Salvatore Ferragamo Case

Salvatore Ferragamo Case

Salvatore Ferragamo Case

Project description

Read the Salvatore Ferragamo Case:

1) Identify key issues that will impact the business (Marketing, Research and Development, etc)
2) Analyze the business issues and suggest 4 recommended solutions based upon understanding of the business, next phase issues and the potential

impacts of any on the family.

The 4 Alternatives:
1) Do Nothing
2) Fix the Issue
3) Best Practices
4) Reinvention
Explain and give details on each alternatives

*Note that your responses to this case should address the following issues from a SYSTEMS perspective:

-What is the key challenge facing the business and the firm management in this case?
-What strengths and weaknesses does the business possess?
-What are the strengths and weaknesses of the firm’s management?
-What opportunities and threats does the business in this case face?
-What opportunities and threats does the firm’s management in this case face?

Salvatore Ferragamo, SpA
Wanda Ferragamo looked around the room. A lively discussion was taking place among
the members of Ferragamo’s board of directors, composed mainly of her six children, a son-in-law,
and Wanda herself. All had been active in helping her, as president, build on the legacy of her
husband, Salvatore. Since his death in 1960, Wanda had expanded the company from a small
base to a significant international presence, that in 1990 included luxury shoes, clothing, and
accessories for women and men.

Earlier that morning, while walking down the streets of Florence on her way to the
meeting, Wanda had noticed many of her competitors’ shops. Their offerings were more varied
and modern, designed to appeal to a younger, more fashion-driven market; their product lines had
expanded to include watches, perfumes, and a variety of sportswear. These competitors were, she
knew, opening new stores throughout the world. Yet, Wanda felt that with rapid expansion many
had reduced the quality of both their designs and their workmanship.

Wanda was dedicated to maintaining Salvatore’s life-long commitment to quality, value,
and fairness with employees, Suppliers, and customers. But now, in late 1990, the board had
gathered to hear a presentation from Geraldo Mazzalovo, an halo-French MBA from Columbia
University who had recently been brought into the company by her son Ferruccio, Ferragamo’s

chief administrative officer.