BAN 600 Business Decision Making Minor Project- 02
Stephen C. Blacklock
Regent University
Introduction
In the world of business, strategic planning is vital in avoiding future downfall. Without taking the time to create a plan for future success, companies will ultimately meet their demise. It’s easy for leaders/CEO’s to become overwhelmed in the day to day company operations, however without a strategic plan to identify changes that are consistently taking place in society.
Abercrombie & Fitch: The rise and fall
Thrasher, (2013) states “Abercrombie & Fitch began as a store for outdoorsmen and evolved into the epitome of preppy cool. But recently, the store has lost its way. Abercrombie has been criticized for excluding …show more content…
But the retailer has fallen on hard times, and today executives reported that sales are down 10%. A myriad of bad decisions led to Abercrombie's status as a struggling retailer today, Brian Sozzi, chief equities strategist at Belus Capital, told us. Sozzi shared a few reasons why Abercrombie is struggling.
1. Competition from H&M and Forever 21. These retailers' offerings are cheaper and trendier than the designs found at Abercrombie & Fitch, Sozzi told us. "Abercrombie is no longer the only place in the mall for teens to get stuff to wear to school," he said.
2. Teen values have shifted. "In 1999, we all wanted to fit in, but in 2013 it's about showing your identity by wearing unique accessories or clothes no one else has," Sozzi said. Other retailers like Urban Outfitters' Free People have gotten teens to spend full-price by offering more unique items, he said. But Abercrombie is perceived as boring.
3. Abercrombie's clothes are too expensive. Abercrombie and competitor American Eagle "are simply not perceived by parents as offering the best bang for their buck," Sozzi said. Online shopping and apps have made shoppers more price-conscious than ever, making this trend likely to continue even as the economy improves.” (Business …show more content…
According to Business Wire, (2011) “Business scenario in today's context - niche opportunities, limited time periods, ever increasing risk and the need for precise decision making, which if not done correctly would run the costs in million even before brakes are exercised. That is the speed of business in today’s high-octane economies which are constantly metamorphosing into global empires of influence. Even the best decision makers have made mistakes which have wiped out entire reserves built over a period of hard work by the company's stakeholders including the employees. The responsibility imposed on the shoulders of senior management is immense and does not leave much room for mistakes to be absorbed by the interest holders in the company. In this scenario, the management needs a good, strong and logic driven decision-making tool which and can serve as easily referable, is common in language, can be applied globally with standard
Stephen C. Blacklock
Regent University
Introduction
In the world of business, strategic planning is vital in avoiding future downfall. Without taking the time to create a plan for future success, companies will ultimately meet their demise. It’s easy for leaders/CEO’s to become overwhelmed in the day to day company operations, however without a strategic plan to identify changes that are consistently taking place in society.
Abercrombie & Fitch: The rise and fall
Thrasher, (2013) states “Abercrombie & Fitch began as a store for outdoorsmen and evolved into the epitome of preppy cool. But recently, the store has lost its way. Abercrombie has been criticized for excluding …show more content…
But the retailer has fallen on hard times, and today executives reported that sales are down 10%. A myriad of bad decisions led to Abercrombie's status as a struggling retailer today, Brian Sozzi, chief equities strategist at Belus Capital, told us. Sozzi shared a few reasons why Abercrombie is struggling.
1. Competition from H&M and Forever 21. These retailers' offerings are cheaper and trendier than the designs found at Abercrombie & Fitch, Sozzi told us. "Abercrombie is no longer the only place in the mall for teens to get stuff to wear to school," he said.
2. Teen values have shifted. "In 1999, we all wanted to fit in, but in 2013 it's about showing your identity by wearing unique accessories or clothes no one else has," Sozzi said. Other retailers like Urban Outfitters' Free People have gotten teens to spend full-price by offering more unique items, he said. But Abercrombie is perceived as boring.
3. Abercrombie's clothes are too expensive. Abercrombie and competitor American Eagle "are simply not perceived by parents as offering the best bang for their buck," Sozzi said. Online shopping and apps have made shoppers more price-conscious than ever, making this trend likely to continue even as the economy improves.” (Business …show more content…
According to Business Wire, (2011) “Business scenario in today's context - niche opportunities, limited time periods, ever increasing risk and the need for precise decision making, which if not done correctly would run the costs in million even before brakes are exercised. That is the speed of business in today’s high-octane economies which are constantly metamorphosing into global empires of influence. Even the best decision makers have made mistakes which have wiped out entire reserves built over a period of hard work by the company's stakeholders including the employees. The responsibility imposed on the shoulders of senior management is immense and does not leave much room for mistakes to be absorbed by the interest holders in the company. In this scenario, the management needs a good, strong and logic driven decision-making tool which and can serve as easily referable, is common in language, can be applied globally with standard