Levi Strauss Struggles with Creating Organinsational Change

TABLE OF CONTENTS

1. Executive Summary ..................................................................3-4

2. Introduction ...................................................................................4-8

3. Case study analysis (Problems and Causes) ................................9-15

3.1 BEHAVIORAL PROBLEMS ......................................................9-11

3.1.1 Lack of authority and leadership in decision making.........................9-10

3.1.2 Poor communication between management and subordinates.........10-11

3.1.3 Employees dissatisfaction............................................................11

3.2 OPERATIONAL PROBLEMS ...................................................12-13

3.2.1 Lack of continuous improvement projects.......................................12

3.2.2 Lack of innovation.....................................................................12

3.2.3 Poor customer focus...................................................................13

3.3 STRUCTURAL PROBLEMS ...................................................14-15

3.3.1 Lack of strategic planning and direction from CEO

and his leadership team.........................................................14-15

3.3.2 Struggle with creating and implementing change management...........15

4. Recommendation ..................................................................16-18

5. Conclusion ....................................................................................18

6. Bibliography ...............................................................................19

1. EXECUTIVE SUMMARY

Levi Strauss is a well-known organization and they have enjoyed great successes in the last century, especial from the 1960's and the mid 1990's. The company was doing very well and they took their successes for granted.

Levi Strauss lack innovation and stuck to what they knew, which morphed into offering few product lines that were outdated. By not being up to date, Levi Strauss lost sales and profit when they failed to forecast on changing fashion trends. The company also failed to be responsive to the target market, "In 1993, kids started telling parents that the Levi's jeans legs were to narrow" but Levi's did not take this preferences into consideration.

New competitors for example Miller Outpost, Hilfiger and JNCO were more customer forecast. In response to these customer needs, Miller Outpost created its own line of jeans with legs as wide as 23 inches and J.C Penney and Sears got into the act by creating flared legs and boots cut jeans.

As we analyze the case study further, it is evident that Levi Strauss was employees oriented and the company always believed in corporate charity and social responsibility; this has hindered productivity and profit. The CEO, Robert Haas failed to put strategic direction in order to find balance between employee and task oriented leadership.

There are few pressing issues that emerged during the analysis of the case study which are as follows:

1.1 BEHAVIOURAL PROBLEMS

- Lack of authority and leadership in decision making

- Lack of communication between management and subordinates

- Employees dissatisfaction

1.2 OPERATIONAL PROBLEMS

- Lack of continuous improvement projects

- Lack of innovation

- Poor customer focus

1.3 STRUCTURAL PROBLEMS

- Lack of strategic planning and direction from CEO and his leadership team

- Struggle with creating and implementing change management

2. INTRODUCTION

Levi Strauss is a well-known company that is manufacturing branded jeans. The company is managed mostly by family members. The CEO of the company is a family member Mr Robert Haas and his uncle and two cousins are responsible for most of executive decision making. Robert Haas is accountable to only his three relatives.

Other family shareholders have either cede all power to the appointed four, for 15 years or cash out. Most of them stayed in. The company is struggling with creating organizational change and the CEO Robert Haas has adopted employees oriented leadership style and is more forecast on charity and social responsibility instead of making more profit for the company. Levi Strauss is struggling with creating and implementing organizational structure. They have tried initiatives like Customer Supply Chain Management but they went overboard and most executives resigned.

In this paper we will explore challenges associated with employees' oriented leadership and the creation of organizational change. This paper will also deal with various aspect of leadership, managing organizational performance and innovative improvement, creating and implementing change management within an organization and will conduct an evaluation of the current status by highlighting issues and challenges related to Levi Strauss and recommendation will then be made in this regard.

2.1 LEADERSHIP

According to Handbook of Leadership, the authoritative source of leadership theory and research defines leadership as "and interaction between members of a group". Leaders are agent of change, persons whose act affect other people more than other peoples act affect them. Leadership occurs when one group member modifies the motivation or competencies of others in the group.

The leadership definition implies that it involves the use of influence and that all interpersonal relationships can involve