American Apparel OL 501 Final Project PDF

Preview

Summary

Download American Apparel OL 501 Final Project PDF

Description

American Apparel OL 501 Final Project

American Apparel Introduction OL 501 Final Project Sandy Chew Southern New Hampshire University

American Apparel OL 501 Final Project

American Apparel is the company that I picked from the beginning from the two companies that we had to pick. The article about American Apparel was really interesting and I learned a lot about this company. The mission statement to the number of stores that they have worldwide stores and the ecommerce that the company offered in making money. The company sold apparels from women, men, children and babies. In 1998 the CEO Dov Charney found the garment. Charney wanted to make high quality and trendsetting clothes worldwide. Ernest and Young name Charney the Entrepreneur of the year in 2004. Apparel Magazine Fashion was awarded Man of the Year. The CEOs Don Varney had a vision of American Apparel as a brand name, fair wage and a creative apparel company in the USA. A company's values inform the methods it uses to accomplish its mission. American Apparel wants to be made high-quality clothes and trendsetting apparel. The company did not want to exploit workers. The classic product that the company with a basic t-shirt an icon from the USA. The garment that the company sells and do not reply on cheap labor. The aspect of the garment. The product is photography. Everything is done in house of the company that I mentioned. As of 2018 Ethical Fashion Report said the company’s labor conditions are good. The report said the living wage and worker empowerment. American Apparel score for its Supplier Code of Conduct and contracts. There supply chain including final stage, inputs, and raw materials. All the subcontracted production adheres to code standard. The company would use wool and leather as indicated on their materials. The company did not use fur, or exotic animal skin or hair. The company sells vintage. One of the garments were made out of angora so; the company did end up using angora. The company was based downtown in los Angeles for apparel for Women, men, children and babies. The company had 10,000 employees and operated 246 retail stores in 20 countries on February 28, 2014. Some of the countries had businesses in the USA, Canada, Mexico,

American Apparel OL 501 Final Project

Brazil, UK, Ireland, Austria, Belgium, France, Germany, Italy, Netherlands, Spain, Sweden, Switzerland, Israel, Australia, Japan, South Korea and China. The company also had an ecommerce- www.americanapparal.com and 12 online stores in seven languages that served customers from 30 countries worldwide The strengths of the company have unique design, quality of the products and the branding with various demographics. All of the stores that the stores had worldwide. American Apparel score for its Supplier Code of conduct and contracts. There supplies chain including final stage, inputs, and raw materials. All the subcontracted production adheres to code standard. The company would use wool and leather as indicated on their materials On December 2016, American Apparel closed the doors its London shops, after filing the bankruptcy for Second time that year in November. American Apparel was one of the biggest retails and ecommerce in the US And made the apparel in the USA. After scandals and financial troubles, the brand was sold to Gildan in early2017 that is a Canadian country. The American Apparel stores closed all of their stores to Gildan in early 2017that is a Canadian country. Gildan reopened that same year as online only. The weaknesses of this company had a federal investigation on 2009 due to documents of workers that they hired for employees that worked for American Apparel. There were immigrant workers and the company terminated 2000 workers from the factory in order to complete order on time in order to meet all the demands that was requesting from this company. 2008 the profit decreased 36 million to 3 million in 2009. The net profits fell from 14 million in 2008 to 2009 to one million. The company had a hard time transitioning with a new distribution which led to an increase in operating cost and delivers were disrupted. The cost of goods increased $289 million in 2012. 2013 with 313 Million crushing net and gross margins.

American Apparel OL 501 Final Project

The strengths of the company have unique design, quality of the products and the branding with various demographics. All of the stores that the stores had worldwide. The CEO Charney of American Apparel worst in the first quarter 2011. The company might have to file for bankruptcy. Charney was able to get an investor to save the company at the last moment. The company completed a radio- frequency and the company implemented an Oracle Web Commerce which is the e-commerce sales. The company is known for their T-shirt in the USA. The company had many locations worldwide. They also sold women’s, men’s, children and babies’ apparel. The company did have some financial troubles in 2017. The Canadian manufacturer Gildan and closed its stores. The same year it reopened up an online retail store. The online retail store is globally sourced and sweatshop free. Most of the products are made in Central America and Honduras. The organization’s mission and values include that American Apparel wants to be made high-quality clothes and trendsetting apparel. The company did not want to exploit workers. The classic product that the company with a basic t-shirt an icon from the USA. The negative about this company had a federal investigation on 2009 due to documents of workers that they hired for employees that worked for American Apparel. There were immigrant workers and the company terminated 2000 workers from the factory in order to complete order on time in order to meet all the demands that was requesting from this company. 2008 the profit decreased 36 million to 3 million in 2009. The net profits fell from 14 million in 2008 to 2009 to one million. The company had a hard time transitioning with a new distribution which led to an increase in operating cost and delivers were disrupted. The cost of goods increased $289 million in 2012. 2013 with 313 Million crushing net and gross margins. The company a lot of debt, and this a financial risk of the company. The company has more debt than assets. Current Ratio = current assets divided by current liabilities

333,752

American Apparel OL 501 Final Project

411,156 = .81 This number shows how the company can afford to pay off liabilities with current assets Debt Ratio = current liabilities divided by current assets

411,156 333,752 = 1.23 The company a lot of debt, and this a financial risk of the company. The company has more

debt than assets. Inventory Turnover = costs of goods sold divided by average inventory 313,056 169378 = 1.8 Profit Margin = operating earnings divided by sales 106,298 633,941 = -16.7 This is the revenue from the sales exceed. American Apparel is a negative margin.

American Apparel OL 501 Final Project

Most Current

% Chg (+/–)

Previous Year

Year Current Assets

215,296

-4.1%

$224,390

Total Assets

333, 752

1.7%

328,212

Current

$161,989

0.2% 161,609

Liabilities Total Debt

$213,468

94.0%

$110,012

Sales/Revenue

633,941

2.7%

617,310

Cost of Goods

313,056

8.0%

289,927

Inventory

169,378

-2.8%

174,229

Net Income/Loss

(106, 298)

185.2%

(37,272)

Sold

The different departments that plays their own part of the company makes the product and the company successful includes the following teams. Marketing is the best way to promote the clothes by selling by ecommerce. Operations they see how they can save money improve any way to make more money by the materials that they use for producing the product. Accounting

American Apparel OL 501 Final Project

they keep track of all the sales and expense to see how well they are doing well in selling the apparel item. To set up payroll system, determine how they pay the employees, establish sale tax procedure are a few examples in what the accounting team does on a daily basis. Sales have a lot of building of loyalty and trust to customers and business. promoting and talking to clients about the companies to sell the apparel. HR finding, screening, recruit, training applicants and administering employee benefit program. HR are up to date with any laws that may affect the company and its employees. All of the departments play a role in how the company would do overall with selling the products that they sell on a daily basis. As long as everyone does their job then each team will make a difference of the company and the company will do well. A company's values inform the methods it uses to accomplish its mission. American Apparel wants to be made high-quality clothes and trendsetting apparel. The company did not want to exploit workers. The classic product that the company with a basic t-shirt an icon from the USA. The garment that the company sells and do not reply on cheap labor. The aspect of the garment. The product is photography. Everything is done in house of the company that I mentioned. The company had a hard time transitioning with a new distribution which led to an increase in operating cost and delivers were disrupted. The cost of goods increased $289 million in 2012. 2013 with 313 Million crushing net and gross margins. The company is known for their T-shirt in the USA. The company had many locations worldwide. They also sold women’s, men’s, children and babies’ apparel. The company did have some financial troubles in 2017. The Canadian manufacturer Gildan and closed its stores. The same year it reopened up an online retail store. The online retail store is globally sourced and sweatshop free. Most of the products are made in Central America and Honduras

American Apparel OL 501 Final Project

American brand is known for its sturdy and timeless basics. American Apparel was once one of the biggest apparel producers in the US. After some financial troubles in 2017. The Canadian manufacturer Gildan and closed its stores. The same year it reopened up an online retail store. The online retail store is globally sourced and sweatshop free. Most of the products are made in Central America and Honduras. The weaknesses of this company had a federal investigation on 2009 due to documents of workers that they hired for employees that worked for American Apparel. There were immigrant workers and the company terminated 2000 workers from the factory in order to complete order on time in order to meet all the demands that was requesting from this company. 2008 the profit decreased 36 million to 3 million in 2009. The net profit fell from 14 million in 2008 to 2009 to one million. The company had a hard time transitioning with a new distribution which led to an increase in operating cost and delivers were disrupted. The cost of goods increased $289 million in 2012. 2013 with 313 Million crushing net and gross margins. The company is known for their T-shirt in the USA. The company had many locations worldwide. They also sold women’s, men’s, children and babies’ apparel. The company did have some financial troubles in 2017. The Canadian manufacturer Gildan and closed its stores. The same year it reopened up an online retail store. The online retail store is globally sourced and sweatshop free. Most of the products are made in Central America and Honduras. A company's values inform the methods it uses to accomplish its mission. American Apparel wants to be made high-quality clothes and trendsetting apparel. The company did not want to exploit workers. The classic product that the company with a basic tshirt an icon from the USA. The garment that the company sells and do not reply on cheap labor. The aspect of the garment. The product is photography. Everything is done in house of

American Apparel OL 501 Final Project

the company that I mentioned. There are several different departments that are part of the company which includes Marketing, Operations and HR and helps out the strategy of this company. All of the departments help out the company in different ways to help out the company plays their own part in the company. The marketing does well market the clothes in marketing the clothes. The operations see the entire store to make sure that they are doing the right thing in selling the items. The HR starts to be hiring the right candidates for the company. The KPI for American Apparel with who they hire. A company's values inform the methods it uses to accomplish its mission. American Apparel wants to be made high-quality clothes and trendsetting apparel. The company did not want to exploit workers. The classic product that the company with a basic t-shirt an icon from the USA. The garment that the company sells and do not reply on cheap labor. The aspect of the garment. The product is photography. Everything is done in house of the company that I mentioned. The weaknesses of this company had a federal investigation on 2009 due to documents of workers that they hired for employees that worked for American Apparel. There were immigrant workers and the company terminated 2000 workers from the factory in order to complete order on time in order to meet all the demands that was requesting from this company. 2008 the profit decreased 36 million to 3 million in 2009. The net profits fell from 14 million in 2008 to 2009 to one million. The company had a hard time transitioning with a new distribution which led to an increase in operating cost and delivers were disrupted. The cost of goods increased $289 million in 2012. 2013 with 313 Million crushing net and gross margins. The second KPI American Apparel did well by having 246 retail stores for apparel for women, men, children and babies. The company had 246 stores worldwide which includes USA, Canada, Mexico, Brazil, UK, Ireland, Austria, Belgium, France, Germany, Italy,

American Apparel OL 501 Final Project

Netherlands, Spain, Switzerland, Israel, Australia, Japan, South Korea and China. The company did well sell apparel in e-commerce level. Ernest and Young name Charney the Entrepreneur of the year in 2004. Apparel Magazine Fashion was awarded Man of the Year. The CEO Don Varney had a vision of American Apparel as a brand name, fair wage and a creative apparel company in the USA. The third KPI is what the company is known in American Apparel . The American Apparel’s mission is to make quality clothes and not cheap materials. The company wanted to make a classic product like a T-shirt that is an Icon on the Western Union culture. The CEO Charney did a great job having an apparel business stores worldwide with an e-commerce store in selling women, men, children and babies’ clothes. The company wanted to make a classic product like a T-shirt that is an Icon on the Western Union culture. The fourth KPI is how well the company did extremely well in selling the apparel by ecommercia. The one goal that American Apparel would expand their online sales increase 20% through social media which includes Twitter, YouTube, Instagram, Facebook in six months. This would allow American Apparel would promote their brand and introduce the product line to their consumers. I have learned a lot from this class about the American Apparel from all the chapters that I had to read and do exercise and also writing journal each week with what I have learned about this company. I have learned strategies, strengths, weakness, KPI, Mission statement and how different departments is important, and they play their own part with the company.

Reference Anupam M (2019) Apparel Drowning in Debt? Richard Ivey School of Business Foundation....