...Grand Jean is a company which has been in business for many years and manufactures various types of jeans. It is one of the largest clothing manufacturers in the world with dominant product – blue denim jeans. The demand for firm’s product over the years has been stable due to reasonable price and good quality. Grand Jean uses an outsourcing strategy in production by contracting with independent manufacturers to expand supply to match growing global demand. At corporate level, Grand Jean Company is a single industry firm, whose main goal as the whole is to maintain its leadership in the market as a manufacturer of jeans and also is to increase firm’s profitability and growth. The goals of the company are different from the company’s marketing organization goals and the company’s 25 managers of manufacturing plants goals. The reason so, is because the marketing department is treated as a “Revenue Centers”, while the firm’s 25 plants are treated as “Expense Centers”. The goals of “Revenue Center” are to sell manufactured goods and to maximize revenue. Furthermore, marketing department is responsible for making product demand forecasts which are used to set sales unit and sales dollar targets. Whereas, the goals of “Expense Centers”, manufacturing plant, are to meet the budget, achieve cost efficiency, achieve good product quality, and reach the quota that is assigned to each plant. In Grand Jean’s case, the “Expense Centers” would be considered as an Engineered Expense Centers...
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...1.How would you describe the goal(s) of the company as a whole? Is this, or are these, the same as the goal(s) of the company’s marketing organization and the company’s 25 managers of manufacturing plants? Explain. Ans. The main objective of the company is to increase profitability and achieve high growth. The company is striving hard to achieve cost effectiveness and achieve high level of quality. Now, the goals of the company’s marketing organization and company’s 25 managers of manufacturing plant are different. The marketing division is treated as a “Revenue Centre” so the goal of the company’s marketing organization is to maximize revenue and sell what is produced. They are evaluated on the basis of meeting the set sale unit and sales dollar targets. Also, they are responsible for making demand forecasts which are used to decide the production levels of each plant. Whereas, the manufacturing plant have the goal to just meet the budget figure and fulfill the quota allocated to each plant. Since they are considered as an expense center and there is no immediate monetary reward to compensate for increase in responsibilities or requirements, they are not concerned to achieve higher efficiency and thus, want to exceed the targets. 2.Evaluate the current management planning and control system for the manufacturing plants and the marketing departments. What are the strengths and weaknesses? Ans. By 1989, the company was one of the world’s largest cloth manufacturer. Following...
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...Grand Jean Company Gambaran Umum Perusahaan Grand Jean Company didirikan pada pertengahan abad ke-19. Perusahaan ini dapat bertahan ditahun-tahun sulit disebabkan oleh produk blue denim jeansnya yang mendominasi pasar. Grand Jean Company telah menjadi market leader dengan varisai produk unggulannya yaitu “wash-and-wear”, bell-bottom, flare jeans dan celana modern casual. Pada tahun 1989 perusahaan ini merupakan salah satu perusahaan manufaktur pakaian terbesar didunia. Perusahaan memiliki reputasi menhasilkan celana yang berkualitas dengan harga yang baik dan tahun lalu perusahaan menjual 40 juta celana. Perusahaan memiliki 25 pabrik. Kapasitas tiap pabrik berbeda tetapi rata-rata produk yang dihasilkan 20.000 celana per minggu. selain 2 atau 3 pabrik yang hanya memproduksi blue denim jeans, Seluruh pabrik memproduksi bermacam-macam jenis produk. untuk menambah kapasitas produksinya perusahaan merekrut pabrik dari luar, saat ini terdapat 20 pabrik luar (memproduksi sepertiga dari keseluruhan produk yang djual produk) yang memproduksi berbagai macam produk Grand Jean Company termasuk blue denim jeans. Tom Wicks (vice president untuk production operation) dan para stafnya yang membuat perjanjian kerja kepada pabrikan luar. Ia menentukan harga maksimum yang perusahaan akan bayar kepada para kontraktor luar dan jika kontraktor tersebut dapat memenuhi standar perusahaan maka akan dibayar sesuai harga maksimum tetapi jika tidak maka akan dibawah harga maksimum sampai kontraktor...
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...| PEMBAHASAN KASUS SPM | | GRAND JEAN COMPANY | Latar Belakang Grand Jean Company didirikan pada pertengahan abad ke-19. Perusahaan tersebut tetap bertahan menghadapi tahun-tahun penuh kesulitan dan pada tahun 1929 mengalami depresiasi besar akibat dari daya tahan pasar pada produk yang dominan tersebut-Jean Blue Denim. Gran Jean menguasai pasar dengan “wash-and-wear” , bell-bottom, dan jean flare, serta celana panjang kasual modern. Pada tahun 1989 perusahaan ini menjadi manufaktur pakaian terbesar didunia. Perusahaan tersebut menyediakan bermacam-macam baju dan pakaian jean untuk pria dan wanita dan celana panjang wanita dengan jenis yang lengkap. Produksi Perusahaan memiliki 25 manufaktur celana panjang. Kapasitas celana panjang bervariasi, tetapi rata-rata output yang dihasilkan 20.000 celana panjang per minggu. Dengan pengecualian dua atau tiga celana panjang yang diproduksi hanya jean blue denim, celana yang dihasilkan berbagai tipe celana panjang. Perusahaan meningkatkan kapasitas produksinya dengan kontrak manufaktur bebas. Sekarang ini ada 20 kontraktor membuat segala jenis celana panhang Grand Jean (digolongkan dalam jean blue denim). Tahun lalu kontraktor memproduksi satu-tiga jumlah penjualan celana oleh Grand Jean. Tom wicks, wakil direktur untuk operasi produksi memberikan pendapat perusahaan menggunakan kontraktor luar. “Sebagian besar kontraktor ini telah bekerja sama dengan kita selama lima tahun atau lebih. Beberapa dari mereka telah memberikan...
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...Michael Lin Problem •The Levi Strauss company is experiencing losses and is continuing to under-perform in the denim jean market. •The firm faces the general problem of a dominant firm losing market share when more firms enter the market. Problem Background Successes Competition Solutions Responsibility Conclusion Q&A Background - History •The company was founded by Levi Strauss in 1853 primarily selling wholesale dry goods. The company was founded in San Francisco, California. •A tailor named Jacob Davis thought of an idea to use copper rivets to reinforce the points of strain on pants. •Davis and Strauss purchased the patent of the idea of using copper rivets in clothing on May 20, 1873. Problem Background Successes Competition Solutions Responsibility Conclusion Q&A Background - Company Growth •The innovation of the rivets in the jeans differentiated Levi’s jeans from others because of its increased durability. •Over the years, Levi’s jeans have become more popular, initially due to its durability. Jean products expanded, targeting different consumers. •Levi Strauss & Co. eventually captures most of the denim jean market, becomes the largest manufacturer of jeans, and profits reach $1 billion by 1974. Problem Background Successes Competition Solutions Responsibility Conclusion Q&A Background - Time Line •1853: Levi Strauss begins selling dry goods in San Francisco. •1873: Levi Strauss & Co. patent riveted jeans and begin selling them. •1912: Koveralls...
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...Business studies project Marketing management (JEANS) Delhi public school! Acknowledgement I would like to thank my thank my business studies teacher Mrs. Sopilla Nile for helping me out with my selection for the project. She also helped me with ideas and concepts for the project. My parents who encouraged me and helped finding the details and providing me with contacts and helping me with the field reports. My friend, ishwari who gave me ideas for my product and would discuss and solve my problem anytime. Introduction Jeans are trousers made from denim or dungaree cloth. Often the term "jeans" refers to a particular style of trousers called "blue jeans" and invented by Jacob Davis and Levi Strauss in 1873. Starting in the 1950s, jeans, originally designed for cowboys, became popular among teenagers, especially members of the greaser subculture. Jeans were first designed as durable trousers for farm workers and miners in the states of the American west. A Nevada tailor, Jacob Davis, had the idea of using copper bolt sat the corner of the pockets to make them stronger. They became popular instantly and soon many people bought them. Although Davis knew that he had a great product which many people wanted to buy, he didn’t have the money to patent it. He asked Levi Strauss, who supplied him with cloth, to help him out. The two worked together and started making jeans out of denim, which was more comfortable and could...
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...ase Reading – The Levi’s Personal Pair Proposal The case talks about Levi Strauss and Co, a privately held American clothing company known worldwide for its Levi’s brand of denim jeans. Levi’s was approached with a new concept called the Personal Pair. Custom Clothing Technology Corporation had offered Levi Strauss a joint venture proposal that would combine the Levi’s core products with emerging technologies of mass customization. CCTC’s plan was to make special customized jeans that would fit to meet each customer’s unique needs and taste. The problem is that Levi was not sure if they should accept the proposal or not. I analyzed the case by looking at the pros and the cons of the personal pair concept. I though one of the biggest cons of the program was the wait time. A person would first have to come in to get their sizes taken and than would have to wait an additional 3 weeks to get their product. Another con was that Levi would not carry any finished products, which meant that if someone wanted to buy a pair of jeans at the store they would not be able to purchase them and instead would have to pay a higher price to wait 3 weeks for their jeans. I would say that they should reject the proposal because the cons outweigh the pros. The new technology would increase the price of their product by adding another $15 to a pair of jeans, which would be a huge disadvantage for Levi. Levi was already struggling in the lower and upper ends of the apparel market and adding another...
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...Religion Brand Jeans: Will Going Private Regain Its Congregation? 1. Is the premium jeans industry an attractive market? Develop an understanding of the industry structure and market dynamics. 2. Does True Religion enjoy a competitive advantage in the segment? If so, is its advantage sustainable? Discuss the sources of competitive advantage and use the VRIO framework to evaluate True Religion and its major competitors. The top 5 firms in the segment hold an estimated 62%-65% market share - making it a relatively concentrated industry. Most premium jeans makers target young "fashionistas", but a few lines such as Seven For All Mankind and Citizens of Humanity market products that appeal to a wider age group. Seven also makes jeans for plus size women, while True Religion focuses on the very thin, very young woman. When applying the VRIO framework, True Religion does not hold a strong competitive advantage and its greatest resource is not trendsetting. There is nothing True Religion can do from keeping competitors neutralized or from entering the market, and the strongest competitive advantage True Religion has is its brand name. True Religion Brand is a design-based jeans brand. The company designs, manufactures, and markets different products such as jeans, jackets, t-shirts, pants, and hats. Even as demand for basic five-pocket denim jeans suffered from the shift in consumer preferences in casual wear in the late 1990s, demand for women’s fashion jeans grew. According...
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...men's work pants out of denim: the first blue jeans. The company briefly experimented (in the 1970s) with a public stock listing, but remains owned and controlled by descendants and relatives of Levi Strauss's four nephews. 2) For convenient return processing on most orders, your packing slip will include a pre-paid, pre-addressed label for your return package. When you use the pre-paid shipping label to mail to Levi’s your return, Levi’s will deduct $7.00 from your order refund. 3) Levi Strauss had the canvas made into waist overalls. Miners liked the pants, but complained that they tended to chafe. Levi Strauss substituted a twilled cotton cloth from France called "serge de Nimes." The fabric later became known as denim and the pants were nicknamed blue jeans. The company has its corporate headquarters at Levi's Plaza in San Francisco. 4) Levi’s jeans have different colors for every model, so the Levi’s 559 Relaxed Straight is available in different styles like Rebuilt Dark Indigo and Eagle Eye. 5) To wear the Levi’s 559, you must pull the jeans up, raise the zipper, and button up the belt line. Levi Strauss & Co. has always made durable jeans that usually last more than 10 years, so the product has a long life. 6) It is recommended that the Levi’s 559 be kept away from major grass stains and attempting to break the denim in the knee area should also be avoided. 7) The Levi’s 559 Relaxed Straight Jeans are available at $44 which is cheaper and much...
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...Levi Strauss & Co. is to sustain responsible commercial success as a global marketing company of branded apparel.” (“Mission Statement”). Levi’s main goal is to be a long-lasting company, as it’s written in their mission statement. The company has been around for quite some time; almost everyone can recognize the name Levi’s. But when someone purchases a pair of Levi’s jeans, they probably don’t think about what goes on behind-the-scenes, or how the jeans were actually made. The following paragraphs will cover Levi’s raw materials, modes of transportation, marketing strategy, and their operations. Jeans were invented shortly after the California Gold rush. Levis Strauss then began making miners’ denim work pants with copper rivets. The denim pant had already existed for a while at the time, but Mr. Strauss’ addition of the metal rivets at pocket corners and other points of strain made regular denim pants a “Levi”. In the year 1873, Levi Strauss and his business partner Jacob Davis received a patent for what would soon become the most popular denim brand ever made. (“Levi Strauss”). Because Levi’s is a well-known, international brand, it has suppliers all over the world. There are many different routes through which a pair of Levi’s jeans can be made, throughout the Americas, Europe, Asia, the Middle East, and Africa. One of the many routes taken in the production of a pair of Levi jeans is one located right here in the United States, operating from the San Francisco headquarters...
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...different marketing arrangements: Co-branding, also called brand partnership is when two companies form an alliance to work together, creating marketing synergy. "The term 'co-branding' is relatively new to the business vocabulary and is used to encompass a wide range of marketing activity involving the use of two brands”. | | Levi’s & Naturals: We are doing co-branding for Levis and naturals only in the southern part of India. About Levi’s Levi Strauss & Co is an American clothing company. It was started in the year 1853. Levi Strauss & Co. is a worldwide corporation organized into three geographic divisions: Levi Strauss Americas (LSA), based in the San Francisco headquarters; Levi Strauss Europe, Middle East and Africa (LSEMA), based in Brussels; and Asia Pacific Division (APD), based in Singapore. The company employs a staff of approximately 10,500 people worldwide. The core Levi's was founded in 1873 in San Francisco, specializing in riveted denim jeans and different lines of casual and street fashion. From the early 1960s through the mid-1970s, Levi Strauss experienced significant growth in its business as the more casual look of the 1960s and 1970s ushered in the "blue jeans craze" and served as a catalyst for the brand. Levi's, under the leadership of Walter Haas Jr., Peter Haas, Ed Combs, and Mel Bacharach, expanded the firm's clothing line by adding new fashions and models, including stone-washed jeans through the acquisition of Great Western Garment Co. a Canadian clothing...
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...Table of Contents |Topic |Page No. | |Executive Summary |3 | |Introduction |4 | |History |5 | |Brands |11 | |Values |14 | |Vision Statement |15 | |Mission Statement |16 | |Aspiration Statement |18 | |Situation Analysis |19 | |Competitive Analysis |20 ...
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...| Page No. | 1. | Executive Summary | 6 | 2. | Abstract | 7 | 3. | Scope of the Study | 8 | 4. | Objective of the Study | 8 | 5. | Literature Review | 9 | 6. | Methodology of the Study | 9 | 7 | Denim Definition | 10 | 8. | Types of Denim | 12 | 9. | Application of Denim | 14 | 10. | Denim Industry Overview | 15 | 11. | International Market Analysis | 16 | 12. | Share Of Purchases | 17 | 13. | Denim Market Share Compared to Others | 18 | 14. | Top Purchase Drivers for Denim Jeans Shoppers | 19 | 15. | Denim Apparel Export | 20 | 16. | Import Of Denim | 22 | 17. | Denim Manufacturing Companies | 24 | 18. | Capacities Of The Companies | 34 | 19. | Findings | 35 | 12. | Conclusion | 36 | 13. | References | 37 | LIST OF TABLES AND FIGURES No | Tables and figures | Page No | 1 | Denim Industry Statistics | 16 | 2 | Share Of Purchases | 17 | 3 | Denim Market Share Compared to Others | 18 | 4 | Top Purchase Drivers For Denim Jeans Shoppers | 19 | 5 | Imports of Denim Apparel In US | 21 |...
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...Grand Jean Company Introduction: Founded in the 19th century, the Grand Jean Company survived the large economy crises in 1929. It became one of the largest clothing companies in the world around 1989. Its main products are pants for men and boys. But also women pants are produced there. With the “wash-and-wearâ€, bell-bottom and flare leans and modern casual pants, the company was market leading. The company owns 25 plants for manufacturing with an output capacity of 20.000 pants per week. However, this production is not enough to satisfy the demand on the market. As a result of that, the company decided to employ independent manufacturers. Last year, these contractors produced one third of the total sales. Grand Jean is a functional organization. The plant divisions are considered as expense centers. The plants are wanted to produce a certain amount of pants, which is given by the marketing staff, every year. The quotas depends on the result, the plant has reached in the previous month. Because there are 5 different products, the company has introduced 5 marketing centers considered as revenue centers. At the end of each year, all plant managers are evaluated on a scale from 1 to 5. The bonus they get in addition to their normal wage, depends on the grade, they were given by the Vice President of Production Operations and his two chief assistants. The received grade is multiplied with 10.000 $. That results a maximum extra payment of 50.000 $. What are...
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...Levis’ Jean SWOT Analysis Strengths. Levis' are the original, authentic jean. They were a hit with baby boomers decades ago when they were in their teenager years. Another is that they stood for something beyond profit. The family took pride in providing quality products, personal service, and fair treatment. The family name and tradition was associated with respect for people—customers, employees, and the community. Weaknesses. The company began to rapidly lose market share to newer, trendier, more aggressive brands and designer labels. The Levi brand lost luster and relevance to the younger generation. Levi's jeans are perceived to be their “parent's jeans.” For that reason they will wear anything else but a pair of Levi's. This perception is an ongoing marketing problem and the company is struggling to find a way to reverse the brand's fortunes. Their tradition of promoting within may have started their dark side. Long-term managers became used to doing things a certain way, and kept new ideas and new blood at a distance. Since the company was so committed to its employees, it kept the younger recruits with new ideas from finding a place. They were so inwardly focused, that they missed the great changes occurring in the fashion world. Their main flaw was that they did not have a clear developmental strategic plan, did not pay attention and learn new technologies, and did not keep track of the competition, market and consumer tastes. Opportunities. In today’s society...
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