Entrepreneur Analysis - Levi Strauss - Case Study Example

ENTREPRENEUR ANALYSIS: LEVI STRAUSS Prepared by (Student’s Name) University Name Professor’s Name Course Date History, Development and Successful Growth Levi Strauss is one of the most notable and paramount of all times. He is widely-known for the production of the current American garment-blue jeans (Downey, 2014). He was born in 1829 to Hirsch Strauss and Rebecca Haas Strauss in Germany. He died in 1902 after he had established and steered Levi Strauss & Co. in San Francisco, California (Downey, 2014). At the age of 18 years, together mother, they moved to the United States of America to join his siblings that had already set up shop in New York City; J. Strauss Brother & Co. the opportunity to travel abroad formed the basis of his business carrier. After parting ways with his sister and went to Louisville, Kentucky, he started off by selling his brother’s supplies in the region prior to acquiring American citizenship in 1853 (Downey, 2014). In the course of the year, his extended family-Rebecca was second wife-embarked on opening other branches in the country and the most notable one being the West Coast branch that focused on extending the family dry goods business in San Francisco, which went further to be a commercial focal point of the California Gold Rush. Levi Strauss was immediately selected to represent the family in this business and was thus required to travel to San Francisco where he later joined with his sister’s family. It is while conducting his duties at the business venture that Strauss decided to launch his own enterprise; Levi Strauss & Co (Downey, 2014). The company focused operated as a wholesale business dealing in distribution of dry goods. It set to import fine dry goods like clothing, bedding and combs from his established siblings in New York City. He also made tents and later embraced jeans fashion production. He sold most of the dry goods imports to small stores that were now coming up in larger numbers in the entire California section as well as the entire West. He launched his enterprise in 90 Sacramento Street; a location that offered distinctive proximity to the waterfront, which came in handy for him to receive and thereafter distribute these dry goods that had arrived by ship from his brother in New York (Downey, 2014). In the late 1850s, Levi shifted business operations from 62 to 65 Sacramento Street as the venture had, by now, improved tremendously in both trade and reputation level. In fact, by then, his close relative- David Stern- had formed an association with the company. As the size of trade and reputation increased; the business venture shifted location to 317 Sacramento Street and thereafter renamed Levi Strauss & Co prior to being moved again to a larger headquarters in 14-16 Battery Street- a business location that it maintained for more than 40 years (Downey, 2014). In hid mode 30s, Levi had already embraced his philanthropic abilities and engaged widely in both the business and cultural activities of San Francisco. In fact, he made sure to support the Jewish communities living the city including Temple Emanu-El, which was San Francisco very first synagogue. To make sure that he developed a workable and efficient working relationship with his employees; he preferred the to refer him as basically Levi as opposed to Mr. Strauss- an approach that fostered social networks and enhanced a great sense of belonging that highly favoured his business undertakings even much further. In 1872, Levi Strauss received communication from Jacob Davis-one of his key customers- about a new idea he had developed that focused on placing metal rivets at the pockets corned and at the back of button flow in a bid to make these pants stronger especially for his labouring male customers. He needed to patent the new idea but needed Levi Strauss as a business partner to propel the idea and share related costs. Being an open-minded person, Levi Strauss embraced the idea and the patent was successfully conducted in 1873; a process that resulted to the launch of the modern blue jeans. Levi Strauss comprehended and established that there was going to be a higher demand for these riveted waists overall and thus, he brought Jacob Davis onboard from San Francisco to supervise new operations in the very initial West Coast Manufacturing plant. By the end of 1880, Levi Strauss had developed the idea even further and went ahead to lease factory space and later on; opened his own factory in the south of Market Street and managed to propel the first blue jean product- 501(R) jean to a best-selling garment as were the other riveted products that they both decided to add in new manufactured product lines. Together with the efforts of David Stern’s four sons, he managed to incorporate the company. His other major developments that fostered his entrepreneurial growth can be attributed to the positions he held as charter member and later treasurer of San Francisco Board of Trade in 1877. He was also a paramount director of Nevada Bank, the Liverpool as well as London and Globe Insurance Company. The decision to acquire Mission and Pacific Woollen Mills from William Ralston- fostered operations further as the mill’s fabric was used for the production of blanket-lined trousers and coats under Levi Strauss & Co. brand. It is understood that even after the 1906 San Francisco earthquake that destroyed the company; and the death of Levi Strauss, Stern’s sons ensured to protect the legacy by setting up new plant and continued with production of the riveted products up to date (Jan, 2006). Most people and especially his close family members attribute Levi Strauss success to his unending quest for quality production as well as his ability to predict the future, take risks and commit to new ideas. Role of Family and Socio-Cultural Background in their Entrepreneurial Development As it can be seen from the entrepreneur’s history discussion above, the role of family and socio-cultural background played a significant role in his successful business venture. First, he learned the dry goods trade from his siblings-two brothers that had already settled in New York America. He was a committed young man that was ready to take family responsibilities and this can be seen by him agreeing to travel to San Francisco to represent the family in a newly-created venture that was focused on taking advantage of the California Gold Rush. He can be seen to be relating with his close family members and even making sure to incorporate them into his new ventures. For instance, after he had acquired American citizenship and opened his company- he was ready to work close with his sister’s husband-David Stern. The fact that he came from a polygamous family background rich in Jewish traditions fostered this smooth business relations; a factor that is very uncommon in most of other cultures (Sharma & Manikutty, 2005). Certainly, Levi Strauss was able to improve his enterprise even much higher taking into consideration that he was greatly involved both businesswise and in social networks with the local Jewish communities in San Francisco to the point of building the city’s first synagogue (Brockhaus,1980). These attributes couple with his ability to ensure production quality and intensive commitments made sure that he held onto the passion to greater and successful heights. Business Developed & Comparison to Competitors Together with Jacob Davis, Levis Strauss managed to patent and idea that involved riveting jeans with a focus of making them even stronger for labouring men at the time. The fact that they had ensured to patent the production capability allowed them to expand business product lines to other riveted products like coats. At the time, competition only existed in production of standardised garments hence allowing them the entrepreneur viable time to come up extensive facilities to generate and brand these garments. In fact, it is noted that the blue jean 501(R) became one of the best-selling garments at the time. Another important aspect to note that lies in the fact that Levi Strauss managed to transforms a mere business idea into a fashionable wear product that still enjoys massive recognition. Future Suggestions for the Entrepreneur With the death of the entrepreneur in 1902, the business venture was adopted by his two nephews; David Stern’s sons. The company is still known for its top notch designer labels like Denim and others that are focused for the younger generation. The company helped transform and propel the jeans culture; a phenomenon that is embraced up to date. Considering the fact that the company has sought to strictly adhere to the fashion industry; there is still room for expanding into the events and entertainment sector in both the US and UK since the majority of the customers in this niche are the same young people that already have a glimpse of the operations and innovativeness capability of this company. References List Brockhaus, R.H., 1980. Risk taking propensity of entrepreneurs. Academy of management Journal, 23(3), p.509-520 Downey, L. 2014. Levi Strauss: A Biography. Retrieved on April 2, 2016 from http://lsco.s3.amazonaws.com/wp-content/uploads/2014/01/Levi-Strauss-Full-Biography.pdf Jan, L. 2006. A Nevada Stylist: Your Denim Jeans are a Nevada Invention. Nevada State Museum Newsletter, 36, (3):p.4 Sharma, P. & Manikutty, S., 2005. Strategic divestments in family firms: Role of family structure and community culture. Entrepreneurship Theory and Practice, 29(3), pp.293-311. Read More