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Contents1. Introduction:............................................................................................................................3

2. Organizational Structure:.........................................................................................................4

2.1 Organizational Chart:.............................................................................................................4

3. Organizational Strategy:...........................................................................................................5

3.1 Global Strategy of Levis:........................................................................................................5

3.2 Features of Levi’s Global Matrix Structure............................................................................6

4. Organizational Culture:............................................................................................................6

4.1 Values and Vision:............................................................................................................6

4.2 Workplace Diversity:........................................................................................................6

4.2.1 Her Project:...............................................................................................................7

4.2.2 Project Change:.........................................................................................................7

4.3 Communication:...............................................................................................................7

4.4 Ethics:...............................................................................................................................7

4.4.1 Worldwide Code of Business Conduct:...........................................................................7

4.4.2 Global Anti-Bribery and Anti-Corruption Policy..............................................................8

4.4.3 Business Partner Terms of Engagement:........................................................................8

4.4.4 Country Specific Guidelines:...........................................................................................9

4.5 CSR Activities:...................................................................................................................9

5. Environment:.........................................................................................................................10

5.1 Specific Environment:..........................................................................................................10

5.2 General Environment:..........................................................................................................10

6. Organizational change:..........................................................................................................10

6.1 Cultural change....................................................................................................................10

6.2 Corporate – level changes..............................................................................................11

7. Innovation at LS&Co.:.............................................................................................................11

8. Employee Motivation:............................................................................................................11

8.1 Awards and Recognition:.....................................................................................................11

8.2 Stress Management:.......................................................................................................12

9. Bibliography...........................................................................................................................13

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1. Introduction:

Levi Strauss & Co. (LS&Co.) is one of the world’s leading branded apparel companies with sales

in more than 110 countries. The Company designs and markets jeans and jeans-related pants,

casual and dress pants, tops, jackets and related accessories for men, women and children

under the Levi’s, Dockers and Signature by Levi Strauss & Co. brands in markets around the

world. LS&Co. also licenses its trademarks in many countries throughout the world for a wide

array of products, including accessories, pants, tops, footwear, home and many other products.

LS&Co. products are sold in more than 60,000 retail locations through multiple channels of

distribution worldwide. The Company distributes its Levi’s and Dockers products primarily

through chain retailers and department stores in the United States and primarily through

department stores, specialty retailers and dedicated franchised stores abroad. The distribution

of Signature by Levi Strauss & Co. products occurs primarily through mass channel retailers in

the United States and mass and other value-oriented retailers and franchised stores abroad.

The Company employs approximately 11,400 people, 4,700 of whom are located in the

Americas, 4,400 in Europe, and 2,300 in Asia Pacific.

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2. Organizational Structure:

Levi Strauss & Co. is a privately held, family owned company. The Haas family, relatives of Levi

Strauss, owns the company. The internal structure of the company is functional.

2.1 Organizational Chart:

Fig. Internal Organizational Chart of Levi Strauss & Co., US

Levi’s has a network structure where core competencies and design are centralized in America

and strategic alliances for proper distribution are focused overseas (Jones, 2007). This structure

and Levi’s organizational flexibility correlates with its transnational operations, which allows the

company to build business and be profitable.

Under its network structure, Levi’s forms a cluster of different partner organizations whose

actions are coordinated by contracts and agreements rather than through a formal hierarchy of

authority. Agreements with many suppliers, manufacturers, and distributors are necessary as

the organization outsources many of the value creation activities involved in production and

marketing goods and services.

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3. Organizational Strategy:

3.1 Global Strategy of Levis:

Levi Strauss has a transnational strategy by which it seeks to reduce costs and provide

customer-responsiveness. Production facilities are located around the world to take advantage

of low cost foreign labour. But the products are tailored to suit the local customers. For

example, in Asia smaller sized jeans are offered. Special colours are offered in some countries

based on customers’ choices. Foreign subsidiaries are responsible for marketing. Levi’s transfers

knowledge to its subsidiaries. For e.g., marketing knowledge learned on Dockers’ in the U.S. was

transferred to Europe.

To implement its transnational strategy, Levi Strauss uses a network structure. Design is

performed in the U.S. and foreign partners produce and distribute products. A partner will be

replaced if it doesn’t meet Levi’s standards.

= Individual Business UnitFig. Global Matrix Structure of Levi’s Transnational Strategy

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Levi’s

Dockers

Signature Levi Strauss & Co.

Denizen

Levi Strauss Americas (LSA) San Francisco

Levi Strauss Europe, Mid East, Africa (LSEMA) Brussels

Levi Strauss Asia Pacific Division (APD) Singapore

3.2 Features of Levi’s Global Matrix Structure

Lowers global cost structures

Differentiates activities through superior innovation and responsiveness to global

customers

Managers at the regional or country level control local operations

Company’s corporate product groups are grouped by world region

Decentralizes control to overseas managers

Corporate managers exert centralized control to coordinate company’s global

activities

4. Organizational Culture:

Levi Strauss& Co. has an organic culture. Formal authority is frowned upon. There is a great

emphasis on task accomplishment and team work. The staff has better understanding of

problems and willingness to solve them.

4.1 Values and Vision:

Levi Strauss & Co. has a clearly defined value and vision statement on its website. The

company’s focus on values also comes from its strong culture and commitment of its leadership

towards values and ethics. Bob Haas once gave a long interview to the Harvard Business Review

called "Values Make the Company." He delivered a keynote speech on business and ethics to

the Conference Board.

The following are the guiding principles that set the standards for its employees’ behaviour:

Empathy — walking in other people’s shoes

Originality — being authentic and innovative

Integrity — doing the right thing

Courage — standing up for what we believe

4.2 Workplace Diversity:

Levis is committed to fostering a culture where diversity and inclusion thrive – a work

environment that provides every employee with the opportunity to achieve their potential and

participate fully in building our brands and generating sustained, profitable growth. This is in

tandem with the transnational strategy of Levis. Levi’s customers, suppliers and business

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partners span a broad spectrum of ages, ethnicities, cultures and lifestyles. A policy of

understanding the commonalities — and respecting the differences is followed.

In 2007, Levis hired more than 11500 employees in 35 countries and sold its products in more

than 110 countries. This diversity also promotes innovation within the organization.

Some of the projects aimed at promoting workplace diversity are:

4.2.1 Her Project:

Levi Strauss & Co. supports women apparel workers in developing countries through the ‘Her

Project’.

4.2.2 Project Change:

Levi Strauss & Co. launches “Project Change,” an initiative to address institutional racism in

LS&CO. communities.

4.3 Communication:

Levis, as a multi cultural organization, developed excellent communication channel between the

management and the employees. Efficient cross cultural communication guided the employees

towards achieving organizational goals.

In 1926, for example, Levi Strauss & Co. was among the first U.S.-based companies to begin

advertising in Spanish, Portuguese and Chinese, reaching out to oft-neglected consumers and

winning new loyal fans

4.4 Ethics:

The Company maintained strict adherence to ethical standards since its inception. This was

driven by a strong company culture, leadership and values.

4.4.1 Worldwide Code of Business Conduct:

LS&Co.’s Worldwide Code of Business Conduct is directed at managing the company’s business

affairs responsibly, with the utmost integrity and in compliance with all applicable laws. It offers

guidance to the employees on a host of potential business situations and emphasizes the

importance of making business decisions through the lens of the company’s core values.

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4.4.2 Global Anti-Bribery and Anti-Corruption Policy

The Global Anti-Bribery and Anti-Corruption Policy provides additional, specific guidance on two

critical sections of the Worldwide Code of Business Conduct — Compliance with Laws, Rules and

Regulations and Government Officials. Recognizing that anti-bribery and anti-corruption laws

vary by jurisdiction and are not always easy to understand, the Global Anti-Bribery and Anti-

Corruption Policy is designed to help LS&Co. employees worldwide to identify and avoid

situations that may potentially violate ethics laws.

Compliance with the Worldwide Code of Business Conduct and the Global Anti-Bribery and Anti-

Corruption Policy is mandatory for everyone at LS&Co. worldwide — from the back room to the

board room.

The Company’s Ethics and Compliance Reporting allows the employees worldwide to report

ethics concerns anonymously, and company policies strictly prohibit retaliation against anyone

for raising or helping to address any issue related to the Worldwide Code of Business Conduct or

the Global Anti-Bribery and Anti-Corruption Policy.

4.4.3 Business Partner Terms of Engagement:

Levi Strauss & Co. selects business partners that follow workplace standards and practices

consistent with its policies. In addition to meeting acceptable general ethical standards,

complying with all legal requirements and sharing Levi Strauss's commitment to the

environment and community involvement, the business partners must adhere to the following

employment guidelines

Wages and benefits: business partners must comply with any applicable law and

the prevailing manufacturing and finishing industry practices.

Working hours: partners must respect local legal limits on working hours. Employees

should also have at least one day off per week.

Child labour: use of child labour is not permissible in any of the facilities of the

business partner. Workers must not be below 15 years of age or below the

compulsory school age

Disciplinary practices: Levi Strauss will not use business partners who use

corporal punishment or other forms of physical or mental coercion.

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Prison/forced labor: no prison or forced labor is to be used by business partners

nor will Levi Strauss use or buy materials from companies using prison or forced

labor.

Freedom of association: the rights of workers to join unions and to bargain

collectively must be respected.

Discrimination: while respecting cultural differences, Levi Strauss believes workers

should be employed on the basis of their ability to do their job

Health and safety: Levi Strauss undertakes to use business partners who provide a

safe and healthy working environment and, where appropriate residential facilities

In the 1990s, Levi-Strauss & Company found that some of its contractors in Bangladesh were

using child labor consisting of children under 14 years old in its factories. One option they had

was to demand that their contractors fire those children immediately. Yet, when they looked at

the situation more closely, they found that it was common for young children to be employed in

factories, and in many cases these children were the sole breadwinners in the family. Firing

these children would have caused significant hardship for the families and could have pushed

the children into more dangerous working conditions. Therefore, Levi-Strauss reached an

agreement to send the children back to school while continuing to receive their wages partly

from the contractor companies and partly from Levi-Strauss. The school expenses were met by

Levi-Strauss and the children were promised work when they were older.

4.4.4 Country Specific Guidelines:

Levi Strauss decided to cease its engagement in China in the early 1990s, largely on human

rights grounds. Country assessment is done based on such considerations as: human rights,

health and safety of workers, working conditions, legal system and political, economic and social

environment.

4.5 CSR Activities:

Levis has been pro-active in its CSR initiatives. The Levi Strauss Foundation was formed in 1952

to coordinate the company’s charitable giving.

The Child Care Fund was created in 1991 to help LS&CO. plant employees with child care.

Levi’s “Women Breaking the Mold” ad broke new ground in American advertising by dismantling

stereotypes about women. In 1994, The Council on Economic Priorities selected LS&CO. to

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receive the “America’s Corporate Conscience Award for International Commitment.” The

Council on Economic Priorities ranks LS&CO. number one out of 320 companies in a corporate

social responsibility survey. LS&CO. receives an “A” rating in the categories of Charitable Giving,

Disclosure, Family Benefits, Minority Advancement, Women’s Advancement and Workplace

Issues.

LS&CO. is one of the first companies to develop comprehensive HIV and AIDS education and

health services for employees and their families. The company would become a global business

leader in the fight against HIV/AIDS.

5. Environment:

5.1 Specific Environment:The specific environment of Levi Strauss & Co. would comprise- customers, suppliers, distributors, government, union and competitors. Of these, the customers, foreign partners and competitors had more impact on the company. With changing customer trends in the 1990s and Levi’s inability to respond appropriately led to plummeting sales. Also in the same period, the long-term relationships of Levi's with the likes of May Company and Federated became shackles. Competitors like Ralph Lauren, Calvin Klein, Tommy Hilfiger, Lee, Wrangler, Arizona, and Canyon River Blues were eating on Levi’s market share and ultimately forced Levi’s to rework its strategy.

5.2 General Environment:The General environment includes demographic and cultural forces, international forces, political forces, technological forces, environmental and economic forces. Demographic forces, technological forces and international forces have had a more direct bearing on Levi’s. With an increasing youth population and lack of innovation/new products, Levi’s felt the need to restructure its processes. It was when Levi’s was changing its strategy, that it started using technology heavily. Levi’s started using CAD (Computer Aided Designing) and IT in a big way. Also in the 1990s Levi’s quit the Chinese market due to concerns of human rights violation.

6. Organizational change:

6.1 Cultural change

Culture change is difficult and time consuming because "culture" is rooted in the collective history of an organization, and because so much of it is below the surface of awareness. In 1985, a group of minority and women managers requested a meeting with the CEO, complaining of discrimination. The CEO convened a three-day facilitated retreat at which white, male managers engaged in intense discussions with minority and female managers. These

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discussions revealed that there were, indeed, hidden attitudes in the organization that were in conflict with its espoused values.

Since that time, Levi-Strauss has worked hard to generate cultural change. The company developed an "Aspiration Statement" including desired beliefs, attitudes, and behaviour. The statement specifies the company’s commitment to communication, ethical management practices, employee empowerment, and recognition for those who contribute to the mission of the company.

Employees at all levels also participate in training sessions on leadership, diversity, and ethics. Employee evaluations are based partially on how well they support the "Aspiration Statement."

6.2 Corporate – level changesIn the late 1990s, LS&Co. was accused of losing touch with customers and lost significant market share to competition. In 1999, the company hired Phil Marineau, installing as its President and CEO a non family member for the second time in its history. Through innovative ideas like Levi Strauss Signature, he managed to ameliorate the situation. Under him, LS&Co., once known for its “Made in USA” association, closed the last of its US manufacturing plants and shifted production entirely overseas.

7. Innovation at LS&Co.:Levi Strauss encourages intrapreneurship. Intrapreneurship is about applying the values of an entrepreneur—learning, innovation, initiative, empowerment, ownership— to the task of running a leading-edge corporation.

As Bob Haas, Levi Strauss CEO, says, “We are not doing this because it makes us feel good, although it does. … We are doing this because we believe in the interconnection between liberating the talents of our people and business success.”

Innovation started on both customer side and process side. The Original Spin mass- customization process is built around a computer-aided design (CAD) system linked with marketing and logistics databases. On the retail front, Levi’s is investing in large stores to display the entire jeans collection. The company also keeps experimenting with store formats. For instance, it has just launched a new format (600-800 sq ft) which focuses only on jeans wear. It changes the look and feel of the stores in India every three to five years to keep it more contemporary.

8. Employee Motivation:

8.1 Awards and Recognition:

To keep the employees motivated, LS&Co. has a proper appraisal system in place.

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Excellence Award:

The Excellence Award is given annually to recognize “best in class” employees in each of our

three regions. The award is given to employees and employee teams who help to further our

company’s vision while contributing to our strategic and annual operating plans.

Worldwide Koshland Award:

At Levi Strauss & Company, based in San Francisco, employees nominate one another for the

company’s Koshland Award for showing initiative, taking risks, generating cost-saving measures,

coming up with creative ideas for promoting products at the retail level—anything that gives the

company a competitive edge. Winners receive the plaque at the annual awards ceremony and a

cash prize.

8.2 Stress Management:

Levi Strauss & Co. has an ongoing stress management program in which 1500 employees have

participated in an all day seminar. Relaxation techniques and self-motivation procedures are

taught. Examination of life goals, identification of harmful personality traits and behaviour

modification techniques are a part of the program.

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9. Bibliography Organizational Theory, Design, And Change, 5/E - Gareth R Jones, Mary Mathew The Business of changing the World - Marc Benioff, Carlye Adler Article from Fortune magazine April 12, 1999: “How Levi's Trashed a Great American

Brand” http://www.levistrauss.com/ ‘The Ten Ironies of Motivation’ article by Bob Nelson

http://www.gov.ns.ca/psc/pdf/employeeCentre/recognition/toolkit/step1/Ten_Ironies_of_Motivation.pdf

‘Innovations give Levi's the right fit’ article in Business Standardhttp://www.business-standard.com/india/news/innovations-give-levisright-fit/380548/

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