Beiersdorf AG: Expanding Nivea's Global Reach
(9 pages of text)
In 2012, two years after a major restructuring project had begun at German skin care producer Beiersdorf, the process was still ongoing. The new chief executive officer (CEO) inherited several challenges from his predecessor, including the difficult implementation of the new transnational strategy, opposition from employees and the work council, and ineffective market-entry strategies (especially in China). Strong competitors and a slow rate of economic recovery in Beiersdorf’s main markets provided additional complexity. Questions remained about how the new CEO should address the ongoing challenges facing the company.
The case centers on three major teaching objectives:
To illustrate that “multinational” or “transnational” companies do not simply materialize but that the transition from one strategic focus to another takes effort and commitment.
To show that although a company may be financially healthy, it may be at risk for long-term failure because its underlying structures are not aligned efficiently.
To explore the ways in which strategies such as downsizing can be the stepping stone to future growth.
This case was written with an international business course in mind. However, it can also be used in general management or strategy courses.
Germany, Large, 2012
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