On September 26, 2017, the FBI announced the arrest of 10 men in connection with “fraud and corruption in college basketball.” The announcement shook the intercollegiate athletics world to its core. Three of ten individuals implicated in the investigation were employees or representatives of sportswear manufacturer, Adidas AG. This case delves thoroughly into the FBI’s investigation of the bribery and money laundering that took place over a two-year period and Adidas’s response. This case also offers an overview of the company’s history, highlights the history of endorsements, introduces another key player in the NCAA, and provides a framework for further analysis.
Case #19-10. (16 pp.)
Tony Hsieh, CEO of Zappos sent his employees an ultimatum in early 2015 – embrace the self-management philosophy Holacracy or leave the company. Eighteen percent of the staff chose to leave rather than remain under the new system characterized by no job title, no managers, and complex rules governing employee interactions. Is this an experiment in organizational design worth sustaining? 12 pp. Case #17-13. (2017).
In July 2018, luxury goods retailer Burberry’s long-standing practice of destroying unsold goods to maintain brand value became an object of public attention and disapproval. News outlets blasted Burberry for burning $37 million of unsaleable products in the previous year. Burberry’s CEO, Marco Gobbetti, now must decide how to maintain exclusivity and brand value without burning unsold goods. 10 pp. Case #19-11. (2019)
On September 4, 2018, Nike, Inc. launched a new ad campaign featuring, Colin Kaepernick, a professional athlete with a highly polarizing image. Kaepernick, known for kneeling in protest during the national anthem at National Football League games, immediately drew criticism from the public. Over the next two days, Twitter ignited with calls for a boycott and images of people burning and destroying Nike products. Nike stock price began falling and consumer favorability, even among key demographics, continued eroding. How can Nike rein in the anger at their brand? Or, should they take advantage of it? 11 pp. Case #19-08. (2019)
Fast Fashion companies, including H&M, have grown considerably since the 1990s by satisfying consumers’ insatiable appetite for the latest fashionable trends at low prices. H&M’s newest CEO, however, must rethink the company’s business model and sustainability initiatives following recent global awareness and protest of fast fashion’s unfavorable environmental and social impact. 11 pp. Case #20-07
Following reports of forced labor in its supply chain, fast fashion merchandiser H&M stopped sourcing cotton from China’s Xinjiang region, the site of alleged genocide. After Western sanctions sparked nationalist outrage, China retaliated by boycotting H&M. Will H&M continue defending human rights or choose to preserve the growing Chinese market? 20 pp. Case #21-13 (2021)
Adidas AG: Kanye West and Corporate Brand Ambassadors Carmolingo, T.; Ingram, B.; Love, A.; and O’Rourke, J. S. (editor)
This case examines the termination of the nine-year partnership between Adidas AG and music artist Kanye West, following West’s antisemitic comments on social media. The case explores the immediate public reaction, the subsequent actions of Adidas, and the financial implications for Adidas. The case also explores the risks and rewards associated with celebrity endorsements in the athletic footwear industry and analyzes the effect of such endorsements on brand reputation. The case concludes by discussing the company’s efforts to recover from the fallout and the ongoing challenges the company faces from shareholders and sneaker buyers. 13 pp.
Case #23-08 (2023).
Keywords: Adidas AG, Kanye West, Yeezy, Celebrity Endorsements, Athletic Footwear Industry, Brand Reputation.
Target Corporation: Pride Merchandise and Consumer Reaction Bao, L.; Swanson, A.; Mubvuma, S.; and O’Rourke, J. S. (editor)
As discussions on LGBTQIA+ inclusivity persist, the public debate continues about whether publicly traded organizations should voice their opinions through public advocacy. This case study spotlights Target Corporation and its twelfth annual Pride Collection launch. Target faced unforeseen financial and safety consequences in response, prompting merchandise removal.
Their future involvement in the LGBTQIA+ community remains uncertain. 9 pp. Case #23-07 (2023)
Key Words: Inclusivity, Business Strategy, LGBTQIA+, Crisis Management