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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.
Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written permission.
Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request
permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of Business Foundation, The University of Western
Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca.
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
Other Video Resources
“Veja Grama” (deforestation message):
http://www.youtube.com/watch?v=20G_9w1wCCY&feature=related
More Youtube videos on Veja:
http://www.youtube.com/results?search_query=veja+sneakers&search_type=&aq=f
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