URBAN OUTFITTERS

Urban Outfitters

Urban Outfitters Case study

When setting up a new business the owner faces many challenges, initially he has to find investments and investors who would invest in his project. Secondly, he needs to create an infrastructure for his operations and lastly he needs to make projected financial statements so that he knows whether his company will give a good ROI (return on investments).

Because the environment creates challenges outside the company and technology imposes internal challenges, to confront the company is divided into organizational levels: - Institutional level is also called the strategic level. At these level decision makers of the company sets the objectives and strategies to achieve them. This level serves as an open system that has to deal with uncertainty and has no control over environmental events (Swezey, 2004). - Intermediate: This consists of the departments and divisions of the company. It ensures that decisions are appropriate to the operations conducted at the operational level. - Operational Level: this is located in the lower areas of the company in which tasks are executed and operations are carried out. It is composed of machines, facilities, retail outlets and the physical work of employees (product manufacturing), which must follow certain routines to ensure full utilization of resources and maximum efficiency in operations. These three levels do not have well-defined limits as they are articulated with each other and are part of the division of the company. Because the company is located in a vast, broad, generic and vague environment, it is therefore divided into two strata: - General environment: they are all economic, social, political, legal, cultural, demographic, etc. that occur in society. - Work environment: they are resource providers, customers and consumers and regulators to impose restrictions, conditions and limitations on organizational activity.

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