A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media

A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media Description

On a bright July morning in 2013, the incoming President of the Stoli Group USA, John Esposito, was alarmed to learn that one of his company's most popular products was being bombarded by heavy criticism from social media. The hashtag, #DUMPSTOLI, coined by Dan Savage, a prominent gay rights blogger, had gone viral overnight. Savage claimed that Stoli Vodka, because of its Russian heritage, should be subjected to an outright boycott, along with all other Russian-made products. In Savage's view, it was important to launch a vocal protest and to show solidarity with the gay community in the aftermath of a series of discriminatory laws that were passed by the Russian government under the direction of Vladmir Putin. Esposito was well aware of Stoli's historical support of the lesbian, gay, bisexual, and transgender (LGBT) community and more importantly, he knew that the brand had no influence on, or relationship with the Putin government. In fact, both the owner and top executives at SPI Group, the parent company of Stoli Group USA, had progressively adversarial relationships with the Putin government for over 10 years. Nonetheless, the #DUMPSTOLI hashtag had gained followers and bars across the country began to ban Stoli vodka. Esposito hurried over to the office of Lori Tieszen, Stoli's senior vice president and chief marketing officer. He put her in charge of a team effort responsible for coming up with a response and protecting their iconic brand from the boycott. What should they do?

Case Description A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media

Strategic Managment Tools Used in Case Study Analysis of A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media

STEP 1. Problem Identification in A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media case study

STEP 2. External Environment Analysis - PESTEL / PEST / STEP Analysis of A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media case study

STEP 3. Industry Specific / Porter Five Forces Analysis of A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media case study

STEP 4. Evaluating Alternatives / SWOT Analysis of A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media case study

STEP 5. Porter Value Chain Analysis / VRIO / VRIN Analysis A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media case study

STEP 6. Recommendations A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media case study

STEP 7. Basis of Recommendations for A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media case study

Case Analysis of A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media

A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media is a Harvard Business (HBR) Case Study on Leadership & Managing People , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Leadership & Managing People, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Leadership & Managing People Solutions

In the Texas Business School, A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media

Step 1 – Problem Identification of A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media - Harvard Business School Case Study

The first step to solve HBR A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Stoli Esposito is facing right now. Even though the problem statement is essentially – “Leadership & Managing People” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Stoli Esposito, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media.

The external environment analysis of A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media case study. PESTEL analysis of " A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media

To do comprehensive PESTEL analysis of case study – A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Policy Making Impact on A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media

Government policies have significant impact on the business environment of any country. The firm in “ A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Stoli Esposito is operating, firms are required to store customer data within the premises of the country. Stoli Esposito needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Stoli Esposito in case study A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Stoli Esposito in case study “ A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Stoli Esposito in case study “ A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Taxation & Regulation Impact on A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Stoli Esposito can compete against other competitors.

Government Scheme & Subsidies Impact on A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System & Stability, and its Impact on A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Stoli Esposito needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media

Social Factors that Impact A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media

Technological Factors that Impact A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media

Environmental Factors that Impact A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media

Legal Factors that Impact A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media

Step 3 – Industry Specific Analysis

What is Porter Five Forces Analysis

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media case study. PESTEL analysis of " A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

Step 4 – SWOT Analysis / Internal Environment Analysis

Step 5 – Porter Value Chain / VRIO / VRIN Analysis

Step 6 – Evaluating Alternatives & Recommendations

Step 7 – Basis for Recommendations

References :: A Brand Under Attack: The Boycott of Stoli Vodka and the Power of Social Media case study solution