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Tennant Company: Can “Chemical-free” Be a Pathway to Competitive Advantage?
Companies in every industry are attempting to reduce their use of chemicals, particularly synthetic organic compounds, where there is a perception of harm to human health or the environment. The industrial and commercial floor-cleaning equipment industry is no different, with many equipment manufacturers seeking to reduce their use of harsh cleaning chemicals such as petroleum solvents. But with every competitor pursuing similar greening efforts in a mature market, companies find it difficult to differentiate their offerings to customers. <br><br>Tennant Company chose to differentiate itself through a technology-driven business strategy based on chemical-free cleaning. Instead of reducing the use of harsh cleaning chemicals, or reducing the harshness of those chemicals, Tennant offered its customers a cleaning solution that used ionized tap water to clean and disinfect surfaces, thereby eliminating harsh chemicals altogether. The benefits to customers were numerous, including lower total cost of ownership and improved health and safety, while maintaining cleaning performance relative to conventional chemical-based products. This case helps to illustrate the challenge of profitably going beyond incremental “greening” efforts (aimed at doing less harm) — could a significant innovation in environmental performance be the central argument for the company’s value proposition? -
Clarke: Transformation for Environmental Sustainability
Clarke, a mosquito abatement company seen as having a core business that is environmentally harmful by its very nature — selling pesticides — faces unique challenges in its transformation into a sustainable enterprise. Should it shift its focus entirely towards offering “green” pesticides and risk losing some of its customers, or should it keep offering its less expensive, more toxic products? This case shows how even when innovation leads to new green products, processes, technologies, and business models, the leadership of a company must cope with the daunting task of engaging employees and customers in the idea that green can be effective and profitable. -
A Non-Traditional Female Entrepreneur (A) (Traditional Chinese version)
In 1985, the president and founder of New Deantronics (ND) launched her sales office in San Francisco, California, and then set up a factory in Taiwan in 1987. With no technical background or prior experience, the president used her system of management strategy and philosophy and built ND’s reputation as a trusted manufacturer and developer of medical devices. All of ND’s products were directly exported to large global health-care companies, including Philips Medical Systems, Johnson & Johnson, and Covidien. With the rapid increase in business, the need for expanding production capacity became increasingly urgent. Sitting in her office in early 2009, the president knew that she could no longer postpone her decision to relocate. Several options were presented to her, and the factors that influenced her decision included considerations about the supply of quality human resources, geographical convenience, the willingness of her current employees to relocate, affordability, and the possibility for future expansion. The president pondered what would be the best bet. -
A Non-Traditional Female Entrepreneur (B) (Traditional Chinese version)
This case is a supplement to A Non-Traditional Female Entrepreneur (A). -
A Non-Traditional Female Entrepreneur (C) (Traditional Chinese version)
This case is a supplement to A Non-Traditional Female Entrepreneur (A). -
COMPFED: The Dairy Cooperative Distribution System
Bihar State Milk Cooperative Federation (COMPFED) had been marketing its milk and milk-related products under the Sudha brand name in the Bihar and Jharkhand regions of India for three decades. It operated through six unions and two dairies to process the milk collected from nearly 4,000 village-level cooperatives. COMPFED appeared to have a competitive advantage for its supply of milk, since it maintained the largest network for milk procurement, which spanned a large area and was unmatched by its competitors. However, due to various environmental forces, the ability to procure an adequate supply had declined in the last two years, which negatively affected the profitability of the organization.<br><br><br><br>The marketing manager of COMPFED had been facing difficulty in serving the growing demand and maintaining profitability. Since he operated in an industry with high fixed costs, the declining supply of milk procurement meant lower sales. As a result, there was no opportunity to significantly lower operating costs to match the limited supply.<br><br><br><br>The marketing manager thought of two reasons in the external environment that contributed to this situation. First, a series of floods had caused damage to grazing land and livestock operations. Additionally, private players were disrupting the supply chain by offering short-term higher payments to some suppliers/farmers. These players did not face the same regulatory and hygiene guidelines that COMPFED did. The marketing manager’s options included two very different alternatives: trying to work with these agents or securing a process to minimize or eradicate their activities. -
World Championship Wrestling — A Crisis of Leadership (A)
In January 2000, World Championship Wrestling (WCW)’s executive VP was faced with a challenging decision. He had been appointed as executive VP just three months ago, and was tasked with restoring the company to a profitable position. However, WCW’s on-screen performance was suffering; ratings for the flagship WCW Monday Nitro television program had fallen to their lowest levels in nearly three-and-a-half years. WCW was losing its market leadership position, its viewing audience, and even some of its on-screen talent to its major competitor, the World Wrestling Federation (WWF). The executive VP faced problems on a number of fronts: a talent roster low on motivation and morale, turnover among both the writing staff and company leadership, and a rapidly shrinking audience. Furthermore, the current instability in leadership meant that another major change would seriously impact the already low morale among WCW’s on-screen talent and support staff. -
World Championship Wrestling — A Crisis of Leadership (B)
This case is a supplement to World Championship Wrestling — A Crisis of Leadership (A). -
World Championship Wrestling — A Crisis of Leadership (C)
This case is a supplement to World Championship Wrestling — A Crisis of Leadership (A). -
World Championship Wrestling — A Crisis of Leadership (D)
This case is a supplement to World Championship Wrestling — A Crisis of Leadership (A). -
We Are So Sorry: Sedang Prestige Resort
Looking back on the disastrous vacation of an American couple in Indonesia, this case shows how a globally branded North American hotel chain disregarded the basic tenets of maintaining their global brand promise, ignored generally accepted customer service standards, failed to instigate delivery failure recovery, and leveraged firm-specific capabilities to maximize shareholder wealth. The reaction of the local manager at the Indonesian hotel and adaptation of the value proposition are told from the perspective of the vacationing couple that experienced the diluted brand firsthand. -
Mission Hills: Leading the China Golf Industry
The chief executive officer of Mission Hills, a Chinese golf course operator, is reviewing a handful of expansion options. In August 2011, Mission Hills has three large land holdings in Shenzhen, Dongguan, and Haikou, 12,000 employees, and 22 golf courses. In addition to golf courses, it owns two luxury hotels and sells houses built within its properties. Mission Hills occupies an average of 60 per cent of the land it currently owns, and Chu is trying to decide if growth should come by expanding to a third Chinese province or if it should continue building in its current land holdings. He wants to identify and mitigate some of the risks that come with running a high-growth business. -
StratAFin Inc.: Auditing Change
This case focuses on organizational transformation in an accounting firm in South Africa. It describes how the impact of both globalization and the transformation that the country had undergone since the advent of democracy in 1994 steered StratAFin Inc. towards a process of building a new identity. The firm’s senior management realized the need for transformation based on the many new challenges in the changing environment. Change was experienced at many levels within the organization: from the construction of a new building as a symbol of change, to corporatizing and growing the firm, changing the management structure, investing heavily in technology and human capital development, focusing on continuous improvement, and driving major diversity transformation. The case offers insights into the many drivers that had to be considered in the process, how the organization had to manage resistance to change and the need for flexibility during the process, and the importance of measurement of the many dimensions of the transformation process. The case concludes with the challenge of how the firm’s leadership could ensure that the continuing transformation maintained its momentum. -
Better Homes & Gardens Real Estate: B2B and B2C Social Media Marketing
This case explores social media marketing as both business to business (B2B) and business to consumer (B2C) strategies. In spite of a challenging real estate environment, Better Homes and Gardens Real Estate (BHGRE) was launched in 2008 by Realogy Corporation, the largest franchisor of real estate brands in the world, to maintain and grow market share with a new type of real estate company centered around lifestyle. BHGRE has grown rapidly and has experienced tremendous success with its B2B social media efforts. Now, several years after the formation of the company, the president and chief executive officer must decide how to leverage what she has learned from the B2B effort to create a B2C social media program. Additional factors include a concurrent Canadian market entry. -
The Beauty of Sorbet
HIGHLY COMMENDED CASE - African Business Cases Runner-up, 2012 European Foundation for Management Development (EFMD) Case Writing Competition. This case chronicles the origins and growth of Sorbet, a chain of beauty salons targeting upper income women in South African metropolitan areas. Owner Ian Fuhr identified an opportunity to redefine the beauty salon experience in South Africa by offering customers a service unlike anything in the industry. He carefully managed human resources to motivate employees and grow the client base. To complement this, the company started an external beauty therapy school to improve staff and train potential employees. In addition, Fuhr stressed the importance of growing brand awareness and carefully adjusted the company’s sales mix to maximize all potential profit margins, all while developing a customer-centric culture. By 2011, two new businesses had been launched under the Sorbet brand (wellness services; event management). Such expansion plus regional diversification options all had to be considered while keeping service quality levels high. -
Travelling Thai Ltd.
A company that has a fleet of food trucks serving Thai food has issued bonds twice since its incorporation. Because the company has reached a level of maturity and is in the sixth year of operations, it is able to recall a portion of one of the bonds. The other bonds mature. Students are asked to record the transactions related to these bonds. -
Red Barn Dairy Inc.
As a result of increased concern about common food allergens, a small ice cream manufacturer that sources its cream from local farms has decided to create a secondary manufacturing facility that can guarantee its products to be nut-free. A large investment is required in asset investment and regulatory compliance. The case centres around the bond financing associated with pursuing this expansion opportunity. -
Fresh Air Communications
A large, well-established telecommunications company headquartered in Vancouver, British Columbia, has decided to begin an overhaul of its infrastructure, beginning with a small pilot project. The case centres around the bonds used to finance this project, the short-term investments made with portions of the bond proceeds, and the company's outstanding common shares. -
Yellowhead Petroleum Limited
Financial accounting entries must be made for a small Canadian oil and gas exploration and drilling company headquartered in Edmonton, Alberta, for a project in northern Saskatchewan. -
Infusion's Greenfield Subsidiary in Poland
The president of Infusion Development Corporation was reviewing the progress of the new subsidiary the company had set up 15 months earlier in Krakow, Poland. The purpose of the subsidiary was to work with other Infusion offices around the world to provide innovative software development services to global clients. The investment, a big success, had grown in size from eight to forty staff in one year, and there were plans to double that by the end of the following year. The issues facing the president were threefold. Firstly, how could he work with the country manager to continue to grow the subsidiary? Attracting the right talent was vital to Infusion’s culture and business model. Initial growth in Poland was based partly on local referrals in the community of .NET professionals in Krakow. It was also based on being a new start-up with an entrepreneurial culture. The president and country manager were concerned that there were limits to these factors. Secondly, what role should Infusion Poland have in the wider company in the future? Should it become a global centre of excellence and a pivotal hub for the company’s innovative capability? If so, how? Thirdly, what kind of succession planning should be put in place for the country manager in Poland? If he moved to another post at Infusion, as expected, should the company seek a local country manager instead of transferring one from headquarters?