Business Case Studies, Leadership Case Study, Tata Group,Ratan Tata

Code : FMB0007

Year : 2009

Industry :General Business

Region : US

Teaching Note:Available

Structured Assignment : Available

Abstract: The Darwinian Theory – ‘survival of the fittest’ applies to the fashion industry where fashion changes faster than seasons. The definition of ‘fittest’ also changes accordingly. Fashion businesses for over decades has been built on the core principles of rarity and exclusivity – operated with ‘supply-creates-demand’ psyche. Buzz around the founder, engulfed the business side. With the emergence of new contexts, fashion businesses are waking up to the new realities. With increasing competition and high volatility in fashion trends, these companies are realising the need to strike a balance between creativity and business. Like other major industries namely banking, IT, retail, etc., this industry is learning the economics of business. Although the industry has embraced technology, improvised its supply chain logistics, modified organisational structures, not much change has been witnessed in terms of encouraging the participation of women in business as executives. The industry has a dearth of women executives – barring a few like Coco Chanel and Liz Claiborne. However, proving detractors wrong, more number of women are shouldering big responsibilities in this industry. Valerie Hermann took up the challenge of turning around YSL as its CEO in 2005 – that was suffering for decades. Her new initiatives are paying off and her approach towards YSL is being commended by analysts. This case study discusses the role of women executives in an unpredictable fashion industry and debates upon whether women executives can become ‘the turnaround CEOs of loss-making businesses’.