Medium Sustainability Strategy Growth Strategy Merger & Acquisition

Donatella Co.

ProHub Comment

This case tests the candidate's ability to structure an unstructured sustainability problem, moving from baseline emissions analysis (Exhibit 1) through competitive benchmarking (Exhibit 2) to strategic brainstorming and M&A evaluation (Exhibit 3). The case rewards quantitative rigor in calculating CO2e per brand, comparative thinking across competitors, and strategic recommendation synthesis.

Estimated Time 26 minutes
Difficulty Medium
Source ROSS
10 / 100
Donatella Co is an Italian-based, global fashion house with four luxury brands worldwide. As many of the brand’s designs are inspired by the beauty of the natural world, the CEO, Gianni, has become increasingly concerned with the company’s broader impact on the world, particularly the environmental impact. Further, Donatella Co’s Chief Sustainability Officer recently made him aware of new legislation in the EU called the Corporate Sustainability Reporting Directive. Gianni wants the company to be prepared for these new reporting requirements and to increase its sustainability within Donatella Co and its’ supply chain. He has contacted the amazing consulting firm, RossCo to help. Where should they start?

Clarifying Information

  1. Last year they did €1 billion in revenues across their brands.
  2. This legislation requires that all EU companies with more than €40M in annual revenue or non-EU companies with more than €150M in revenue in Europe start publishing detailed information on sustainability.
  3. Competitors will be addressed later
  4. Looking at improvements in the short-term horizon
  5. Customers are located globally, with largest markets in North America, Western Europe, and a fast-growing Asia customer base.
Mock Interview
Interviewer

Donatella Co is an Italian-based, global fashion house with four luxury brands worldwide. As many of the brand's designs are inspired by the beauty of the natural world, the CEO, Gianni, has become increasingly concerned with the company's broader impact on the world, particularly the environmental impact. Further, Donatella Co's Chief Sustainability Officer recently made him aware of new legislation in the EU called the Corporate Sustainability Reporting Directive. Gianni wants the company to be prepared for these new reporting requirements and to increase its sustainability within Donatella Co and its' supply chain. He has contacted the amazing consulting firm, RossCo to help. Where should they start?

You

Thanks. Before analyzing, I'd like to clarify a few key questions...

Interviewer

Good question. Let me provide some background information...

You

Based on this, I suggest analyzing from these dimensions...

AI Score
Structure Analysis Communication Business Sense Quantitative
Practicing...
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Practice this case with AI Mock Interview

Donatella Co, a €1B luxury fashion conglomerate, seeks to improve sustainability and prepare for new EU reporting requirements. Candidates must analyze emissions across four brands, benchmark against competitors, brainstorm improvement levers, and recommend acquisition targets that balance revenue growth with emissions reduction.

Key Insights:

  1. Brand A drives 61.7% of total emissions despite being only 40% of revenue, indicating efficiency opportunity
  2. Donatella Co has lower absolute emissions than competitors but moderate sustainability spend, suggesting room for strategic investment
  3. Short-term solutions include operational improvements (internal) and M&A (external), with acquisition target 5 showing strong growth and low emissions profile
  4. Case emphasizes balancing financial growth with environmental sustainability—the core tension in luxury CPG