American Apparel Case - Assignment Example

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American Apparel limited is a company based in American based company dealing with textile and making of clothes for both women and men. It is based in Los Angeles in California and was headed by their Chief Executive Officer…
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American Apparel Case
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American Apparel Case The American Apparel company has a problem. American Apparel limited is a company based in American based company dealing with textile and making of clothes for both women and men. It is based in Los Angeles in California and was headed by their Chief Executive Officer DovCharney who has been ousted. The company has a big problem as DovCharney who is struggling to regain his position has filed a law case to challenge his dismissal.
Marketing and company strategies
The trigger of DovCharney’s outstation is some challenges in his marketing strategies of the products. For instance, he used his female employees as an instrument of advertisement without their consent. He further used ex-employees of the company to advertise the products. The employee filed a case on this allegation.DovCharney could have used willing employees subject to their consent on advertising the products. He could also put in mind psychological aspects of the audience and the customers and used a polite way of advertising instead of using naked girls (Gereffi 143-169). This would have put a positive public figure of the company.
On the part of company management strategies, Charney lacked seasonal executives and personal assistance to help him in compiling checks that always piled in his office. He could have used a team of trusted person to help him in compiling these checks and notes. The reason this is a good strategy he could have used is because this could spare some time, which he could use to solve other problems facing the company.
Happenings to Charney and American Apparel after filing of the case
Since the case was written alleging him on sexual harassment and fall of financial status of the company, there have a lot of events happening. First was his dismissal as the CEO of American Apparel in March this year (Littler, 240-243) . This triggered him on wanting to get his position back to control on the company. He has tried to raise money for buying more share in the company to raise it from 19 percent to 43 percent. This is to try to increase his influence in the company. Also, he is working with some hedge fund investor to help him raise more money.
However, on 29th September this year, the board that fired him hired a new interim Chief Executive officer to act on behalf of Charney. Against his will, the hedge fund investors are now negotiating with the board, bringing a draw back on his plans as there is a possibility that this effort of the hedge investors will trigger appointment of a new management team with Charney in exclusion
This paper do not agree with these events as Charney is not proven guilty in a court of law. The challenges facing him are just allegations that are not yet proven to be true.
Works Cited
Bair, Jennifer,and Gary Gereffi. "Upgrading, uneven development, and jobs in the North American apparel industry." Global Networks 3.2. 2003: 143-169.
Durif, Fabien, Krug, E. G., Mercy, J. A., Dahlberg, L. L., & Zwi, A. B. 2002. The world report on violence and health. The lancet et al. "Ethics in marketing: ideology or strategic philanthropy? The case of American Apparel."
Littler, Jo. "Celebrity CEOs and the cultural economy of tabloid intimacy." Stardom and celebrity: a reader. 2007 .230-243. Read More
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