American Apparel: Drowning in Debt?

Assume you are a consultant who is tasked with advising a company facing a strategic challenge. To determine the best approach, you will assess the
organization’s current business situation and make recommendations on how the company should change its approach to doing business in order to maintain
profitability and sustainability.
You will choose one of the following cases from the HBR Coursepack for your analysis:
 Long-Term Orientation in the Benedictine Monastery of Admont
 American Apparel: Drowning in Debt?
Your presentation must address the following prompt: Select a case study and construct a high-level strategy for success based on the various economic,
competitive, and management challenges faced by the organization. To accomplish this task, you will describe the organization’s mission, vision, and values;
perform a TOWS analysis on the organization; and recommend a strategy that uses the organization’s strengths to capitalize on available market opportunities,
identifies its organizational weaknesses, and prescribes appropriate actions to address the threats that it faces. Additionally, you will identify metrics that will
serve as key performance indicators to track the success of your recommended strategy, and develop a risk mitigation plan to minimize any adverse
Specifically, the following critical elements must be addressed:
I. Introduction: In this section, characterize the organization you have chosen for your final project.
A. Identify the organization’s mission, vision, and values.
B. Explain the challenge(s) facing the organization. Support with specifics from the case.
II. Business Environment: Analyze the internal and external setting of your chosen organization.
A. Perform a TOWS analysis to determine a strategic approach to threats, opportunities, weaknesses, and strengths for your chosen organization.
B. Based on the TOWS analysis, ascertain strategic areas for improvement in the organization’s approach to doing business. Support with specifics
from the case.
C. Prioritize the areas to address by how well they align with the organization mission and values.
III. Financials: Examine the company’s financial statements to assess organizational health.
A. Explain what the balance sheet, income statement, and cash flow statement reveal about how the company is functioning.
B. Calculate financial ratios and interpret what those say about the organization’s financial health. Support with specifics.
C. Identify the potential problem areas in the company as reflected in the financials.
IV. Strategy: What does the company need to do to change direction?
A. Devise a basic strategy to move the organization in a new direction based on the environmental analysis.
B. Identify the key players in implementing the strategy (marketing, operations, accounting, sales, HR, etc.) and describe how it affects them.
C. Develop a basic (high-level) plan to improve organizational performance.

  1. Define goals for profitability based on specifics from analyses.
  2. Explain in detail how the goals are in alignment with the company mission, vision, and values.
    D. Describe in detail how this plan affects the organization’s departments (marketing, operations, HR functions, etc.).
    V. Key Performance Indicators: What does success look like?
    A. Determine the specific KPIs you will use to effectively measure the success of the strategy and explain how/why these KPIs align with the
    identified strategy and with the organization’s mission, vision, and values.
    B. Identify at least one KPI for each profitability goal identified previously.
    VI. Summary
    A. Explain why your basic strategy is the most appropriate for meeting the organization’s goals. Support with specific details from the case.
    B. Identify departmental risks associated with your strategy and develop a risk mitigation plan.
    C. Predict what other factors may affect your ability to implement the mitigation plan (costs, regulations, unions, etc.).

Type of assignment: Essay

Subject: Business

Pages: 9/2475

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