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El uso por parte de terceros —lo que incluye, a título enunciativo, editoriales, profesores particulares, servicios de apoyo académico o ayuda para el estudio, colegios preparatorios, desarrolladores de aplicaciones y entidades que presten servicios de planificación curricular u ofrezcan recursos para docentes mediante plataformas digitales— no está permitido y estará sujeto al otorgamiento previo de una licencia escrita por parte del IB. En este enlace encontrará más información sobre cómo solicitar una licencia: https://ibo.org/become-an-ib-school/ib-publishing/licensing/applying-for-a-license/. © International Baccalaureate Organization 2020 8820 – 5001 5 pages For use in November 2020 Business management Case study: Ducal Aspirateurs Instructions to candidates y Case study booklet required for higher level paper 1 and standard level paper 1 business management examinations. – 2 – 8820 – 5001 Ducal Aspirateurs Ducal Aspirateurs (DA) is a French private limited company operating in the secondary sector. It was founded in 1912 by Jean and Marie Ablet and remains a family business. It is currently owned by two of the founders’ grandchildren – Pierre, the chief executive officer (CEO), and Louise, the marketing director. Although DA originally only manufactured electric vacuum cleaners, sold under the brand name DuVac, it now manufactures a wide range of electrical household goods. Pierre’s leadership style was very different to that of his mother, Viv, the previous CEO. She was mostly autocratic and had strict control of the business. She demanded that directors made decisions without consulting their subordinates. Pierre, however, believes in consulting employees and managers and listening carefully to their views before making strategic decisions. Pierre and Louise are preparing for a difficult board meeting with the other directors, who are not members of the Ablet family. Pierre knows that the other directors have different plans for the business and wonders how he should resolve their differences given present difficulties at the business and recent financial losses in 2018 and 2019. He decided to research DA’s past for some inspiration, hoping it would help him see the way forward. The nature of the business The business grew slowly, targeting niche markets. The DuVac vacuum cleaner started as – and remained – a niche, luxury item. As only the wealthiest families could afford electric vacuum cleaners, DA grew slowly for the first 20 years. In the 1930s, sales remained at only 10 000 units per annum. Today, DA still targets high-end niche markets for all its products. DA was founded on the principle of caring for the wellbeing of its employees (social values). Jean and Marie were committed to social values. In 1911, they visited Port Sunlight in England, a model village* built by the Lever Brothers, and New Lanark, a similar development in Scotland. Jean and Marie used what they had learned from these visits when they founded DA, building Ville d’Ablet, a similar village, to ensure the welfare of their employees. This village had 300 houses for DA’s employees, a hospital, a school and an open-air swimming pool. Employees were not charged rent. DA continues to maintain this village, which still has a hospital, school and leisure facilities, and employees continue to live there paying subsidized rent. However, they now also have the option to buy the houses. Jean and Marie knew how to keep the business going while still maintaining its social values. The 1930s was a difficult time for many businesses, and for DA the demand for DuVac vacuum cleaners fell significantly. However, the business remained committed to its employees and no employees lost their jobs. Employee numbers fell only through natural wastage. Today, DA continues to maintain a social commitment to its employees. The business also successfully diversified in the 1930s. Viv, Marie’s daughter, attended university in the United States, where, having seen how it transformed the lives of rich Americans, she purchased an electric washing machine. When she returned to France, she joined DA as a director. She convinced the board of directors that DA should manufacture electric washing machines for sale in France. In 1937, DA opened a factory to produce them and was the first company to sell them in France. They were sold in up-market department stores under the brand name DuWash. * model village: a type of mostly self-contained community built by landowners and business owners to house their workers in ideal conditions 5 10 15 20 25 30 35 40 – 3 – 8820 – 5001 Turn over Jean and Marie’s crisis management strategies did not help when they were forced to flee from France in 1940, taking with them what little they could, including all of DA’s cash. They were able to return to France in 1945, and they rebuilt DA from almost nothing. Jean and Marie decided that Viv should become the chairperson and CEO, and Viv re-established DA as a manufacturer of vacuum cleaners and electric washing machines. She spent 10 years consolidating the position of the business, using marketing to rebuild the brands. Viv used an autocratic style of management to re-establish the business. Later, DA survived the global recession that started in 2008. Its profits fell to almost zero in 2014, but DA continued to maintain its social values. Since the 1950s, when it was discovered that sales of vacuum cleaners and washing machines were not improving even though the French economy was growing rapidly, DA has managed successful diversification and product development. Viv saw an opportunity to expand DA’s product range, to which the board of directors agreed. The business began manufacturing electric kettles, toasters, microwaves and food mixers. Viv’s initial vision was ambitious: she wanted every family in Europe to own at least one of DA’s electrical products. However, after consulting with DA’s managers, Viv decided to remain in French niche markets. Between 1990 and 2000, DA purchased three delivery lorries. It then expanded the fleet of lorries to form a transport business that delivers products for DA as well as several other companies. DA minimizes risk where possible. It has generally kept to markets it knows with a family of related products, has financed growth internally and has no long-term borrowing. Developments in the 1990s By the end of the 20th century, sales of DuVac and DuWash products had declined. However, overall profits continued to grow as sales of other electrical products increased. Market research showed that customers regarded DA products as safe, well made and reliable. The 21st century Since 2000, DA’s expansion throughout Europe has been rapid. It is now one of the largest and, until recently, one of the most profitable producers of luxury consumer electrical products in Europe. Costs are carefully controlled. Viv retired in 2005 and Pierre took over as chairperson/CEO. His first changes were to create a corporate social responsibility (CSR) division, led by Mia, and an innovation division, led by Salah. The CSR division has several aims: y To monitor, review and – where necessary – recommend changes to DA’s CSR practices, as well as those of other businesses, to ensure that DA is a leader in CSR for both its employees and the wider community. y To explore ways for DA to reduce its carbon footprint. The innovation division has two main aims: y To continuously review existing uploads/Industriel/business-management-paper-1-case-study-hlsl.pdf