Case Study Example | Topics and Well Written Essays - 750 words - 30

Case Study Example , Macomb believed that a change in the organizational structure will increase the performance of the business, the overall revenues while increasing the overall profitability (Burnard & Bhamra, 2011). Before Macomb’s entry into the firm, it had 36 apparel brands with five different apparel divisions. This, according to Macomb created a culture of complexity and increased the operational cost of the firm. To reduce the high expenditures associated with the operation costs, Macomb streamlined the company and reduced the number of departments from five to two. The apparel brands were also reduced from 36 to 20, with the remaining 16 brands sold, licensed or closed down. Due to these actions, the operation costs and the duplications of roles by the different departments were reduced (Burnard & Bhamra, 2011). By introducing the new changes, Macomb intended to increase the focus to the few remaining departments and create clarity in their operations and purpose. By having two well-structured departments, he hoped to eliminate duplication among the departments that previously existed. Before these changes were, the five departments operated autonomously, with each responsible for independent marketing, research and product designs (Stare, 2011). However, the reduction of the divisions to direct and partnered brand divisions eliminated this duplication and reduced the overall operating costs. These new changes invigorated the company and provided it with the previously unavailable impetus and focus. By having strong and independent divisions to manage the 20 apparel designs, the challenge of role duplication and high operation cost was eliminated. These changes have been attributed to the massive growth in capital and profit that the company has witnessed in the recent past (Andrea, 2012). To illuminate the changes that have been witnessed in the company since these changes were introduced, Liz Claiborne introduced a plan to change its name. This demonstrated its