Managing Political Risk in Global Business: Beiersdorf 1914-1990

Geoffrey  Jones; Christina  Lubinski

Article | Enterprise & Society | March 2012

Managing Political Risk in Global Business: Beiersdorf 1914-1990

by Geoffrey Jones and Christina Lubinski

Abstract

This article is concerned with business strategies of political risk management during the twentieth century. It focuses especially on Beiersdorf, a pharmaceutical and skin care company in Germany. 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. This article reviews the company's responses to these adverse circumstances, challenging the prevailing literature that interprets so-called "cloaking" activities as one element of businesses cooperation with the Nazis. It also 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 article shows that the challenges of managing governments and political risk grew sharply.

Keywords: Business Strategy; Government and Politics; Risk Management; Brands and Branding; Problems and Challenges; Communication Technology; Cost; Trademarks; Strategy; Pharmaceutical Industry; Germany;

Format: Print

35 pages

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Citation:

Jones, Geoffrey, and Christina Lubinski. "Managing Political Risk in Global Business: Beiersdorf 1914-1990." Enterprise & Society 13, no. 1 (March 2012): 85–119.

Case | HBS Case Collection | April 2018 (Revised April 2020)

Coco Chanel: From Fashion Icon to Nazi Agent

Geoffrey Jones and Emily Grandjean

This case describes the career of the iconic French fashion designer Coco Chanel who created a transformational business during the first half of the 20th century. Beginning in her early adulthood, Chanel leveraged relationships with acquaintances, friends, and romantic partners to build her fashion business and legendary luxury brand based on understated elegance. Chanel’s famous “little black dress” was accompanied by many other innovations including the use of jersey as material for daytime clothing and her development of the Chanel No. 5 perfume. The case pays close attention to the importance of Chanel’s networks among the cultural elite and European high society. It explores how she embraced the rise of Anti-Semitism among many members of the upper class at that time. During World War II, Chanel lived in the Ritz Hotel in Paris in occupied France, where she entered into a romantic relationship with a high-ranking German intelligence officer. Subsequently, Chanel herself became an intelligence operative for the Nazis. The case ends with Chanel in Switzerland in 1945 after she departed France following the Liberation of Paris by Allied forces. This case can be used to explore multiple issues including creating and building an iconic fashion brand, entrepreneurship, and ethical responsibility of business.

Keywords: Business History; Biography; Entrepreneurship; Relationships; Brands and Branding; Ethics; Fashion Industry; Apparel and Accessories Industry;

Citation:

Jones, Geoffrey, and Emily Grandjean. "Coco Chanel: From Fashion Icon to Nazi Agent." Harvard Business School Case 318-139, April 2018. (Revised April 2020.) View Details

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Managing Political Risk in Global Business: Beiersdorf 1914-1990

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