...Grand Jean is a company which has been in business for many years and manufactures various types of jeans. It is one of the largest clothing manufacturers in the world with dominant product – blue denim jeans. The demand for firm’s product over the years has been stable due to reasonable price and good quality. Grand Jean uses an outsourcing strategy in production by contracting with independent manufacturers to expand supply to match growing global demand. At corporate level, Grand Jean Company is a single industry firm, whose main goal as the whole is to maintain its leadership in the market as a manufacturer of jeans and also is to increase firm’s profitability and growth. The goals of the company are different from the company’s marketing organization goals and the company’s 25 managers of manufacturing plants goals. The reason so, is because the marketing department is treated as a “Revenue Centers”, while the firm’s 25 plants are treated as “Expense Centers”. The goals of “Revenue Center” are to sell manufactured goods and to maximize revenue. Furthermore, marketing department is responsible for making product demand forecasts which are used to set sales unit and sales dollar targets. Whereas, the goals of “Expense Centers”, manufacturing plant, are to meet the budget, achieve cost efficiency, achieve good product quality, and reach the quota that is assigned to each plant. In Grand Jean’s case, the “Expense Centers” would be considered as an Engineered Expense Centers...
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...1.How would you describe the goal(s) of the company as a whole? Is this, or are these, the same as the goal(s) of the company’s marketing organization and the company’s 25 managers of manufacturing plants? Explain. Ans. The main objective of the company is to increase profitability and achieve high growth. The company is striving hard to achieve cost effectiveness and achieve high level of quality. Now, the goals of the company’s marketing organization and company’s 25 managers of manufacturing plant are different. The marketing division is treated as a “Revenue Centre” so the goal of the company’s marketing organization is to maximize revenue and sell what is produced. They are evaluated on the basis of meeting the set sale unit and sales dollar targets. Also, they are responsible for making demand forecasts which are used to decide the production levels of each plant. Whereas, the manufacturing plant have the goal to just meet the budget figure and fulfill the quota allocated to each plant. Since they are considered as an expense center and there is no immediate monetary reward to compensate for increase in responsibilities or requirements, they are not concerned to achieve higher efficiency and thus, want to exceed the targets. 2.Evaluate the current management planning and control system for the manufacturing plants and the marketing departments. What are the strengths and weaknesses? Ans. By 1989, the company was one of the world’s largest cloth manufacturer. Following...
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...Grand Jean Company Gambaran Umum Perusahaan Grand Jean Company didirikan pada pertengahan abad ke-19. Perusahaan ini dapat bertahan ditahun-tahun sulit disebabkan oleh produk blue denim jeansnya yang mendominasi pasar. Grand Jean Company telah menjadi market leader dengan varisai produk unggulannya yaitu “wash-and-wear”, bell-bottom, flare jeans dan celana modern casual. Pada tahun 1989 perusahaan ini merupakan salah satu perusahaan manufaktur pakaian terbesar didunia. Perusahaan memiliki reputasi menhasilkan celana yang berkualitas dengan harga yang baik dan tahun lalu perusahaan menjual 40 juta celana. Perusahaan memiliki 25 pabrik. Kapasitas tiap pabrik berbeda tetapi rata-rata produk yang dihasilkan 20.000 celana per minggu. selain 2 atau 3 pabrik yang hanya memproduksi blue denim jeans, Seluruh pabrik memproduksi bermacam-macam jenis produk. untuk menambah kapasitas produksinya perusahaan merekrut pabrik dari luar, saat ini terdapat 20 pabrik luar (memproduksi sepertiga dari keseluruhan produk yang djual produk) yang memproduksi berbagai macam produk Grand Jean Company termasuk blue denim jeans. Tom Wicks (vice president untuk production operation) dan para stafnya yang membuat perjanjian kerja kepada pabrikan luar. Ia menentukan harga maksimum yang perusahaan akan bayar kepada para kontraktor luar dan jika kontraktor tersebut dapat memenuhi standar perusahaan maka akan dibayar sesuai harga maksimum tetapi jika tidak maka akan dibawah harga maksimum sampai kontraktor...
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...| PEMBAHASAN KASUS SPM | | GRAND JEAN COMPANY | Latar Belakang Grand Jean Company didirikan pada pertengahan abad ke-19. Perusahaan tersebut tetap bertahan menghadapi tahun-tahun penuh kesulitan dan pada tahun 1929 mengalami depresiasi besar akibat dari daya tahan pasar pada produk yang dominan tersebut-Jean Blue Denim. Gran Jean menguasai pasar dengan “wash-and-wear” , bell-bottom, dan jean flare, serta celana panjang kasual modern. Pada tahun 1989 perusahaan ini menjadi manufaktur pakaian terbesar didunia. Perusahaan tersebut menyediakan bermacam-macam baju dan pakaian jean untuk pria dan wanita dan celana panjang wanita dengan jenis yang lengkap. Produksi Perusahaan memiliki 25 manufaktur celana panjang. Kapasitas celana panjang bervariasi, tetapi rata-rata output yang dihasilkan 20.000 celana panjang per minggu. Dengan pengecualian dua atau tiga celana panjang yang diproduksi hanya jean blue denim, celana yang dihasilkan berbagai tipe celana panjang. Perusahaan meningkatkan kapasitas produksinya dengan kontrak manufaktur bebas. Sekarang ini ada 20 kontraktor membuat segala jenis celana panhang Grand Jean (digolongkan dalam jean blue denim). Tahun lalu kontraktor memproduksi satu-tiga jumlah penjualan celana oleh Grand Jean. Tom wicks, wakil direktur untuk operasi produksi memberikan pendapat perusahaan menggunakan kontraktor luar. “Sebagian besar kontraktor ini telah bekerja sama dengan kita selama lima tahun atau lebih. Beberapa dari mereka telah memberikan...
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...struktureras grupper efter kunskap eller processer. En risk med den här strukturen är dock att grupperna lätt kan ha egna mål och inte prioriterar organisationens intressen. Ev lösning: Fördela om hiarkierna, så en från varje fabrik har lite mer ansvar och inblick i företagets oranisation i helhet, som kan förmedla mål etc, och kan ta hjälp av andras framgångar. Inledning: Grundades i 19th century, överlevde Grand Jean Company stora ekonomin kriserna 1929. Det blev en av de största klädföretag i världen runt 1989. Dess viktigaste produkter är byxor för män och pojkar. Men även kvinnor byxor tillverkas där. Med "wash-och-slitage", bell-botten och flare lutar och moderna casual byxor, var företaget marknadsledande. Bolaget äger 25 anläggningar för tillverkning med en produktionskapacitet på 20.000 byxor per vecka. Dock är denna produktion inte räcker för att tillgodose efterfrågan på marknaden. Som ett resultat av detta, beslöt företaget att anställa oberoende tillverkare.Förra året producerade dessa entreprenörer en tredjedel av den totala försäljningen. Grand Jean är en funktionell organisation. Anläggningen divisionerna betraktas som kostnader centra. Plantorna ville producera en viss mängd byxor, som ges av marknadsföring personal, varje...
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...Grand Jean Company Introduction: Founded in the 19th century, the Grand Jean Company survived the large economy crises in 1929. It became one of the largest clothing companies in the world around 1989. Its main products are pants for men and boys. But also women pants are produced there. With the “wash-and-wearâ€, bell-bottom and flare leans and modern casual pants, the company was market leading. The company owns 25 plants for manufacturing with an output capacity of 20.000 pants per week. However, this production is not enough to satisfy the demand on the market. As a result of that, the company decided to employ independent manufacturers. Last year, these contractors produced one third of the total sales. Grand Jean is a functional organization. The plant divisions are considered as expense centers. The plants are wanted to produce a certain amount of pants, which is given by the marketing staff, every year. The quotas depends on the result, the plant has reached in the previous month. Because there are 5 different products, the company has introduced 5 marketing centers considered as revenue centers. At the end of each year, all plant managers are evaluated on a scale from 1 to 5. The bonus they get in addition to their normal wage, depends on the grade, they were given by the Vice President of Production Operations and his two chief assistants. The received grade is multiplied with 10.000 $. That results a maximum extra payment of 50.000 $. What are...
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...straight fit, and regular fit line of jeans for men and women. Founded by Elena Horowitz, a retail industry veteran with experiences at JCrew, the Gap, and Levi’s, and James Foster, a serial entrepreneur, the duo is out to bring socially conscious fashion to the masses. Currently selling online and through partnerships with a handful of local boutiques in LA, the company is projecting to sell upwards of $400,000 in year 1 and reaching $750,000 in 3 years. Plans for expansion include setting up distribution and manufacturing relationships in New York, another fashion centric goldmine where the company aims to gain greater market penetration. With an emphasis on environmentally responsible fashion, I’ll Be Denim will also be starting a jeans recycling program where consumers will be able to ship or drop off old pairs of jeans and have them used in the manufacturing process for new ones. Industry research has found that US consumers own on average 7 pairs of jeans and stick to one brand based one one important variable, fit. Given that statistic the company’s designs center around providing the best fit, with a tagline of “denim so good, you’ll never take your clothes off”. To further take advantage of this insight, I’ll Be Denim will be launching a custom tailor option where users will be able to request custom fit jeans through an online portal. The primary competition comes from three foreign brands namely Kuyichi, Hiut Denim, and Nudie Jeans, all which have been committed...
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...Table of Contents |Topic |Page No. | |Executive Summary |3 | |Introduction |4 | |History |5 | |Brands |11 | |Values |14 | |Vision Statement |15 | |Mission Statement |16 | |Aspiration Statement |18 | |Situation Analysis |19 | |Competitive Analysis |20 ...
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...Brand Management Case No. 4 DOCKERS: CREATING A SUB-BRAND INTRODUCTION In the spring of 1985, Levi Strauss & Co. (LS&Co.) was flush with its success in the blue jeans market. The company’s star campaign, called “501 Blues,” had recently brought new vitality to the company after several failed expansions into other apparel market segments in the earlier part of the decade. Confident in the wake of 501’s success, the company was contemplating its next steps when research revealed a decline in jeans purchases by LS&Co.’s core customer base of baby boomers. In short, the company’s “bread and butter” customer for the last 30 years - the American male teenager - was now 25-40 and was moving out of the jeans market at an alarming rate. To retain these customers even as their jeans purchases slowed or stopped, the company introduced Levi’s Dockers casual pants. Dockers, as the name was later shortened to, was one of the most successful new product introductions of the 1980s in the clothing industry. Consumers responded to the product design, which utilized the comfort and casual feel of cotton, and likeable advertising by purchasing enough Dockers to make a billion-dollar brand by 1993. Over the course of the 1990s, LS&Co. enjoyed phenomenal success from its Dockers sub-brand. The Dockers brand achieved record sales growth in 1998 and Fortune magazine estimated in 1999 that 75 percent of American men owned a pair of Dockers and that the average customer owned...
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...DOCKERS: CREATING A SUB-BRAND INTRODUCTION In the spring of 1985, Levi Strauss & Co. (LS&Co.) was flush with its success in the blue jeans market. The company’s star campaign, called “501 Blues,” had recently brought new vitality to the company after several failed expansions into other apparel market segments in the earlier part of the decade. Confident in the wake of 501’s success, the company was contemplating its next steps when research revealed a decline in jeans purchases by LS&Co.’s core customer base of baby boomers. In short, the company’s “bread and butter” customer for the last 30 years - the American male teenager - was now 25-40 and was moving out of the jeans market at an alarming rate. To retain these customers even as their jeans purchases slowed or stopped, the company introduced Levi’s Dockers casual pants. Dockers, as the name was later shortened to, was one of the most successful new product introductions of the 1980s in the clothing industry. Consumers responded to the product design, which utilized the comfort and casual feel of cotton, and likeable advertising by purchasing enough Dockers to make a billion-dollar brand by 1993. Over the course of the 1990s, LS&Co. enjoyed phenomenal success from its Dockers sub-brand. The Dockers brand achieved record sales growth in 1998 and Fortune magazine estimated in 1999 that 75 percent of American men owned a pair of Dockers and that the average customer owned 3.8 pairs. That year, the total...
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...company is experiencing losses and is continuing to under-perform in the denim jean market. •The firm faces the general problem of a dominant firm losing market share when more firms enter the market. Problem Background Successes Competition Solutions Responsibility Conclusion Q&A Background - History •The company was founded by Levi Strauss in 1853 primarily selling wholesale dry goods. The company was founded in San Francisco, California. •A tailor named Jacob Davis thought of an idea to use copper rivets to reinforce the points of strain on pants. •Davis and Strauss purchased the patent of the idea of using copper rivets in clothing on May 20, 1873. Problem Background Successes Competition Solutions Responsibility Conclusion Q&A Background - Company Growth •The innovation of the rivets in the jeans differentiated Levi’s jeans from others because of its increased durability. •Over the years, Levi’s jeans have become more popular, initially due to its durability. Jean products expanded, targeting different consumers. •Levi Strauss & Co. eventually captures most of the denim jean market, becomes the largest manufacturer of jeans, and profits reach $1 billion by 1974. Problem Background Successes Competition Solutions Responsibility Conclusion Q&A Background - Time Line •1853: Levi Strauss begins selling dry goods in San Francisco. •1873: Levi Strauss & Co. patent riveted jeans and begin selling them. •1912: Koveralls, denim playsuit for children, is first...
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...Levi’s Personal Pair Proposal The case talks about Levi Strauss and Co, a privately held American clothing company known worldwide for its Levi’s brand of denim jeans. Levi’s was approached with a new concept called the Personal Pair. Custom Clothing Technology Corporation had offered Levi Strauss a joint venture proposal that would combine the Levi’s core products with emerging technologies of mass customization. CCTC’s plan was to make special customized jeans that would fit to meet each customer’s unique needs and taste. The problem is that Levi was not sure if they should accept the proposal or not. I analyzed the case by looking at the pros and the cons of the personal pair concept. I though one of the biggest cons of the program was the wait time. A person would first have to come in to get their sizes taken and than would have to wait an additional 3 weeks to get their product. Another con was that Levi would not carry any finished products, which meant that if someone wanted to buy a pair of jeans at the store they would not be able to purchase them and instead would have to pay a higher price to wait 3 weeks for their jeans. I would say that they should reject the proposal because the cons outweigh the pros. The new technology would increase the price of their product by adding another $15 to a pair of jeans, which would be a huge disadvantage for Levi. Levi was already struggling in the lower and upper ends of the apparel market and adding another $15 to their product...
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...Klein, middle vertically integrated retailers like Gap or American Eagles, and on the bottom, private-label brands like Wal-Mart and Target. Levi's had sold to Wal-Mart through a value brand called Brittania in the 80's and the 90s, but that came to an end in 1994 over a dispute in Canada about Levi's Orange Tab jeans. After that, sales dwindled for Brittania, and Levi's sold Brittania to VF Corp. In 2002, however, Levi's was thinking about offering a new value brand for Wal-Mart. It was not that easy of a decision though. They had to think of a way to keep the existing customers in the other channels and not lessen the brand's perceived quality overall. Overall, the apparel market had been growing steadily since 1998 until 2001, when it dropped 5.7% in dollars from the year before. The total jeans sales accounted for approximately 7% of the total $166 billion made in 2001 with 569 million pairs sold. Experts in the apparel industry forecasted an interesting year for sales in 2002, stating that most categories of apparel were going to level out or even decrease. Jeans were just one of the different categories of pants along with casual pants and dress pants, and jeans had dominated the category until the 1990's when sales had tapered off when consumers migrated over to khakis, cargo pants, and other types of pants....
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...& Co is an American clothing company. It was started in the year 1853. Levi Strauss & Co. is a worldwide corporation organized into three geographic divisions: Levi Strauss Americas (LSA), based in the San Francisco headquarters; Levi Strauss Europe, Middle East and Africa (LSEMA), based in Brussels; and Asia Pacific Division (APD), based in Singapore. The company employs a staff of approximately 10,500 people worldwide. The core Levi's was founded in 1873 in San Francisco, specializing in riveted denim jeans and different lines of casual and street fashion. From the early 1960s through the mid-1970s, Levi Strauss experienced significant growth in its business as the more casual look of the 1960s and 1970s ushered in the "blue jeans craze" and served as a catalyst for the brand. Levi's, under the leadership of Walter Haas Jr., Peter Haas, Ed Combs, and Mel Bacharach, expanded the firm's clothing line by adding new fashions and models, including stone-washed jeans through the acquisition of Great Western Garment Co. a Canadian clothing manufacturer, and introducing Permanent Press trousers under the Sta-prest name. The company experienced rapid expansion of its manufacturing capacity from 16 plants to more than 63 plants in the United States from 1964 to 1974 and 25 overseas. They used of "pay for performance" manufacturing at the...
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...Writing Sample #1: Fact Sheet J. Crew’s Sister Store; Madewell is your one stop shop for your everyday look. J. Crew’s Sister Store; Madewell is your one stop shop for your everyday look. Contact information: Madewell Customer Relations One Ivy Crescent Lynchburg, VA 24513-1001 Phone: (866) 544 – 1937 Fax: (434) 385 – 5754 Email: contactus@madewell.com Overview: In 2006, we introduced Madewell, a modern-day interpretation of an American denim label founded in 1937. In addition to Madewell's brick-and-mortar stores, madewell.com (launched in 2010) is a strong sales driver. Madewell has also been making a further play in the digital space with a robust social media presence. Mission: Madewell continues to bring the same original integrity to everything it makes today, including a wide range of effortlessly cool pieces to pair with denim. Step inside any Madewell store across the country and you'll notice a friendly general-store vibe and antique décor that naturally reflect the authenticity and timelessness of the clothing. * What is Madewell? * Madewell is an American company that is a sister store to the beloved J. Crew. * What is their overall goal? * Madewell wants its consumers to invest in the denim quality that they deserve. * Who is their target market? * Madewell’s target market, are women from the ages of 18 to 25 years old. * What is the look and style that Madewell offers its customers? * Classic and...
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