The Gucci Group had adopted a decentralized style of management. The CEO faces a decision about this managerial style. He asks is the current style is suitable for the economic slowdown in the country. The key factor discussed in this case is the usage of customer information in the development of a creative process. The CEO had had an experience of 26 years of working in a company dealing in consumer goods. His joining in 2004 had resulted in increased profitability for the company. His main strategy was the decentralized managerial structure. He empowered the employees. However, the 2008 crisis had resulted in the decline in the profitability of the company. It also resulted in a decline in the economic activity of the company after four years of increased growth for the group. The CEO, Polet wondered if an inclusive management style was beneficial for the company. He also though if his strategy of sharing the consumer information was advantageous for the company or not.
1- Provide a brief summary of the case.
2- Why did Gucci create a corporate group of luxury brands? Why may the Gucci Group be worth more than the sum of its parts?
3- Discuss the pros and cons of Gucci loyalty card. Should the different stores and regions share their customer information? Why or why not? Should the different brands of the Group share their customer information?
4- Assess the current product development / creative process at Gucci. What are its benefits and risks? What, if anything, should be changed in how Gucci develops new products?
5- If you were Polet, how would you proceed to carry out your recommendation in Questions 2 and 3?
6- What elements of Freedom within the Framework enable Gucci to capture the benefits of the Group? Are there any elements in Polet¡¯s management philosophy that are inconsistent with leveraging the benefits of the group? Your overall analysis should be presented in the form of an academically accepted paper with references (APA Style) both from the main textbook and at least 2-3 outside sources (e.g., company literature, academic journal articles, various library sources, etc.)