HomeResearch & Knowledgeback to HomeSocial Innovationback to Research & KnowledgeNot so black and white: Grupo Inca’s black alpaca dilemma (A)back to Social Innovation

Case Study

Not so black and white: Grupo Inca’s black alpaca dilemma (A)

By Vanina Farber, Carolina Duran Silva, Baris Silahcioglu, Hugo ten Zijthoff and Shih-Han Huang

9 pages

November 2024

Order this case study

Reference: IMD-7-2609

Grupo Inca, a conglomerate that owned Peru’s leading textile business with a long history of working with alpaca fleece, was at a crossroads regarding the conservation and commercialization of black alpaca fiber. Historically, black alpacas were as common as their lighter-colored counterparts, but market preferences drove them to near extinction. The Inoue brothers, fashion designers committed to social impact, expressed an interest in creating a luxury collection using rare black alpaca fiber. This presents Grupo Inca with both an opportunity and a dilemma: Should it invest in developing this niche market despite uncertainties of both supply and demand, or collaborate with local government and NGOs to ensure sustainable practices, or maintain its current direction and do nothing? This compact case explores the intricacies of actions vs. impact, ethical responsibility and long-term strategic thinking. It provides a rich context for discussing the impact of business decisions on biodiversity and sustainability, the role of corporate values in guiding strategy and the potential for innovation in sustainability. Students will explore Grupo Inca’s role in the decline of black alpacas, assess the ethical implications of the company’s actions and develop strategic recommendations through scenario planning. The accompanying teaching note also covers methods to leverage AI tools to generate ideas and explore solutions that enhance students’ learning.

Learning Objective

Explain and assess key terms and concepts in sustainability.
Interpret the impact of a company’s actions, considering both positive and negative, as well as intended and unintended consequences.
Analyze a social problem from multiple perspectives, including long-term consequences and stakeholder impacts.
Develop strategic recommendations through scenario planning to address future uncertainties and complexities.
Synthesize AI-generated information with human insights for a comprehensive case analysis.

Keywords

Social Innovation, Business Ethics, Sustainability, Kuna (brand), Alpaca, Biodiversity, Environmental Protection, Sustainable Fashion, Indigenous Community, Cultural Preservation, Poverty, Reduced Inequalities, Responsible Consumption, Responsible Production, Life on Land

Settings

Latin America, Peru
Grupo Inca, Manufacturing, Textile
1965-2011

Type

Field Research

Copyright

© 2024

Available Languages

English

Related material

Teaching note

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

Copyright Information

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

This case study is part of a series

Not so black and white: Grupo Inca’s black alpaca dilemma (A)
Not so black and white: Grupo Inca’s black alpaca dilemma (B)

This case study is part of a series

Not so black and white: Grupo Inca’s black alpaca dilemma (A)
Not so black and white: Grupo Inca’s black alpaca dilemma (B)

Keep reading

Seeing The Full Picture - Sustainable Prosperity - Davos 2025

At Davos' SDG Tent, panelists urged a shift from financial metrics to valuing natural, social, and human capital for sustainable prosperity. Julia Binder

By Julia Binder

Sustainable Transformation - Strategy - Leadership

Aligning purpose with profit, fostering innovation, and building resilience can transform sustainability challenges into business opportunities.

By Julia Binder and Knut Haanaes

How Natura &Co and other eco-pioneers sowed the seeds of positive change

The Brazilian cosmetics company works with Amazonian communities to promote sustainable business practices. Respecting nature, upholding communities as key stakeholders, addressing social issues, and focusing on results are essential components of...

By Robert Chatwin and Sophie Bacq

Business and Science - Partners for sustainability

Science-based approaches to sustainability are on the rise as firms seek to build strategies that align with the planetary boundaries. But how can scientists and businesses see eye to eye?

By Amanda Williams, John N. Parker, Steve Kennedy and Gail Whiteman

15 January 2025

Lead the change: Pushing past roadblocks to drive sustainable business transformation in Europe

In today’s rapidly changing world, the urgency to maintain focus on sustainability has never been greater. While the triple planetary crisis of climate change, biodiversity loss, and pollution demands immediate action, new challenges such as geopo...

Sustainability Business Transformation Innovation Leadership

By Julia Katharina Binder, Mahwesh Khan, Esther Salvi, Divya Bhatia, Florent Andrillon, Juliette De Maupeou and Liza Garay de Vaubernier

10 January 2025

Eliminating roadblocks to sustainable business transformation

Companies need clear guidance to achieve sustainable business transformation. A practical roadmap identifying drivers for effective change can make success more likely.

Strategy Sustainability

By Julia Katharina Binder

10 January 2025

Use head, heart, and hands to lead sustainable transformation

Effective leadership, a clear narrative, and a shared vision are vital ingredients for bringing lasting change.

Leadership Sustainability

By Julia Katharina Binder and Knut Bjarne Haanaes

Sustainability trends businesses must watch in 2025

From competition for green talent to a shift to scale sustainability initiatives and reframe them as tools to drive customer value, IMD experts outline the top trends they see shaping corporate priorities over the next 12 months.

By Natalia Olynec, Frédéric Dalsace, Goutam Challagalla, Julia Katharina Binder, Sara Ratti, Florian Hoos, Knut Bjarne Haanaes, Peter Vogel, Amanda Williams, Adrian Dellecker, Heather Cairns-Lee, Vanina Farber, Patrick Reichert, Susan Goldsworthy, Sophie Bacq, Georgios Polychronopoulos, Karl Schmedders and Didier Cossin

27 December 2024

Article

Is Cain more able? A behavioral perspective on the relationship between family CEO birth order and family firms' CSR

We investigate family CEO birth order as an antecedent of family firms' CSR behavior. Despite psychology literature recognizing it as a key predictor of individual behavior, birth order has been largely neglected in management research. Drawing on...

Family Business Social Innovation Leadership

By Paola Rovelli, Michael Razen, Carlotta Benedetti, Nina Schweiger, Alfredo De Massis and Kurt Matzler

in Strategic Entrepreneurship Journal

25 December 2024, ePub before print, https://doi.org/10.1002/sej.1530

Lead the change: Pushing past roadblocks to drive sustainable business transformation in Europe

By Julia Katharina Binder Mahwesh Khan Esther Salvi Divya Bhatia Florent Andrillon Juliette De Maupeou and Liza Garay de Vaubernier
10 January 2025

Summary

In today’s rapidly changing world, the urgency to maintain focus on sustainability has never been greater. While the triple planetary crisis of climate change, biodiversity loss, and pollution demands immediate action, new challenges such as geopo...

Copyright ©2025

Copyright owner Mixed Copyright

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Business Transformation

Browse all topics

Is Cain more able? A behavioral perspective on the relationship between family CEO birth order and family firms' CSR

By Paola Rovelli Michael Razen Carlotta Benedetti Nina Schweiger Alfredo De Massis and Kurt Matzler
in Strategic Entrepreneurship Journal 25 December 2024, ePub before print, https://doi.org/10.1002/sej.1530

Summary

We investigate family CEO birth order as an antecedent of family firms' CSR behavior. Despite psychology literature recognizing it as a key predictor of individual behavior, birth order has been largely neglected in management research. Drawing on...

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Family Business

Social Innovation

Browse all topics