Management’s Dilemma in a domestic garment industry

“Passion, innovation & ethical practices for the clothing industry. That's American Apparel”

About AA

• Dov Charney, 1989• Paula Schneider• Vertically integrated• 273 locations• 10 000 jobs • Code of ethics• ‘sweatshop-free’

Location: Los Angeles, California

Reading the Opening Paragraph

Read the Last Paragraph

Read the subtitles

Look at the Exhibits

Read the first sentence of each paragraph and the last sentence

You can now answer the following Questions:

Tackling the Case

Who is the Decision Maker?

What is the issue?

Why has the issue arisen

When do I have to resolve – Time Frame?

Preliminary Group Discussion:

How will your management team address the company’s excess labor problem during the upcoming period of slow

sales? Be specific in your recommendations. Do the calculations. Be Ethical. Be Innovative.

For example, if you recommend layoffs as a solution, state exactly how many workers will be affected, HOW you will determine which workers will be affected, and how this cuts production appropriately.

Keep in mind, there is no union and there are no other specific policies or agreements that mandate the basis for prioritizing which sewers might be affected by your decision.

Use terminology, ethics tests, stakeholder analysis, and ensure your solutions is compatible with the company’s commitment to ethics.

Decisions, Decisions…

HOW to think.

Like an AA manager; know your audience

Your colleagues are sewers and valuable employees

Present your idea clearly

Host questions & feedback

The Management Teams

Team A: Rachel, Riley, Andrew

Team B: Lauren, Blake, Brad

Team C: Chelsea, Mila, Nick, Matt

Team D: Justin, Robbie, Jennalee

Team E: Youssef, Ta, Laura, Karla