The lipstick effect: turning around XT Beauty
Publication date: 25 November 2019
Abstract
Learning outcomes
Upon completion of this case study, students will have learned to identify and analyze pending organizational failure, based upon company data. They will have formulated a business strategy (either cost leadership, differentiation or focus), as well as propose process improvements to cope with changing macroeconomic factors, costs, supplier conditions, and especially talent management and retention. Students will practice the logical organization of information, articulating the key facts and assumptions underlying their solutions. They will practice communicating with a possibly hostile executive team, to whom they defend their proposal based on its merits.
Case overview/synopsis
This case recounts the recent history of the XT Beauty, a fictionalized but real company headquartered in Moscow, selling professional cosmetics, electrical instruments and equipment for beauty salons in St. Petersburg, and other cities in Russia. XT Beauty enjoyed successful growth until the onset of the 2014 economic crisis when consumer purchasing power plummeted. Students consider both the obstacles and opportunities presented by an emerging Russian market, customer behavior in a recession, managing sales talent, the leadership style of women, as well as key operational, and financial issues as the company react to a deepening economic crisis in an uncoordinated manner. The case is an introduction to the Russian business culture and operational environment. It focuses not only on challenges but also the opportunities in the anti-cyclical market for beauty products.
Complexity academic level
Master’s students in international business, human resources, operations and MBA candidates.
Supplementary materials
Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.
Subject code
CSS 1: Accounting and Finance
Keywords
Acknowledgements
Disclaimer: This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision-making. The authors may have disguised names; financial and other recognizable information to protect confidentiality.
Citation
Khvatova, T. and Thakur-Weigold, S.B. (2019), "The lipstick effect: turning around XT Beauty", , Vol. 9 No. 3. https://doi.org/10.1108/EEMCS-06-2018-0140
Publisher
:Emerald Publishing Limited
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