Unit 8 Ann Taylor Case Study Analysis
Kaplan University
School of Business
MT460 Management Policy and Strategy
Author: Jennifer Schalk
Professor: Dr. Dennis Strouble
Date: September 28, 2015
Ann Taylor: Survival in Specialty Retail
Company Name: Ann Taylor
Topic of the Week: Strategic Control Systems
Synopsis of the Situation
The Ann Taylor case covers strategies used by top management to combat the poor economy, implementing ways to enhance growth and long-term success.
ANN is a specialty store catering to a target market of socially active, upscale professional women. In 19998, ANN launched the more casual, lower priced apparel line, LOFT. This was a venture “to create a one-stop shopping environment, to widen market appeal and fuel growth” (Assenza, Eisner, & Kuperman, 2009, 2-13). By 2004, LOFT was one of the most successful specialty stores. Just as ANN thinks things are going well, the economy impacts this industry and management now needs to put forth a strategic control system “to survive, grow, and compete in a quickly changing environment (Pearce & Robinson, 2013, p. 396).
Alternative Solutions
1. Brand and channels are important to the future of a successful business, especially during tough times. ANN had a strong branding, but the overall decline in sales during 2008 had Krill changing distribution and supply channels.
2. To lower the risk and loss of money, reducing the cost structure during this time is essential. By closing the stores that were not performing well and downsizing staff, will enhance the efficiency and profits at the “money maker” locations.
3. Always working on reaching optimal growth. Adding new products and keeping with what’s trending will benefit the company with profits.
Selected Solution to the Problem
There is always a snowball effect when dealing with a recession. People will be more frugal with their spending, in turn sales drop, and raw materials become hard to get....
