1. In what ways did McComb change Liz Claiborne's structure and control systems over time?
2. Why did he make these changes? Did they improve its performance? Search the Internet to find out what has happened to Liz Claiborne since these changes were made.
This case details the makeover of Liz Claiborne after a period of declining profits and increased competition. William McComb, the new CEO, decided to create a new organizational structure to address the problems associated with managing multiple brands across five separate apparel divisions. By selling, licensing or closing down 16 of its 36 brands, the company was able to focus on the remaining 20 brands that had the highest chance of generating growth and profits. The five apparel divisions were collapsed into just two, eliminating an entire layer of management and duplication of functions. Faced with remaining need to reduce costs in its divisions, McComb realized the complexity still needed to be reduced and each division should be allowed to build the right merchandising culture. Consequently, he changed division structure to by quality or price and the needs of the customers. This structural change was not successful and Liz Claiborne still struggles.