Abercrombie Issues and Recommendations Essay

1565 Words7 Pages
7. Issues your company is facing: Select a set of crucial issues (at least 6 in all) that the company's top management must address over the next three years. That is, what would be an agenda for FUTRUE strategic actions? This agenda arises from your entire analysis above. Be sure to provide a brief heading of each issue and organize each under the appropriate level of strategy (at least 2 under each level): (A) corporate (refer to your SWOT analysis and use topics from Chapter 7), (B) competitive (refer to your SWOT analysis and use topics from Chapter 6), and (C) functional (refer to your SWOT analysis and use topics from Chapter 5). Explain why each of those issues is important for the company to address. Do not provide recommendations in this section. (9 points) Corporate Issues 1. International Overexpansion: International expansion was a key focus for ANF since 2006, now these new stores have started underperforming. In 2011 international locations accounted for 25% of sales, since then sales have dropped 22%. International expansion places increased demand on operational, managerial and administrative resources at all levels. ANF started opening huge stores all over Europe and other locations, even though demands in those areas were uncertain. ANF did not fully understand that nature of the international audience. Many of their products are inspired by East Coast tradition which is a slowing trend in international markets because as more and more locations appear, the weaker the trend gets. ANF needs to immediately address this issue in order to prevent a further loss in sales, and maintain their strong brand image they’ve had in the past. 2. CEO’s remarks and brand position/strategy: The firm has an image of discrimination brand since 2006. CEO Mike Jefferies in a Salon article from 2006 reportedly said A&F markets to “the
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