evergreen landscaping and maintenance co

8/13/2019 Evergreen Landscaping and Maintenance Co

1/24

Case Study

Evergreen Landscaping and Maintenance Co. Inc. (see Figure 1-1 for Evergreens

history) is a fu-service residentia andscaping fir! offering a"n# garden# and patio

andscaping services and suppies to ho!eo"ners in the su$ur$s of a arge city. In

addition# Evergreen runs a retai nursery and gardening center that ses trees# shru$s#

seeds# seedings# and fo"ers to custo!ers on a cash-and-carry $asis. %s a specia service

to custo!ers# the co!pany ta&es orders for rare pants and trees fro! ho!eo"ners and

professiona andscapers. 'uring the "inter# Evergreen "or&s "ith oca and nationa

andscapers to create sa!pe pans for residentia gardens and patios# order suppies# and

custo!ers# "ith $usiness increasing throughout the su!!er unti eary autu!n.

Evergreens annua saes are a$out !iion. It e!poys *+ peope year-round# !osty

on the retai side (Christ!as is a $ig season) and in panning# $ut the nu!$er increases to

++ during the su!!er !onths. Evergreens panning cyce $egins in 'ece!$er "hen it

paces orders for pants for the co!ing year. Ironicay# "hie everyone &no"s ho"

,uic&y or so"y !ost trees or shru$s gro"# it is a!ost i!possi$e to pace orders !ore

than three !onths in advance. iven the recent unusua "eather a over orth %!erica#

!ay$e thats good. /n the other hand# the Caifornia gro"ers "ho suppy !ost of

Evergreens 0unipers# for instance# pay their cards very cose to their vests. Mean"hie#

Evergreen has to accuratey predict "hat it "ants to or can se each season. /ne year# afrea& stor! destroyed a its poinsettias three "ee&s $efore Christ!as# and no$ody "ithin

1#+++ !ies had any to spare.

Figure 1.1 Evergreens Corporate Genealogy

Case Study age 1 of 2


2/24

Case Study

Evergreens History and Structure

% reativey young co!pany "ith od roots# Evergreens current !anage!ent structure

"as the resut of the a!aga!ation of t"o fir!s. /ne# reen"ood urseries# "as

esta$ished in 1345 as a co!!ercia tree far!ing operation $y Lucien 'oucette# a

Canadian u!$er0ac&. earing retire!ent# 'oucette decided that gro"ing trees# rather

than hac&ing the! do"n# "oud $e a reativey painess "ay to spend his retire!ent

years. %fter his death in 1365# contro of the $usiness passed to his daughter Liy. %t

a$out the sa!e ti!e# 7iia! 8arn"e# a andscape architect# "as oo&ing for a partner

for his practice. 8aving "or&ed e9tensivey "ith reen"ood# 8arn"e entered into a

Case Study age of 2

Pettys Garden Supply(1962)

Mike Petty

Greenwood Nurseries(1973)

Luien !ouette

"illia# $arnwellLandsape %r&itet

(196')

Greenwood $arnwellLandsapin (193)

Lily !ouette*"illia# $arnwell

Stern Lawnare +n,(196)

-.erett Stern

G$L, +n, (1993)Lily !ouette

-.erreen Gardens(199/) Lily !ouette*

-.erett Stern

-.erreen Landsapinand Maintenane (1996)

Lily !ouette


3/24

Case Study

partnership "ith Liy 'oucette to for! reen"ood 8arn"e Landscaping (8L).

:nder this agree!ent# 8L "oud act as a verticay integrated andscape architectura

fir!# providing a the services fro! design through instaation and pro0ect !anage!ent.

For ten years# 8L prospered and $uit a soid reputation in the co!!ercia andscaping

co!!unity for ,uaity products and services. 8L e9panded into residentia and

andscaping and $egan carrying a nu!$er of non-nursery products such as fertii;er and

pesticides. In addition# it $egan providing grounds care services# $ut this service "as

discontinued $ecause of high a$our costs and a sha&e-up in !anage!ent precipitated $y

7iia! 8arn"es retire!ent in


4/24

Case Study

8L "as good $ecause retai garden custo!ers "oud aso $e good a"ncare custo!ers.

=he ne" 0oint venture "as caed Evergreen ardens# Inc.

>y 133*# it "as cear that the organi;ationa u!$rea (Stern La"ncare# 8L and

Evergreen ardens) "as reay one $ig concern? Everett fet it "as !ore i&e a $ig

headache. 8e approached Liy "ith the idea of retiring fro! active participation in Stern

La"ncare# ao"ing the $usiness to !erge "ith 8L into Evergreen ardens# and

$eco!ing sient partner. Liy thought that $ringing together the egacies of four fir!s

into a singe a"n# garden# and andscaping services co!pany "ith 15+ e!poyees and

1 !iion in annua saes "as good idea.

In 133*# Liy sod the nursery $usiness to a young entrepreneur and !oved Evergreen

a"ay fro! its roots and into retai and service. In addition# there "as the agri$usiness#

"ith its i!portant non-financia $enefit of cose reations "ith agricutura researchers#

incuding $iotechnoogy speciaists and the near$y university. >y the spring of 1334#

Evergreen Landscaping and Maintenance opened its doors# and since then $usiness has

$een gro"ing. ro0ections for ne9t year are around 2.5 !iion in saes "ith a net

profit of .6 !iion# 1 !iion of "hich is intended for e9pansion to a second retai

site.

Structure and Competition

Evergreen en0oys the egacy of four different $usinesses (see Figure 1-) and in a "ay

co!petes in four different# though reated# !ar&ets@ gardening# a"ns# trees# and

andscaping. =he e!poyees co!e fro! four different cutures. First# there is the egacy

of ettys arden Suppy A a purey retai operation $ased on Mi&e ettys ove of



5/24

Case Study

gardens. =he there is the a"n !aintenance operation# "hich is sti very !uch the

inheritance of Stern La"ncare and Everett Sterns no-nonsense approach to far!ing as a

$usiness. =he andscaping heritage fro! 7iia! 8arn"e Landscape %rchitecture is

artistic# ,uir&y# idiosyncratic# and very hands-on. 7hie andscaping and a"n care have

$een foded together into contract services under Sid Cavenaugh# they sti dont "or&

cosey together. Finay# there are Liy# Sha"na# and =o!# "ho have $een together for a

ong ti!e# running Evergreen "ith the !e!ory of Lucien 'oucettes tree far! never far

fro! their !inds.

Figure 1.2 Evergreen Landscaping and Maintenance Co. Organisational Structure

In the garden suppy $usiness# Evergreen has at east a do;en oca strong co!petitors

that offer genera gardening suppies@ seeds# toos# fertii;er# $asic andscaping !aterias#

pesticides# and so forth. Most of the oca hard"are stores# !a0or depart!ent stress# and

!a0or grocery stores aso se at east so!e of the products that Evergreen handes.

8o"ever# none of the! offer the range and ,uaity of products that Evergreen has. =hese

non-gardening stores rarey have staff avaia$e to ans"er ,uestions# even during pri!e

Case Study age B of 2

Lily !ouette*President

0&o#as !a.ido*ie President*

perations

4ranes $ar#on*ie President*%d#inistration

$eat&er 5ariad*ie President*

4inane

S&awna -ert*ie President

Sales

0ulley 4o*Pur&asinManaer

5onnie So#erset*Sales Manaer

S.en $aroldson*%ssistant Manaer*

etail

Sid 5a.enau&*%ssistant Manaer*

5ontrats

Nany MNa88*%ountseei.a8leManaer

Prisilla 5&an*5ontroller

Peter Nunn*%ounts Paya8le

Manaer

5andie o88ins*Seurity Super.isor

yron 0odd*uildins

Super.isor

%l La#pert*%ssistantperationsManaer

ill Porter*0ransportation

Super.isor


6/24

Case Study

gro"ing seasons in the spring and su!!er. Latey# ho"ever# the !a0or discount stores

have $een seing gardening toos# seeds# hoses and other high-vou!e ite!s at very o"

prices. Liy is certain that custo!ers shop at Evergreen for infor!ation and then $uy the

products at o"er prices at discount stores.

Fro! Liys point of vie" the andscaping $usiness is a prestigeD service# athough

cuturay the practitioners of ground art are "ords apart fro! the !eat and potatoes of

Evergreen. 7hie there are a!ost t"o do;en fir!s in to"n that offer at east so!e

andscaping services# Liy and Sha"na agree that there are ony three co!petitors that

provide ,uaity service# and even then they have ony i!ited reationships "ith oca

suppiers to ensure avaia$iity and range of reasona$y priced suppies. oc&s# pe$$es#

rairoad ties# and iners for ponds are not avaia$e at a ti!e every"here# and andscape

architects try to for! strategic aiances "ith suppiers so that they arent foued up $y

deays that !a&e custo!ers angry. Evergreen# of course# has that sort of reationship

$uit in.

=he a"n care $usiness co!petes "ith ony one !a0or aternative in to"n# athough there

are do;ens of studentD a"n services that spring up "ith the passage of each verna

e,uino9# ony to "ither and die "ith the second frost# never to $oo! again. La"n

!aintenance is a tric&y $usiness $ecause# i&e dentistry# it thrives on the threat of rot and

decay and reguar reca. Custo!ers are oya# athough they dont understand the

che!icas and appication re,uire!ents. If they did# they coud !aintain their a"ns

the!seves. Evergreen entered this $usiness through the Stern $rothers and has operated

successfuy $y $eing reia$e. %s noted# heathy a"ns !a&e for increased retai

$usiness# and a"n contacts create andscaping $usiness.

Finay# there is the tree $usiness. %though Evergreen no onger operates a nursery# it

does a $ris& $usiness in trees and shru$s. =hey are te!pera!enta# ta&e up a ot of rea

estate# and have to $e &ept aive a year round if they arent sod. 7hie the ive !ateria

$usiness has $een neaty foded into the garden suppy activity# $oth Liy and Sha"na

reai;e that this is reay the heart of Evergreen. ro"ing things A not a"ns# hoses# or

Case Study age * of 2


7/24

Case Study

even andscaping A is the core $usiness of Evergreen. Evergreens ogo is a tree.

Mar&eting trees and shru$s is sti the !ain "ay that Evergreen !a&es saes.

udgets

In the !ost recent co!peted fisca year# Evergreen has saes of !iion# distri$uted

as foo"s (in thousands of doars)@

!ivision Sales E"penses #ro$it

etai +#+++ 14#2B+ #BB+

Landscaping 1#2++ 1#B+ 1B+

La"n care B++ 5++ ++

/ther 1B+ B+ 1++ ' 4B (4B)

%d!inistration 4B (4B)

=ota #+B+ 13#2++ #*B+

otes@ ' incudes research grants to the agricutura coege@

ad!inistration incudes undistri$uted e9penses for !anage!ent.

7arehousing costs are charged to retai. Co!puter costs are

distri$uted according to e9penses.

Esti!ated $udget su!!ary for the current year@


etai #+++ 13#B++ #B++

Landscaping 1#4B+ 1#B+ B++

La"n care 2B+ B+ ++

/ther 14B B+ 1B

' 1B (1B)

%d!inistration B+ (B+)=ota 2#54B 1#2B #3B+

otes@ Evergreen foresees a s!a oss of $usiness in a"n care o"ing

to pro$e!s "ith one of its annua pro!otions. It "i $e ta&ing on an

additiona ' contract# "hich accounts for the increased costs.

etai inco!e is e9pected to rise 1+G percent# $ut profit !argins "ont



8/24

Case Study

change !uch. >ecause of increased attention to overhead costs# the

change to ad!inistration shoud increase $y a$out +G this year.

ro0ections for the foo"ing year@


etai 5+#+++ *#+++ 2#+++

Landscaping 1#3++ 1#B++ 2++

La"n care B++ 5B+ 1B+

/ther B+ + B+

' 5++ (5++)

%d!inistration 2B+ (2B+)=ota 5#2B+ 6#*++ 5#6B+

otes@ %dditiona ' contacts "i dou$e costs. /pening the

second retai store !id-year "i dra!aticay increase saes.

Evergreen Landscaping and Maintenance% Connie Somerset& Sales Manager

%s the saes !anager for Evergreen Landscaping and Maintenance Co.# Connie So!erset

!anages retai saes and contract services. She is heped $y t"o assistant !anagers# one

for the retai side and the other for handing the professiona andscape and a"n

!aintenance trade. Each depart!ent presents uni,ue chaenges $oth to staff and to

Connie. etai custo!ers range fro! "ee&end seed-stuffers to pri;e-"inning rose

raisers. =he custo!er services side is the !ost chaenging# $ecause it deas "ith services

rather than products. Connie has noticed that custo!er reations differ $et"een the t"o

sides i&e night and day. etai custo!ers are in and out A they !a&e repeat visits during

the gro"ing season# $ut they are pri!ariy faceess. ood custo!er service therefore

!eans !a&ing the! fee i&e vaued patrons. Contract service custo!ers are instanty

identified and thin& of the!seves as uni,ue. =heir patronage is $y su$scription or

contract and they i!!ediatey notice any decrease in attention.



9/24

Case Study

Connie is facing a difficut pro$e! "ith contract services. Sid Cavenaugh is the assistant

!anager of contract services. ="o seasons ago# after considera$e !ar&et research# Sid

introduced additiona a"n-care services# incuding a guaranteed a"n green-up (ra&ing#

aerating# tiing# fertii;ing# and seeding). =he service proved to $e popuar a!ong !any

su$ur$an ho!eo"ners intent on out-greening their neigh$ours. :nfortunatey# in order to

!a&e good on the guarantees# Sid had to hire e9tra "or&ers in the spring# and !any of

the! "ere coege students "ho &en itte a$out a"ns other than ho" to operate a

a"n!o"er. =he guarantee "as e9pensive# $ut the "or& "as difficut# too# re,uiring

severa e9tra visits to each custo!er during the spring. Many properties proved

especiay difficut $ecause if de" "or!s# fairy ring# roa!ing neigh$ourhood dogs# and a

very dry eary su!!er. %though the guaranteed green-up progra! ost a!ost 5+#+++

ast year# a progra! that popuar isnt easiy dis!issed A custo!ers had $een phoning a

"inter re,uesting it for this year.

Connie is not sure that Evergreen can afford to offer this service again# $ut she is sure

that they cannot afford not to offer so!ething si!iar. Shes certain# too# that the sa!e

service "oud cost a custo!er a!ost B+G !ore ese"here. %though fe"er custo!ers

"oud !ean ess chance of a oss# !ore custo!ers "oud !ean higher retai saes.

art of the pro$e! "ith the green-up progra! "as the "eather# $ut another aspect "as

!anageria. Connie and Sid "ere $usy "ith other progra!s and products and didnt have

ti!e to pan the guaranteed green-up "e. Connie has noted that there are pro$e!s "ith

!ar&eting and operating this progra!# especiay "ith regard to a$our and avoiding

seing the progra! to peope "ith pro$e! a"ns. 8er $oss# Sha"na Eggert# vice

president of saes# is concerned a$out Evergreens i!age shoud it fai to offer a si!iar

service again. Sha"na aso recogni;es that a propery priced and e9ecuted service "oud

provide a $oost to retai saes. ot surprisingy# heathy a"ns generate !ore saes than

unheathy ones# and it is not inconceiva$e that satisfied custo!er !ay "ant to get so!e

!ore professiona andscaping done# too. >ecause she sees a ot of pro!ise in Sids

ideas# Sha"na is prepared to put so!e resources $ehind $uiding a $etter service and

integrating it $etter "ith Evergreens product and service ine.



10/24

Case Study

e-designing and re-offering the guaranteed green-up service "i re,uire spending a ot

of ti!e "ith ast years data# this years pro0ections and staffing avaia$iity forecasts# and

inco!e and e9pense targets deveoped $y the !anage!ent e9ecutive co!!ittee. Connie

isnt sure she has the ti!e and energy to put into this# $ut she doesnt "ant to !iss a good

thing "hen co!petition in a"n care is so intense. Much of the infor!ation is avaia$e

fro! the co!panys s!a data-processing staff# $ut other data "i $e gathered "ith great

care and at great e9pense $efore any decision can $e !ade.

Evergreen Landscaping and Maintenance% 'ssisting Strategic 'dvantage

>ecause of Connies e9perience as saes !anager "ith the guaranteed green-up progra!#

she has $eco!e concerned a$out the "ay Eevergreen deveops and !ar&ets ne" contract

services. In the past# Evergreen coud rey on its custo!ers needs for a"ns# trees#

shru$s# "as# gardens# and so forth# to drive the co!panys offerings. %nd $ecause it

"as fairy o$vious "hat constituted a a"n or a tree# Evergreen coud afford to $e fairy

a;y in this area. >esides# the retai side of the $usiness# a cash co"# generated the

over"he!ing $u& of inco!e and profit? services "ere seen !ainy as necessary to

!aintain an i!age. o one reay too& services very seriousy unti the guaranteed green-

up progra! ost 5+#+++ ast year servicing its !ost affuent custo!ers.

o" everyone is ta&ing these services seriousy and !any are as&ing Connie to

discontinue a services# not 0ust the guaranteed green-up progra!# and get $ac& to our

$read and $utterD# the retai side and "hat Sid (assistant contract !anager) irreverenty

cas the ho!e far!ing $usiness.D Connie has this to say in private to her $oss# Sha"na

Eggert@

Sha"na# I! not sure I have the courage to say this in front of the other !e!$ers

of MEC# so!e of "ho! have $een "or&ing for Evergreen since I "as a$e to

spe the "ord# $ut I dont see "hy they are so service-shy. Its not as if "e "ere

$etting the store on our services# and even osing 5+#+++ in one year "ont $rea&

Case Study age 1+ of 2


11/24

Case Study

us. I can understand their desire not to stray far fro! our rea $usiness in retai

saes# $ut "hat reay gets !y goat is that they dont see that the ne" vaues# i&e

environ!entais!# re,uire us to $e innovative and# "hats !ore i!portant# stay

coser to our custo!er. May$e "e A and they A "i earn "hat ses fro! cash

register tapes and ,uestions they as& our saespeope in the store# $ut as I see it#

"e A and our custo!ers A get !uch !ore out of a service reationship. 7e find

out "hat they need# "hat their a"ns or gardens are reay i&e# ho" they thin&

"hen theyre not in the store. Custo!ers# on the other hand# can earn ho" to

contro "eeds "ithout da!aging the environ!ent# the $est "ay to co!post#

e9acty "hat can $e recyced fro! their gardens# ho" to use "ater# and so forth.

7ithout these services# Sha"na# "ere fying $ind# or at east in fog.

Sha"nas repy started Connie@

Connie# its too $ad that you dont see things the "ay the others in MEC do.

=heyre not service shy at a. =hey 0ust dont see the vaue in putting effort into

ris&y ventures "hen there is a perfecty good retai $usiness going on. %fter a#

not everyone has your $ac&ground in operations and accounting. %nd "hie they

say environ!entais! "ith their !ouths# they are reay saying not our $usiness

"ith their hearts. For the !ost part# they dont understand it and they fear it#

especiay the poitica side. =heyve seen to9ic "aste reguations decrease our

saes of pest contro products for years. =hey "orry a$out finding peope "iing

to "or& "ith fertii;ers and ta&e the ris& of appying so!e che!ica to a !others

a"n that "i !a&e her &ids sic& and "e get sued. o# theyre not service-shy#

0ust ris& averse. =o the!# a $ade of grass is a $ade of grass# not a chance to

teach so!eone so!ething. =hey "ant Evergreen to continue to $e &no"n as the

reia$e pace to go for gardening and a"n needs# "here the custo!er counts# and

prices are reasona$e. May$e you shoud invest a itte in seeing things their "ay#

Connie.



12/24

Case Study

Connie "asnt satisfied "ith this response. It see!s to her that $usiness opportunities

e9ist# if ony Evergreen "ere ready for the!. >ut Evergreen isnt ready for her !essage

A yet.

=hree years ago# Evergreen got rid of its od cash registers and instaed a co!puteri;ed

point-of-sae (/S) syste!. Connie is 0ust $eing dra!atic here. She &no"s that having

this syste! has !ade her 0o$ !uch# !uch easier $ecause no" she &no"s e9acty "hich

stoc& is !oving ho" fast and can even reate saes to ads# the "eather# and ne"spaper

features.

Connies $ig fear is that retai gardening centers are under assaut fro! at east t"o sides#

and the edge that Evergreen ac,uired fro! its corporate history# the good"i of 8arn"e

and etty# is a pretty thin insuator against the cod co!petitive "inds co!ing fro! !ass

!ar&eters and discounters. Connie sti thin&s of the MEC as $eing anti-innovative#

s!ug# and not reay for"ard-oo&ing# Connie has $een oo&ing at the possi$iities posed

$y the point Aof-sae ter!inas and "onders if there are ne" products there# even ne"

"ays of doing $usiness $y direct !ar&eting or "or&ing "ith discounters. Evergreen# she

&no"s# has its roots in the nursery $usiness. She "onders if it can create ne" products as

"e as ne" services $ased on the enor!ous a!ount of retai data it gets fro! custo!ers

as "e as so!e good pro0ections of trends fro! its contract cients. If Evergreen doesnt

$eco!e !ore co!petitive# it !ight 0ust find its corporate $ranches pruned significanty

$y the co!petition.

Evergreen Landscaping and Maintenance% Supporting Connie

Connie So!erset# saes !anager# her !anager Sha"na Eggert# vice president of saes#

and Sid Cavenaugh and Sven 8arodson# assistant !anagers of contract and retai

services# respectivey# are paying out a dra!a at Evergreen. Connie has noticed a pattern

and has $een dra"ing Sha"nas attention to it for a "hie# $ut Sha"na isnt convinced a

pattern e9ists or there us !uch to $e e9cited a$out. =he pattern sho"s up in ho"

Evergreen pans and# !ore specificay# ho" it reaches concusions a$out ho" it shoud



13/24

Case Study

i!pe!ent pans. Connie has aso ta&ed this out "ith Frances 8ar!on# vice president of

ad!inistration# "ho see!s ess convinced than Sha"na.

=he pattern is that ne" ideas "or&ers and supervisors originate tend to $e ignored# $ut

ideas that co!e fro! the vice presidents or other !e!$ers of the !anage!ent e9ecutive

co!!ittee (MEC) (see Figure 1-5) tend to $e seriousy considered and "e supported.

either source of ideas has an i!pressive trac& record. Connie is a"are of ony one

grassroots ideas that caught the attention of the MEC in the past three years# the

guaranteed green-up service. =his service ost a $unde ast year. =he e9ecutive

co!!ittee started a ,uaity !anage!ent progra! that see!ed pro!ising# $ut their

suggestion for a unified reporting sche!e hit a snag "hen the consuting fir! hired to

i!pe!ent it discovered that the paper"or& $urden "oud &i contract services and

ha!per custo!er reations. Evergreens reputation for rapid response to custo!ers "hie

!aintaining focus on the environ!ent "as endangered $y this !ove to syste!ati;e

reporting patterns.

Figure 1.( Evergreens Management E"ecutive Committee


Lily !ouette*President

0&o#as !a.ido*ie President*

perations

4ranes $ar#on*ie President*%d#inistration

$eat&er 5ariad*ie President*

4inane

S&awna -ert*ie President

Sales

5onnie So#erset*Sales Manaer

0eddy "is&art*Plant Manaer

Prisilla 5&an*5ontroller


14/24

Case Study

Connies o$servations e9tend to ho" the MEC "or&s in genera. %s the !ost 0unior

!e!$er of the MEC# Connie finds it difficut to transate ideas fro! a$ove into actions

for her "or&ers? at the sa!e ti!e# she doesnt have a "ay to convince MEC to ta&e action

on "hat her staff sees as threats fro! co!petitors# the environ!ent# and socia trends.

Connie thin&s this is $ecause MEC focuses on ong-range panning (t"o years or !ore)

and reasons $ased on finances. Connie has noticed that data are scarce in !ost MEC

discussions and that severa peope# particuary Frances 8ar!on and Sha"na Eggert# shy

a"ay fro! data-$ase discussions. /n the other hand# 8eather Cariad reves in nu!$ers.

>ecause of these various personaities# the MEC is not effective and tends to retrace steps

repeatedy# co!ing $ac& to things ong after Connie is sure they have $een handed.

=hus# "hie i!portant (to Connie) pro$e!s are ignored# pet pro0ects and peeves are

revisited over and over. =he MEC# "hich !eets "ee&y# doesnt see! to $e an effective

voice# ear# or ar! of Evergreen. %though it specificay handes $usiness proposas that

arise "ithin MEC or fro! e!poyees or custo!ers it doesnt see! to $e a$e to create an

effective pan to respond to "hat Connie sees as i!peratives for reativey s!a and

vunera$e retai fir!s such as Evergreen. It see!s especiay incapa$e of handing

crises i&e the guaranteed green-up service deficit it see!s !ore a$e to respond to

panned pro$e!s such as $udgeting or seasona hiring poicies than to rea crises that

threaten the co!panys i!age or a$iity to stay in $usiness. 7hie everyone see!s

co!!itted to certain deas (for e9a!pe# everyone is &een to advance environ!enta

causes "ithout the usua corporate $otto!-ine argu!ent# pri!ariy# of course# $ecause

Evergreen is in the environ!ent $usiness)# the process doesnt see! to $e professiona#

syste!atic# or reia$e.

In the face of these pro$e!s# Connie finds that going to the MEC !eetings is

increasingy frustrating. 8er reative youth (shes 3) that "or&ed for her "hen she "as

an energetic# environ!entay conscious M>%# see!s to $e i!peing !ore i!patience

than "isdo! at these !eetings. Connie is "ondering "hat &ind of support shes going to

need to !eet the chaenges she faces "or&ing "ith upper !anage!ent and especiay



15/24

Case Study

"hat she shoud $e doing a$out the guaranteed green-up pro$e! to hande it not and

prevent pro$e!s i&e this fro! happening in the future.

Evergreen Landscaping and Maintenance% usiness #rocesses

Connie So!erset# saes !anager# "or&ed for Sha"na Eggert# vice president for saes# for

five years and in that ti!e !ade Evergreens !ar&eting syste! hu!. =uey Fi9 is the

purchasing !anager "ho handes the paper"or& and does so!e $uying. =ueys $een in

the $usiness for !ore than + years and reay &no"s gro"ing things. 8is contacts in the

industry have &ept costs and deivery ti!es do"n. =uey runs his o"n shop and

considers Connie to $e a good custo!er. Sid Cavenaugh# assistant !anager of contract

services# and Sven 8arodson# assistant !anager of retai# are $oth recent university

graduates "ith itte e9perience in the a"n# andscaping# or gardening $usiness# $ut they

are co!petent organi;ers and face chaenges head-on. So!eti!es they have good ideas#

$ut as the guaranteed green-up progra! de!onstrated# good ideas arent a"ays enough.

Connie has had to &eep cose ta$s on their innovations.

Evergreen "or&s very !uch i&e a hy$rid retaiHconsuting organi;ation. /n the retai

side# Connie !a&es pro0ections of "hat "i se and =uey oo&s around the "ord to

find these ite!s. Connie runs pro!otions and set prices# $oth of "hich she fre,uenty

ad0usts as inventory eves and the need to !eet saes and profit targets $eco!e !ore

i!portant at different ti!es of the year. Svens staff "or&s to attractivey and efficienty

fi the retai space "ith the products. Most products are ordered through "hoesae

deaers and gro"ers are contracted $y =uey. So!eti!es an opportunity arises "hen a

vendor is pro!oting a ne" product# and Connie !a&es additiona shef space avaia$e if

she thin&s the product "i $oost saes of reated ite!s or $ring in ne" custo!ers.

Custo!ers generay oo& at the sheves or "ander through the greenhouse to find ite!s

they "ant. >ut often custo!ers re,uest ite!s that are !ispaced# out of stoc or 0ust

invisi$e in a that greenery. Cer&s consut printed inventory ists that are updated

"ee&y during the year and every other day# in theory# during the $usy seasons. In fact#

ho"ever# these updates are perfor!ed far ess fre,uenty. =his is a pro$e! Connie is

Case Study age 1B of 2


16/24

Case Study

a"are of $ut is not handing right no". She &no"s that &eeping inventory up-to-date "i

re,uire and onine syste! integrated "ith the cash registers. >ut Evergreen has ony 0ust

instaed point-of-saes (/S) ter!inas to hande saes. 7henever a retai sae is !ade#

saes infor!ation is generated a$out the ite!# date# vou!e# and price. riscia Chan# the

controer# handes the !oney accounting# and % La!pert !a&es sure the ive pants

inventory is &ept aive and avaia$e.

In Sids operation# things are ess voatie# athough a ot of paper"or& !ust $e done.

Custo!ers are found through advertise!ents in oca ne"spapers# ne"spaper

suppe!ents# !aga;ines# the yeo" pages# or through "ord of !outh. Sid usuay

negotiates the contracts hi!sef# athough "hen $usiness increases he gets hep fro! one

of the architects he e!poys. art of each $id is an esti!ate of !aterias. 7hen

Evergreen "ins a $id# a copy of this esti!ate is passed to =uey# "ho verifies

avaia$iity# prepares the necessary order for!s# and aerts the operations !anager to

prepare for stoc&ing ite!s. % doesnt have space to store arge ite!s such as fountains#

$ig trees# and $ouders# so he "ants to !a&e sure these ite!s are deivered to the site

instead of to Evergreens "arehouses and greenhouses. 8o"ever# deivery dates are

a"ays appro9i!ate# and "eather can pose pro$e!s. S!aer ite!s are ess of a

pro$e!# $ut finding space and# !ore i!portant# putting ite!s "here they can $e

retrieved are concerns % has. 8is assistants !ove a the stoc& using truc&s that >i

orter# transportation supervisor# contros# so there is a potentia for friction "hen there is

a rush or a deay $ecause of "eather or custo!er "avering. >i needs his truc&s to !ove

stoc& to custo!ers# not to !ore trees around the greenhouse. /perationa difficuties

"ith stoc transportation# and disposa are constant chaenges that =ho!as 'avidoff#

vice president of operations# has faced since his days "ith the tree far!.


17/24

Case Study

handes !oney and Frances 8ar!on handes everything ese. 8eathers operation is a

traditiona accounting function invoving accounts receiva$es (!osty fro! contracts and

credit card $uyers)# accounts paya$e# and cash fo" and invest!ent !anage!ent.

Evergreen has a ot of !oney tied up in inventory at crucia ti!es of the year# and its pan

to upgrade and e9pand the retai store# incuding opening a second store this year# has

given 8eather and riscia a ot to thin& a$out.

Frances 8ar!on# on the other hand is concerned "ith the e!poyees. =here is a high

turnover a!ong the seasona staff# and she !ust hande e!poyee $enefits and a great

dea of interna co!!unication. 'uring the spring and eary su!!er# ife is frantic at

Evergreen# and Frances has responsi$iity for &eeping e!poyees on trac !otivated# and

feeing re"arded. She aso "or&s cosey "ith riscia and Connie on pu$ic and

co!!unity reations. >ecause Evergreen is reay three $usinesses (andscaping# a"ns#

and retai gardening)# there is a need to integrate the e!poyees# the "or and the

products# and responsi$iity for this fas to Frances. Finay# Frances is concerned "ith

e!poyee deveop!ent# so she conducts an annua perfor!ance appraisa e9ercise ai!ed

at updating s&i profies (she stresses the i!portance of !aintaining this data) and

reco!!ending training. Frances puts on a nu!$er of in-house training sessions#

especiay for seasona "or&ers# and she send a nu!$er of !anagers and supervisors to

!anage!ent training courses each year as appropriate to their 0o$ descriptions.

erfor!ance in these courses is noted in e!poyee fies aong "ith 0o$ perfor!ance

appraisa data.

=he fina !e!$er of the MEC is =ho!as 'avidoff. =o! has $een "ith Liy since the

eary days of the co!pany and handes anything to do "ith operations and the physica

pant. >yron =odd is the supervisor of a $uidings# a of "hich re,uire constant

!aintenance and panning. 8igh hu!idity re,uired for the pants !a&es !aintenance a

night!are# and the gass greenhouses are fragie and targets for vandais!. Candice

o$$ins handes security. She has four security guards "ho patro the $uidings 2 hours

a day? they aso prevent piferage and try to &eep pants fro! $eing crushed. Carts used



18/24

Case Study

$y custo!ers are so!eti!es stoen# and hardy a "ee& goes $y "ithout a chid getting

ost a!ong the annuas or a custo!er getting scratched $y a cactus.

Evergreen is a co!pe9 operation si!utaneousy engaged in !any processes. Connie

&no"s she cant se "ithout &no"ing "hats happening "ith inventory# in the

greenhouses# in the par&ing ots# in the $an& accounts. Everything see!s tighty

interconnected to her and a ot !ore chaenging than the hard"are store she "as used to.

Evergreen Landscaping and Maintenance% !istri)uting #rocessing

Evergreen is physicay distri$uted across severa sites (see Figure 1-2). =he !a0or retai

ocation "as opened in 1334 and contains the saes area (the storeD)# the head,uarters

offices of the vice presidents# and the ad!inistrative functions. %s saes !anager#

Connies office is ocated cose to the store on the ground foor? Svens office is ne9t to

Connies. Located i!!ediatey ad0acent to the store is the greenhouse# "hich is open to

custo!ers during the spring and su!!er. ants to $e sod ive at the $ac& of the

greenhouse and are caed the ive !ateria inventory.D reenhouse "or&ers tend these

pants# giving the! oving care and paying ne" age !usic over the % syste! (for

sensitive# ne"-age pants).

%$out a five-!inute "a& a"ay is the "arehouse# "here retai ite!s other than pants are

stored. Its essentiay a uonset hut# purposey unattractive and re!oved fro! the retai

areas $ecause !any of the ite!s &ept there are corrosive or poisonous. =his $uiding is

carefuy guarded $y security supervisor Candice o$$ins and her poiceD force.

Located on the second foor of the "arehouse# for poitica as "e as practica reasons#

are the andscaping offices. =hey are &ept near the andscaping !aterias for the $enefit

of the cients. >ecause the andscape architects e!poyed or contracted $y Evergreen

thin& of the!seves as a$ove the co!!ercia fray# they i&e $eing apart fro! the $usiness

office and the store. Sid Cavenaugh has his office there.



19/24

Case Study

=ransportation vehices are house in the ot $eyond the "arehouse and >i orter

(transportation supervisor) par&s hi!sef there. ="o for&-ift truc&s# t"o pic&up truc&s#

three vans# a arge tree transporter# and seven speciay outfitted a"n !aintenance

vehices are par&ed there. % e9cept the a"n !aintenance vehices ("hich are

converted pic&ups) are used to !ove stoc& to and fro! the "arehouse and greenhouse

and to and fro! contract custo!er sites.

Figure 1.* !istri)ution o$ Evergreen Functions

/ne other office is four !ies a"ay at the %gricutura Coege. 8ere# Evergreen

sponsors a research pro0ect on "ays to increase the over-"inter surviva rate of co!!on

garden !aterias such as trees and shru$s to cut osses.


Landsapin ie"are&ouse 2

Li.e Material SalesGreen&ouse

Li.e Material +n.entoryGreen&ouse

+n.entory Storae"are&ouse 1

-.erreen $: iesetail 2

Sales %reaetail 1

esear&%G 5ollee

0ransportationLot


20/24

Case Study

Liy has pans for three i!portant changes at Evergreen (see Figure 1-B). First# she "ants

to increase her research activity $y starting t"o !ore pro0ects. /ne "i $e financing a

pro0ect in the $otany depart!ent at the oca university. Evergreen sponsors a graduate

student to e9a!ine the co!!erciai;ation possi$iities of a nu!$er of "eed contro

techni,ues that "i significanty reduce the ,uantities of her$icides no" used. Evergreen

is aso interested in setting up a strategic aiance "ith a $iotech fir! to deveop disease-

resistant strains of shru$s and trees. So!e !e!$ers of MEC thin& this is a "aster of

good !oney# $ut Liy &no"s that the Evergreen sta!p "i !ean e9cusive o"nership of

procedures and genes. If the students and the a$ are successfu# these rights "i !a&e

Evergreen !oney in icense fees even during the so" $usiness !onths.

Figure 1.+ #lanned !istri)ution o$ Evergreen Functions

Case Study age + of 2

;ni.ersity

Landsapin ie"are&ouse 2

%G 5ollee

Li.e Material SalesGreen&ouse

Li.e Material +n.entoryGreen&ouse

+n.entory Storae"are&ouse 1

-.erreen $: iesetail 2

Sales %reaetail 1

0ransportationLot

Seond etail Site rokers ie

esear& La8


21/24

Case Study

Second# =uey Fo9 (purchasing !anager) is nearing retire!ent# and Liy has $een

e9poring strategic aiances "ith a $otanica $ro&er# indar opa of ortand# /regon.

indar has pro!ised his custo!ers that he can get the $est possi$e prices and !ore

certain deivery ti!es through his Internet-$ased infor!ation toos. =uey has reied on

"it and contacts. indar has co!pied an up-to-date isting of !ore than 5#+++ gro"ers

of ive !aterias and 6#+++ suppiers of gardening# andscaping# and horticutura

!aterias and toos across the "ord. 8e is directy connected "ith !any of the! via the

Internet. indar charges a fi9ed !onthy fee pus a percentage of the order guarantees the

deivery ti!e and conditions and the o"est prices.

Finay# after 5+ years and severa incarnations# Evergreen is ready to open up a second

store. Liy has found a suita$e $uiding site on the other side of to"n# "here a ot of ne"

housing is going in and there "i o$viousy $e a good !ar&et for e9isting products and

services. Evergreen "i $e the ony such store in that part of to"n# $ut Liy &no"s that

"ont ast for ong. =he second retai store "i $e constructed during the autu!n and

"inter at a cost of cose to 1 !iion# $ut Liy has oo&ed at the figures and is confident

that the e9pansion "i pay off "ithin t"o years.

%though Liy hasnt considered this yet in great detai# a critica co!ponent of the

e9pansion pants "i $e the !oderni;ation of Evergreens infor!ation syste!s.

Currenty# there are four !a0or syste!s "ith itte connection $et"een the!. /n the

retai side# si9 /S ter!inas act as cash registers and are connected through a L% to a

!inico!puter. =he retai syste! &eeps trac& of the hard goods inventory and produces

daiy reports for Connie on saes $y category. =he accounting syste!# separate fro! the



22/24

Case Study

retai syste!# is used $y riscia Chan to &eep the $oo&s. riscia has a !icroco!puter

syste! for accounting "or& and to do forecasts. =his syste! is tied into the !ini so that

she can get access to the retai date# $ut she finds this cu!sy. Specia orders are handed

through the retai syste!. >oth of these syste!s run on the I>M ISC *+++ co!puter

housed in the 8 offices on the second foor and are run $y a staff of four (see Figure 1-

*).

=he $u& of the rest of the ad!inistrative data processing is handed on a !icroco!puter

in Frances 8ar!ons office $y her ad!inistrative assistant# Ji! >ac&er. Frances uses

severa off-the-shef pac&ages to &eep personne infor!ation# to create and fie !e!os#

and to do so!e graphics. Most of the e9ecutives and their assistants aso have

!icroco!puters# a!ost e9cusivey devoted to "ord processing. =he e9ecutives do not

access operating data directy $ut have their assistants trac& do"n the facts !anuay

"hen needed. =he vice president of finance# 8eather Cariad# "ho so!ething thin&s she

shoud $e !ore pugged into the financia data# uses her co!puter !osty to do

spreadsheet pro0ections using data copied $y riscia onto a dis&ette. %!ong the

!anagers# Connie is the !ost adventurous. She has $een investigating a variety of

pac&ages# especiay e9pert syste!s for product deveop!ent and saes !anage!ent.

=he fourth syste! is a andscaping C%' syste! $used $y the artistsD on the second

foor of the "arehouse. =hey use a s!a net"or& of three S%C stations connected

into a po"erfu !inico!puter that !aintains eectronic dra"ings for cients. =his

architectura data$ase has proven usefu in the past. Its a ot faster than s&etching

dra"ings $y hand for proposas and !a0or $ids and the designs can $e revie"ed and

reused if si!iarities are discovered $et"een pro0ects. /ne of the !a0or advantages of

this sort of syste!# $uit around a co!!erciay avaia$e pac&age# is that it can produce

a $i of !aterias than can $e printed out and incuded "ith a proposa. % "ea&ness in

the current architecture is that this $i cannot $e auto!aticay for"arded to the

"arehouse or the greenhouse to get avaia$iity and pricing infor!ation. =he C%'

syste! aso cannot $e used to dra" up contacts# so a standaone !icroco!puter is used to

$oierpate proposas and contracts and print the! out on specia for!s.

Case Study age of 2


23/24

Case Study

=he focus of the rationaisation is to integrate the data $etter# to provide a $roader range

of appications to !ore !anagers# to support panning !ore thoroughy and further do"n

the !anage!ent chain# to give everyone "ho need it access to a the operating data# and

to integrate the contract and retai sides $ut sti provide fe9i$iity and freedo! to the

operating divisions.

Figure 1., Systems 'rc-itecture at Evergreen


+S5 6


24/24

Case Study

Case study adapted from: Managing Small and Medium Sized Enterprises (1998),

University of in!olns"ire and #um$erside%

evergreen landscaping and maintenance co

Documents