Monthly Archives: September 2014

Uniformity and a strong brand equity are important pillars of any company. However, developing a unique and consistent brand can sometimes result in undesired outcomes. Abercrombie has had multiple lawsuits against them for discrimination both towards customers as well as towards their employees. Through this article, I asked myself whether it is possible to create an exclusive brand without being exclusionary. In essence, it is. However certain values must be prioritized over interest in profit.

In a 2004 lawsuit against Abercrombie, the company was accused of hiring a disproportionate sales force and once again in May of 2013, Abercrombie’s CEO openly stated that the company only sells to ‘thin and beautiful’ customers. From a social critique point of view, statements made by both the CEO and the company’s recruitment division as seen in this article may be seen as derogatory. However from a strictly business approach, Michael Jeffries (CEO) makes a valid claim. He suggests that when a company becomes “totally vanilla, you don’t alienate anybody, but you don’t excite anybody, either.”

Abercrombie takes a differentiation approach by focusing on a targeted group of consumers, the young and popular. And even with the negative spotlight due to the large consumer base it marginalizes, the company thrives. From a socially responsible perspective, Abercrombie maintains its specific consumer base and expresses that equality is not part of its core values.

Sources referenced-

Articles:

Murray, Rheana. “Abercrombie & Fitch Targets Skinny Shoppers, Won’t Sell Larger Sizes for Plus-sized Women .” NY Daily News. Daily News, 9 May 2013. Web. 23 Sept. 2014.

Leung, Rebecca. “The Look Of Abercrombie & Fitch.” CBSNews. CBS Interactive, 24 Nov. 2004. Web. 23 Sept. 2014.

Image taken from here

There is a fine line between a company’s responsibility in being environmentally sustainable and the company’s agenda to be as financially successful as possible. Through reading this article, I was faced with the question as to whether environmental stewardship and financial progress can coexist in a large company. It seems that Southwest airlines, America’s largest budget airline has found a creative solution to a temperamental dilemma.

Southwest Airlines has redirected the 80,000 leather seats- which would otherwise meet their end at disposal facilities- to  manufacturing facilities which utilize them in making luxury products. I found this operations management decision to be very impressive as the company is able to create a new revenue stream out of material which was once of no value to the company. Through the method of differentiation, the company is able to appeal to the consumers that are willing to pay more for a luxury good. Moreover, an effective selling point of their luxury goods is that the materials are recycled which appeal to the customers such that they may also be environmental stewards.

In addition, I would like to offer a contrast to my peer Sam Wong’s blog post which may be found here. I would rather comment that the company’s upcycling of the leather seats begins with the intention of being environmentally sustainable and that the increase revenue comes rather as an added benefit rather than an ulterior motive.

Sources referenced:

Article:Braw, Elisabeth. “Southwest Airlines Upcycles 80,000 Leather Seats into Bags, Shoes and Balls.” Circular Economy Hub. The Guardian, 15 July 2014. Web. 15 Sept. 2014.

Image found here

image taken from site

Often, scrutiny of a lack of corporate social responsibility is imposed on large companies. The concept of corporate social responsibility is not new, however it has evolved into a pressing issue which many companies face. In the article found here  the emergence of corporate social responsibility(CSR) is explored. The article suggests that the reason for the corporate apathy towards CSR is due to the “fragmentation” (Porter, Kramer) between the company’s business approach and the society. The article suggests that a company is compelled to CSR is due to “pressure from public response” (Porter, Kramer). However the question that should be addressed is: what is the motive behind the company’s efforts towards CSR? At first glance, it is plausible that the company simply wants to escape public scrutiny. However, it is more likely that the company is involved with CSR initiatives as a by-product of capitalistic interests. As often the scrutiny of the public screams the accusations of capitalistic and soulless corporations, many company’s use CSR initiatives to portray the image of a eleemosynary institution. In the long run, it is essential that an equilibrium is reached between the social responsibility of a  company to its stakeholders as well as to society itself.

Citation: Porter, Michael E., and Mike R. Kramer. “Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility.” Harvard Business Review 1 Dec. 2006. Web.