Eco202 Mod 1

Abercrombie & Fitch

ECO202 Module 1 SLP

James D. Lowe

1.  Identify the organization you are going to use. Why do you think it will be an interesting focus for your application of economic ideas?

2. Pick two of the Big Ideas referred to in the Power Point presentation. Discuss how they apply to your organization. 

3. Assess the overall financial health of your organization? What are good and bad signs, if any, in your assessment? Measures of financial health may include sales and/or profit increases or decreases, if employees are being hired or laid off, major new orders being placed or orders being cancelled.

Abercrombie & Fitch Company

Abercrombie & Fitch began the company in 1892. For the most part, they only sold cloths to the elite. This made it better for people to put together their own style of “outfits.” This organization will be an interesting focus for our application of economics ideas. We will take a look out how this company has made adjustments to meet market trend and produce profit.

Macro-economics applies to all organizations. Two examples of actions that have taken place within Abercrombie & Fitch include the choices made when resources are minimal and human resource availability.

How many people would you place on shift during the holiday season compared to that of a normal day? How are your sales? Do you have enough money to pay your employees? Does your product attract customers? What about the price of your products or location? These are just a few questions that come to mind when evaluating a business plan. We will discuss two ideas that which a company may consider.

Idea 1: Choices involve tradeoffs – we always give something up to get something else.

Idea 2: We make choices in small steps, and choices involve incentives.

When making choices; Abercrombie & Fitch may lean towards material that is more cost effective while at the same time meeting the needs of their customers. What...