Who Is The Most Successful Organizations Are Negatively Impacted By Internal External Environment

1071 Words Dec 10th, 2014 5 Pages
This case study will demonstrate how even the most successful organizations are negatively impacted by their internal and external environment. In addition, this case study will demonstrate the challenges of successfully operating two special retail companies that share the same parent company, internal infrastructure, and a similar business model. The only difference between the two companies is the demographic profile that each company markets towards. Ann Taylor Stores and Corporation, (“ANN”), was established in 1954. ANN is a well-established retailer with a competitive market share of women’s specialty clothing for women from the ages 25 to 55 (Eisner and Kuperman, 2009). The company originally began as a “wardrobe source for busy upscale women” and later transitioned into an umbrella of four companies, Ann Taylor (“TAYLOR”) Ann Taylor Loft (“LOFT”) Ann Taylor Factory (“FACTORY”) and Collections (Assenza, Eisner and Kuperman, 2009). Although TAYLOR remains a staple for the sophisticated, 55-year-old women, the LOFT brand provides the “casual and chic” look for women ranging in all demographic (Assenza, Eisner and Kuperman, 2009).

Synopsis of the Situation
In 2004 Kay Krill was elected president of ANN. Her most notable work within the company was driving the LOFT brand to a new level of sales the company had never reached by TAYLOR, the parent company. From 2004 up until 2008, the retail business was extremely profitable. In 2007 the economy began to slow down and…
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