Abercrombie and Fitch: International expansion external and internal analysis

5106 WordsSep 24, 201321 Pages
Abercrombie and Fitch: International expansion external and internal analysis Name Here Business Mgmt Name Here Date Here Executive Summary This case study was identified to examine why international sales volume of Abercrombie and Fitch have increased over the past three years and to recommend further international expansion to increase sales volume. The research draws attention to the fact that in 2009, the US stores generated 81.2% of Abercrombie and Fitch’s net sales. The shares of international stores and direct-to-consumer net sales were very small in comparison. Over the next two years the US stores decreased net sales percentages while net sales increased. Further investigation reveal…show more content…
The risks can be considered moderate to high as any employee, supplier or vendor having circumvented the labour training laws would be associated with the organization. This could impact the way business is conducted and could increase costs of merchandise, and may also impact manufacturing and logistics as well as potential fines, penalties and reputation issues that may arise.5 In addition with the current financial situation within numerous countries (Greece, Italy, and Spain) there have been sweeping changes in taxation laws both for individuals and business in order to stabilize economic conditions. These potential changes have a high risk to the financial situation of any regional brick and mortar operation as there is a definite impact to the organization’s gross profit margins. Economics/Global Basic economics identifies a recession by contracting GDP and increasing unemployment. Currently in the European union there is a general fall in GDP and rise in unemployment. Greece, Spain and Portugal have been especially hit hard with high unemployment. This contracting GDP also has impacts on workers, as some workers will have wages lowered and some will have the hours reduced. Each of these measures is used by organizations to reduce costs while

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