Market strategy summary18Suitability18Feasibility - Resource Availability18Acceptability19Option Selection19Implementation19The Mckensey 7’S mode19The Strategy19The Structure20The Systems20Style21Staff21Skills21Shared Values21Summary21Conclusion22REFRENCE23Internal Analysis: Ashridge model The Ashridge model is applied in understanding the values, behavior, and purpose, and strategies used in the case under discussion. The purpose explains the reason for the existence of the company. Strategy gives the method that the company is using in creating of a competitive position. Standards and behaviors looks at the behavioral patters and policies that govern business operations in the company. The values represent the aspects that bind the members of the organization together since they believe in them (Luffman, Lea, Sanderson & Kenny, 1998).
The American Apparel has demonstrated the application of Ashridge model in the following ways: PurposeAmerican Apparel aimed at being a leading producer of casual wears. Charney innovativeness involved the production of T-shirts that were turned into garments which enhanced the sexual attractiveness of the person wearing it. The vision and aesthetic of American Apparel design target at appealing to young adults in metropolitan areas through provision of a fundamental line of iconic, timeless styles that are produced all year long and they provide a wide range of colors.
American Apparel targets the youth market for its potential of growth. StrategyAmerican Apparel targeted minimization of costs of manufacturing from the United States through price premium obtained through styling, quality, image, and the upper hand of fast accessibility to the market. The company got involved in outsourcing production in countries where low wage could be used. This was done to avoid high production costs in the United States. The American Apparel has close had close link between manufacture, design, retailing, and marketing.
The American Apparel used cheap-mass production in China as one of its growth strategy. Employees were paid highly and given enough benefits. American Apparel advertising campaign caught people attention since it was interesting. Growth was realized through being acquired by Endeavor Acquisition Corp. This deal was important in making Mr. Charney to go public with much scrutiny that accompanies listing in the stock market. The vertical concentrated model that had most production done in Los Angeles was prepared by the American Apparel. ValuesAmerican Apparel established itself with a reputation among the customers who were culturally sophisticated, independent-minded, and creative.
American Apparel preferred locations which were far away from traditional high streets using nontraditional retail buildings which had unique environments. American Apparel breakthrough was pegged on implementing sound quality control, committed to quick turnaround applying lean production, finding a specific target market, and having careful oversight of operations for manufacturing. The company is domestic and prides itself as being committed to the customers than other businesses. Workers were provided with healthcare that was subsidized for their families and themselves, free parking, subsidized lunches, low-cost auto insurance, and bus passes.
Massage therapists provided on-site services for all the workers. Classes for yoga were also offered together with wellness and health specialist who offered counseling. Bathroom breaks were given at anytime for workers to use their personal calls during the normal hours of working. Other benefits provided to workers entailed public transportation that was subsidized.