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{"id":3144,"date":"2023-02-19T16:11:45","date_gmt":"2023-02-19T16:11:45","guid":{"rendered":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/apply-it-13-1-what-is-operations-management\/"},"modified":"2025-06-25T12:43:52","modified_gmt":"2025-06-25T12:43:52","slug":"apply-it-13-1-what-is-operations-management","status":"publish","type":"chapter","link":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/apply-it-13-1-what-is-operations-management\/","title":{"raw":"Apply It 13.1: What Is Operations Management?","rendered":"Apply It 13.1: What Is Operations Management?"},"content":{"raw":"<section class=\"textbox learningGoals\">\r\n<ul>\r\n\t<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand what operations management is&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:14720,&quot;10&quot;:0,&quot;11&quot;:4,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand what operations management is<\/span><\/li>\r\n\t<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand how operations management functions in the service industry&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:14720,&quot;10&quot;:0,&quot;11&quot;:4,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand how operations management functions in the service industry<\/span><\/li>\r\n<\/ul>\r\n<\/section>\r\n<h2>Fast Fashion's Operational Challenges<\/h2>\r\n<p>This video examines Forever 21, a retailer that once dominated the market with $4 billion in sales but filed for bankruptcy for the second time in 2025. You'll see this video case study again later in the module.<\/p>\r\n<section class=\"textbox watchIt\" aria-label=\"Watch It\"><script src=\"https:\/\/www.youtube.com\/iframe_api \" type=\"text\/javascript\"><\/script>\r\n<p class=\"cc-media-iframe-container\"><iframe id=\"tpm-plugin-dadhdheh-3M3boedWvFY?si=1ouqsDxXqxK0x8fz\" class=\"cc-media-iframe\" src=\"https:\/\/www.youtube.com\/embed\/3M3boedWvFY?si=1ouqsDxXqxK0x8fz?enablejsapi=1 \" frameborder=\"0\" data-mce-fragment=\"1\"><\/iframe><\/p>\r\n<p class=\"cc-media-iframe-container\"><script src=\"\/\/plugin.3playmedia.com\/ajax.js?cc=1&amp;cc_minimizable=1&amp;cc_minimize_on_load=0&amp;cc_multi_text_track=0&amp;cc_overlay=1&amp;cc_searchable=0&amp;embed=ajax&amp;mf=13387225&amp;p3sdk_version=1.11.7&amp;p=20361&amp;player_type=youtube&amp;plugin_skin=dark&amp;target=3p-plugin-target-dadhdheh-3M3boedWvFY?si=1ouqsDxXqxK0x8fz&amp;vembed=0&amp;video_id=3M3boedWvFY?si=1ouqsDxXqxK0x8fz&amp;video_target=tpm-plugin-dadhdheh-3M3boedWvFY?si=1ouqsDxXqxK0x8fz\" type=\"text\/javascript\"><\/script><\/p>\r\n<p>You can view the\u00a0<a href=\"https:\/\/course-building.s3.us-west-2.amazonaws.com\/Intro+to+Business\/transcripts\/How+Forever+21+Plummeted+From+%244B+in+Sales+to+Twice+Bankrupt+%7C+WSJ+What+Went+Wrong_transcript.txt\" target=\"_blank\" rel=\"noopener\">transcript for \u201cHow Forever 21 Plummeted From $4B in Sales to Twice Bankrupt | WSJ What Went Wrong\u201d here (opens in new window).<\/a><\/p>\r\n<\/section>\r\n<h3>How did Forever 21's operations management approach initially contribute to its success in the fast fashion industry compared to traditional clothing retailers?<\/h3>\r\n<p>[reveal-answer q=\"714099\"]Click to Show Sample Answer[\/reveal-answer]<br \/>\r\n[hidden-answer a=\"714099\"]Forever 21's operations management approach initially drove its success through several key strategies. First, they pioneered a fast-fashion model focused on rapidly responding to trends. They introduced the latest trends and styles in their stores much faster than retailers had in the past. This quick response gave them an advantage over traditional retailers like Gap and Abercrombie who operated on slower seasonal cycles.<\/p>\r\n<p class=\"whitespace-normal\">Forever 21 implemented a cost-efficient production approach that allowed them to offer trendy items at extremely low prices. Their operations strategy emphasized affordable pricing without sacrificing trend relevance. In addition, Forever 21 focused on product variety and accessibility. Their broad merchandise mix appealed especially to teenagers.<\/p>\r\n<p class=\"whitespace-normal\">Finally, Forever 21's expansion strategy initially boosted their success, growing to over 800 physical stores with strategic locations in malls across America. This retail footprint made their products easily accessible to their target demographic at a time when mall shopping was still dominant, contributing to their peak sales of more than $4 billion in 2014.[\/hidden-answer]<\/p>","rendered":"<section class=\"textbox learningGoals\">\n<ul>\n<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand what operations management is&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:14720,&quot;10&quot;:0,&quot;11&quot;:4,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand what operations management is<\/span><\/li>\n<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand how operations management functions in the service industry&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:14720,&quot;10&quot;:0,&quot;11&quot;:4,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand how operations management functions in the service industry<\/span><\/li>\n<\/ul>\n<\/section>\n<h2>Fast Fashion&#8217;s Operational Challenges<\/h2>\n<p>This video examines Forever 21, a retailer that once dominated the market with $4 billion in sales but filed for bankruptcy for the second time in 2025. You&#8217;ll see this video case study again later in the module.<\/p>\n<section class=\"textbox watchIt\" aria-label=\"Watch It\"><script src=\"https:\/\/www.youtube.com\/iframe_api\" type=\"text\/javascript\"><\/script><\/p>\n<p class=\"cc-media-iframe-container\"><iframe id=\"tpm-plugin-dadhdheh-3M3boedWvFY?si=1ouqsDxXqxK0x8fz\" class=\"cc-media-iframe\" src=\"https:\/\/www.youtube.com\/embed\/3M3boedWvFY?si=1ouqsDxXqxK0x8fz?enablejsapi=1\" frameborder=\"0\" data-mce-fragment=\"1\"><\/iframe><\/p>\n<p class=\"cc-media-iframe-container\"><script src=\"\/\/plugin.3playmedia.com\/ajax.js?cc=1&amp;cc_minimizable=1&amp;cc_minimize_on_load=0&amp;cc_multi_text_track=0&amp;cc_overlay=1&amp;cc_searchable=0&amp;embed=ajax&amp;mf=13387225&amp;p3sdk_version=1.11.7&amp;p=20361&amp;player_type=youtube&amp;plugin_skin=dark&amp;target=3p-plugin-target-dadhdheh-3M3boedWvFY?si=1ouqsDxXqxK0x8fz&amp;vembed=0&amp;video_id=3M3boedWvFY?si=1ouqsDxXqxK0x8fz&amp;video_target=tpm-plugin-dadhdheh-3M3boedWvFY?si=1ouqsDxXqxK0x8fz\" type=\"text\/javascript\"><\/script><\/p>\n<p>You can view the\u00a0<a href=\"https:\/\/course-building.s3.us-west-2.amazonaws.com\/Intro+to+Business\/transcripts\/How+Forever+21+Plummeted+From+%244B+in+Sales+to+Twice+Bankrupt+%7C+WSJ+What+Went+Wrong_transcript.txt\" target=\"_blank\" rel=\"noopener\">transcript for \u201cHow Forever 21 Plummeted From $4B in Sales to Twice Bankrupt | WSJ What Went Wrong\u201d here (opens in new window).<\/a><\/p>\n<\/section>\n<h3>How did Forever 21&#8217;s operations management approach initially contribute to its success in the fast fashion industry compared to traditional clothing retailers?<\/h3>\n<p><div class=\"qa-wrapper\" style=\"display: block\"><button class=\"show-answer show-answer-button collapsed\" data-target=\"q714099\">Click to Show Sample Answer<\/button><\/p>\n<div id=\"q714099\" class=\"hidden-answer\" style=\"display: none\">Forever 21&#8217;s operations management approach initially drove its success through several key strategies. First, they pioneered a fast-fashion model focused on rapidly responding to trends. They introduced the latest trends and styles in their stores much faster than retailers had in the past. This quick response gave them an advantage over traditional retailers like Gap and Abercrombie who operated on slower seasonal cycles.<\/p>\n<p class=\"whitespace-normal\">Forever 21 implemented a cost-efficient production approach that allowed them to offer trendy items at extremely low prices. Their operations strategy emphasized affordable pricing without sacrificing trend relevance. In addition, Forever 21 focused on product variety and accessibility. Their broad merchandise mix appealed especially to teenagers.<\/p>\n<p class=\"whitespace-normal\">Finally, Forever 21&#8217;s expansion strategy initially boosted their success, growing to over 800 physical stores with strategic locations in malls across America. This retail footprint made their products easily accessible to their target demographic at a time when mall shopping was still dominant, contributing to their peak sales of more than $4 billion in 2014.<\/div>\n<\/div>\n","protected":false},"author":21,"menu_order":5,"template":"","meta":{"_candela_citation":"[{\"type\":\"copyrighted_video\",\"description\":\"How Forever 21 Plummeted From $4B in Sales to Twice Bankrupt | WSJ What Went Wrong\",\"author\":\"WSJ\",\"organization\":\"\",\"url\":\"https:\/\/youtu.be\/3M3boedWvFY\",\"project\":\"\",\"license\":\"arr\",\"license_terms\":\"Standard YouTube license\"}]","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"part":3138,"module-header":"apply_it","content_attributions":[{"type":"copyrighted_video","description":"How Forever 21 Plummeted From $4B in Sales to Twice Bankrupt | WSJ What Went Wrong","author":"WSJ","organization":"","url":"https:\/\/youtu.be\/3M3boedWvFY","project":"","license":"arr","license_terms":"Standard YouTube license"}],"internal_book_links":[],"video_content":null,"cc_video_embed_content":{"cc_scripts":"<script type='text\/javascript' src='https:\/\/www.youtube.com\/iframe_api'><\/script><script type='text\/javascript' src='\/\/plugin.3playmedia.com\/ajax.js?cc=1&cc_minimizable=1&cc_minimize_on_load=0&cc_multi_text_track=0&cc_overlay=1&cc_searchable=0&embed=ajax&mf=13387225&p3sdk_version=1.11.7&p=20361&player_type=youtube&plugin_skin=dark&target=&vembed=0&video_id=3M3boedWvFY&video_target=tpm-plugin-dadhdheh-3M3boedWvFY?si=1ouqsDxXqxK0x8fz'><\/script>\n","media_targets":["tpm-plugin-dadhdheh-3M3boedWvFY?si=1ouqsDxXqxK0x8fz"]},"try_it_collection":null,"_links":{"self":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/3144"}],"collection":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/users\/21"}],"version-history":[{"count":8,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/3144\/revisions"}],"predecessor-version":[{"id":9810,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/3144\/revisions\/9810"}],"part":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/parts\/3138"}],"metadata":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/3144\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/media?parent=3144"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapter-type?post=3144"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/contributor?post=3144"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/license?post=3144"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}