Abercrombie And Fitch Controversy

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The Escalation of Commitment to a Course of Action – Abercrombie and Fitch Abercrombie and Fitch is an American retailer who has been facing many outstanding issues and is at risk of disappearing. For the past two decades, the company has been facing severe controversy. Abercrombie and Fitch has been long criticized for lack diversity and inclusion. The company excludes minorities and plus-sized customers from its stores. This controversy has brought many financial problems to Abercrombie and Fitch. Over the past five years, Abercrombie and Fitch has invested millions of dollars in rebranding the company to improve their underperforming sales and regaining back customers. The company has used several turnaround strategies, to no vail. …show more content…

Abercrombie has committed to reinvest in rebranding despite its constant losses. This escalation of commitment can be attributed to the four determinants described in the theoretical model proposed by Shaw: Motivation to justify previous decisions; Norms for consistency; Perceived probability of future outcomes; and Perceived value of future …show more content…

Prior to 2015, the company had already invested money in rebranding purposes in hopes to regain its customer and boost sales. This financial investment did not have good outcomes for the company as everyone had expected. Therefore, Abercrombie needed to demonstrate that its leaders were competent. As a result, more money was invested in hopes that the situation would positively turn around in their favor. Norms for consistency was another determinant of why Abercrombie decided to commit to reinvesting in its brand. Leaders are expected to take action when they encounter difficult situations. This expectation derives both from the public and from the employees as well. Thus, it was necessary for Abercrombie’s executives to act. Abercrombie believed that if they stay consistent with their efforts, the results were going to be positive. However, rebranding has proven to failed for several years

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