Question

(a) Identify the specific type of organizational structure that has been adopted by Brunello Cucinelli (around 2018-19). Explain the company’s operational strategy.
(Max. 200 words; 5 marks)

This question is from

Humanistic Capitalism at Brunello Cucinelli

Answer 1

Brunello Cucinelli adopted Humanistic Enterprise model as their organizational structure.

Brunello Cucinelli is an Italian luxury brand. The company has built its success around cashmere (a kind of goat) clothing. Brunello Cucinelli found a un-conventinal way of business through the Humanistic Enterprise model, which revolves around the country's (Italy) craftsmanship, sustainable growth, and exclusive positioning and distribution. Brunello Cucinelli manages to tap more than 50% of its revenues come from the retail mono-brand, directly managed by the company.  

The heart of  Brunello Cucinelli  is the small town of Solomeo, the 14th-century hamlet outside Perugia, which is home to merely 400 inhabitants. The company is headquartered in a castle here which is surrounded by a few medieval houses used as workshops. The main focus of Cucinelli is on the attention to detail and creativity on hand-crafts.

Inspired by great philosophers such as Socrates, Alexander the Great, Marcus Aurelius, Saint Benedict etc, in 1978, a man called Brunello Cucinelli started the company as a cashmere producer. By these years, Cucinelli is among top of the list of the most established brands in luxury and casual-chic brands.