Men's Wearhouse

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Kenyatta University *

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Management

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Nov 24, 2024

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1 Men's Wearhouse Student’s Name Department, Institutional Affiliation Course Name Professor’s Name Date

2 QUESTION 1 Major issue in the organization Men's Wearhouse, a business that specializes in selling men's apparel, is the organization of my choosing. This corporation has struggled in recent years with a consistent decline in both its sales and profitability. The growing competition from other retail businesses is mostly to blame for this loss. Furthermore, Men's Wearhouse has faced a significant competition as a result of the growth of internet shops, particularly Amazon.com. The corporation has resorted to closing its underperforming locations in an effort to increase sales and earnings, but this strategy hasn't been successful in halting the general downturn. There have been a number of adverse consequences, some of which are very severe, as a result of the trend toward lessening sales and profitability. A noteworthy number of workforces have been laid off as an effect of the Men's Wearhouse's challenges to close down losing outlets, and the value of its shares has fallen knowingly. The stock's value has significantly decreased in assessment to its prior assessment, dropping to $48.76 as of January 30, 2016. These financial issues have hurt the corporation's ability to put into in its operations. Men's Wearhouse was forced to cut its dividend payment by 50 percent to conserve cash. Still, in order to endure operating, Men's Wearhouse was forced to sell off assets for $115 million and turn to borrowing money. These financial difficulties have had a severe negative impact on the firm, its stakeholders, and particularly its overall financial health. The corporation must employ strategies including debt acquisition, asset, sales also dividend cutbacks to survive, as seen by the significant decline in the value of depositors' assets. As a result of this, there has been a significant fall in the market value of the Men's Wearhouse's stock, and this trend has continued.

3 Men's Wearhouse, a specialized in selling men's clothing, must struggle with a aggressive economic environment that pits conventional brick-and-mortar stores against internet retailers. The company primarily faces a challenging competitive environment as rivals attract customers with lower prices and more selections. Men's Wearhouse must come up with novel ways to compete on pricing in this environment while maintaining its reputation for high quality and first-rate customer service (Delfanti, 2021). The business has similarly struggled with slow revenue growth, which is made worse by a weak global economy and its incapability to gain a greater market share. Men's Wearhouse must look at opportunities for revenue development, whether through novel product offers or by entering new markets, to boost its top-line performance. Another urgent problem is the loss of market share (Prado & Shapira, 2022). Men's Wearhouse's rivals outperform it by providing more options at cheaper pricing. The business must come up with tactics for price competition without sacrificing product quality and customer service in order to reverse this trend. Closing stores as a cost-cutting tactic did actually reduce expenditures, but it had a negative impact on sales. Finding cost-cutting strategies that don't have an adverse effect on sales statistics is the problem for Men's Wearhouse. The weak global economy's dismal background has seriously hampered sales growth. In this situation, the business must come up with strategies to increase sales despite adverse economic conditions. Profit growth has been limited by higher operating expenses brought on by heightened competition and the requirement to remodel outlets. Finding ways to save costs without sacrificing quality or service is Men's Wearhouse's top priority. Due to consumers' preference for buying over renting, the tuxedo rental industry has suffered. Men's Wearhouse must thus plan how to revive this industry or look into finding new sources of income.

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4 Given that rivals use online platforms to reach a wider audience in the digital age, there is an increasing need for a strong online presence. To remain competitive, Men's Wearhouse must create plans to improve its internet presence. In other countries, the corporation has struggled to increase sales in certain regions (Walsh & Pinnock, 2019). Men's Wearhouse must look at ways to boost sales and successfully adjust to local market conditions in order to overcome these challenges. The corporation must come up with creative pricing methods that allow for discounts and promotions without losing profitability in order to meet the growing need to give discounts and promotions in response to rivals' reduced rates. QUESTION 2 Challenges and Economic Theories in the Context of Men's Wearhouse The demand and supply concept are one of the cornerstones of economic theory. In accordance with this notion, demand grows as a good or service's price lowers and vice versa. In contrast, a rise in price causes a rise in the amount given, and vice versa. This concept emphasizes the idea that although producers are motivated by the desire to make a profit, customers seek to get the most value for their money (Cesaratto, 2020). Understanding demand and supply dynamics is crucial in the case of Men's Wearhouse, where rivalry has led to rivals offering cheaper pricing and a greater range of options. Men's Wearhouse must discover methods to lower prices while keeping the level of quality and service that customers want in order to compete effectively. Equilibrium in economics refers to a situation when supply and demand are equal, demonstrating the harmony of opposing forces. Achieving a balance between client demand and the goods and services the business delivers is crucial for Men's Wearhouse (Clark, 2022). This balance must be recognized and understood if the business is to continue to succeed. According

5 to the notion of marginal utility, buying one more unit of a good or service gives a consumer extra pleasure or benefits. Understanding client preferences and the usefulness of each purchase may be a crucial motivator for decision-making in a retail setting like Men's Wearhouse (Cesaratto, 2020). Men's Wearhouse must not only provide competitive prices but also comprehend and cater to the many tastes of its clients if it is to reclaim lost ground. Men's Wearhouse is a firm that may benefit from understanding opportunity cost since it has had to make hard decisions to cut expenses and save money. These options have included divesting assets and acquiring debt to finance operations, as well as shutting unprofitable outlets and causing job losses. The viability of the business over the long run depends on understanding the trade-offs inherent in these choices. Men's Wearhouse has been forced to take cost-cutting measures, such as shutting failing locations and taking on debt, due to the reduction in sales and profitability (Cesaratto, 2020). The firm uses the production and cost theory to help it increase profits while maintaining high standards for quality and customer service. Men's Wearhouse's recent financial performance is consistent with profit theory, which emphasizes the significance of maximizing revenues and minimizing expenses, given the significant decline in earnings. Understanding how cost-cutting and revenue growth interact is essential for the company's revival. (Clark, 2022) . QUESTION 3 Strategic Imperatives for Organizational Enhancement Any organization's priority should be to increase sales and profits. To do this, several actions must be taken, such as improving marketing initiatives, broadening the product range, and enhancing internet presence. While product variety responds to changing consumer wants, effective marketing techniques can increase market reach (Jimoh & Waziri, 2019). A strong

6 online presence offers a wider platform for connecting with clients, including an optimized website and a well-coordinated social media strategy. A strong financial plan must include cost optimization. In order to do this, businesses need to carefully examine labor expenditures as well as overhead costs like rent and utility bills. Streamlining these costs can improve overall financial performance and bring about measurable advantages (Chinoperekweyi & Chundu, 2020). The most important aspect of long-term success is operational effectiveness. Automation of mundane processes through the use of technology decreases human error while also freeing up important resources for more strategic pursuits. Increases in efficiency can boost competitiveness and productivity overall. Customer satisfaction must always come first. Excellent customer service and a wide selection of high-quality items are essential for building brand loyalty and luring in new clients. These initiatives result in greater customer satisfaction, which may, therefore, boost sales and build a solid brand reputation (Chinoperekweyi & Chundu, 2020). In a competitive marketplace, delivering high-quality goods that match or exceed client expectations is essential. To maintain the calibre of their products, businesses should be cautious about quality control, product innovation, and rigorous testing. Diverse client demands are met by maintaining a wide selection of high-quality items (Sun & Razzaq, 2022). Reaching a larger audience requires stepping up in marketing initiatives. Organizations may increase their market presence and communicate with customers on a variety of platforms by increasing their advertising budget, working with skilled marketing companies, and building a thorough social media plan.

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7 Maintaining market relevance requires a flexible product portfolio. Companies should regularly gauge the state of the market and introduce fresh goods that appeal to their target consumer. They ought to think about stopping underperforming items at the same time. A characteristic of a corporation with an eye toward the future is its capacity to modify and expand its product offering. A strong online presence is crucial in the digital era. In addition to using social media to interact with their target audience, businesses should spend time building an excellent website that acts as a virtual shop. Through this intentional online presence, brands may better reach tech-savvy consumers and increase brand visibility. (Krona,2020) . Reiterating the importance of customer happiness, businesses must prioritize providing exceptional customer service. A wide selection of high-quality products boosts customer satisfaction, and the combined result can foster brand loyalty over the long term and effective word-of-mouth advertising (Sofi & Dar, 2020). Any company's performance should ultimately result in higher shareholder value. This may be done by increasing earnings using the methods already described, paying out dividends to shareholders, and looking into share repurchase plans. This dedication to shareholder value boosts investor loyalty and confidence. Conclusion Organizations must face a wide range of difficulties while capturing opportunities in the dynamic business environment of today. Men's Wearhouse, a specialist retailer of men's apparel, is a good example of how complex these issues are, from fierce competition and slow revenue growth to cost-cutting measures and the requirement for discounts and promotions. Although difficult, these obstacles can be overcome. Companies like Men's Wearhouse may develop successful strategies to overcome their unique challenges by employing economic theories like demand and supply, equilibrium, marginal utility, opportunity cost, production and cost, and

8 profit theory. These ideas provide priceless insights into the dynamics of the market, customer behaviour, and cost control. The strategic imperatives that were emphasized in the second section of this article also offer a thorough framework for organizational development. By concentrating on important factors, including cost-effectiveness, customer happiness, product quality, improved sales and profitability, and online exposure, organizations may be ready for development and adapt to dynamic situations. The ability of a company to innovate, adapt, and embrace change has become essential to success in our quickly changing environment. Businesses like Men's Wearhouse may overcome difficulties and thrive in the modern economy with smart strategies driven by a commitment to customer happiness and shareholder profit.

9 References Cesaratto, S. (2020). Heterodox Challenges in Economics: Theoretical Issues and the Crisis of the Eurozone . Springer Nature. Chinoperekweyi, J., Makumbe, K., & Chundu, T. (2020). Reframing corporate governance orientation in an era of epochal change. Organization Development Journal , 38 (4), 85- 100. Clark, J. B. (2022). Essentials of economic theory: as applied to modern problems of industry and public policy . DigiCat. Delfanti, A. (2021). Machinic dispossession and augmented despotism: Digital work in an Amazon warehouse. New Media & Society , 23 (1), 39-55. Jimoh, R., Oyewobi, L., Isa, R., & Waziri, I. (2019). Total quality management practices and organizational performance: the mediating roles of strategies for continuous improvement. International Journal of Construction Management , 19 (2), 162-177. Krona, M. (2020). Collaborative media practices and interconnected digital strategies of Islamic state (IS) and pro-IS supporter networks on telegram. International Journal of Communication , 14 , 1888-1910. Menswearhouse. (n.d.). https://www.menswearhouse.com/ Prado, A. M., Robinson, J. A., & Shapira, Z. (2022). Serving rural low‐income markets through a social entrepreneurship approach: Venture creation and growth. Strategic Entrepreneurship Journal , 16 (4), 826-852. Sofi, M. R., Bashir, I., Parry, M. A., & Dar, A. (2020). The effect of customer relationship management (CRM) dimensions on hotel customer’s satisfaction in Kashmir. International Journal of Tourism Cities , 6 (3), 601-620.

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10 Sun, Y., & Razzaq, A. (2022). Composite fiscal decentralisation and green innovation: Imperative strategy for institutional reforms and sustainable development in OECD countries. Sustainable Development , 30 (5), 944-957. Walsh, J. L., Persky, L. R., & Pinnock, K. (2019). The effect of high performing bullying behavior on organizational performance: a bullying management dilemma. Global Journal of Business Research , 13 (1), 71-81.

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