For over six years I have gained knowledge through my constant visits to the physical and online store as well as through social media about the clothing company American Apparel. This company is currently located in the United States and in this essay, I would be examining the internal dynamics of the organization and I would be giving a general assessment of the organization which includes how the organization is designed, it's culture and how tasks are managed I would also assess how the organization functions. I would be applying contents and theories from this course to help readers understand the organization on a deeper level which could help gain further insight …show more content…
The organization has a vertically integrated structure which helps them achieve fast product turnover to increase efficiency and for control. This type of hierarchy means decision making is centralized among top executives and management in the organization so that activities can be closely monitored in case any problem arises, it can be solved quickly. With this hierarchy comes tightly implemented rules and procedures so that employees can have a sense of direction on how to handle issues within the organization. American Apparel has its policies and procedures which are provided to employees to understand how the company operates. The company uses a vertical information system such as periodic reports on their financial progress measured on a monthly, quarterly and yearly basis, they use a cross functional information system that enables them to integrate all business processes in order to facilitate collaboration and communication across various departments. They use emails, video conferences and cloud infrastructures to allow employees as well as business partners to easily access, store, add and edit information. Each department has a specific role they play in the organization with its own more specific in-depth goals, for example, the accounting department is responsible for budgeting, creating accurately summarized report and performance analysis. In …show more content…
The demand for clothing changes gradually, this day something is in style, the next day it is not. It is important that the organization knows how to prepare for unexpected situations that are beyond their control otherwise could have a negative impact on their business. By implementing organizational differentiation, American Apparel was able to prepare for environmental uncertainty. The company was extremely consistent with their advertising, they created their own campaigns, they were known for their wild and controversial advertisements that appealed to their target market for many years. "American Apparel became more well known for its racy ads and questionable campaign headlines than its ethical manufacturing processes and cotton denier tights," They produced regular unbranded and moderately priced t-shirts, sweatshirts, jeans, and undergarments, which hardly ever change. However, they captured their differentiation in different ways. Firstly, by being socially conscious; they had a strong investment into different non-profit organizations. They funded animal rights advocacy groups, they participated in various immigration protests, they also celebrated the LGBTQ Pride month. They were giving their target group exactly what they wanted. Another way was through their visible lack of branding and