Fashion House Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Fashion House Case Study Solution

Significantly, the key methods, technique or level to achieve turnaround is to change the management, thereby developing a problem solving strategy, which can done by revisiting the strategic approach. The company should negotiate with the land orders regarding restructuring contributions. Also, the company should keep focusing on re-employment and employees retention in order to address the emerging issues within the company. By turning efforts to the retention of customers rather than customer acquisition would reap more financial benefits to the company, also it would be cost efficient mean of boosting company’s performance and sales. The reward and compensation would motivate employees to work collaboratively and actively to achieve the common targets of company. If the business operation are backed by the skilled and committed employees, the company would definitely succeed in forthcoming years. The company should disregard weaker links and retains those employees who are crucial for the business. The company should opt for the external funding such as leasing, taking loan from banks.

In addition to this, the company should restructure its finance, because without solving the core issue, all the efforts would have a high possibility to fail miserably. Restructuring under the current ownership and management can be done by incorporating the strategic and operational oriented decisions such as creating the change climate, rewarding and recognizing the positive behaviour, sustaining and implementing change, enabling actions from employees as well as celebrating the short and long term wins. The company should expand and build the truly differentiated capabilities which are handful of the capabilities that would allow the company to drive its value in highly competitive market arena. Also, the company should obtain the relevant personal in numerous professional fields including law firm, asset appraisal firm, accounting firm and agent in order to make investigation on the authenticity, asset ownership and the completeness of the actual operations capacity and statement data, thereby fair evaluation. All in all, the company should modernize marketing efforts, use efficient time strategies, narrow its focus, and reduce cost with outsourcing, which in turn would allow the company to improve the financial performance. (Appendix 2)

Question 3

In terms of the implementation of the stated option, the company’s first priority will be to replace the CEO as it is one the major hurdle that has restricted the growth of the company. In such state where the profit margins of the company are rapidly declining with each passing year and the morale of the employees are struggling leading to unachievable sales targets. The employment of an experienced CEO who should not only be is skilful but also be possessing the quality of an effective leadership has become a necessity for the success of the turnaround project.

Apart from this, in order to create better relationship with the employees and the parent company, the company will provide a platform through which the communication could easily flow between the two companies. As the lack of communication has limited the process of restructuring. Through effective communication the company will be able to better communicate the necessary steps required to be taken by the company in order to revive its brand in the minds of the consumers. Because as per the survey conducted by FH, it was revealed that brand has lost its identity due to which customers find it difficult to differentiate the brand from other manufacturer brands.

The closing of shops that are not more than a burden and are affecting the profitability of company due to low profit generation, is essential in order to reduce the operational cost of the business as these shops closing will allow the company to focus more on the targeted groups that will eventually enhance the company’s profile and in distinguishing different targets group.

The implementation of the above actions is prioritized by mutual consent of the upper level management and the employees, so that the restructuring process can be effectively implemented without any objections raised by the concerned parties.

Initially the action that will be taken by the company to begin the restructuring process, will be communication of the plan to the concerned parties in order to gain the approval and to make them feel as an important part of the organization. This will gain the trust of the employees as they will be aware of the decisions, the organization is planning to take as a part of the reorganization strategy and in preserving the image of FH. (Appendix 2)