Questionable CEO's

CEO's Hurting Rather than Helping Companies

http:www.cnbc.com

Sitting around in your typical Hinsdale Central classroom, more than likely you will notice someone wearing an article of clothing from Lululemon. Why do we notice? From the great marketing skills from the creator of Lululemon that make people wants to wear and represent their company. Even with the negative press that companies like Lululemon and Abercrombie have gotten, people are still proud to represent their clothing and many times people will only wear Lululemon leggings. People will still represent controversial companies because of their high status of those who wear their attire and the companies successful marketing.  

Stores like Abercrombie and Lululemon have lost profits throughout the years due to marketing and controversial comments made by their ex-CEO’s. Many of these comments were directed towards the way they wanted their items to be marketed. Lululemon ex-CEO claims that Lululemon won’t make bigger sized yoga pants because he only wants “fit” people wearing his brand. Companies like these only want a select few people to be wearing their brand which is why they only make regular size and no plus size attire.

Many companies in this era are trying to market towards all groups of people by their advertising. Even with their successful marketing, these controversial companies had very questionable CEO’s. Abercrombie CEO claimed why they hire attractive people is to get more attractive people in the store because,“we want to market to cool, good-looking people -- we don't market to anyone other than that”. This was one mistake made by the CEO for saying that only “good-looking” people can represent their attire. Jeffries (Abercrombie CEO) also ruined Abercrombie's financial status because he would sign off opening new stores even though Abercrombie was losing popularity, as well as,"despite teens increasingly choosing to buy from the lower-priced racks.” Jeffries is doing more harm than good to his company which also decreased their profits on top of the negative press he's been giving.

Future Research Question: How has the negative media affected the net value of the companies?