978-0078029295 Case VEJA SNEAKERS WITH A CONSCIENCE Part 1

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8B10M89

Teaching Note

VEJA: SNEAKERS WITH A CONSCIENCE

Kim Poldner wrote this teaching note under the supervision of Professor Oana Branzei as an aid to instructors in the classroom

use of the case Veja: Sneakers With A Conscience, No. 9B10M089. This teaching note should not be used in any way that

would prejudice the future use of the case.

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CASE OVERVIEW

Sébastien Kopp and François-Ghislain Morillion were still working toward fulfilling their dream. They

enjoyed trying to craft ever-more sustainable business approaches, and they continued to be excited by the

opportunity to develop solutions or workarounds for socially and environmentally problematic business

practices. The case presents several solutions, such as focusing on the development of sustainable business

unity with the earth and across cultures.

DECISION

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sustainable production and consumption? Or is it better served by large companies who can “mainstream”

emerging brands such as Veja for specific consumer segments (the case provides examples of three different

segments targeted by recent acquisitions).

practices while discouraging practices considered unfavorable.

TEACHING PURPOSES

1. To discuss the intersection of markets and social movements, focusing on how individual business may

role model for best practices in sustainability; that is, their social conscience was more important than

niche.

2. To understand the venturing process from a sustainability perspective, unpacking each process, each

3. To probe the synergies and trade-offs between economic and social value creation to reach an

consumers groups and stakeholder groups.

4. To challenge students to apply their knowledge of strategy and entrepreneurship to emerging market

5. To provide actionable templates for formulating and implementing a socially and environmentally

6. To reflect on the strategic importance of sustainability strategies and on the capabilities needed to deliver

7. To build awareness about the ethical fashion movement and, more broadly, the influence of social

TEACHING FORMAT

The case can be taught using three alternative formats:

1. An 80-minute class (see Exhibit TN-1) focuses on the decision and takes students beyond the apparent

environmentally ambitious company).

2. A double class (see Exhibit TN-2) provides the opportunity for a two-stage, in-class role play. The first

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3. This case can be used in a case competition or with an executive audience, by creating a sense of

TEACHING OVERVIEW

The case is ideally suited for core and elective courses on social entrepreneurship or on strategy and

sustainability. Students are challenged to combine their knowledge of competitive strategy with the

constraints and challenges of building a social enterprise. The case can explore three main themes: (1) triple-

bottom-line organizing (specifically the complexities of building a sustainable value chain and crafting an

appealing message that brings out the best in others); (2) social movements (specifically the role of successful

ventures in social movements) and (3) social adjacency (specifically how ventures can pursue strategic

adjacencies to leverage their social skills and mission).

TEACHING FORMAT

If using the case in one 80-minute introductory class, the instructor can have the students prepare the case

on the basis of pre-assigned questions (debriefed below and illustrated with a sample teaching plan in Exhibit

TN-1).

The issue of valuation creates a sense of urgency but is reductionist: this issue monetizes social and

environmental value rather than seeking ways to continue to improve. For savvier students, an important

insight from the case is that apparently easy decisions can be misleading. This venture is successful by many

standards; however, its decision may redefine what success means for other founders who are closely

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but still seek ways to stand out in a crowd.

CASE PREPARATION QUESTIONS

1. Is Veja more or less successful than other brands in the ethical fashion movement? Explain your criteria.

2. In which key ways does Veja’s business model differ from that of conventional fashion industry firms?

What role do those differences play in terms of partnership and acquisition?

OVERVIEW OF CASE ANALYSIS

The teaching plan in Exhibit TN-1 guides the discussion through this sequence of questions.

1. Is Veja more or less successful than other brands in the ethical fashion movement? Explain

your criteria.

because of their design; they competed with Nike on design, and its social and environmental mandate

had to measure up to all the other ethical brands.

terms of its economic sustainability.

2. In which key ways does Veja’s business model differ from that of conventional fashion industry

firms? What roles do those differences play in terms of partnership and acquisition?

Although many sustainability-related ventures aim to maximize value throughout their value chain,

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being overly dependent, and thus overly vulnerable, to any opportunistic behavior or accidents. This

Any partnerships or acquisitions will have to take these differences into account. Veja’s model may fit

well with like-minded partners (such as Timberland) but clash with traditional fashion conglomerates

3. How did the founders build the brand? Did they use any magic ingredients, or was it business

as usual?

reflections (as illustrated by the quote reflecting on trends, which is included at the end of the case)

convey their “unfinished business” — they know what’s falling short, and they keep looking for the

solution.

4. How did Veja’s founders choose brand, product and process extensions?

Veja’s products also gained acceptance from new customers as the company moved from using and

5. Provide your best estimate of Veja’s worth? What considerations have you included in your

valuation?

environmental value they deliver, especially if they are approached by a firm considered to be

conventional (i.e. a non-environmentally or non-socially minded). The Veja founders will likely value

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6. If Veja were to sell to Timberland, what would be the consequences on the ethical fashion

industry and the conventional fashion industry?

The jury is still out on the three prior decisions summarized in the case. The decision to sell will have

Ultimately, this question turns to the founders: would Kopp and Morillion want more time to mentor others,

READINGS

Tim Brown and Jocelyn Wyatt, “Design Thinking for Social Innovation,” Stanford Social Innovation

This short article makes a compelling case for the importance of (re)kindling design thinking when

Hayagreeva Rao, “Hot Causes and Cool Mobilization,” Casium, April 2010; available at

http://www.casium.fr/component/kashyap/bc_detail/98, accessed October 20, 2010.

RESOURCES

For instructors wishing an in-depth look at several background documents on the ethical fashion movement,

Eco Fashion World website

“The Future of Fashion from the GreenShows.”

“Johanna Blakley: Lessons from Fashion’s Free Culture”

http://www.ted.com/talks/johanna_blakley_lessons_from_fashion_s_free_culture.html

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Video

We strongly recommend the instructor show the class any combination of five short, upbeat videos available

Cotton: “Following the Thread,” http://www.veja.fr/#/projets/Coton-15

Rubber: “The Forest Tappers,” http://www.veja.fr/#/projets/Caoutchouc_sauvage-7

Production: “A Few Hours from Porto Alegre,” http://www.veja.fr/#/projets/FABRIQUE-17

Logistics: “Another Opportunity,” http://www.veja.fr/#/projets/ATELIER_LOGISTIQUE-22

 Introduction (how Veja was born),

Introduction

Sub-segments:

 The original idea

 Why Brazil?

Business Model

Sub-segment:

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 How we work

Market

Sub-segment:

 Fight Nike?

Art

environmental issues.

Sub-segment:

 Aesthetics

Cyclope: http://vimeo.com/7982788

Christine Phung

 http://www.dailymotion.com/video/x2mkeg_veja_creation

 http://www.trendhunter.com/trends/organic-cool-new-veja-collection-by-christine-phung

 http://blog.veja.fr/en/veja-christine-phung-exhibition