In: Economics
1 Describe in 200 words how American Apparel: was Drowning in Debt -2012-2013?
2 Describe how they could have corrected some of there problems? please type
The American Apparel Drowning In Debt SWOT acronym stands for strength , weakness, threats and possibilities. It is a useful tool, which is widely used in many organizations for strategic planning and management. It is effectively used for the company to develop strategies to sustain its competitiveness on the market. It is a simple yet powerful tool that helps the organization identify its existing resources , capabilities, shortcomings, current market opportunities and threats. It is a framework of strategic planning commonly used to evaluate the organization, a plan, a business or any other project. It helps to assess the environmental and organizational factors that could affect the decision to be made. It analyzes an organization's position in the market compared to its competitors and the major factors that affect the competitiveness before any business strategy is established. SWOT analysis primarily has internal and external dimensions in two dimensions. Internal aspect encompasses all the factors that may influence the strength and weakness of the company while the external factor encompasses the environmental factors that are the opportunities and the risks.
2. Analysis of SWOT is a process that involves four areas further divided into two dimensions , i.e. internal and external. In SWOT analysis, an organization's strong and weak aspect is determined by evaluating the elements within the environment, while an organization's opportunities and threats are determined by examining the element outside of the environment. In this way SWOT allows to compare the resources and capabilities of the organization with the competitive environment in which it operates. It is necessary to understand each aspect of SWOT in order to carry out the analysis i.e. power, vulnerability, opportunities and threats. Strength is a feature that adds value to something by making it special, unique and advantageous in comparison. The skills and key properties of organization are discussed in this element of SWOT which gives an organization an advantage over other organizations by making it more competitive. It defines an organization's characteristics and situations, making it more effective and efficient when compare with its competitors. It defines the areas where the organization holds a command or is good at doing so, and that provides the organization with important capability. It can be a talent, tool, picture, market leadership, relationship with customer or supplier or any other advantage relative to its competitors that satisfies consumer needs by offering a competitive advantage to the company. American Apparel Drowning In Debt Deficiency refers to the condition where the company's current assets and resources are poorer or inadequate relative to other business organizations. In other words , it means the aspects in which the organization is less efficient and needs to improve to align with the trends in the market. Since those things have a detrimental impact on over rall performance of the organization by making it weaker compared to its competitors.
American Clothing Swimming In Debt Potential is an asset and an organisation's driving power. It is the best time or circumstance present in the world which will help the company achieve its objectives. It is a factor that makes a positive contribution to the organisation 's growth. It is a condition that exists in the external environment that enables the organization to take advantage of the strengths of the organization and help overcome the weaknesses and neutralize the threats present in the environment. Threats are the factors that prevent an activity from being actualised by the organization. It is an adverse environment situation that makes it impossible for the company to achieve its established goals. It is a situation that arises as a result of changes taking place in the immediate or distant environment, preventing the organization from maintaining its existence and superiority in the growing competition and is disadvantageous for the organization.
All environmental conditions are viewed as a threat to a company that may impact the organization's productivity and effectiveness.