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Assortment optimization presents a complex challenge for retailers, as it depends on numerous decision factors. Changes in assortment can result in demand redistribution with multi-layered consequences. This complexity is even more pronounced for ...

A "radar chart" is proposed to visualize where the company needs to improve. It can also be used to support the discussion of any group of executives on the reasons for failure of most strategic initiatives; they may do that by assessing their own company against the six proposed required capabilities and by comparing notes with each other. The six required capabilities are: 1) Companies need to have a clear and well-communicated strategy, with clear and well-communicated strategic priorities, to which strategic initiatives contribute in a clear and well-communicated way. 2) Companies need to have a cadre of executives at different levels selected for their entrepreneurial and action-learning capabilities. 3) Companies need to understand and encourage action-learning and know how to plan execution accordingly. 4) Companies need to have an inclusive approach to execution. 5) Companies need to be serious about follow-through and see it as an essential part of action-learning. 6) Companies need to realize that, in the end, lack of respect for people, is a sure cause for execution failure. These capabilities are described at length in the book Smarter Execution, published by IMD (also available from Amazon UK). Learning objectives: This note is very effective to support a group discussion on the execution capabilities of a company. It can be used by a senior management team before they decide to launch strategic initiatives; it can be used as part of a kick-off workshop when launching a strategic initiative; or it can be used along the way during execution to identify and correct execution frustrations.

This brief case exercise presents an increasingly common business scenario: An established player acquires a small, agile start-up to re-energize its value proposition. In this case, established global beauty giant UrbanLuxe acquires beauty start-up KYX. UrbanLuxe represents an old-school company selling a classic portfolio mainly via traditional distribution channels of luxury and travel retail, whereas KYX is exclusively an e-commerce brand. UrbanLuxe has a stable – perhaps stale – product line while KYX is in constant experimental churn, with an influencer-based media strategy that brings inherent demand volatility. The supply chain director is tasked with identifying the supply chain risks and opportunities associated with the acquisition. The two companies are different from both an operations perspective and a marketing perspective. UrbanLuxe has five factories servicing a global demand. KYX relies on one co-manufacturer focused on the US market. UrbanLuxe distributes to classic retailers from its own warehouses, KYX uses a third-party logistics provider for its exclusively e-commerce business. Further complicating matters, UrbanLuxe’s CEO has ambitious growth plans to make KYX a global brand. The supply chain director must not only consider integrating the acquisition but also supporting the growth strategy, for which they are asked to find cost savings to provide funding. The case provides a vehicle for students to consider the supply chain challenges a company might face in successfully integrating a starkly different acquisition. This case anchored in the real world will elicit universal challenges in companies today.

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