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Word Count: 3,258
8544Assumptions 61548The shutdown of Levis 11 US plants and the layoff of 1000 employees came true after its two announcements 61548There are other competitors in the markets that produce similar products 61548Levis other bands also have a slight drop of sales 8545 Statement of the problem Central problem Because of managements oversight of the demands of teenagers Levis is losing its attraction for young consumers Missing this age group leads to a sharp decrease in teen sales as well as sales among other age groups Satellite problems 61548High cost caused by the failure of Special Reserve When Special Reserve turned out to be a failure Levis had already put a large amount of money into designing raw materials advertising and distributing 61548Increased competition Levis is also confronted with the increased competition caused by top-end designers and low-priced retailers 61548Affected relationships with distributors The failure of Special Reserve could also harm the relationship between Levis and its distributors Due to the overstock and unpopularity of Special Reserve distributors may think about devoting more shelves to profitable products of other companies 61548Non-attractive packaging and labeling of all products The packages and labels of Levi products are not attractive to young people The first impression of a product would influence specific groups of consumers to buy it 61548Management lacks new ideas and independent opinions It seems that Levis is losing touch with the market A lack of new ideas and independent opinions means management does not know clearly about what is going on in the market Thus their responses to the external environment will be slowed down and it is very possible they will not make decisions based on the current situation Also management may lack new ideas about the problems they are facing 8546 Implications aOn Personnel 61548The layoff of 1000 salaried employees would lead to low morale among the employees and managers People who retain their job in the company would
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