Assignment on Principles and Practises of management

Submitted by:Zonunmawii R/no.: 22 Regn no.:
11003689 Section: S1013

Introduction and Findings
Levi Strauss & Co. (LS&CO) is a private clothing company found in 1853 by Levi Strauss. The name of the company was named after the founder. It was in 1853 when Levi Strauss came from Buttenhiem , Franconia, (Kingdom of Bavaria) to San Francisco, California to open a west coast branch of his brothers' New York dry goods business. Although the company began producing denim overalls in the 1870s, modern jeans

were not produced until the 1920s. The company briefly experimented (in the 1970s) with employee ownership and a public stock listing, but remains owned and controlled by descendants and relatives of Levi Strauss' four nephews. It is a worldwide corporation organized into three main divisions Levis Strauss America (LSA), Levi Strauss Europe and Middle East and Africa (LSEMA). The company employs staff of approximately 10,500 people worldwide. Their main product is jeans and it experienced a huge growth from the early 1960s through the mid 1970s. Levis under the leadership of Jay Walter Haas Sr., Peter Haas Sr., Paul Glasco and George P. Simpkins Sr., expanded the firm's clothing line by adding new products like t-shirts, bags, belts, shoes and many more exciting things which makes the company grows faster and faster. Mr. Simpkins is credited with the company's record paced expansion of its manufacturing capacity from fewer than 16 plants to more than 63 plants in the United States from 1964 through 1974. Perhaps, most impressive work under Mr. Simpkins, Levis plants were perhaps the highest performing, best organized and cleanest textile facilities of their time. 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. Levi Strauss started the business at the 90 Sacramento Street address in San Francisco. He next moved the location to 62 Sacramento Street then 63 & 65 Sacramento Street. By changing the location of the store the company began to become more successful. In 1950s and 1960s, Levis became popular because of its updated styles which different kinds of teenagers loves to wear. In 2003, Levis features new products on jeans wear and casual wear. In November 2007, Levi's released a mobile phone in co-operation with ModeLabs. Many of the phone's cosmetic attributes are customisable at the point of purchase. According to the New York Times, Levi Strauss leads the apparel industry in trademark infringement cases, filing nearly 100 lawsuits against competitors since 2001.By 2007, Levi Strauss was again said to be profitable after declining sales in nine of the previous ten years. Its total annual sales, of just over $4 billion, were $3 billion less than during its peak performance in the mid 1990s. After more than two decades of family ownership, rumours of a possible public stock offering were floated in the media in July 2007. In 2009, it was noted in the media for selling Jeans on interest-free credit, due to the Global Recession. Till today Levis is always one of the best brands and if I am going to buy a jeans I will always prefer Levis because it is the best, the price might be a little high but I still prefer it the most than others because, for me the price is worth the satisfaction when I wear it. Even their bags and shirts have variety of styles which attracts the teenagers and even some adults. There are different kinds of people who like punks, simple, stylish in every way and Levis produces a variety products almost for every kind of people which gives the company a good reputation till today. Years passed, cultures and lifestyles changes, even the taste of people keeps on changing, the kinds of clothes we wants to wear keeps changing in time and so do Levis.

The company recorded revenues of $4,105.8 million during the financial year ended November 2009 (FY2009), a decrease of 6.7% compared with 2008. This decrease reflects unfavorable changes in foreign currency exchange rates across all regions, particularly in Europe. The operating profit of Levi Strauss was $378.1 million in FY2009, a decrease of 28% compared with 2008, driven by declines in Europe— primarily reflecting the unfavorable impact of currency, the wholesale channel declines and continued investment in retail expansion. The net profit was $151.9 million in FY2009, a decrease of 33.8% compared with 2008.

Strengths
• The main strength of Levis is its popularity. Because of its popularity most people go for it. Even if they don’t like it, some people think it’s a must and it makes them look fabulous which actually is true. It became popular because of its durability. Teenagers prefer it always because it is good and they have a high consistent quality product, updated fashion styles according to time change. It is a globally recognised brand all over the world. Because of the company’s continuous assessment, it is still maintaining its goodwill in every level. Competitive pricing with its rivals. Levis are the original authentic jeans with one of the best quality among its competitors. They stood for something beyond profit like creating a new social business task which involves a huge risks both of personal and financial. The company took pride in providing quality products, personal service and fair treatment. The family name and tradition was associated with respect for people—customers, employees, and the community. Variety products like t-shirts, bags, shoes, casual, jackets and many others make the company more profitable.

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Weaknesses
• • Recently lose market to newer, trendier, more stylish and cheaper price range of other brand. Lost lustre to younger generation and is working on it.

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Various other brands like pepe jeans, turtle, lifestyle, flying machine, reliance trends, shoppers stop and many others create a competition in the market which makes it hard for Levis in marketing. It also faces financial problems during the 1990s. They only focus mainly on youth wants not the adults which make the company weaker in marketing area. Various other new brands keeps on improving in styles with cheaper price and thus results in weaknesses of Levis marketing. When there is a change of seasons, climate change, other companies also used to sell their products in high discount attracting prices with free gifts and all, it is thus a weakness for Levis because they cannot sell enough on their products. People will go for other companies who have more attracting prices and styles.

Opportunities
• • • It is a worldwide organization and creates the company an opportunity to sell its products more and more in different parts of the world. The company has more than 5,000 trademark registrations and pending applications in approximately 180 countries worldwide. The company's products are sold in approximately 60,000 retail locations in more than 110 countries. This includes approximately 1,800 retail stores dedicated to Levi brands, including both franchised and company-operated stores. Levis trademark is one of the most recognisable in the world and registered in more than 160 countries. Levis brands mainly focused on teenagers and youth wants. Since the youths are more aware of fashion than other range of people it creates an opportunity for the company to sell more. Youths and teenagers like us don’t like to wear same clothes now and then, time changes, our minds and tastes changes. Since Levis is always updated with the changes in lifestyles. It creates an opportunity for the company to get an idea on new fashion and thus more products.

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Threats

Various other brands like pepe jeans, turtle, lifestyle, flying machine, reliance trends, shoppers stop and many others which are rivals to them create a competition in the market which makes it hard for Levis in marketing. Youths especially teenagers are not always in static in mind, they want changes very fast in everything which goes the same for fashion. All these kinds of problems are threats to the company because they have to think and develop a new brand every now and then to satisfy their customers. By 1990s the company faced problems in selling because of tough competition from other brands and cheaper brands from overseas. In 1991, Levi Strauss faced a scandal involving six subsidiary factories on the Northern Mariana Islands, a US commonwealth, where some 3% of Levi's jeans sold annually with the Made in the USA label were shown to have been made by Chinese labourers under what the United States Department of Labour called "slave like" conditions. Today, Levis jeans are made overseas.

Conclusion
Levis jeans still today is one of the best and most popular brands among its competitors all over the world. Their products are stylish, updated and loves by all teenagers, the price is worth the satisfaction we have when we wears it.

Reference URL’s
• • • http://en.wikipedia.org/wiki/Levi_Strauss_%26_Co. http://answers.yahoo.com/question/index?qid=20080607142142AAFxUH4 http://www.oppapers.com/essays/Swot-Levis/144950

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