Product details

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Published by: International Institute for Management Development (IMD)
Originally published in: 2018
Version: 18.06.2018
Revision date: 05-Jun-2020
Length: 15 pages
Data source: Field research

Abstract

Lacoste, an internationally renowned leisurewear brand, was a company owned by the family, having been founded in 1933 by legendary tennis player Rene Lacoste. It hit crisis in 2012 over a feud within the family, despite a strong recent history in terms of business management. Indeed, the company had successfully recovered from a mini-crisis of brand prestige in the late 1980s / early 1990s. Handling successions posed particular challenges. There was a difficult, but ultimately effective succession from 2nd generation Bernard to his brother Michel in 2005, then an unsuccessful handover to 3rd generation Philippe in 2008-2009. Another feature was the relatively high influence of family members with inherited shares and relatively little knowledge of the business. The constitution was not updated after its drafting in 1986.

Time period

The events covered by this case took place in 1933-2012, particular focus on the period 2005-2012.

Geographical setting

Region:
World/global
Country:
France

Featured company

Lacoste
Employees:
51-200
Turnover:
USD 100 million
Industry:
Apparel and fashion

About

Abstract

Lacoste, an internationally renowned leisurewear brand, was a company owned by the family, having been founded in 1933 by legendary tennis player Rene Lacoste. It hit crisis in 2012 over a feud within the family, despite a strong recent history in terms of business management. Indeed, the company had successfully recovered from a mini-crisis of brand prestige in the late 1980s / early 1990s. Handling successions posed particular challenges. There was a difficult, but ultimately effective succession from 2nd generation Bernard to his brother Michel in 2005, then an unsuccessful handover to 3rd generation Philippe in 2008-2009. Another feature was the relatively high influence of family members with inherited shares and relatively little knowledge of the business. The constitution was not updated after its drafting in 1986.

Settings

Time period

The events covered by this case took place in 1933-2012, particular focus on the period 2005-2012.

Geographical setting

Region:
World/global
Country:
France

Featured company

Lacoste
Employees:
51-200
Turnover:
USD 100 million
Industry:
Apparel and fashion

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