Erb Institute Case Studies

The Erb Institute publishes a variety of business cases and course materials.
Some of these are highlighted below. Additional Erb and William Davidson Institute co-sponsored case studies are available from Global Lens using the keyword search: “Erb” or “sustainability.”

 

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Google Energy Shifts into Renewables

April 5, 2012

Google Energy Shifts into Renewables (pdf abstract)

Purchase the full report on Google Energy (Case study #1-429-226) – published  04/2012, 14 pages.
By: Andrew Hoffman
Description: Google has received intense criticism for its data center energy usage. Google’s global data centers draw almost 260 million watts per year–about a quarter of the output of a nuclear power plant. The first steps of the recently created subsidiary Google Energy was to respond to criticisms and, so far, their efforts have been successful. The team must now formulate their expansion strategy. If successful, the expansion will likely strengthen Google’s image as an industry leader in energy procurement, provide a strong financial return, and possibly create a lucrative new market. However, this initiative has high risks. The team must evaluate: Were its efforts thus far enough, or were they just the baseline of what they could be doing? How far should Google go to act as a leader to address the environmental impacts of these operations?

Teaching Note: Available to Registered Educators. Please login to view it.
Teaching Points: After discussing this case study, students will be able to:

  • Identify the risks and benefits of pursuing sustainability as a core corporate objective.
  • Illustrate how and why an industry leader may pursue a corporate sustainability strategy.
  • Present the difficulties surrounding diversification into the energy market and the risks associated with renewable energy investments.
  • List the public relations and political consequences of adopting sustainability as a core mission, particularly in regard to expanded renewable energy investments.

Key Topics:

  • Environmental Sustainability
  • Strategic Management

Patagonia: Encouraging Customers to Buy Used Clothing (A)

March 5, 2012

Patagonia: Encouraging Customers to Buy Used Clothing  (pdf abstract)

Purchase the full report on Patagonia A: Encouraging Customers to Buy Used Clothing  (Case study #1-429-230) – published  03/2012, 22 pages.
By: Andrew Hoffman
Description: How do you make money when you tell your customers ‘don’t buy our stuff unless you really need it?’” This was the question that Yvon Chouinard, founder of the clothing company Patagonia, asked himself as he considered developing a new partnership with eBay in which customers would buy and sell used Patagonia gear on eBay rather than buy it new. As he considered this new partnership, Chouinard would have to balance the environmental priorities upon which Patagonia was founded with its financial well-being. This is a two-part case. Part A presents the decision which Chouinard is considering, while Part B presents the decision that Chouinard chose.

Teaching Note: Available to Registered Educators. Please login to view it.
Teaching Points: After discussing this case study, students will be able to:

  • Explore a company that has incorporated sustainability and CSR into the core of its long-term business strategy.
  • Analyze how and why strategic options differ between public and private companies, and how these differences can influence the successful adoption or execution of sustainability strategies.
  • Identify critical components of a successful sustainability strategy and the competitive advantages that such a strategy can confer.
  • Discuss and analyze common business concepts such as “minimize costs,” “maximize profits,” and “maximizing business growth.”

Key Topics:

  • Consumer Products
  • Corporate Social Responsibility (CSR)
  • Environmental Sustainability
  •  Strategic Management

Patagonia: Encouraging Customers to Buy Used Clothing (B)

March 5, 2012

Patagonia B: Encouraging Customers to Buy Used Clothing  (pdf abstract)

Purchase the full report on Patagonia B: Encouraging Customers to Buy Used Clothing  (Case study #1-429-231) – published  03/2012, 6 pages.
By: Andrew Hoffman
Description: How do you make money when you tell your customers ‘don’t buy our stuff unless you really need it?’” This was the question that Yvon Chouinard, founder of the clothing company Patagonia, asked himself as he considered developing a new partnership with eBay in which customers would buy and sell used Patagonia gear on eBay rather than buy it new. As he considered this new partnership, Chouinard would have to balance the environmental priorities upon which Patagonia was founded with its financial well-being. This is a two-part case. Part A presents the decision which Chouinard is considering, while Part B presents the decision that Chouinard chose. This case presents the decision about a potential partnership with eBay that Yvon Chouinard, founder of the clothing company Patagonia, chose to pursue. This case accompanies the Patagonia (A) case.

Teaching Note: Available to Registered Educators. Please login to view it.
Teaching Points: After discussing this case study, students will be able to:

  • Explore a company that has incorporated sustainability and CSR into the core of its long-term business strategy.
  • Analyze how and why strategic options differ between public and private companies, and how these differences can influence the successful adoption or execution of sustainability strategies.
  • Identify critical components of a successful sustainability strategy and the competitive advantages that such a strategy can confer.
  • Discuss and analyze common business concepts such as “minimize costs,” “maximize profits,” and “maximizing business growth.”

Key Topics:

  • Consumer Products
  • Corporate Social Responsibility (CSR)
  • Environmental Sustainability
  •  Strategic Management

Equilibrium Capital Group: Investing in Energy Efficiency

July 5, 2011

Equilibrium Capital Group: Investing in Energy Efficiency (pdf abstract)

Purchase the full report on Equilibrium Capital Group: Investing in Energy Efficiency (Case study #1-429-106) – published  07/2011, 48 pages.
By: Professor Thomas P. Lyon and Michael “Kipp” Baratoff

Description: Venture capitalists Bill Campbell and Kipp Baratoff have a decision to make. They can either invest their hard-earned capital in one of two existing energy efficiency (EE) companies or create their own company that tackles EE market barriers in a novel way. Bill and Kipp must understand how EE companies operate and discover the nuances of the EE market to make their joint decision. This case explores tactics used by three EE companies to overcome market barriers and capture the tremendous financial potential of the energy efficient market.

Teaching Note: Available to Registered Educators. Please login to view it.
Teaching Points: After discussing this case study, students will be able to:

  • Explain the market potential of the EE industry.
  • Analyze the market barriers that face the EE industry, focusing on the challenge of obtaining financing for EE improvements.
  • Describe how each EE company uses financial and organizational strategy to overcome these market barriers.

Key Topics:

  • Accounting & Finance
  • Consumer Products
  • Energy and Utilities
  • Entrepreneurship
  • Environmental Sustainability
  • Financial Services
  • Government & Policy
  • Innovation
  • Strategic Management

Range Resources: A Commitment to Transparency

June 5, 2011

Range Resources: A Commitment to Transparency  (pdf abstract)

Purchase the full report on Range Resources: A Commitment to Transparency  (Case study #1-429-168) – published  06/2011, 28 pages.
By: Andrew Hoffman, Steve Percy, and Luis Calderon
Description: John Pinkerton, CEO of natural gas company Range Resources, must consider supporting or condemning a new bill passed by Congress that could add more regulations to one of Range’s most effective mining methods: fracking. Pinkerton must consider the benefits and costs of supporting or condemning the new legislation and how it will impact his company.

Teaching Note: Available to Registered Educators. Please login to view it.
Teaching Points: N/A

Key Topics:

  • Business and Society
  • Consumer Products
  • Corporate Social Responsibility (CSR)
  • Energy and Utilities
  • Environmental Sustainability
  • Government & Policy
  • Manufacturing
  • Strategic Management

Honest Tea: Sell Up or Sell Out?

September 5, 2010

Honest Tea: Sell Up or Sell Out? (pdf abstract)

Purchase the full report on Honest Tea: Sell Up or Sell Out? (Case study #1-428-947) – published  09/2010, 22 pages.
By: Lauren Start, Tina Tam, David Weinglass, and Ryan Whisnant, under the supervision of Professor Andrew Hoffman and Arie Jongejan

Description: Are “wide-scale distribution” and “sustainability” mutually exclusive? This case explores this question through the examples of Honest Tea, one of the fast growing companies in the Ready-To-Drink market, and Coca-Cola. Honest Tea faces a challenging decision: whether or not to sell part of its business to Coca-Cola. Honest Tea desires to stay committed to CSR goals and maintain its niche market appeal; however, it needs to expand its distribution network to make a large impact in the mainstream market, grow profitability, and affect positive change by introducing healthy, sustainable products to the beverage industry. This case asks whether it makes sense for Honest Tea to scale up its organic and fair trade beverages, and if the partnership with Coca-Cola is the best move. The case focuses on business strategy, and promotes understanding of the complexities of a sustainable business and the challenges that arise while trying to maintain growth.

Teaching Note: Available to Registered Educators. Please login to view it.
Teaching Points: After discussing this case study, students will be able to:

  • Describe Honest Tea’s business model,
  • Discuss the target market of Honest Tea before and after its partnership with Coca-Cola,
  • Compare alternative strategies Honest Tea may have considered for reaching national scale instead of selling 40% to Coca-Cola,
  • Analyze Honest Tea’s distribution networks and retail channel access prior to and after its partnership with Coca-Cola.
  • Debate the importance of consumer trust in a beverage such as Honest Tea and how that may differ from non-organic, non-fair trade beverages,
  • Describe general consumer trust at a company level,
  • Describe the importance of image and reputation to consumers of corporate conglomerates, such as Coca-Cola,
  • Compare organic food trends in the United States and their implications for both small companies, such as Honest Tea, and large organizations, such as Coca-Cola.

Key Topics:

  • Consumer Products
  • Corporate Social Responsibility (CSR)
  • Environmental Sustainability
  • Innovation
  • Manufacturing
  • Marketing & Sales
  • Strategic Management

Coke in the Cross Hairs: Water, India and the University of Michigan

July 1, 2010

Coke in the Cross Hairs: Water, India and the University of Michigan (pdf abstract pg. 1)

Purchase the full report on Global Lens (Case study # 1-429-098) - published 7/2010, 22 pages.
By: Andrew Hoffman, Sarah Howie Erb ’12, and Grace Augustine
Description: ~~Winner of the 2011 Oikos Casewriting Competition~~ This case can be used in a BBA or MBA course dealing with corporate strategy and sustainability or globalization issues. In short, the case drives a discussion around events in 2006 when the University of Michigan decided to cut its contract with Coca-Cola because of the company’s environmental issues in India and labor issues in Colombia. There are a variety of themes that resonate through the case including, but not limited to: (1) Globalization, information technology and the sustainability agenda, (2) Brandjacking, activism and the decision to engage (3) Social change agents and the dark green/bright green divide, and (4) The University as global citizen.
Teaching Note: Available to Registered Educators. Please login to view it.
Teaching Points: After discussing this case study, students will be able to

  • Determine how to evaluate the success of SOLE’s efforts
  • Explain how and why activists single out an organization / corporation for attention.
  • Explain fair metrics for evaluating success using SOLE as an example.
  • explain the concept of a change agent;
  • evaluate the sources of power exhibited by change agents.
  • Explain the resources and power available to a large organization (like a university) to effect change.
  • Evaluate the evolving definition of sustainability as a business concern.

Key Topics:

  • BRIC (Brazil, Russia,India, China)
  • Corporate Social Responsibility (CSR)
  • Education
  • Environmental Sustainability
  • Globalization
  • International Business
  • Strategic Management

Clorox Goes Green

May 25, 2010

Clorox Goes Green (pdf abstract)

Purchase the full report on Global Lens (Case study # 1-429-087) – published  05/2010, 26 pages.
By: Craig Cammarata, Jennifer Gough, Brian Moss, Ashley Nowygrod, and Nathan Springer under the supervision of Professor Andrew Hoffman and Arie Jongejan.
Description: ~~Finalist and 3rd Place winner in the 2011 Oikos Casewriting Competition~~ In early 2008, Clorox released a new line of environmentally friendly cleaning products called GreenWorks. The product line was the first new brand released by Clorox in 20 years. Following the success of smaller firms such as Seventh Generation and Method, Clorox targeted the niche market of green products, with an estimated market size of $150 million. Unlike the smaller firms, Clorox commanded shelf space at big-box stores such as Wal-Mart, Target, and Costco. Using its competitive advantages in distribution and economies of scale, Clorox priced its GreenWorks products below those of smaller competitors. Surprisingly, Clorox’s market entry did not steal revenue from smaller players, but instead caused the market for green cleaning products to explode. This result left Clorox with several strategic questions.
Teaching Note: Available to Registered Educators. Please login to view it.
Teaching Points: After discussing this case study, students will be able to

  • analyze the strategies Clorox employed to develop and market this product,
  • analyze Why Clorox chose to develop a new brand instead of acquiring an existing brand or Extending existing Clorox household cleaner product lines,
  • compare Clorox’s pricing strategy against those employed by competitors,
  • discuss whether the partnership with the Sierra Club is essential for any additional products or new product lines,
  • determine whether Clorox leverage the success of GreenWorks in other areas

Key Topics:

  • Consumer Products
  • Environmental Sustainability
  • Innovation
  • Strategic Management

Better Place: Charging into the Future?

May 1, 2010

Better Place: Charging into the Future? (pdf abstract)

Purchase the full report on Global Lens (Case study #1-428-946) – published 05/2010, 26 pages
By: Andy Hoffman, Arie Jongejan Erb ’10, James Boomis, Ann Racek, Justin Turner, and Brian Van Abel.
Description: With partnerships and developments in nations across the globe, Better Place seemed poised to succeed in the burgeoning electric vehicle market. Yet Better Place’s proposition relied on a revolutionary shift in the automobile industry. Would the company witness the widespread adoption of electric vehicles in the near future, or would competing technologies, environmental regulation, financial considerations, or other players in the electric vehicle market thwart Shai Agassi’s plans?
Teaching Note: None
Teaching Points: After discussing this case study, students will be able to

  • describe the electric vehicle market,
  • assess teh business model of a Better Place in the market,
  • describe the impact each of these factors has on the success of Better Place: competing technologies, environmental regulation, financial considerations, and other players in the electric vehicle market.

Key Topics:

  • Business and Society
  • Consumer Products
  • Developed Markets / Advanced Economies
  • Energy and Utilities
  • Entrepreneurship
  • Environmental Sustainability
  • International Business
  • Multinational Enterprises (MNEs)
  • Public-private partnerships
  • Social Enterprise & Entrepreneurship
  • Strategic Management

Sherwin Williams: Splashing Into the Low VOC Paint Market

May 1, 2010

Sherwin Williams: Splashing Into the Low VOC Paint Market (pdf abstract)

Purchase the full report on Global Lens (Case study # 1‐428‐993) – published 05/2010, 16 pages
By: Andy Hoffman, Arie Jongejan, Erb ’10, Michael Buday, Erb ’11, Franklyn Cater, Sarah Foulkes, Nagapooja Seeba Om Prakash, Dan Wilson.
Description: In late 1996, Sherwin-Williams CEO John Breen sat at his desk, preparing for another meeting with his board of directors. The room was dark except for a small stream of light that escaped the curtains hung heavily over the windows. Outside, rain was falling onto the company’s corporate headquarters and on the streets of Cleveland. Breen stared at the portraits of company founders Henry Sherwin and Edward Williams that loomed above him on the wall. What would they think about the company’s direction under his watch? Both had invested their life savings to create Sherwin-Williams in 1870. More than 125 years later, a market shift was taking place. Some paint companies were experimenting with new formulations—using different materials to make paint that would send fewer toxins into the air. Would the founders agree with the decisions Breen had made as he guided the company into this new era?
Teaching Note: Available to Registered Educators. Please login to view it.
Teaching Points: After discussing this case study, students will be able to

  • describe whether HealthSpec had the right attributes to succeed in this new and rapidly changing market,
  • analyze whether HealthSpec’s performance demonstrated the viability of environmentally friendly paints,
  • Discuss whether the company needed to invest more heavily in this area before it would see results,
  • compare ways in which the company could improve its reputation,
  • analyze factors relateing to whether Sherwin-Williams should compete in this market,
  • discuss rebranding issues.

Key Topics:

  • Consumer Products
  • Corporate Social Responsibility (CSR)
  • Environmental Sustainability
  • Government & Policy
  • Innovation
  • Manufacturing
  • Marketing & Sales
  • Strategic Management