The LSL case is a multi-session case that essentially concerns understanding and analysis of costs, and using costs for strategic decision-making. Its main benefits are that (a) it draws students into a quantitative investigation of the causes of and solutions for poor financial performance, and (b) it enables them to compare two product ranges that have different financial and strategic issues.
The case has five assignments and can thus provide a basis for several sessions in the same course.
This case is based on a real-life situation: it tells the story of a fictitious haute couture firm called Louise Saint-Lacroix (LSL) which is facing serious financial difficulties, and is being taken over by a Chinese investment fund. The new shareholder intends to turn LSL’s economic position around, and wants detailed financial monitoring to do so. Up to this point the firm has been run as a family business with creativity as its main focus.
CAVELIUS, F., KERVEILLANT, M. et LIGONIE, M. (2018). Louise Saint Lacroix: cost analysis and decisions. ESSEC Business School.