HomeResearch & Knowledgeback to HomeChinaback to Research & KnowledgeHow Fuchs drives autonomy at scale to win in a fragmented worldback to China

Case Study

How Fuchs drives autonomy at scale to win in a fragmented world

By Mark J. Greeven and Wei Wei

21 pages

March 2024

Order this case study

Reference: IMD-7-2539

In a world where agility and global foresight are crucial for business survival and growth, the FUCHS case presents a compelling narrative of transformation. This case study follows FUCHS, a leading global lubricant company, on its journey to navigate the complexities of a rapidly changing business environment while staying true to its decentralized roots. The story unfolds from the company’s humble beginnings, detailing how FUCHS has grown into a global player under the stewardship of CEO Stefan Fuchs. It emphasizes the challenges of operating in a fragmented market and the need to embrace new global forces, such as digitalization, sustainability and evolving customer expectations. The case highlights the strategic pivot FUCHS makes when it created its first ever corporate strategy, “FUCHS2025,” marking a significant shift in the company’s approach to global market dynamics. A central theme of the case is how FUCHS rethinks its matrix organization and implements agile networks. This strategic move illustrates how FUCHS balances its traditionally decentralized structure with a growing need for global integration and efficiency. The case details the intricacies of these networks, particularly focusing on HR, to show how FUCHS harnesses the power of cross-functional collaboration and shared leadership. Readers of the case will gain a comprehensive understanding of how a traditional, family-led business can successfully adapt to global trends and internal challenges. It’s a tale of strategic evolution, highlighting the delicate balance between maintaining core values and innovating to stay competitive in a fragmented world. The FUCHS case is not just a story of a company, but a blueprint for businesses facing similar global challenges, demonstrating how to win in a decentralized yet interconnected market landscape.

Learning Objective

Understand the challenges and opportunities of transforming a traditional, decentralized family-led business in a dynamic global market.
Explore strategic planning and implementation in a matrix organization, focusing on the balance between global integration and local autonomy.
Examine the role and impact of agile networks in facilitating organizational change and enhancing cross-regional collaboration.
Learn the different methods that a headquarters may use to manage local subsidiaries, in particular through the lens of the transaction cost theory and agency theory.

Keywords

China, Business to Business, Global Business, Strategy, Transformation, Local Strategy, Local Management, Autonomy

Settings

Fuchs Group, Manufacturing, Chemicals
2019-2023

Type

Field Research

Available Languages

English

Related material

Teaching note

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Keep reading

Case Study

Entrepreneurship through acquisition: Sébastien Perroud and the IAR Group

Entrepreneurship Finance Strategy

By Benoit F. Leleux, Dominik Hanslin, Iuliia Mordacheva, Matthias Rey and Frank Schuster

Case Study

Mastercard 2023: Rewired for infinite optionality

Disruption Digital Strategy

By Howard H. Yu, Mark J. Greeven and Martin Králik

Article

Management myth-busters: Does culture really eat strategy for breakfast?

Culture eats strategy for breakfast is one of the most enduring truisms of management. But is it really the case? And what is culture anyway?

Organizational Culture Strategy

By Michael R. Wade

in I by IMD

8 November 2024

Article

Drei Ideen, um die Kostenexplosion im Gesundheitswesen wirklich zu dämpfen

The total costs of the Swiss healthcare system are rapidly approaching the CHF 100 billion mark per year. Now Switzerland is voting on November 24 on a further reform step. But that will not be enough. New ideas are needed.

Strategy Change Management Disruption

By Alix Rey and Romain de Luze

in NZZamSonntag

31 October 2024

Article

Three lessons the west can learn from China’s economic approach to AI

AI is already everywhere, ready to change the way we work and play, how we learn and how we are looked after. From hospitality to healthcare, entertainment to education, AI is transforming the world as we know it. But it’s developing at a differen...

Economics Artificial Intelligence China

By Jialu Shan

in The Conversation

29 October 2024

Report

Hinrich-IMD Sustainable Trade Index 2024

The Hinrich-IMD Sustainable Trade Index (STI) measures 30 global economies’ capacity to participate in the international trading system in a manner that supports the long-term goals of economic growth, environmental protection, and societal develo...

Economics Global Business

By Arturo Bris, Christos Cabolis, Deborah Elms and Chuin Wei Yap

IMD World Competitiveness Center Report, October 2024

Article

Building a resilient trade system in a volatile world

Climate change, geopolitical frictions, and supply chain disruptions call for more sustainable trade practices that can withstand the pressures of volatility. But for trade to be sustainable, it must also be resilient. IMD World Competitiveness Ce...

Competitiveness Sustainability Global Business

By Christos Cabolis

in Hinrich Foundation

22 October 2024

Article

Can Europe’s unified bond compete with US treasuries?

The idea of an EU bond, a common safe asset, has been gaining attention lately, particularly following calls for its introduction this month by former Italian prime minister Mario Draghi.

Finance Global Business Competitiveness

By Arturo Bris

in The National

11 October 2024

Article

Strategy stack: An integrated approach to decision-making

The ways popular frameworks are used fall short in today’s rapidly changing environment. Here is a new way to make better-informed strategic choices.

Change Management Competitiveness Decision Making Innovation Strategy

By Albrecht Enders, Ajay K. Kohli, Andreas König and Arnaud Chevallier

in I by IMD

Case Study

Bossard’s AI strategy for proven productivity (Cartoon case)

Bossard, a Swiss company founded in 1731, has successfully transitioned from a product-centric approach to one that offers services and solutions. It has achieved significant revenue growth despite economic challenges. Its brand promise, “proven p...

Artificial Intelligence Business Transformation Strategy

By Stefan Michel

Entrepreneurship through acquisition: Sébastien Perroud and the IAR Group

By Benoit F. Leleux Dominik Hanslin Iuliia Mordacheva Matthias Rey and Frank Schuster
Case reference: IMD-7-2515 ©2024

Summary

GENEVA (SWITZERLAND), AUGUST 2021. There was a lot at stake for Sébastien. This was the culmination of his 18-month NCA supported search journey to find a company to acquire. Instead of a single target, he was now faced with the prospect of acquiring 4 separate companies at once, consolidating them into a group. One, SAS, was bigger than the others but also faced significant financial issues. Hopefully he had identified three additional companies as acquisition targets, all profitable and with low levels of debt but individually a bit too small. Should he pursue all three as a single deal or add SAS for a four-company deal? In a last-ditch effort to figure out the best deal configuration, he ran some simulations about the potential returns of the group with and without the SAS turnaround. With those projections in hand, it was time to finalize the management buy-in proposal to present to the investment committee the following week.

Reference IMD-7-2515

Organization IAR Group

Industry Finance and Insurance, Private Equity

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Entrepreneurship

Finance

Strategy

Browse all topics

Mastercard 2023: Rewired for infinite optionality

By Howard H. Yu Mark J. Greeven and Martin Králik
Case reference: IMD-7-2455 ©2024

Summary

In the 2010s, card processing – Mastercard’s flagship service – started showing signs of commodification as new, nimble players (typically, fintech startups thriving on digital) entered the payment processing space, and customer preferences evolved beyond plastic cards and traditional contact payments. To re-energize its central position and its ability to capture value, Mastercard – as the incumbent – had to make bold decisions. The case details Mastercard’s approach to conceptualizing and building a global platform ecosystem that upholds the principles and design elements of modularity (i.e. interoperability and scalability) and optionality. Today, Mastercard's services, based on application programming interfaces (APIs), integrate with a variety of platforms and offer flexibility to businesses that require customized payment solutions. All along, the company has accommodated a high level of internal disruption. The case also explores the nature of Mastercard’s systematic collaboration with fintechs – players that often started out as competitors in specific parts of Mastercard’s value chain. It describes the company’s engagement with fintechs as fostering collaboration and co-creation and facilitating access; in other words, opening doors and sharing tools with partners. The case presents observations and quotes by CEO Michael Miebach, whose career trajectory at Mastercard – spanning Africa & Middle East experience, fintech partnerships, product management and the CEO role – sheds additional light on the philosophy and values that have driven the company’s transformation to a technology powerhouse and self-described original fintech.

Reference IMD-7-2455

Organization Mastercard

Industry Finance and Insurance, Financial Services

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Disruption

Digital

Strategy

Browse all topics

Drei Ideen, um die Kostenexplosion im Gesundheitswesen wirklich zu dämpfen

By Alix Rey and Romain de Luze
in NZZamSonntag 31 October 2024

Summary

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Strategy

Change Management

Disruption

Browse all topics

Three lessons the west can learn from China’s economic approach to AI

By Jialu Shan
in The Conversation 29 October 2024

Summary

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Economics

Artificial Intelligence

China

Browse all topics

Hinrich-IMD Sustainable Trade Index 2024

By Arturo Bris Christos Cabolis Deborah Elms and Chuin Wei Yap
IMD World Competitiveness Center Report, October 2024

Summary

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Economics

Global Business

Browse all topics

Building a resilient trade system in a volatile world

By Christos Cabolis
in Hinrich Foundation 22 October 2024

Summary

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Competitiveness

Sustainability

Global Business

Browse all topics

Can Europe’s unified bond compete with US treasuries?

By Arturo Bris
in The National 11 October 2024

Summary

The idea of an EU bond, a common safe asset, has been gaining attention lately, particularly following calls for its introduction this month by former Italian prime minister Mario Draghi.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Finance

Global Business

Competitiveness

Browse all topics

Strategy stack: An integrated approach to decision-making

By Albrecht Enders Ajay K. Kohli Andreas König and Arnaud Chevallier
in I by IMD

Summary

The ways popular frameworks are used fall short in today’s rapidly changing environment. Here is a new way to make better-informed strategic choices.

Contact