Lost in Culture: C&A’s Failure in the United States, 1946–1964

Mark Spoerer

A chapter in Historians on Leadership and Strategy, 2020, pp 41-53 from Springer

Abstract: Abstract In 1945–46, the Brenninkmeijer family, owner of the C&A retail group, discussed to set up a new business in New York. C&A was a thriving Dutch clothing retailer who had successfully set up subsidiaries in Germany (1911) and Britain (1922). After World War II, the political situation in Europe, especially the threat of communism, endangered C&A’s business model. The future, both for the operative retailing business and the family’s wealth, seemed to be in the United States, the safe haven of capitalism. Entering the US mass retail market faced several problems. The notorious lack of hard currency was more of a technical problem, which was quickly overcome. The sheer size of the American market and the number of potent competitors were a true challenge. A team of Brenninkmeijers with a lot of experience of the British market explored the situation in the United States and convinced the rest of the family entrepreneurs in spring 1946 daring the venture. This article describes the various leadership challenges faced by the Brenninkmeijers, their actions, and why they failed in the end because they underestimated the cultural differences between the US market and the European markets.

Keywords: Business culture; Corporate governance; Multinational enterprise; Clothing retail trade; Political risk; Cold War (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-26090-3_3

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DOI: 10.1007/978-3-030-26090-3_3

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