...marketing, and it is dangerous because it is very hard to predict consumer reaction to a new product, especially under a new brand name. By going ahead with a brand extension a company can partially solve these two issues, by launching the new product under an existing brand name will reduce marketing and distribution costs and might attract consumers towards the good as they will go for a “known” brand. Levi-Strauss although being one of the world’s most known maker and distributor of denim and casual wear should consider a brand extension of larger clothes that target the growing plus size customer segment in the United States. This segment is a growing market, and many stores with incredible brand equity are not taking advantage of this growing segment. In fact, this segment has grown to 34 percent of the population, both male and female of all ages, and continues to grow dramatically every year. Also, this segment is a $27 billion dollar opportunity, and also appears to be increasing every year. Therefore, by this action of not manufacturing larger size clothing Levi-Strauss are not only limiting their customer base and profits but also alienating those who cannot wear their garments due to their size. The percentage of large and outsize people in Europe and the United States is vast compared to those who have average size or undersize proportions. By only making the clothes for the “model” type populace the customer base they could have...
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...Planning Strategic Planning Process Shelia Quinn Keiser University Dr. Jeff Ritter Marketing Management Knowledge and Skills MKT531 March 7, 2013 In order for individual departments in an organization to come up with a business plan, there must be a plan in place for the entire organization. This plan must meet the needs and add value for the customers, employees, and investors (Peter & Donnelly, 2013, p. 7). In order to arrive with a comprehensive plan, strategic planning must be done first. Strategic planning involves developing an organizational mission, organizational objectives, organizational strategies, and an organiztional portfolio. Once this has been accomplished, managers can develop plans for the individual departments (Peter & Donnelly, 2013, p. 7). This paper will take a look at each of these steps in the strategic planning process. Organizational Mission Every organization should have a strong and clear mission statement. This statement describes why the company exists, the direction the organization is going, and how they are going to succeed. It has to be a statement that everyone can connect with and understand (Peter & Donnelly, 2013, p. 8). When developing a mission statement management must look at the company’s history, competencies, and environment (Peter & Donnelly, 2013, p. 9). The history of accomplishments and failures of the company need to be considered to keep the company growing. The company also needs to concentrate...
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...Strategic Planning: What does it Mean?, and How is it done Effectively? Most business owners or managers recognize that a strategic plan is a directional map for where their companies are headed and how they intend to get there. However, it is much harder for them to understand what goes into the strategic planning process, how the strategy-making task is best performed, and the full impact of the process the planning team goes through to develop the strategic direction of their organization. Strategic planning is best done when a company looks at its past, present, and future in light of its related environment. It is the process of thinking about the company and its related environment as an integrated whole. A process during which an executive "planning team" is organized to consider three key questions on a continuous basis: 1. What is our business? 2. Where do we wish to arrive, and when? and 3. How do we get from here to there? In a personal interview, Karen Poppe, Vice-President of Human Resource Management at Wall Drug, discussed the importance of organizing a strategic planning team to guide the long-term direction of a company. The planning team at Wall Drug consists of six key management people covering finance, personnel, and marketing. Clearly the success of those planning efforts is reflected in Wall Drug's average annual growth rate of 25% over the last five years. What is our...
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...[pic] Levi Strauss & Co. : An overview According to the company’s Web site (www.levistrauss.com) the company was founded in 1853 by a young Bavarian immigrant Levi Strauss. Levi Strauss had left New York to San Francisco to sell his supply of dry goods. There he found the need for rugged long lasting trousers. Levi patented cotton riveted waist overall which later became the legendary Jeans. Levi Strauss & Co. (LS&Co.) is one of the world’s largest brand-name apparel marketers with sales in more than 100 countries. There is no other company with a comparable global presence in the jeansand casual pants markets. Levi Strauss & Co., together with its subsidiaries, operates as a branded apparel company. The company designs and markets jeans, casual and dress pants, tops, skirts, jackets, footwear products, and related accessories for men, women, and children under the Levi’s, Dockers, Signature by Levi Strauss & Co., and Denizen brand names. It also licenses its trademarks for an array of products, including accessories, pants, tops, footwear, and other products. The company distributes its Levi’s and Dockers products primarily through chain retailers and department stores in the United States; and through department stores, specialty retailers, and franchised stores internationally. In addition, it distributes its Levi’s and Dockers products through online stores. Further, the company distributes Signature by Levi Strauss & Co. branded products primarily through mass channel...
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...LONDON CHURCHILL COLLEGE AABPS Level 6 Diploma in Business Management Studies Title: Unit 3: Principles in Strategic Management Assessor: Submitted By (Student Name): Student ID: Number of words: 2955 Table of Contents Part 01 2 Introduction 2 I) Strategy Setting Process 2 II) Elements affecting the plan 4 iii) Future Directions 6 Part 02 7 2.1) Strategy Implementation 7 2.2) Plan for the Stakeholders. 8 Part 03 9 Part 04 11 Introduction 11 4.1) Action Plan for an operational area 11 4.2) Effects of a Change of an Operational Area 11 References 13 Web References 14 Part 01 Introduction A strategy is a must element which must get right from the beginning. A strategy will involve setting up the most important driving guideline to achieve an organisational plan or an organisational objective. Therefor a thorough understanding of organisational reach to strategy setting process and the strategic elements setting process. The underneath answers will provide the guidelines to the highlighted problems of current processes and the possible processes along with a future amendments to them with examples. About the Company History of the company. Products/Services they offer. Customer segments it serves. Competitors Vision and mission of the company and the strategy of it Business Philosophy Organisational Structure Growth of the company...
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...SUMMARY: 3 2. FINDINGS 4 2.1 SWOT Analysis 4 3. DISCUSSION 7 3.1 Problem Summary: 7 4. RECOMMENDATIONS 7 5. SET UP PROGRAMME OFFICE 7 5.1 Programme Office setup 7 5.2 Changes the Organisational Design 8 5.3 Shaping the organisational programme 8 6. STRATEGIC ANALYSIS 10 6.1 Analysis 10 6.1.1 Core competencies 10 6.1.2 Organisational behaviour study 10 6.1.3 Organisational Vision and Mission 11 6.1.4 Balanced Scorecard based strategy implementation 11 6.1.5 Balanced Scorecard value creation perspectives: 12 6.1.6 Building a strategy map 13 6.1.7 Implementing a Balanced Scorecard Programme Management learning organisation structure 14 7. STRATEGIC DEVELOPMENT 15 7.1 SWOT analysis 15 7.2 PESTEL analysis 15 7.3 GAP analysis 16 8. STRATEGY IMPLEMENTATION 16 8.1 Creation of a strategy plan 16 8.2 Strategic Transformation Project Implementation Route 2 (Project route) 17 9. MANAGING ORGANISATIONAL CHANGE 17 10. INNOVATIVE CONTINUOUS IMPROVEMENT PROGRAME 18 11. REFERENCES 20 1. EXECUTIVE SUMMARY: Levis Strauss has been one of the world’s most successful brands in the fashion industry but is now subject to a falling market share and is no longer meeting the demands of its external environment. Levis leadership is ineffective and the approach taken to resolve its problems is futile, capital intensive and does not produce any results. The organisation will have to embark on a radical change strategy to remain profitable in its market. The content of this...
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... | |Aspiration Statement |18 | |Situation Analysis |19 | |Competitive Analysis |20 | |Current Market Need |22 | |SWOT Analysis |23 | |4 P’S of Levi Strauss |26...
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...Abstract Financial planning and budgeting has become a powerful tool of any company’s financial management. Planning and budgeting is an issue that should be solved in a complex. Therefore, this final English research paper highlights three main approaches absorbed: theoretical, practical, and analytical. Theoretical knowledge cannot be applied to practice without clear understanding of business, a feeling about the actual circumstances. Practical knowledge cannot be applied to professional tasks without analytical approach. This skills and approaches are presented and proven in this research. Having faced planning and budgeting process of middle-sized company, it has been noted that some issues of this important activity absence clarity, confidence, and flexibility. In order to optimize planning and budgeting process a thorough examination has been prepared in this research paper. The Company where experience has taken place is Levi’s XX that stands for Levi’s Vintage Clothing. Therefore, the industry examined is apparel, and as a market is taken the whole Globe. Table of Contents Abstract 2 Introduction 4 • The purpose of the study 4 • The main conceptual problem 5 Methodology 6 1. Essence and role of financial planning and budgeting 7 1.1 Planning and budgeting role in company’s structure 7 1.2 Purpose of budgeting 7 2. Company profile, industry and market description 10 2.1 Levi’s XX story 10 2.2 Company’s structure 10 3. Principles and objectives...
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...1.0 QUESTION 1 1.1 PESTEL Model The first marketing perspective action that could have been taken by Levi’s is implementing the PESTEL model. PESTEL model can be look as a market research analysis which views and group macro-environmental factors as a whole group picture and it is purposely for the manager to make decision for the organization. PESTEL can also let the manger to see the current market status, business position, and the opportunities of growing products and business. There are six factors that are grouped in the PESTEL model, the first factors is political factor which is considers about the terms and change and activities of the government. For example, government has increased the tax rate, thus the manger will make adjustment by increase current price of the year due to maintain current amount of profit. The second factor is the economic factor which looks into the current economy situation, such as inflation or recession and the exchange and interest rate. Manager will invest in more machinery or other investments when the interest rate is low. The third factor is the sociological factor which looks into the current needs and culture of the social. For instant, the demand of skinny jeans among the youngsters have increased, Levi’s will design and produce this kind of jeans. The next factor is the technological factor which deals with the affect changes or growth of technology of Levi’s. This factor should be consider seriously by Levi’s, because the...
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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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...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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...ftGRADUATION PROJECTS MFM (07-09) Name: Aditi Mishra Organization: Lifestyle International Pvt. Ltd. Project Title: Devising a floor plan to optimize sales OBJECTIVE _ To study & create a feasible floor layout plan on excel for Goregaon stand alone- HC (matched to scale with the actual floor plan) to work as a monitoring tool to identify problem areas. _ To calculate & analyse the Hit ratio for Jan-march period age wise & department wise for both the warehouses of LS for Goregaon store to confirm if the low SPF pockets are due to absence of merchandise on floor. _ GAP analysis for product- Furniture & Household in terms of FMS, SMS. _ To do a service gap survey with the help of SERVQUAL system. _ Competitor’s survey (Home stop & Hyper city) on options, retail space allotted & brands present to study their focus areas. FINDINGS & SUGGESTIONS _ WAREHOUSE _ All location Inventory controllers should send the damages and loss data to the corporate office every Saturday. _ While sending the data, Inventory controllers should discuss the circumstances under which the loss or damaged occurred with the Store manager. _ The review of cause, analysis of data should be done to find out the lapse in the control system. _ Drill down the exact cause and recommend penalization of the concerned staff in case of frequent damage by staff. _ Overall stock holding was less in the off sale period since most of the expected consignments were delayed...
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...Levi’s Strauss Case Study Levi's Strauss has been going the extra mile to phase in HRM into the mainstream management activities. This has brought a definitive competitive edge to the company and has remodeled the workforce mindset. The employees’ influence at all levels, the human resource flow, the reward and work systems are so elaborated that we feel that employees becomes naturally committed, more to the company itself, than to their career or pay. There is a paternalist approach to employee welfare and policies are well integrated with genuine consultations and sincere involvements at all levels of management. All these approaches have nonetheless been cost-effective as the dress-code policy or the benefits for the gay’s shows very well. The company appears harmonious in terms of relationships at all levels. One can get the impression of a quasi-total cohesion between the strategic planning for the company and the HRM, marketing, production and financial units. However as we look deeper into the aspiration statements we still can find some "unfinished businesses". They are very few and still on the agenda of the management. Let us first analyse what have currently been done and then analyse what has not yet been implemented or has not been mentioned and is being assumed. We now analyse the positive aspects at 4 levels namely the strategic integration, the commitment of the workforce, the flexibility and availability and the quality of the workforce. Strategic integration...
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...Organizational Dynamics, Vol. 28, No. 4, pp. 52-66, 2000 © 2000 Elsevier Science, Inc. ISSN 0090-2616/00/$--see frontmatter PII 50090-2616(00)00005-X When Ethics Collide: Managing Conflicts Across Cultures PAUL F. BUllER JOHN J. KOHLS KENNETH S. ANDERSON Nike-one of the fastest-growing companies in the world-has been stymied recently due in part to consumer reaction to conflicts involving management practices in its suppliers' factories in the Far East. Among the accusations-poor working conditions, low wages, enforced over time, and harsh, sometimes brutal, discipline and corporal punishment. Levi Strauss & Co. was recently confronted with the challenge of how to deal with contractors in Bangladesh that employed young children, a legal practice in Bangladesh, but one contrary to Levi's company policy. The fact that these chil dren were often a sole or significant source of their family income further complicated the mat ter. Tony Anderson, Chairman and CEO of H. B. Fuller Company, was faced with a decision re garding the company's responsibility for illegiti mate use of one of its products. Resistol, a tolu ene-based glue, has become an addictive drug of choice for many Central American street chil dren. These "Resistoleros" inhale the glue and often experience violent reactions and serious health problems, including kidney failure and brain damage. ness practices. Ethical conflicts may involve a variety of issues: • bribery and extortion, as in the highly publicized...
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...Ethics Paper Role of Ethics and Social Responsibility in Developing a Strategic Plan While Considering Stakeholder Needs and Agendas When a company makes a strategic plan it is best to consider both the moral and social responsibilities that they have, not just to the business, but to the stakeholders, as well. The stakeholders are customers, suppliers, the community, employees, stockholders, the government, and the suppliers. “From a social responsibility perspective, many organizations are acknowledging that they’re not islands, isolated from the larger communities that surround them. In fact, they know that they function best within healthy communities” (Trevino & Nelson, 2007, p. 7). A healthy social environment is needed for a healthy business environment (Trevino & Nelson, 2007). Believe it or not, stakeholders have a “stake in what the organization does and how it performs. These stakeholders often have the power to interfere with a firm’s autonomy and economic freedom” (Trevino & Nelson, 2007, p. 32). There are many things that stakeholders can do to harm a business such as boycotting products, strikes, protesting, and government laws being passed. There is a significant problem with corporate social responsibility when ethical and economic responsibilities conflict with each other. When this happens, there is bound to be layoffs of employees in a fair and just manner (Trevino & Nelson, 2007). According to Trevino & Nelson (2007), not all...
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