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Management Project Levi Strauss and Co.

Prepared By:

Jibran Ullah Khan Hassan Raza Zain Khalil Zia-ul-Haq Mr. Muhammad Ather Levi Strauss and Co. 10.04.2010 Ms. Ayesha Mian,
Assistant Manager HR, Levi Strauss Pakistan.

Submitted To: Company In Focus: Submission Date: Resources:

Institute of Management Sciences

1 1.2 Outlets 2. 3.3 1.4. Organogram Managerial Styles 3.4 Goal and Mission Statement Company Profile History and Inception Products and Outlets 2.5 Planning Organizing Leading Staffing Controlling 1.4.2 3.4 3.1 Products and Brands 2.3 3.2 Table of Contents 1.1 3. Introduction Institute of Management Sciences .2 1. Introduction 1.

Shares of company stock are not publicly traded. leadership market positions. the Levi's® trademark is one of the most recognized in the world and is registered in more than 160 countries.303 billion billion.1 Goal: Goal and Mission Statement To Cloth the world. and superior products and services. Mission: Mission Statement: We must balance goals of superior profitability and return on investment. Today. the company is committed to building upon strong heritage and brand equity as they position the company for future growth. personal accountability and opportunities for growth and development. The company employs a staff of approximately 11. We will conduct our business ethically and demonstrate leader ship in satisfying our responsibilities to our communities and to society. 1. Marketing and distribution of the most attractive brand in the world. California headquarters. With 2008 net sales of US$ 4. Our work environment will be safe and productive and characterized by fair treatment.010 people at its San Francisco. including approximately 1. (LS&CO.) is one of the world's largest brand-name apparel marketers with sales in more than 110 countries. There is no other company with a comparable global presence in the jeans and casual pants markets.3 Levi Strauss & Co.400 people worldwide according to 2008 figures. Levi Strauss & Co currently makes jeans in approximately 108 sizes and 20 finish fabrics. open communications. The company is privately held by descendants of the family of Levi Strauss. Institute of Management Sciences . teamwork.

the company's Japanese affiliate.700 in the Americas o 4. including 260 company-operated stores and approximately 1. products are sold through approximately 60. o Contractors are located in approximately 45 countries around the world o No single country represents more than 20 percent of our production • Employees: More than 11. bags and wallets o Eyewear o Luggage and home bedding products • Sourcing: We source our products primarily from independent manufacturers located throughout the world. o More than 5. trademarks are licensed for products and accessories complementary to our core branded products and extend our brands into product categories that broaden the product range available to consumers and create compelling and distinctive brand looks.K.400 worldwide o 4.. Institute of Management Sciences . • Retail distribution: LS&CO.4 1. Levi Strauss Europe. Brussels and Singapore o Global sourcing headquarters in Singapore. Middle East and North Africa (LSEMA) and Asia Pacific Division (APD). sweaters. o Regional headquarters located in San Francisco.4 billion • Global presence: Three geographic divisions: Levi Strauss Americas (LSA).000 retail locations worldwide.300 in Asia Pacific • Ownership: The company is privately held by descendants of the family of Levi Strauss. jackets. • Licensing: LS&CO. are publicly traded in Japan.500 franchised stores around the world.000 registered trademarks in approximately 180 countries.400 in Europe o 2. and outerwear o Kidswear o Footwear and hosiery o Loungewear and sleepwear o Belts. Shares of Levi Strauss Japan K. including: o Tops.2 Company Profile • FY 2008 Net Revenues: $4. o We derive approximately 40 percent of our net revenues and regional operating income from our European and Asia Pacific businesses. Shares of company stock are not publicly traded.

The patented rivet was later incorporated into the company's jean design and advertisements. then referred to as "waist overalls. including greasers. uniquely sized jeans. He said that by placing "metal rivets at the points of strain. this is not the case: the company's president got too close to a campfire. such as on the pocket corners and at the base of the button fly. By changing the location of the store the company began to become more successful. and the shrinkage was substantial. and the rivet at the bottom of the crotch conducted the fire's heat too well.3 History and Inception Jacob Davis was a tailor who frequently purchased bolts of cloth made from hemp from Levi Strauss & Co. After Levi accepted Jacob's offer. The two men got together and got a patent for their idea and this is how the jean was invented.S. He next moved the location to 62 Sacramento Street then 63 & 65 Sacramento Street. In the 1950s and 1960s. when vacationing Easterners returned home with tales (and usually examples) of the hard-wearing pants with rivets. the offending rivet. Patent 139. mods. After one of Davis' customers kept purchasing cloth to reinforce torn pants. Levi’s jeans apparently were first introduced to the East during the dude ranch craze of the 1930’s. Levi Strauss started the business at the 90 Sacramento Street address in New York. two plants. and at the base of the button fly. Levi's jeans became popular among a wide range of youth subcultures. rockers. lumberjacks. From a company with fifteen salespeople. and they are still Levi's number one selling product. Contrary to an advertising campaign suggesting that Levi Strauss sold his first jeans to gold miners during the California Gold Rush (which peaked in 1849). the manufacturing of denim overalls only began in the 1870s. and almost no business east of the Mississippi in 1946. Levi's popular shrink-to-fit 501s were sold in a unique sizing arrangement. one of Levi's regular customers. but sales were largely confined to the working people of the western United States.000. the indicated size was related to the size of the jeans prior to shrinking.121 from the United States Patent and Trademark Office. on May 20. Another boost came in World War II. which is depicted in old advertisements. the two men received U.5 1." by Jacob Davis. hippies and skinheads. Davis did not have the required money to purchase a patent. 1873. and railroad workers. when blue jeans were declared an essential commodity and were sold only to people engaged in defense work. the organization grew in thirty years to include a sales force of more than 22. with 50 plants and offices in 35 countries. The company still produces these unshrinking. Although popular lore (abetted by company marketing) holds that the original design remains unaltered. so he wrote to Strauss suggesting that they go into business together.pocket corners. Institute of Management Sciences . Levi got the idea for the jeans. he had an idea to use copper rivets to reinforce the points of strain.'s wholesale house. such as cowboys. Modern jeans began to appear in the 1920s. was removed.

The company employs approximately 2. Dockers®. The division is comprised of both wholly owned-and-operated businesses. Africa and Latin America. licensees and distributors throughout Asia and the Pacific including Pakistan. licensees and distributors throughout Asia Pacific. GSO: The GSO division of Levis has been working in Pakistan since 1960 and involves the production import/export and outsourcing of denim and the Levis brand.'s Asia Pacific Division is comprised of subsidiary businesses.500 talented people working together to ensure that the apparel brands are leaders in this part of the world. The Division sources.6 History in Pakistan There have been two division of Levis working in Pakistan. and Levi Strauss Signature™ products through 14 affiliates. Institute of Management Sciences . • APD • GSO APD: Levi Strauss & Co. Middle East. manufactures and markets Levi's®.

• Tops • Bottoms • Watches • Belts • Bags • Glasses • Sweaters • and other such apparels and accessories Under the following three brands 1. Levi's® jeans have captured the attention. such as the famous Levi's®501® Original jean to favorite fits and styles in our Red Tab™ and Levi's® Premium collections. Institute of Management Sciences . imagination and loyalty of generations of diverse individuals.7 1. 1 khaki pant brand in the United States . the Levi’s brand continues to define jeans wear with widest range of products available from quintessential classics. authentic jeans. widely recognized and often imitated clothing products in the history of apparel. the Dockers® brand has expanded to more than 50 countries in every region of the world with a complete assortment of stylish and innovative products — including a full line of tops.4. footwear.1 Products: Levis: Invented in 1873. outerwear and accessories — for a broad range of consumers. Dockers® Khakis quickly became the No. a feminine interpretation of Dockers® brand apparel. In 1988. As the inventor of the category. The line offers fashionable tops. dress and casual pants and a full range of accessories — designed to fit a variety of different body types and sizes. Levi's® jeans are the original. Dockers: Launched in 1986 in the United States. Today.4 Products and Outlets Levis manufactures following products. the brand launched Dockers® for Women. Dockers® brand products and marketing played a major role in the creation of a new apparel category for men's pants and the shift to casual clothing in the workplace. The Levis brand from it's start was popular among young people and that defined the Levis brand as a brand for the young at heart whether male or female. They are the most successful.

while franchises are company product distributors working solely without any strings attached to the company. skirts and jackets for men. shirts. affordable and fashionable jeans wear from a company and name they trust. 1. Institute of Management Sciences . The Levi Strauss Signature™ brand includes a collection of denim and non-denim pants.2 Outlets: As discussed previously. The company has two types of outlets in Pakistan. There are a total of 20 O&O stores where more than 100 employees work and 13 franchises which have a staff of 2 to 3 employees per franchise in Pakistan. • • O&O Stores Franchises O&O or Owned-and-Operated stores are the stores that the company owns and has full responsibility of. Levis operates in more than 110 countries but we are going to discuss the outlets it has in Pakistan. The brand gives value-conscious consumers access to high-quality. women and children all designed with the high quality.8 Signature: The Levi Strauss Signature™ brand was launched in 2003 exclusively for consumers who shop in the mass channel.4.

9 2. Organogram CEO/Country Manager Product Marketing HR Finance Logistics IT A/M A/M A/M A/M A/M A/M Officer Officer Officer Officer Officer Officer Institute of Management Sciences .

This activity is known as Rapid Action Plan or RAP. Buying from Hongkong is an example of programmed decision for Levis where the department head and a team go to Hongkong to buy products and then decide where to distribute these products and what quality should be sent where.1 Planning For Pakistan division. 3. The shortest time period for any given plan is 1 day while the longest time is 1 year. Managerial Styles 3. There is no unsystematic decision making in Levis as they always plan one season ahead e. While forces that may affect the planning process or force a change in them may be economic factors of the country. For the planning process the department head of each country heads to the headquarters and they sit down for 2 days session designing the plan for the required time period. Institute of Management Sciences .2 Organizing Levis basically has functional departmentalization where each department has its head and employees are hired and given tasks for each separate department.10 3. Goals are mainly set by time frame for each area and franchises. Job rotation and Enlargement are two tools used for job specialization by Levis where authority is distributed according to the level of the job.g. planning for summer in the winter and vice versa. Singapore the regional headquarters which assigns plans to all the regional offices.

While if training is necessary for employees then a training need analysis is done and if required internal or external training is held. 3rd interview is conducted with Country Manger After that if the employee is selected and given an offer letter upon acceptance of this letter the employee is then hired. For Store Leader/Retail: A bachelor or master degree is required. After that if the employee is selected and given an offer letter upon acceptance of this letter the employee is then hired.11 3. 2nd interview is conducted by Retail Operation Manager. • • Salary Fuel Institute of Management Sciences . For Department/Internal Hiring: 1st priority is given to internal staff for promotion. tours and orientation for the job description and requirements from the employees. A bachelor or master degree is must with 6 months to one year experience in the related field.3 Human Relations/Staffing/Leading There are basically two types of hiring at Levis. 1st interview is conducted by Store Manager. External training is conducted in the following institutes. • • • • Franklin Conway PIMS IMS Torque Institute. 3rd Interview is conducted by HR Department. Compensations after selection for permanent employees include. 1st interview is conducted with HR 2nd interview is conducted with Department head. if not found then external sources are used for hiring. If a new employee is hired then an induction plan is moved into action which involves know how of every department.

training and compensations and there is an open door policies for new ideas and strategies for all employees and APEA awards are held each year and given to employees with the best ideas. mid year and end year. Motivation of employees is boosted through recognition. iv. Performance is monitored through 360 feedback and 2 appraisals are given each year. iii.4 Controlling The tool used for controlling in Levis is CLM(Collaborative Leadership Model) which has got six steps i. ii. v. vi.12 • • • • • Health Insurance Provident Fund Bonuses House Rent etc. Be Attentive Explore Intelligently Interpret Openly Decide Responsibly Act with firm resolve Begin Again Institute of Management Sciences . 3. While contracted employees only get salary as compensation.