MRW: Social Enterprise in a Franchise Network

Presents the background of the Spanish courier and urgent parcel service company MRW and its financial situation in the first quarter of 2004. At that time, the urgent delivery service sector was immersed in a process of growth. There was strong competition within the sector and MRW occupied one of the leading positions. Places special emphasis on the social initiatives of MRW and its franchising system, which was used as an expansion strategy. But this system entailed important coordination issues, which led to the creation of a Committee of Ethics and Arbitration. Begins when MRW's central office interviewed a prospective candidate interested in buying a franchise which was left free due to early retirement. The candidate appeared to be a very competent manager who would get results for the franchise in an industrial zone, benefiting the entire network. Nevertheless, he expressed his doubts about the usefulness of MRW's social plans. Javier Marza (assistant general manager of MRW) and Paco Sosa (director of external relations) considered whether they should be concerned about convincing a franchise holder in particular as to the social enterprise of the company. This raised the question of the place social enterprise had in MRW's strategy and of the need to re-evaluate its impact in detail, especially during a phase of growth and renovation in the franchise network, and in the mid-term, with a view to the eventual retirement and replacement of the company's founder, who had always shown clear leadership. All of this could present difficulties for the continuity of the company's culture.

• Strategy
• Corporate social responsibility
• Franchises
• Organizational behavior