Based on the information provided concerning American Apparel, the best strategy that can be implemented at the moment is the liquidation of the majority of its assets (Gabčanová, 2012). This would be in the form of closing down several of its over 200 stores to raise the needed funds to settle the majority of its expensive debts (Parmenter, 2015). This action though expected to face opposition from the board of directors, it offers the best solution for summing up the needed funds in a short amount of time (Gabčanová, 2012). Moreover, considering that the company had already dwelled in e-commerce and as of the end of 2013 its profitability had doubled; top management should market more of its products in the platform as it will cost less (Savrul, Incekata, & Sener, 2014). Moreover, this strategy can provide the support needed by the company to regain its position in the retail market. Its potential is observed with companies such as Amazon and Alibaba among others taking the forefront in online retail.
Financial Metrics is the KPI (Key Performance Indicator) that will be used to identify the success of the strategy (Savrul, Incekata, & Sener, 2014). The selection is based on the fact that the company is need of financial progression, and by monitoring profits, cost-effectiveness, revenue vs. set goals, cost of goods sold and expenses among others will provide the needed data to tweak on the strategy implemented (Parmenter, 2015). Another relevant metric would be the customer metric as the changes would be drastic thereby affecting the number of consumers. The marketing department will experience the majority of the pressure as they will be responsible for identifying to the clients the changes that the company is to implement (Gabčanová, 2012). By focusing on its online market, the sales of the company are expected to grow. However, the speed will highly depend on the aggressive nature of the marketing team.
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References
Gabčanová, I. (2012). Human resources key performance indicators. Journal of competitiveness .
Parmenter, D. (2015). Key performance indicators: developing, implementing, and using winning KPIs . John Wiley & Sons.
Savrul, M., Incekara, A., & Sener, S. (2014). The potential of e-commerce for SMEs in a globalizing business environment. Procedia-Social and Behavioral Sciences , 150 , 35-45.
