Case | HBS Case Collection | June 1985 (Revised April 1989)

Benetton (B)

by James L. Heskett

Abstract

The managing director of Benetton is faced with several issues concerning the adequacy of the company's organization to capitalize on the early success it has achieved in an important foreign market, the United States. Specifically, the case raises questions about whether Benetton should alter its strategy and form a U.S. subsidiary, the responsibilities that managers in such a subsidiary should hold, and other organizational changes that should be made at the company's Italian headquarters to accommodate such actions. In addition, it focuses on the management of the transition from an entrepreneurial to a professionally-managed stage of a company's development.

Keywords: Organizational Structure; Global Strategy; Transition; Growth and Development Strategy; Success; Business Headquarters; Business Subsidiaries; Organizational Change and Adaptation; Business Growth and Maturation; United States; Italy;

Citation:

Heskett, James L. "Benetton (B)." Harvard Business School Case 685-020, June 1985. (Revised April 1989.)