Ferrero Group: Achieving Sustainability Through Supply Chain Integration
(9 pages of text)
Case (Pub Mat)
Ferrero Group (Ferrero) operated in the chocolate confectionery industry. The industry was facing challenges with changes in consumer needs, and price volatility and scarcity of raw ingredients. To achieve its ambitious economic goals in this environment, Ferrero integrated various sustainability initiatives in its supply chain and grew the company through vertical and horizontal integration. Advocating a vision of “sharing values to create value,” the company set sustainability goals for 2020, which included controlling and being able to trace the supply of raw ingredients. Could Ferrero maintain its leading position in the industry and achieve its sustainability goals? To what extent could the sustainability goals strengthen the company’s competitive position and move it toward achieving its financial goals?
This case is intended for senior undergraduate and graduate-level business school students in courses that cover strategic management and international business, business ethics, social enterprises and entrepreneurship, mergers and acquisitions, and supply chain management. After completion of the case, students will be able to
- understand the role of corporate social responsibility and sustainability in strengthening the competitive position of a company in a highly competitive and mature industry;
- discuss how a company should effectively implement such socially responsible activities throughout its supply chain (e.g., vertical integration) and among its employees and other stakeholders; and
- evaluate the impact of an initial public offering on a non-market corporate social responsibility and sustainability strategy, and its performance consequences.
Italy, Large, 2016
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