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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

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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

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Teaching note

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