This case tracks Jerome Chouchan’s strategies and execution for a successful turnaround of Godiva Japan’s operations which was experiencing a decline in sales when he became the managing director of the company in 2010. Through various initiatives and innovations, Godiva Japan had targeted a variety of demographic segments in different sales points, acquired new customers and created a moment of luxurious consumption for all ages. Accordingly, within Godiva’s global enterprise, Godiva Japan had become number two in terms of worldwide sales and number one in terms of profits. It exported made-in-Japan products and concepts to Godiva’s other markets. How could Chouchan keep the momentum and sustain Godiva Japan’s top-line and bottom-line growth going forward? Would he be able to keep the balance between aspirational and accessible? How much of the success in Japan might contribute to the growth of Godiva's global sales?
Japan’s corporate culture has traditionally prioritized the interests of stakeholders such as employees and suppliers over those of shareholders. After a decades-long economic slump, Japan’s government has begun efforts to improve corporate governance and firms' incentives to engage with shareholders. Misaki Capital was founded in 2013 with a strategy of constructively engaging with portfolio firms, providing operational and financial advice to management in order to improve shareholder value. This case asks students to consider the attractiveness of Japanese equities given recent reforms and to evaluate the investment approach of Misaki Capital.
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