Abercrombie & Fitch started in 1892 with its main branch in New Albany, Ohio. The company sells branded premium priced clothing and accessories to customers under 30 years old. Abercrombie & Fitch Company is a clothes retailer that sells casual and stylish apparel for men and women. It is has also introduced personal care products and accessories like perfumes for men, women and kids under the brand names of Abercrombie & Fitch, Abercrombie, Hollister and RUEHL brands (abercrombie , n. d. ).
Company has also introduced a new Gilly Hicks brand, which sells lingerie, personal care products, and nightwear for women. Abercrombie & Fitch's major competitors include American Eagle Outfitters (AEO), Aeropostale (ARO), Pacific Sun wear of California (PSUN), Urban Outfitters (URBN), and Gap (GPS).
Abercrombie Mission Statement: As stated in the company’s profile. ”We are committed to providing comfortable and long lasting clothes that look good. At Abercrombie ; Fitch, we are committed to increasing diversity of our human resource management all over the organization".
The cultural and ethnic differences between employees are resolved through organization’s internal culture which makes the management understand our customers, increase organization’s effectiveness, increases workforce’s performance and talents and most importantly represent the communities and cultures in which we carry out our business activities (abercrombie, n. d. ). The key success of any business comes by determining the right mission statement. Mission statement states the purpose of existence of an organization.
Therefore, Abercrombie & Fitch’s mission statement is covering all the major aspects that lead to success. Firstly, emphasizing on diversification of products and market minimizes risks of failure, as if one brand fails, the other brand can cover its losses. Moreover, keeping in mind the importance of all company’s stakeholders is very necessary to be successful. The people whether the employees or customers, all of them need attention to achieve both the human resource effectiveness in the organization.
Abercrombie and Fitch Vision Statement:
Vision statement gives a broad, inspirational image of the future that an organization is aiming to achieve. Abercrombie & Fitch’s vision statement is to “become the best international brand providing fashionable and stylish clothing to America’s youth”. Moreover, achieving high profits and sales by building an image of prestige and style that no other competitor can maintain. The brand focuses on lifestyle, thus ensuring growth and stability of the company in the long run as well as generating high revenue
Importance of Mission, Vision and Values:
A business must develop vision and mission for the organization that focuses on the long run aims of the organization. It gives the business a strong identity, a purpose of existence for achieving business’s goals. Mission statement should comprise of the main purpose of the company, core values and visionary goals. Therefore, mission statement, vision statement and values of a company greatly help in achieving the desired goals, because they will help the company progress in the right direction in all ups and downs(Harvard Business School , 2005).
Strategic Management Components: Once, mission and vision of the company has been drafter then the company needs to focus on the components of Strategic management in order to achieve long-term success. The first step towards effective strategic planning is to set objectives to transform company’s mission into measurable performance goals. Strategic planning is important for effective management of an organization not only to plan the years ahead, but to anticipate the unpredictable external forces. Then comes implementation, evaluation and correction of strategy takes places.
An organization can operate in a stable environment for long periods of time, without changing its strategy but sometimes the environment can become so unexpected that it will lead to high risks of failure for the company. Therefore ,managers must evaluate the performance regularly and take correct actions to improve the strategic management process (Litman, Mark & Frigo, 2008).
Outcomes of Strategic Management on Leadership and Organizational Culture
The leadership will be enhanced once the company develops its mission, vision and values and implements it through the strategic management process. Leadership can be effective when there is clear direction towards goals achievement. All the employees of the company are aware of company’s overall strategy and sub plans to achieve the main target. Culture can be defined as the pattern of actions, words, beliefs and behaviors that members of a business organization share, and also called the DNA of the organization (Aaker, 2001). Strategic management makes leaders set the priorities and create business strategies to achieve organizational goals. Learn about Crocs mission statement
Through this leaders can motivate employees towards the mission and vision of the company. Effective strategic management encourages a new organizational culture and values in their HR management design leading to effective communications between company’s internal and external stakeholders and thus providing satisfaction to customers, shareholders and community (Pearce & Robinson,2004). Therefore, strategic management incorporated with leadership leads to positive relations with company’s external and internal stakeholders.
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Strategy: Create and Implement the Best Strategy for Your Business, Harvard Business School Press. Litman, J. , Mark L. & Frigo, M. L. (2008). DRIVEN: Business Strategy, Human Actions, and the Creation of Wealth.
Strategy & Execution, LLC. Pearce, J. , & Robinson, R. (2004).
Strategic Management: Formulation Long Term Objectives and Grand Strategies. New York: The McGraw-Hill Companies. abercrombie (n. d.). Retrived on January 15, 2008 from http://www.abercrombie. com/anf/index. html