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Paper is about OL 501 Milestone Three Worksheet- what strategy would you recommend to move organization in new direction

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OL 501 Milestone Three Worksheet

In this milestone, discuss what the company needs to do to change direction and what the success will look like. Complete the following:

1.         Based on the environmental (SWOT/TOWS) analysis you conducted on your chosen organization, what strategy would you recommend to move the organization in a new direction? The strategy should be a high-level explanation of what issues you uncovered in your analysis and how to improve the organization’s market and financial performance.

The basic strategy for American Apparel to come out of the drowning debt is to analyse its existing inventory system. The company needs to improve the basic items which defines the brands like T-shirts, and hoodies. Apart from this, it should digitally link with its customers through social media and understand their requirements and feedback (Bhaduri, 2017).  

 

2.         Identify the key functional organizations that will be involved in implementing your chosen strategy (marketing, operations, accounting, sales, HR, etc.). What role does each functional organization play in implementing the strategy?

The keys players involved in implementing the strategy includes the inventory manager or clerk who is responsible in the purchasing and storing of the inventory. He is involved in evaluating suppliers, preparing documentation and purchasing new inventory. The employee handling the social media account of the company also help in keeping in a regular contact with the customers. He is the one who answers all the queries of the customers and makes them aware of the latest products.

 

3.         Develop a basic (high-level) plan to improve organizational performance, which should include the goals for profitability based on specifics from your financial and environmental (SWOT/TOWS) analyses, and should explain in detail how the goals are in alignment with the company mission/vision and values. The high level plan for the company overall improvement includes the planning and forecasting, e-commerce development, and improving the operations and marketing section of the company. The company has to rebuild a strong financial and operational discipline with a strong corporate governance for its long term strategy. The cost structure of the products are identified as over-priced by its customers. Therefore, it should fix price keeping in mind customers of all groups. Moreover, the company should focus on producing products on customer base. The basic goals for profitability of American Apparels can be achieved by innovation not through employee exploitation. Its goas includes i) become the world’s largest apparel manufacturer, ii) find alternatives like pesticide free cotton, and solar energy, iii) become social corporate responsible (Burman, 2015). For increasing efficiency the shipping times of goods should be increased. Employee retention always helps in enhancing overall profitability. Customer service also helps in increasing the customer loyalty and eventually increases profit rate.

The mission of American Apparel states to produce good quality clothing without exploiting labour. The above mentioned goals also suggests to reduce employee turnover as there is minimum exploitation of employees. Moreover providing good quality products is a form of customer service. Its vision also follows the goals which states that the company is committed towards design, technology and leveraging art.    

4.         How does the strategy and performance improvement plan affect the organization’s functional departments (marketing, operations, HR functions, etc.)?

The development of e-commerce system of the company not only affects the marketing department but also the financial department of the company. Minimising the product pricing may affect operational department as they will impact on the production cost. Similarly planning and forecasting affects the financial department in analysing the gross annual profit. Customer oriented service and employee retention strategy indirectly affects the HR department in a positive way.  

 

5.         What specific KPIs will you use to effectively measure the success of the strategy? Explain how/why these KPIs align with the identified strategy and with the organization’s mission, vision, and values. You should provide at least one KPI for each objective of the strategy.

KPI for evaluation at factory level includes: man to machine ratio, cut to ship ratio, labour cost per piece. Similarly evaluation for the operational department includes: line efficiency, style change over time, man to machine ratio, labour productivity. These KPIs is involved in producing good quality products without the exploitation of the employees (Moor, & Littler, 2014).   

 

The KPI used for the goals of looking alternative and corporate social responsibility includes i) Right First Time Quality, ii) Percentage defective Level, iii) Defects per hundred unit (DHU). Moreover to measure the success rate of the company, KPIs like i) Line efficiency/Factory Efficiency, ii) Employee turnover rate, iii) Order to shipment ratio, iv) Actual cost versus Target cost.

 

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