SBLC4005: Organizational Behavior - Casual Togs Inc. Leadership Case

This case study examines the organizational behavior of Casual Togs Inc., a women's apparel firm facing significant challenges such as high return rates, production inefficiencies, and internal conflicts. The analysis delves into the root causes of these problems, including ineffective leadership by Cy Geldmark, disruptive behavior by Judy, and resistance to change from long-standing employees. The report suggests strategies for persuading Cy to embrace change, focusing on communication, employee involvement, and fostering a culture of continuous improvement. Furthermore, it recommends improvements in management practices, structural changes to streamline operations, and proactive responses to the competitive environment, including leveraging social media and adopting wholesale technology. The report concludes with recommendations for overcoming challenges specific to the fashion apparel industry, emphasizing adaptability and customer focus.

Running head: ORGANIZATIONAL BEHAVIOR
Organizational Behavior
Name of the Student:
Name of the University:
Author Note:

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Executive Summary:
The report is a discussion on the analysis of an organizational behavior of Casual Togs, a fashion
apparel producing firm for woman. The report commences with a discussion on the various
problems faced by the firm along with providing an insight on what led to such problems. The
report also discusses on how the president of the company, Cy Geldmark, can be persuaded to
undertake changes. The report provides suggestions on prevention of the future problems in
terms of the management practice, structural change and the response of the firm to the changes
in the competitive environment. The report however ends with recommendations on how to
overcome the challenges of the fashion industry.

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Table of Contents
Introduction:....................................................................................................................................3
The Major Problems Facing the Firm:.............................................................................................3
Causes for the Problems:.................................................................................................................5
How Cy was Persuaded to Change:.................................................................................................6
Prevention of Future Problems In Terms of:...................................................................................7
Management Practice:..................................................................................................................7
Structural Change:........................................................................................................................8
Responding to the Changes in Competitive Environment...........................................................9
Conclusion and Recommendations:..............................................................................................10
References:....................................................................................................................................11

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Introduction:
The aim of report is to discuss the organizational behavior of Casual Togs Inc, a fashion
women apparel-producing firm as provided by a case study. The discussion in this report
revolves around the mentioned firm that has presently landed into some major problems due to
certain situational factors and lack of efficiency of its owner in dealing critical situations. Cy
Geldmark found, Casual Togs, a reasonably priced women apparel shop headquartered in the
Midwestern city. He was also the principal stockholder and an innovator who pioneered the
concept of mix and match that helped in coordinating the ideas of the fashion ensembles. This
helped the client with a reasonable means in building a complete wardrobe with both the casual
and formal clothes. The presence of trend setting designer style and standard quality helped in
propelling the firm towards a prominent position. The firm experienced a rapid expansion in the
past five years and ensured setting of the production plants in the southern states including one
unit in Arkansas for capitalizing on the wage rates of those areas. The report initiates by
providing an insight into the problems that the firm face. There is also discussion about the
causes that led to the arousal of such problems. One will also be able to find an insight into
suggestions provided to Cy Geldmark in persuading the change. The report also puts forward
suggestive measures in preventing the future occurrence of the problem in the context of
management practice, structural change and the response to the changes in the competitive
environment. One will also be able to find necessary recommendations for overcoming the
challenges persistent to the fashion apparel industry.

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The Major Problems Facing the Firm:
The most sensitive problem faced by the apparel-producing firm has been the returns.
Around 40 percent of the total shipments faced a return. The reasons for the returns lay in the
late delivery of the garments added with an inaccurate style of forecasting that led to error in the
scheduling process of the production. There was no coordination between the shipping coupled
with the inadequate means of production. There was also disparity between the delivery dates of
the customers and order taken by the salesperson. The firm also faced issues related to quality
that resulted in most of the returns. Some are of the viewpoint that the customer did not go into
argument with the salesperson mentioning the quality issues and mentioned late delivery as the
reason for not accepting the product.
However, one has to remember that there exist in total five disparate selling season
common to the fashion apparel industry. During which a short deadline is set for undertaking
order, production and delivery. The sales of the first two weeks, also known as pilot sales, help
in determining the quantity and styles of production during the particular season. The failure of
determining the pilot sales can saddles the garment stock of Casual Togs which would have to be
disposed off mostly through loses. Concerning the situation, Cy Geldmark, realized that the
decisions should depend on a situation. Thus, he initiated decisions related to the policies and
operating decisions along with ensuring permission to the heads of departmental to take
necessary decisions based on situations without the necessity for any sort of consultation.
However, the managers and the vice president of the various departments hardly paid any heed to
his repeated requests and ensured undertaking a daily discussion on the progress and changes in
the trends of the seasonal products. Such sessions were filled with emotional outburst amongst
the various personnel belong to a part of the management. Most of the meetings remained

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unscheduled and informal as different group met the president at different timing. The group
were informal and mostly had problem line functioning. Decisions were immediate and the
changes implemented once thought off without even giving it a second thought. In case of any
sort of disagreement towards a particular decision from the other departments, there was always,
a rebellious attitude and shouting followed for its establishment. During the interactions, Cy
Geldmark, mostly remained impassive who only gave his comments after arguments of the
participants. This also acted as a factor in the initiation of the problems in the fashion apparel-
producing firm for women.
Causes for the Problems:
Too much of leniency in dealing with the personnel of the firm led to the problematic
situation. Cy Geldmark of Casual Togs also failed in creating a remarkable mark with suppliers.
Judy, the sister of Cy Geldmark, who was also the vice president was another reason for Casual
Logs to land up in a problem. However, the formal organizational chart mentioned her as the
treasurer who informally approved the expenditures beyond $1000. Judy however had substantial
power, as she was one of the founders who owned around 12 percent stocks of Casual Logs. She
not only intruded into the daily sessions but also often proposed changes that were expensive.
She also ensured making changes in all departments that resulted in adverse impact on the
working schedules, commissions of salespersons and even the copier paper. She resorted to the
hire and fire of the employees without informing the managers and mostly countered their
advice. In addition to this, she was also abrasive and enjoyed public display of vulgarity. She
was increasingly loud and received full support from his brother in carrying out the activities.

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Again, Cy Geldmark decision of appointing Bill Smith for providing aid to Andy, the
treasurer, also resulted in the clashes of ego and contributed to the dispute. Bill Smith’s
willingness in implementation of the newer methods due to his better training received much
rejection from Andy. Andy was of the view that the methods implemented by the new person
who not go down well with the president of the firm since he was much unfamiliar with the
approach adopted. Andy rejected the newer methods and believed in sticking to his traditional
means thereby providing an aid in multiplying the problem. The new and experienced market
analyst, Stan Levine, whose methods also found similar rejection from the senior people has
experienced similar situation.
How Cy was Persuaded to Change:
Cy Geldmark can be persuaded to change through initiation of a purpose for him to
believe in (Covey 2013). It is therefore necessary for him to understand the roles of the actions
that would help in unfolding the drama of fortunes of the firm and thereby trust in its worth. He
must also decide upon the actions that make actions worth and thereby provide an explanation
for undertaking the change. He can be persuaded to incorporating the change in the day-to-day
work culture (Ward 2016). He should possess leadership capabilities for combating the
intolerance of the employees. He should also initiate measures for conditioning them in
expecting change on a regular basis. He should also encourage the teams in discussing the
processes and brainstorming the smaller changes that leads to an effective process. Conditioning
not only helps in opening the minds of the employees but also involves them in the process of
change. He must also initiate learning to employee environment through various means that will
help the work force in interacting and contributing in different manner. He can be persuaded to
communicate the change before it actually occurs since proper communication impacts the

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employees and it acts as a major force in overcoming any kind of resistance to change (Fullan
2014). Cy Geldmark can do so by clearly defining the occurrence of the impending change, by
offering required support to the employees and through recruitment of team members. Cy
Geldmark can be persuaded to initiate change by including the employees in the process of
planning (Chadwick, G., 2013). This is done through an invitation, encouraging questions and
by being positive. However, an important aspect for Cy Geld mark would be to measure the
effects of change through distribution of the surveys to the employees for gaining feedback
through the entire process (Dibrell, Craig and Neubaum 2014). He should also battle the
resistance for the change in transforming the employee mindset through strategic and honest
communication.
Prevention of Future Problems In Terms of:
Management Practice:
The fashion apparel brand for women, Casuals Togs, the prevented from the future
problems by adopting the following changes in the management practice:
1. Managing the expansion of production and sales by identifying mass market or the
advantages that the firm has over the other wholesale businesses (Armstrong and Taylor 2014)
2. Considering the adaptability of the present supply chain system from the production to
the warehousing and shipping
3. One must consider the power of the various social media platforms like Instagram,
Facebook and Twitter (Phua, Jin and Kim 2017). A social media presence acts as a signal to the

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bigger retailers that the firm is aware of the industry trends. It also puts across a message that the
firm cares about maintaining a relationship with the customers.
4. The firm must also consider the profit and pricing margins by choosing the appropriate
pricing model can be the most important decisions one might take ( Drury 2016). Although the
current model for pricing has worked quite well, however the firm must consider that the profits
for the wholesale production behaves in a different manner.
5. The firm can introduce a wholesale technology for supporting the growing needs of the
business. The firm can also adopt digital solutions like the enterprise resource planning (ERP),
electronic data interchange (EDI) and the business-to-business (B2B) tools for e commerce
(Leeflang et al. 2014).
Structural Change:
Casuals Togs can adopt various structural change for overcoming f the future problems.
This involves:
1. Undertaking the decision for changing the direction: Bringing in a transformational
change is not a cake work and does not happen overnight (Uy, Yi and Zhang 2013). The change
is a gradual process and hence takes time to resonate as a part of the entire firm. Once accepted it
helps in meeting newer competencies.
2. By ensuring change of the ambassadors: The decision usually leads to the creation of
benefits in the context of the firms as change ambassadors believed to possess higher potential
compared to the others.

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3. By communicating the vision: This ensures outlining of the roadmap towards the
change and helps in clarifying the employee query through defined actions and measurable
means
4. By implementing the importance of listening: Carefully listening to problematic areas
through the process of intensive interviews represents the best method in understanding and
handling issues (Antonelli 2014)
5. By creation of the focus groups: Creation of focus groups helps to understand the
change team and also help in nurturing various collaborative relationships.
6. By considering the suppliers: Checking with the suppliers on a periodic basis enables
in understanding their efficiency in managing the new system (D'Agostino, Gambetti and
Giannone 2013). A well-organized system for change implementation put forward an
opportunity of transformation of the suppliers into trusted partners.
7. Consistency in maintenance of momentum: This ensured through focusing on the
success factor on a continuous basis (Antonelli 2014). Thus, there is much emphasis on focusing
on every minute details and convey the same to the teams.
8. Sustenance of the change: The required amount of vigilance after the change
implementation helps in attaining a sustained system.
Responding to the Changes in Competitive Environment
In the last twenty years, there has been significant evolution of the fashion apparel
industry (Kim 2013). The change in dynamics in the fashion industry have enforced retailers in
desiring lower cost and ensuring flexibility in the design, speed to market, quality and key

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strategies for maintaining profitable position in the ever demanding market(Turker and Altuntas
2014). The fashion firm like Casuals Togs can however respond to the changes in competitive
environment by adopting the following means that will help it in preventing problems.
Ensuring Proper Pricing: It is necessary for the firm to determining the pricing of its
products at a level that ensures profitability of the business and prevents customers from looking
at the competitors
Avoidance of Price War: Low prices allow customers to buy more. However, it provides
with no guarantee that the customer will choose a particular product (Galbraith 2015). The war
of prices leads to the reduction of the profit margins and prevalence of low prices in the market.
Maintenance of Quality and Service: It is however important for maintaining a higher
levels of service and quality (De Nisco and Warnaby 2013). Supply of lower quality products
makes the customers unforgiving and result in switching towards the competitors.
Efficient Marketing and Sales Team: Presence of a good quality sales team and a
concrete marketing plan serves as an excellent combination for communicating the product
benefit to the customers (McDonald and Wilson 2016). Growth of business takes through
securing the newer customers. This aspect further enhanced through an effective marketing and
sales strategy.
Conclusion and Recommendations:
The report ends by throwing light into the changes that is implemented in the
management practice, structural change and response to the changing competitive environment
will prevent the company from future problems. The report also provides an insight on the means

11ORGANIZATIONAL BEHAVIOR
adopted for persuading the owner of Casual Logs in undertaking the change. The report also
takes one through the various problems faced by the firm and the reasons for such occurrence.
The following recommendations made for the fashion apparel firm in overcoming the
challenges:
Dealing with Fast Fashion: Fast fashion refers to a concept where the garments made
for consumers get disposed in shorter time scale following the change of trend. Such clothing
lacks quality and is available at cheaper rates. This is avoided by adoption of Circular
Production Model, an innovative solution, ensuring the complete recycling of the original fibers.
The model also helps in decreasing the carbon footprint.
Prevention of Use of Non Biodegradable Synthetic Yarns: In recent times there has
been too much cultivation of the fibers for meeting the demands and this has led to the use of
pesticide. This is prevented by making professionals honor ethical practice. Even people should
stop supporting mindless fashion. There should also be regulation undertaken by the government
on the use of pesticides and support excessive cultivation of fiber.

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References:
Antonelli, C., 2014. The economics of innovation, new technologies and structural change.
Routledge.
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Chadwick, G., 2013. A systems view of planning: towards a theory of the urban and regional
planning process. Elsevier.
Covey, S.R., 2013. The 7 habits of highly effective people: Powerful lessons in personal change.
Simon and Schuster.
D'Agostino, A., Gambetti, L. and Giannone, D., 2013. Macroeconomic forecasting and structural
change. Journal of Applied Econometrics, 28(1), pp.82-101.
De Nisco, A. and Warnaby, G., 2013. Shopping in downtown: The effect of urban environment
on service quality perception and behavioural intentions. International Journal of Retail &
Distribution Management, 41(9), pp.654-670.
Dibrell, C., Craig, J.B. and Neubaum, D.O., 2014. Linking the formal strategic planning process,
planning flexibility, and innovativeness to firm performance. Journal of Business
Research, 67(9), pp.2000-2007.
Drury, C.M., 2013. Management and cost accounting. Springer.
Fullan, M., 2014. Leading in a culture of change personal action guide and workbook. John
Wiley & Sons.

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Galbraith, J.K., 2015. The new industrial state. Princeton University Press.
Kim, B., 2013. Competitive priorities and supply chain strategy in the fashion
industry. Qualitative Market Research: An International Journal, 16(2), pp.214-242.
Leeflang, P.S., Verhoef, P.C., Dahlström, P. and Freundt, T., 2014. Challenges and solutions for
marketing in a digital era. European management journal, 32(1), pp.1-12.
McDonald, M. and Wilson, H., 2016. Marketing Plans: How to prepare them, how to profit from
them. John Wiley & Sons.
Phua, J., Jin, S.V. and Kim, J.J., 2017. Gratifications of using Facebook, Twitter, Instagram, or
Snapchat to follow brands: The moderating effect of social comparison, trust, tie strength, and
network homophily on brand identification, brand engagement, brand commitment, and
membership intention. Telematics and Informatics, 34(1), pp.412-424.
Turker, D. and Altuntas, C., 2014. Sustainable supply chain management in the fast fashion
industry: An analysis of corporate reports. European Management Journal, 32(5), pp.837-849.
Uy, T., Yi, K.M. and Zhang, J., 2013. Structural change in an open economy. Journal of
Monetary Economics, 60(6), pp.667-682.
Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth,
profitability, and family leadership. Springer.

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