Chico's FAS Inc

Junior (College 3rd year) ・Business ・APA ・2 Sources

It is difficult for any company to forecast in a world that is changing. Therefore, a variety of factors affect the company's success and expansion. In many markets, there are also high levels of uncertainty-related dread. Because of this, businesses are compelled to develop and adopt tactics that will help them establish themselves and boost sales. According to Dyer (2011), an organization's primary functional concerns relate to the target market for the commodity, the individuals who generate the commodity, the support system, and the goods themselves. These organizational strategies include product designs, production methods, and marketing techniques. The support process tactics used entail the information systems and the accounting systems of the organization while the functional concern strategies deal with the workforce (Gaines, Hoover, Foxx, Matuszek, & Morrison, 2012).
In connection to what has been discussed above, there is a firm in Florida called Chico's FAS Inc. that deals with the production, distribution, and sale of classic ladies' clothes and accompanying accessories. Chico's FAS Inc. has opened branches and distribution points all over the world, for it to be able to manage its broad market in different countries coming up with various functional strategies.
First, it has ensured that its human resource policies are near perfection. In this light, it has employed a workforce of over 200,000 dedicated and motivated employees with 20,000 of these employees being permanent. The competence of these employees and their skillfulness help the firm gain a competitive advantage over their competitors. Besides, the employees' commitment enables the company to accomplish its goals and objectives. Further, to achieve efficiency, the firm has divided its production line into four major departments namely, production, packaging, distribution, and packaging. Each of these departments has been assigned a manager who has a very brief span of control which also contributes to the efficiency of the firm. Moreover, the company ensures its employees are always motivated by employing methods such as creating a safe and healthy working environment for them, giving deserving employees promotions and increasing their salaries.
Secondly, the company capitalizes in effective communication between workers as well as customers. It has therefore come up with systems that allow monitoring of customers changes in taste and preferences, their purchases rates as well as return rates after first purchase (Dyer, 2011). It has further harmonized its communication system with the finance and accounting department thus increasing its profits significantly.
Lastly, Chico's FAS Inc. has adopted a product strategy where it has divided its products into two distinct brands. The first brand targets older working ladies. The customers are allowed to choose their designs and products are customized according to the customers taste. Also, the designs are unique and are developed according to international sizes allowing for a broad range of selection with a single make and style. The second brand that Chico produces comprises of outfits used in functions and sports. All these products are aimed at enhancing the figures of body and fashion conscious individuals. Another product strategy of Chico Inc. is using different Medias including but not limited to, exhibitions, the internet, and television to advertise their products (Dyer, 2011).
In conclusion, the success of Chico's FAS Inc. can be said to be linked to the effective application and implementation of the primary functional strategies namely, product design, support processes, and human resource.


Gaines, C., Hoover, D., Foxx, W., Matuszek, T., & Morrison, R. (2012). Information systems as a strategic partner in organizational performance. Journal of Management and Marketing Research, 10, 1.
Dyer, D. (2011). Chico's FAS Inc. 2010 Annual Report. Retrieved on 28th May 2015 from:

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