Liz Claiborne Internal Force Paper Essay, Research Paper

Liz Claiborne did very well according to the 1999 Annual Report and the letter from the CEO, Paul R. Charron. According to the Annual Report, ?sales were up 10.3 percent? as compared to the previous year. Liz Claiborne Companies produce a wide selection of jewelry, attire for adults and children, Cosmetics, and casual wear. The company is widespread across the United States (when the article was published), and are internationally accessible. In fact, the company expanded its products in 1999, which lead to the increase in earnings. Therefore, Liz Claiborne is not a subsidiary.

An external control problem that had a major effect on the company?s increase in sales, is a diverse line of products. As a company, it is inevitable to try to beat out the competition. However, Liz Claiborne?s Company offers a selection for a wide range of ages. The more the customer is interested in the product, the more that individual will buy. Many factors contribute to a company?s success, as seen in this case. Keeping customers satisfied with their purchases, having a selection for a diverse set of individuals, and keeping the cost reasonable are only a few factors taken into account. As the article states, ?we have successfully established a profitable business model which plays off the design and sourcing strengths and fashion credibility of our Liz Claiborne brand, but dies so in a lower-price context for consumers in multiple channels of distribution.?

The external control I focused on was the variety of merchandise Liz Claiborne offers their customers. An external problem not mentioned that might start the decline of the company?s success repetition of product and style. This may seem harmless, but a customer will expect some differences in product and selection among different stores. Merging helps the company expand selection; however, it can also have a bad affect on the company if customers don?t see different products within the different stores. Such an example is if Liz Claiborne sells DKNY merchandise, DKNY stores should also sell different items than that in the Liz Claiborne stores.

I firmly agree that Liz Claiborne is working hard and effectively to better the company while simultaneously keeping the customers in thought. While Claiborne continues to merge with other companies, such as DNKY, the greater selection becomes to the customer. Having a wide variety enables the customer to have a choice in what to purchase. Today, many people considering shopping a chore, and want to finish quickly. Having a choice enables the buyer to leave happily, and having a selection ranging from jewelry to clothes allows customers to get all they need in one common location.