American Apparel Case Analysis

Table of Content

Key Facts of the Case ( no analysis )-Who is the determination shaper? ( Remember: in analysing a instance you have to set yourself in the place of the determination shaper and seek to calculate out what YOU would make in his/her place ) . -maximum 5 cardinal facts that summarize the instance.Key Decision MakerBoard of Directors ( AA is a publically traded company )Key FactsAmerican Apparel minimized their usage of outsourced labor.

They localized their fabrication activities and were known for their anti-sweatshop patterns The company was besides praised for their environmentally friendly patterns such as utilizing organic and recycled stuffs in several of their merchandises. and take parting in charitable causes Their advertisement runs stirred up a batch of contention for the company.As some consumers believed them to be excessively sexual and marginal adult Charney ( CEO ) took the ad pictures himself utilizing adult females he found on the streets or his ain employees. As a hiring pattern.

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employees were required to supply full length self-portraits to him Charney brought heat to the company via sexual torment cases and by making a hostile working environment ( utilizing disgusting linguistic communication. walking around in his underclothes. chat uping with employees. etc.

)Problem ( s ) Statement-What is the chief job ( s ) or chance ( s ) that you ( as determination shaper ) must cover with? -How pressing and how of import is this issue and why?Main ProblemThe chief job presented for American Apparel is that there are disagreements between their controversial advertizements and workplace patterns and their positive concern enterprises. which has resulted in a loss of gross revenues for the company. They must find how they are traveling to travel frontward and animate a turnaround.UrgencyReasonably pressingThe company forecast a turnaround by 2015 ( 3 old ages to the hereafter )Problem ( s ) Analysis-What is the background that has led to the job ( s ) ?-What are the cardinal points that the determination shaper must see when calculating out a solution? ( eg.

restraints that limit the possible solutions or chances that could originate ) -If a fiscal analysis is required. sketch that in this subdivision. -Perhaps a different format for analysis is more appropriate? ( eg. SWOT.

PEST. Porter’s Five Forces ) .BackgroundAmerican Apparel strived to advance natural natural beauty. To make this.

they used existent. non-photo-shopped. airbrush-free theoretical accounts in their advertisement runs Their signature advertizements featured adult females in racy outfits and poses Charney took the images himself and either found adult females on the streets or used his ain employees Charney said it was the company’s manner of selling to millennials. aiming modern-day grownups who desired sexual freedom.

and contending against the force per unit areas on adult females to accomplish flawlessness Charney’s strange and inappropriate workplace behaviors made some employees feel uncomfortable SWOT Findingss: The SWOT analysis shows that American Apparel demands to convey the focal point back onto the strengths of the company. They need to remind consumers of the moralss the company was built on and their good will and valuable parts. Their failings chiefly revolve around being excessively overtly provocative. whether this is towards consumers or within the workplace itself.

The company clearly can non go on with this contention. as they risk dominating the positive facets of their concern.Decision Criteria for Solutions-What ends or aims must be achieved by any possible solution to the job? ( eg. Must maximise market portion ) -What constraints limit the scope of solutions ( eg.

Can’t cost more than $ 1 Million )Goals and AimsThe end is to salvage the company’s repute which will in turn stop their money-losing runConstraintsMust non incur farther debtDesignation of Realistic & Practical Alternatives available to the Decision Maker – In most state of affairss there will be at least 3 options. one of which can be position quo. One or two short sentences to depict each. – Each option MUST be a base entirely solution to your job ( s ) .

Alternate 1: American Apparel should fire their current CEO. Dov Charney. and elect a replacing.Alternate 2: American Apparel should alter their advertisement scheme by chanting down their sexual nature and concentrating on their concern strengths to make positive promotion.

Alternate 3: American Apparel should go on with their current advertisement schemes.Charney’s provocative vision and proneness to dirt will go forth the company with him It shows that AA will non stand for sexual torment and inappropriate workplace behaviours The company can convey in a new vision and have a fresh start I do non believe alternate 3 is an option because the unethical advertizements and workplace patterns would probably catch up with the company and truly impact their public presentation in the long tally. The repute of American Apparel would merely go on to deteriorate if nil is changed. which would discourage consumers from shopping at that place.

Alternate 1 is a better way to take than alternate 2 because it truly gets at the root cause of all the issues – Dov Charney. The provocative and controversial advertizements were mostly inspired by the CEO himself. Simply altering the company’s advertisement runs is good and good. but there is no warrant that Charney will even travel for that.

And what’s to state he wouldn’t travel back to his old ways in the hereafter? Besides. alternate 2 doesn’t fix the issue of employee ailments and sexual torment cases that have given the company a bad image. Alternate 1 has the possible to decide both the advertisement schemes and the inappropriate workplace incidents.Gather all certification of Charney’s inappropriate behaviors Review the expiration understanding that was made at the clip of engaging Charney Review the company’s sequence program for the CEO – determine who may be able to take Charney’s topographic point in the interim Seek advocate from the company’s attorneies on the best method to fire Charney.

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American Apparel Case Analysis. (2016, Dec 03). Retrieved from

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