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Case Study

Not so black and white: Grupo Inca’s black alpaca dilemma (A)

By Vanina Farber, Carolina Duran Silva, Baris Silahcioglu, Hugo ten Zijthoff and Shih-Han Huang

9 pages

November 2024

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Reference: IMD-7-2609

Grupo Inca, a conglomerate that owned Peru’s leading textile business with a long history of working with alpaca fleece, was at a crossroads regarding the conservation and commercialization of black alpaca fiber. Historically, black alpacas were as common as their lighter-colored counterparts, but market preferences drove them to near extinction. The Inoue brothers, fashion designers committed to social impact, expressed an interest in creating a luxury collection using rare black alpaca fiber. This presents Grupo Inca with both an opportunity and a dilemma: Should it invest in developing this niche market despite uncertainties of both supply and demand, or collaborate with local government and NGOs to ensure sustainable practices, or maintain its current direction and do nothing? This compact case explores the intricacies of actions vs. impact, ethical responsibility and long-term strategic thinking. It provides a rich context for discussing the impact of business decisions on biodiversity and sustainability, the role of corporate values in guiding strategy and the potential for innovation in sustainability. Students will explore Grupo Inca’s role in the decline of black alpacas, assess the ethical implications of the company’s actions and develop strategic recommendations through scenario planning. The accompanying teaching note also covers methods to leverage AI tools to generate ideas and explore solutions that enhance students’ learning.

Learning Objective

Explain and assess key terms and concepts in sustainability.
Interpret the impact of a company’s actions, considering both positive and negative, as well as intended and unintended consequences.
Analyze a social problem from multiple perspectives, including long-term consequences and stakeholder impacts.
Develop strategic recommendations through scenario planning to address future uncertainties and complexities.
Synthesize AI-generated information with human insights for a comprehensive case analysis.

Keywords

Social Innovation, Business Ethics, Sustainability, Kuna (brand), Alpaca, Biodiversity, Environmental Protection, Sustainable Fashion, Indigenous Community, Cultural Preservation, Poverty, Reduced Inequalities, Responsible Consumption, Responsible Production, Life on Land

Settings

Latin America, Peru
Grupo Inca, Manufacturing, Textile
1965-2011

Type

Field Research

Available Languages

English

Related material

Teaching note

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This case study is part of a series

Not so black and white: Grupo Inca’s black alpaca dilemma (A)
Not so black and white: Grupo Inca’s black alpaca dilemma (B)

This case study is part of a series

Not so black and white: Grupo Inca’s black alpaca dilemma (A)
Not so black and white: Grupo Inca’s black alpaca dilemma (B)

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