DIA's "D-Day" - Leadership Lessons in a Corporate Crisis (A)
Dia, the fourth largest retailer in Spain, faced a triple crisis in 2019: first, financial, due to the decline of its business in Spain and exchange rate changes that affected its subsidiaries in Brazil and Argentina; second, reputational, when it was discovered that the two previous CEOs had been involved in serious accounting irregularities; and third, in corporate governance, as a result an investor accused of suspicious practices in other companies becoming Dia?s reference shareholder. In these circumstances, an independent member of the board of directors is appointed as the new CEO. Part A of the case presents the company?s situation when the new CEO takes over and describes the challenges he must tackle. Part B details his strategy on each front and the results obtained.
Collection: IESE (España)
Ref: DPO-797-E
Format: PDF
Number of pages: 21
Publication Date: Jun 15, 2023
Language: English, Spanish
What material is included in this case:
Description
Dia, the fourth largest retailer in Spain, faced a triple crisis in 2019: first, financial, due to the decline of its business in Spain and exchange rate changes that affected its subsidiaries in Brazil and Argentina; second, reputational, when it was discovered that the two previous CEOs had been involved in serious accounting irregularities; and third, in corporate governance, as a result an investor accused of suspicious practices in other companies becoming Dia?s reference shareholder. In these circumstances, an independent member of the board of directors is appointed as the new CEO. Part A of the case presents the company?s situation when the new CEO takes over and describes the challenges he must tackle. Part B details his strategy on each front and the results obtained.
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Year: 2020
Geographic Setting: Spain
Industry Setting: Distribution, consumer goods, equipments and warehousing
Learning Objective
The case, intended for use in the Crisis Management and Communications course of the MBA program, presents students with a crisis scenario in which the executive committee and the company's reference shareholder are at odds. Class discussion focuses on two points: first, what can be learned about the maneuvers of an activist shareholder; and second, how to lead in a crisis (from a personal standpoint). The case can also be used in the areas of finance and corporate governance, since the situation described above involves a restructuring and requires a sound knowledge of corporate law.
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"DIA's "D-Day" - Leadership Lessons in a Corporate Crisis (A)"
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