GANNI’s new skin: Towards responsible fashion (A) SM-1752-E
The case examines the sustainability journey of the Danish ready-to-wear fashion brand GANNI, focusing on a pivotal decision. In April 2019, Lauren Bartley, the head of sustainability and CSR, proposed to the executive team to phase out the use of virgin leather across GANNI’s entire range of clothing, accessories and footwear. The aim was to replace it with environmentally friendly alternatives such as recycled leather and bio-based materials. By phasing out leather, Lauren expected to reduce GANNI’s carbon footprint by 10-20%, a necessary condition to meet the company’s emissions targets, part of GANNI’s new comprehensive sustainability strategy called “The Gameplan”. The case describes GANNI’s strategy, positioning, and operations, and students can explore how this decision would affect them, and how to implement it. How can Lauren gain support across the company, especially from the design and production teams? Can she find suitable replacement materials and source them at scale? How will she address issues such as increased costs, supplier buy-in, and alignment with other key stakeholders such as wholesalers and customers? And how to balance the game plan with the company’s ambitious growth targets?
GANNI’s new skin: Towards responsible fashion (B) SM-1760-E
In the fall of 2023, four years after GANNI began to phase out virgin leather from all its fashion collections, the goal was now very close to completion. After internal debates, technical and operational challenges, and the commitment and work from all the people of GANNI, virgin leather had been replaced with more sustainable alternatives, like recycled leather or new, groundbraking, bio-based alternatives. But one hurdle remained: the Production and Design teams had so far failed to find a viable replacement material for some versions of GANNI’s popular Western boots. These boots were one of GANNI’s best sellers in the footwear category, with 22% of total sales. GANNI had two options: either keep manufacturing these boots in virgin leather, or remove them from GANNI’s collections entirely. If GANNI chose to stop production, it would be giving up a very popular item, but if it continued production, it would be failing the goal of its first major sustainability project. What was the best course of action for the Danish fashion company? The case examines how GANNI carried out the leather phase-out project from 2019 until 2023, putting it in the context of a wider a comprehensive sustainability strategy that required the transformation of the entire business, as well as its suppliers, at a time when the company was also growing at a very rapid pace. The case also presents the sustainability challenges facing GANNI in the coming years, in order to go beyond the leather project to become a brand where sustainability is embedded in the business.
Arcano Partners: Scalling Imapct With a Fund of Funds (A) SM-1713-E
The case describes the setting up of an impact fund of funds (FOF) in 2019 by Arcano Partners, a leading Spanish independent asset management firm. Since its inception, Arcano Partners pioneered the FOF model in Private Equity and had recently launched two successful ESG-committed funds. Now, the firm is venturing into the impact investing space. The case centers around Jose Luis del Río, head of the PE division at Arcano, who is about to pitch to Caixabank – Spain’s largest institutional investor – their first Impact fund, with the aim of closing them as the anchor investor. José Luis needs to decide whether to include thematic funds in the portfolio of Arcano’s Impact FOF, but also whether it is worth deviating from their traditional buyout strategy and focus the FOF towards growth stage investments.
Arcano Partners: Scalling Imapct With a Fund of Funds (B) SM-1714-E
Case (B) provides information on the decisions taken, and raises new challenges for the future.
The Responsible Investing Landscape: From SRI Through ESG to IMPACT (Technical Note, SMN-704-E)
This note offers a concise overview of the responsible investing landscape, starting from its historical roots in socially responsible investing, and the recent explosive growth of ESG and Impact Investing. The note provides an introduction to this field, identifying the key actors and the role they are playing, but also explaining the core ESG investment strategies, their advantages and shortcomings.
Oltre Venture: The Impact Revolution (A) SM-1669-E / Oltre Venture: la Revolución del Impacto (A) SM-1669
This case describes the start-up and early operation of a novel impact investing firm in Italy: Oltre Venture. Oltre Venture, which defines itself as a “social venture capital” firm, had been among the pioneers of impact investing in Europe, investing ?8 million in its first fund, and raising ?29 million for its second one. Founded by professionals with many years of corporate and private equity experience, Oltre Venture had developed a unique hands-on approach to impact investing, with a clear investment thesis focused on health, education, agriculture, food, housing, and an attention to less developed regions in Italy. The A case describes the history of the fund, provides biographical information on the founders and the management team, and outlines Oltre’s operating model. Having successfully managed one fund, and raised a second one, by 2017 Oltre faces two challenges. The first was divesting the investments in the first fund while ensuring that the companies they exited would continue producing positive social impact. The second was to invest the second fund. The A case offers information on two potential deals the investment committee would have to decide on Hydro Food and Home Sweet Home. Hydro Food aimed to build high-tech hydroponic greenhouses to produce fruits and vegetables and sell them to large retailers. Home Sweet Home provided a platform to manage short-term rental apartments. Which one of these projects better fits Oltre’s investment criteria and its mission? Which ones should they invest in? This challenge provides an opportunity to reflect on how the investment and impact thesis shapes the investment process. The B case provides an excerpt from the investment committee meeting where these two investments were discussed, and the dialogue among the partners offers an opportunity to appreciate how, through each investment decision, the firm advanced and clarified its own investment thesis.
Oltre Venture: The Impact Revolution (B) SM-1670-E / Oltre Venture: la Revolución del Impacto (B) SM-1670
The B case provides an excerpt from the investment committee meeting where these two investments were discussed, and the dialogue among the partners offers an opportunity to appreciate how, through each investment decision, the firm advanced and clarified its own investment thesis.
Oltre Venture: The Impact Revolution (A and B) Teaching Note SMT-122-E
Pennies From Heaven? Strategic Turnaround at J.C. Penney SM-1665-E / ¿Un regalo del cielo? El giro estratégico de J.C. Penney SM-1665
The case discusses the formulation and implementation of the strategic turnaround of J.C. Penney, a major U.S. retailer, by Ron Johnson, a star executive who previously led the creation and expansion of the Apple Store. The turnaround is bold and far-reaching, raising questions about whether it will work or not.
Digital competition in Fashion & Luxury Goods: YNAP versus Farfetch SM-1656-E / Competencia Digital en Moda y Lujo: YNAP frente a Farfetch SM-1656
In 2015, Federico Marchetti became CEO of the largest luxury online retailer in the world, after orchestrating the merger of Yoox Group with Net-a-Porter Group. Two years later, in 2017, the financial community was expecting him to deliver results. However, the new combined ¿1.8 billion company was not growing as fast as it used to, and questions remained about the synergies that could be achieved between two companies with very different business models. Moreover, a new threat had emerged. Farfetch, a luxury platform that aggregated the inventories of over 500 luxury boutiques all over the world, had become the new unicorn of the industry. After less than ten years of operations, it had reached $800 million in sales in 2016, with a staggering 70% year-on-year growth. What could the Yoox group do in order to foster growth, stave off threats like Farfetch and improve its margins?
Superdry: un japonés de Cheltenham SM-1653 / Superdry: A Japenese Brand from Cheltenham SM-1653-E
El caso se centra en la situación de la firma de ropa Superdry en 2016, año en el que enfrenta diversas oportunidades de crecimiento y la necesidad de decidir cuál seguir. La firma, fundada en el Reino Unido en 2003, había experimentado una década de rápido crecimiento, a través de tiendas propias y franquiciadas. El caso, que recoge su evolución, permite discutir los desafíos del crecimiento en el sector de la confección.
Strategic Leadership: A Roadmap for the General Manager’s Journey SMN-701-E / Liderazgo estratégico: un plan de implantación para el director general SMN-701
Strategic leadership is the core responsibility of general managers. By strategic leadership, the authors refer to the responsibility of identifying the key challenges for the company, outlining a coherent set of actions to respond to these, and guiding the organization in implementing those actions. This technical note provides a framework to organize this process and suggests a way of combining diverse tools that can help general managers to carry out their work.
Style Knows No Season: Moncler’s Leap From Piste to Street SM-1621-E / El estilo todo el año: Moncler, de la pista a la calle SM- 1621
The case describes how Moncler, the 1950s and ’60s leader in mountaineering jackets, transformed itself into a key player in the luxury goods market within the sub-sector of fashion apparel. It looks at the key decisions taken in the pre-IPO decade and at the dilemmas the company faces in 2014. How much should they extend their product lines? They had already ventured into accessories, footwear and eyewear, but there were fears that further diversification might dilute the brand. Furthermore, other luxury brands, attracted by Moncler’s high growth rates and margins, also offered down jackets and skiwear. Finally, Moncler needed to consider how to best organize its international distribution.
It’s in the Bag. Or Is it? Michael Kors’ Quest to Stay at the Top SM-1619-E / Michael Kors: la guerra de los bolsos SM-1619
The case describes how Moncler, the 1950s and ’60s leader in mountaineering jackets, transformed itself into a key player in the luxury goods market within the sub-sector of fashion apparel. It looks at the key decisions taken in the pre-IPO decade and at the dilemmas the company faces in 2014. How much should they extend their product lines? They had already ventured into accessories, footwear and eyewear, but there were fears that further diversification might dilute the brand. Furthermore, other luxury brands, attracted by Moncler’s high growth rates and margins, also offered down jackets and skiwear. Finally, Moncler needed to consider how to best organize its international distribution.
Marco Arcelli at ENEL (A) SM-1568-E / (B) SM-1569-E
Marco Arcelli at ENEL (A) follows the acquisition and integration of Slovenské Elektrárne, the dominant power producer in Slovakia by the Italian company ENEL. The case adopts the perspective of Marco Arcelli, the general manager who took the helm of Slovenské Elektrárne, and can be used to discuss the challenges of successfully managing acquisitions in an international context. The case (B) analyzes the choices Marco Arcelli made in the integration of Slovenské Elektrárne, and provides an update to ENEL’s situation in 2010.
Vueling, The New Generation Airline (A) SM-1561-E / (B) SM-1562-E
Vueling (A) case follows start-up and growth of a Spanish low-cost carrier from 2004 until 2007. Barcelona-based Vueling set out to offer “high quality at low price” to travellers in South-Western Europe. The case describes the strategy and competitive situation, Vueling’s business model, and the challenges the company faced in an increasingly competitive environment. Vueling (B) case follows Vueling from its IPO (December 2006) until 2009 and the challenges it faced in reaching financial viability because of the strong competition of incumbents Iberia, Spanair and Clickair, and low cost giants Ryanair and Easyjet. The option of a merger with Clickair is discussed.
Xing AG: Securing Leadership in the European Online Social Networking Market SI-173-E
The case explains how the German-based professional social networking site Xing was trying to figure out how to compete against its US competitor LinkedIn for the dominance of the European market in 2009. It was facing a series of land marking decisions, ranging from a revision of its pricing scheme to the expansion into business to business operations.
Driving Sustainability at Bloomberg L.P. HBS 9-411-025
Describes the addition of environmental, social and governance (ESG) performance indicators to the Bloomberg terminal. The initiative grew out of Bloomberg’s broader sustainability initiatives and is an example of how committed employees can create positive social change within organizations. Issues highlighted in the case for discussion include: How can committed employees implement an innovative sustainability initiative within a large corporation? How can ESG data be more strategic for both Bloomberg and investors? And finally: How should the ESG data industry be structured, and what impact does ESG data have on the future institutionalization of sustainability?
Diesel SpA: Sustaining Growth in the Fashion Industry (A) DG-1496-E / (B) DG-1497-E
In 2000, Renzo Rosso, the founder and CEO of the Italian apparel company Diesel, is wondering whether the company’s strategy can help it grow in the millennium. By 2000, the Diesel brand had become one of the hottest in the denim fashion segment, but Rosso now needs to consider whether their current market positioning is sustainable in the long term and whether they should invest more in their retail operations. He also needs to consider how the current organizational structure and processes fit with the new strategic direction and whether they can sustain further growth. The (B) case, set in 2005, discusses the evolution of the company and provides an opportunity to discuss the challenges associated with the long term sustainability of strategic positioning in the fashion industry.
The Diesel SpA (B) case, set in 2005, discusses the evolution of the company between 2000 and 2005, and provides an opportunity to discuss the challenges associated with the long term sustainability of strategic positioning in the fashion industry.
Lew Wasserman and the Motion Picture Industry DG-1494-E
Lew Wasserman achieved a position of immense power in the movie industry and in the political arena. Before him, old-time moguls like Louis B. Mayer and Jack Warner, had exerted enormous power within their particular domains, but none of them had been able to move outside of the confines of the motion picture industry. Wasserman became enormously powerful in the 1950s, as both an agent and a producer, moving beyond Hollywood to dominate the emerging medium of television. However, it was in the 1960s, with MCA’s acquisition of Universal Studios, that he was able to formally consolidate his grip over the industry, and make Hollywood a much stronger political force in Washington. This case shows how exogenous shocks, both regulatory and technological, can be opportunties for resourceful actors to shape the industry structure.
TECHNICAL NOTES
Creating and Nurturing your Social Network: The Art of Building Long-Term Mutually Beneficial Relationships SMN-676-E
Networking is the art of building long-term mutually beneficial relationships, and this note will describe what social networks can do, what networking is, and what is not. We provide seven suggestions on how to begin the process of building your network.
Visualizing Your Social Network SMN-687-E
One picture is worth a thousand words and drawing a picture of your social network within your company (and beyond), might help you go beyond a simplistic view of what your contacts are (who do you know?) and think about how the people in your company are connected to each other (your indirect contacts) and what that means for you. This note suggests how you can draw a map of your network, and leverage existing online tools to visualize your online network.