American Apparel Case Analysis
BUSM35436 Business Cases
Case Analysis Template
NAME: Sinthya Ngo
DAY & TIME of CLASS: Wed 12-3pm
Marks Guideline
5
Key Facts of the Case (no analysis)
-Who is the decision maker? (Remember: in analyzing a case you have to put yourself in the position of the decision maker and try to figure out what YOU would do in his/her position).
-maximum 5 key facts that summarize the case.
Key Decision Maker
Board of Directors (AA is a publicly traded company)
Key Facts
American Apparel minimized their use of outsourced labour. They localized their manufacturing activities and were known for their anti-sweatshop practices
The company was also praised for their environmentally friendly practices such as using organic and recycled materials in several of their products, and participating in charitable causes
Their advertising campaigns stirred up a lot of controversy for the company, as some consumers believed them to be too sexual and borderline pornographic
Charney (CEO) took the ad pictures himself using women he found on the streets or his own employees. As a hiring practice, employees were required to provide full length self-portraits to him
Charney brought heat to the company via sexual harassment lawsuits and by creating a hostile working environment (using foul language, walking around in his underwear, flirting with employees, etc.)
5
Problem(s) Statement
-What is the main problem(s) or opportunity(s) that you (as decision maker) must deal with?
-How urgent and how important is this issue and why?
Main Problem
The main problem presented for American Apparel is that there are discrepancies between their controversial advertisements and workplace practices and their positive business initiatives, which has resulted in a loss of sales for the company. They must determine how they are going to move forward and inspire a turnaround.
Urgency
Moderately urgent
The company forecast a turnaround by 2015 (3 years to the future)
25
Problem(s)
Case Analysis Template
NAME: Sinthya Ngo
DAY & TIME of CLASS: Wed 12-3pm
Marks Guideline
5
Key Facts of the Case (no analysis)
-Who is the decision maker? (Remember: in analyzing a case you have to put yourself in the position of the decision maker and try to figure out what YOU would do in his/her position).
-maximum 5 key facts that summarize the case.
Key Decision Maker
Board of Directors (AA is a publicly traded company)
Key Facts
American Apparel minimized their use of outsourced labour. They localized their manufacturing activities and were known for their anti-sweatshop practices
The company was also praised for their environmentally friendly practices such as using organic and recycled materials in several of their products, and participating in charitable causes
Their advertising campaigns stirred up a lot of controversy for the company, as some consumers believed them to be too sexual and borderline pornographic
Charney (CEO) took the ad pictures himself using women he found on the streets or his own employees. As a hiring practice, employees were required to provide full length self-portraits to him
Charney brought heat to the company via sexual harassment lawsuits and by creating a hostile working environment (using foul language, walking around in his underwear, flirting with employees, etc.)
5
Problem(s) Statement
-What is the main problem(s) or opportunity(s) that you (as decision maker) must deal with?
-How urgent and how important is this issue and why?
Main Problem
The main problem presented for American Apparel is that there are discrepancies between their controversial advertisements and workplace practices and their positive business initiatives, which has resulted in a loss of sales for the company. They must determine how they are going to move forward and inspire a turnaround.
Urgency
Moderately urgent
The company forecast a turnaround by 2015 (3 years to the future)
25
Problem(s)