Managing Political Risk in Global Business: Beiersdorf 1914-1990

Geoffrey  Jones; Christina  Lubinski

Working Paper | HBS Working Paper Series | 2011

Managing Political Risk in Global Business: Beiersdorf 1914-1990

by Geoffrey Jones and Christina Lubinski

Abstract

This working paper examines corporate strategies of political risk management during the twentieth century. It focuses especially on Beiersdorf, a German-based pharmaceutical and skin care company. During World War I the expropriation of its brands and trademarks revealed its vulnerability to political risk. Following the advent of the Nazi regime in 1933, the largely Jewish owned and managed company, faced a uniquely challenging combination of home and host country political risk. The paper reviews the firm's responses to these adverse circumstances, challenging the prevailing literature which interprets so-called "cloaking" activities as one element of businesses' cooperation with the Nazis. The paper departs from previous literature in assessing the outcomes of the company's strategies after 1945. It examines the challenges and costs faced by the company in recovering the ownership of its brands. While the management of distance became much easier over the course of the twentieth century because of communications improvements, this working paper shows that the costs faced by multinational corporations in managing governments and political risk grew sharply.

Keywords: History; Risk Management; Business History; Multinational Firms and Management; Corporate Strategy; Intellectual Property; Cooperation; Business and Government Relations; Germany;

Language: English

Format: Print

58 pages

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Citation:

Jones, Geoffrey, and Christina Lubinski. "Managing Political Risk in Global Business: Beiersdorf 1914-1990." Harvard Business School Working Paper, No. 12-003, July 2011.

Recent years have seen an increasing interest in the use of history and historical research methods in strategy research. This article discusses how and why history and historical research methods can enrich theoretical explanations of strategy phenomena. The article also introduces the notions of "history-informed strategy research" distinguishing between the dimensions of "history to theory" and "history in theory" and discussing under-utilized methods that may further work on history-informed strategy research. The article discusses how contemporary research contributes to history-informed research within the strategy field, examines key methodological and empirical challenges associated with such research, and develops an agenda for future research.

Case | HBS Case Collection | July 2015 (Revised January 2020)

Horst Dassler, Adidas, and the Commercialization of Sport

Geoffrey Jones, Michael Norris and Sophi Kim

The case focuses on the career of Horst Dassler, the son of the founder of the German-based sports shoe manufacturer Adidas. The origins of the firm were in the interwar years, and it rose to public prominence after it provided spikes for Jesse Owens, the famous African-American sprinter, in the 1936 Berlin Olympics. From the 1950s Horst cultivated relationships with athletes and national associations to expand his sports apparel business and develop sports sponsorship, competing fiercely against competitors such as Puma and Nike. During the 1970s he played a key role in commercializing the international soccer federation FIFA, including creating a television market for soccer, and he subsequently became a key force behind arranging sponsorships and broadcasting rights for the Olympics. The case explores the drivers of success of this major consumer brand and provides the opportunity to discuss the positives and negatives of the globalization and commercialization of sport.

Keywords: corruption; Economic History; business history; entertainment; business; strategy; media; Sports; Digital technology; blockbuster; superstar; film; television; music; publishing; performing arts; nightlife; Crime and Corruption; Entrepreneurship; Globalization; History; Sports; Apparel and Accessories Industry; Consumer Products Industry; Fashion Industry; Sports Industry; Germany; South America; Europe; Asia; North and Central America;

Citation:

Jones, Geoffrey, Michael Norris, and Sophi Kim. "Horst Dassler, Adidas, and the Commercialization of Sport." Harvard Business School Case 316-007, July 2015. (Revised January 2020.) View Details

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The case examines the entrepreneurial career of Rupert Murdoch and the growth of News Corporation from a small Australian newspaper to a global media giant. It shows how he expanded geographically to Europe, the United States, and Asia and from newspapers to the film and television industries. The case identifies the personal role of Murdoch in this growth and the role of his family in its management. The case considers the political impact of News Corporation's newspapers and other media and their alleged role in shaping political opinion.

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Managing Political Risk in Global Business: Beiersdorf 1914-1990

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