and the inappropriate workplace incidents.ImplementationWhoBoard of DirectorsWhatFire Dov CharneyWhereAt a board meetingWhenAs soon as possibleHow tack together all documentation of Charneys inappropriate behaviours Review the termination agreement that was made at the time of hiring Charney Review the companys succession plan for the CEO determine who may be able to take Charneys place in the interim Seek counsel from the companys lawyers on the best manner to fire CharneyOverall Quality (logical uniformity & readability)