Ralph Lauren Case

The article is based on detrimental news for Ralph Lauren investors. Over the span of the year, shares are down more than 30% over the year. More importantly, shares have fallen more than 12% as of last Thursday at 4 p.m. This is directly correlated to the quitting of CEO Stefan Larsson. Stefan has been considered “one of the best players in the industry”. Many others are also worried that executives he recruited would follow him out the door. Stefan Larsson is leaving the company under two years of him at the position of CEO. This was not a foreseen circumstance. Mr. Larsson came into the position at a disadvantage as the company had experienced declining revenues. There was agreement that the company needed to evolve but disagreed over creative and customer-facing strategies with the company’s largest shareholder, Ralph …show more content…
Initially, this entails finding a CEO. The company needs strong and consistent leadership from the top-down to develop a clear strategic vision. I do think that Mr. Larsson had a very good strategic plan that would lead to a sustainable competitive advantage. They needed to cut cost in their supply chain network, wages, and stores to start their efforts. However, I do not think that the company should shy away from coupons, promotions, etc. This is an expensive brand and we want to give incentives to customers to make them transition to loyal customers. I also do not believe that the company should give up Ralph Lauren’s creative power to the CEO. The company has been founded by this way of thinking and has done well for the stakeholders up to this point. I say they need to stay consistent and let Mr. Lauren continue his focus for the company. They need to pursue a CEO with exceptional experience to climb the company out of the rut that they are in. However, this individual needs to realize the background and the history of the company in the