Formalization
American Apparel Company and the subsidiaries are engaged to the highest business standard in their relationship with one another, and the consumers, stakeholders, coworkers, suppliers, and employees. This intends that the company conducts their business according to all the applicable regulations as well as the laws and according to the highest standards of conducting business (Bair & Gereffi, 2003). The organization's business code of conduct assists them through ensuring statements of principles as well as key policies and procedures that ensure governing the conduct of their business. Apart from the ethical guidelines that accompany the codes of conducting business, there are obvious regulations that affect the company and their foreign markets where they conduct their business. Recently there have been issues raised with the company policies and procedures. However, the company has a new policy that warns against harassments. It has instituted a sexual harassment policy in the code of conduct and has placed most women in prominent positions. The implemented policies create boundaries between workers, managers, and the company and also prohibit relationships between employees and their managers. These regulations are implemented to ensure that workers do not experience any harassment at work and that the reputation of the company is not tampered with.
Centralization
American Apparel centralizes in different production stages including, distribution, sewing, and cutting, photography, and marketing. These core competencies make American Apparel stand out among its competitors. The company is also persistent about peppering their ads with blurbs on their economic structure as well as images of the production process. Recently, organizations that manufacture and relate are increasingly infrequent since different aspects of making a product often are subcontracted to different organizations (Noel, 2015).
Specialization
American Apparel is specialized in manufacturing, retailing and is a wholesaler and also operates its advertising, marketing, and designing. American Apparel Company is best recognized for manufacturing basic cotton knitwear which includes under wares and T-shirts, however in recent years it expanded to incorporate vintage clothing, dresses, leggings, leotards, nail polish, top tanks men accessories, as well as for women, babies, children, and dogs as well (Sook Lee & Stoel, 2007).
References
Bair, J., & Gereffi, G. (2003). Upgrading, uneven development, and jobs in the North American apparel industry. Global Networks, 3(2), 143-169.
Noel, H. (2015). Branding Guilt: American Apparel Inc. and Latina Labor in Los Angeles. Diálogo, 18(2), 37-52.
Sook Lee, M., Geistfeld, L. V., & Stoel, L. (2007). Cultural differences between Korean and American apparel web sites. Journal of Fashion Marketing and Management: An International Journal, 11(4), 511-528.
