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American Apparel:

 Submit your completed strategy and change management plan. It should include all critical elements of the final project, incorporating all feedback and knowledge gained in the course. 

1 Assignment:Economic Environment 

In 2018 I worked in a soft drinks company where they adopted the recent technology in the production to increase the production rates and the accuracy of the quality of the products. After the introduction of the technology in the company, a large number of people lost their jobs since the tech replaced the labour and was cheaper than the manual production that involved individuals directly. The technological factors are one of the external factors that are increasingly affecting the business organization. The business changes relate to the presence and the development of technology.

The technology increases the supply of the products. The increase in the supply enables the company to keep up with the demand for the soft drinks. The technology enables the company to increase the productivity and the communication between the suppliers and the consumers. The company can cut down the waste as well as keep up with the demands due to technological advancement. The technology also increased the accuracy in production due to the machinery that was more accurate than the human labour and the company was able to cut down the waste again. The company reduced its expenditure in terms of the losses incurred due to poor production. 

It is important to consider the environment while thinking about the strategy change. The supply and demand within the business affect organizational ability. The demand and the supply stimulate each other impacting the prices of the goods and services in the budget. The customer’s interest in specific products exhausts the supply available and increases demand. The demand and supply of goods and services have a high influence in determining the prices of goods and services. The prices of the product are likely to fall if the supply keeps on growing and if the supply keeps on decreasing the prices are likely to keep on growing (Becker, 2017). However, with the market economy, the interest consumers, as well as the companies, produce limits product that matches the demand and the supply and it is used in determining the product development and production.

References

Becker, G. S. (2017). Economic theory. Routledge.

Introduction to Economics; Market Equilibrium and Market Forces

Macroeconomics: Crash Course Economics #5

2 Assignment: American Apparel

American Apparel Company is a clothing Manufactures Company. The company designs its clothing distributes and markets its products. It is situated in North America. It is one of the largest marketing companies situated in Northern America. The mission declaration of American Apparel Firm declares that the company is dedicated to high-quality yields, underling care, confines in the business and art, project and tech. The mission statement indicates that the company ensures they preserve the needs of the workers. The company makes Quality clothes without exploiting the workers (Moor, and Littler, 2014). Most of the company workers have indicated that they remain in the company due to the company’s mission statement. The company manufactures in the US because the states is a vivacious T-shirt arcade globally. That makes the market the most effectual residence to produce the T-shirts. 

Company Vision 

The Vision declaration of the company is a commitment to High Feature Goods through Art, enterprise and tech. The company meets the mission statement through the strategies indicated in the vision statement. The company utilized the technology and passion to cope with the ethical practices within the clothing industry (Keist, 2015). The company has integrated manufacturing, distribution and creative processes that ensure that the company is more efficient in comparison to the companies that rely on the offshore subcontracting.

The company’s culture identifies an exceptional enactment and endorses the performances in the interior. The company embraces the ideas of the workers. The workers have an opinion and they impact the path of the corporation. Through the labors, the company is embraced with several ideas and a high number of innovations through the worker’s creativity. The company ensures that they maintain their worker through ethical practices. They do not exploit the workers due to the labor and transport costs that have been increasing since the company believes it is morally offensive. 

Company Challenges 

The company faces challenges that affect efficiency. The first challenge the company faces is how best the company can reach its evolving customer. The supply chain has become important to consumers due to transparency (Ma, Lee, and Goerlitz, 2016). The consumer does not pay for sustainability since many consumers cannot afford which eaves the brands in a pickle. The costs are then pushed upstream on the consumers or downstream to the consumers if they are not out rightly absorbed by the brands. 

The second challenge that the company faces is how to adapt to the rapidly changing sourcing environment. The apparel source series is founded on big-data gears and artificial intellect tech that are an indication of prospect for style businesses. The business is rapidly shifting in nature fetching more globalized, supply series founded, tech concentrated and data determined in nature.
 

References

Keist, C. N. (2015). Quality control and quality assurance in the apparel industry. In Garment Manufacturing Technology(pp. 405-426). Woodhead Publishing.

Ma, Y. J., Lee, H. H., & Goerlitz, K. (2016). Transparency of global apparel supply chains: Quantitative analysis of corporate disclosures. Corporate Social Responsibility and Environmental Management, 23(5), 308-318.

Moor, L., & Littler, J. (2014). Fourth worlds and neo-Fordism: American apparel and the cultural economy of consumer anxiety. In Cultural Studies and Anti-Consumerism (pp. 192-215). Routledge.

3 Assignment: Introduction and Analysis of Business Environment 

Introduction

The company is a clothing manufacturer is in North America. It was formed by Dov Charney who a prominent businessman in the year was 1989. The company was vertically integrated and ranked as one of the top manufacturers in the North of America. He formed the company when he was just a student. By the time of its formation, the company was not really destined for greatness (Noel, 2015). The idea behind its formation was to sell t-shirts. However, even after ten years down the line the company continued to be featured in the news for many reasons. This paper aims at critically reviewing the setting of American Apparel.

Internal and External Setting of American Apparel

Despite of its initial setup, the company the company was ranked as one of the fastest growing companies in the United States. When the company was starting, it was mainly a wholesale business which was selling blankets that were manufactured ethically as well as t-shirts. Other related garments such as panties were also among the products it sold. However, it better to note that since its early days, the company was still involved in the selling of clothes that had some sexuality elements. The company capitalized on a big market. When it opened its very first store in 2003, it fast expanded its market to 11 countries having opened 143 stores in 2007 (Noel, 2015). During this time, the products of interest were mean accessories, garments. Later on, the company became synonymous with t-shirts, undergarments as well as jeans. The products were moderately an unbranded as well. The strategy it laid promoted a very high demand from young employees. The publications made during this time made it known far and beyond. The founder was as well as one of the youngest entrepreneurs of the year. By developing a strong foundation, the company was able to obtain further boost from Endeavour Corporation which bought the company. 

Although American Apparel was still a new company in the United States, it managed to take on challenges emanating from the larger competitors. The success was largely attributed to its branding using free garments as well as the edgy advertisements it made. At this point the advertisements made by this company were majorly provocative characterized by girls wearing almost nothing. Although criticism from such advertisements was witnessed, this did not pull the company back from its mandate. By the year 2007, the company had developed to become the largest manufacturer of T-shirts in America (Won,Myung-Sim, 2010). It was one the companies that were exporting products that were labeled as “Made in the USA”. At this time the company managed to make sales of up to $125 million of clothing that were domestically manufactured outside the American borders. However, as company progressed, it created an internal hostile environment which subjected it actual acts dominated its markets ranging from the advertisements made to the controversies surrounding the CEO and the founder.

Conclusion

From the above context, it is evident that American Apparel had sufficiently developed its internal and external setting. The coordination that existed in the company when it begun promoted its success. The huge investments made by the company on creation of advertisements created awareness of its existence beyond the boundaries of America. Although it was surrounded by many controversial deeds, it had established a successful environment.

References

Noel, H. (2015). Branding Guilt: American Apparel Inc. and Latina Labor in Los Angeles. Diálogo, 18(2), pp.37-52.

Won,Myung-Sim (2010). American Apparel Industry’s Niche Market Strategy: Tween Apparel Industry. Journal of Korea Design Forum, null(29), pp.7-20.