A case study in strategic thinking and planning is presented. The case is based on the actual situation created by the catastrophic fire at Malden Mills in 1995 and the subsequent problems faced by its management and ownership. While used widely as a case study in business ethics, the author presents the situation as a case in the strategic process. Therefore the actual Malden Mills case has been adapted by the author to this purpose using a fictitious enterprise, persons, and locale based on the Malden Mills story. Learners will be presented with an urgent business problem. Decisions will be required in both the strategic and operational modes; plans will have to be formulated. The expected outcome is a viable strategy for the future of the company. Learners will be expected to apply knowledge of strategic planning models, decision processes, and an understanding of the business environment.
The work is presented as an actual case study that can be incorporated into academic courses or training programs teaching strategic thinking and plan development. A brief sample of a learner-generated case analysis is provided.
The case for Analysis: Catastrophe or Opportunity?
Table of Contents
As we enter the winter months, Family Fabrics Corporation occupies an enviable position. Owned and operated by the Farnsworth family, the company has developed and marketed a unique product, made exclusively of recycled materials that have been made into an outstanding fabric for cold-weather gear. The product is known as “ArcticCloth”. The fabric is warm, lightweight, and available in an infinite variety of colors. The product has proven so successful that major outdoor clothing manufacturers and designer houses have purchased the product and demand is sky-high. This is a high point in the history of Family Fabrics. The company is based in Farnsworth, Massachusetts, an old “mill town” in New England where it has been a pillar of the local economy for over one hundred years. In fact, without the resurgence of the business being driven by the new product, it’s likely that the town itself would be a ghost town. Many similar towns in the region have suffered as the textile industry declined due to technological advances, foreign competition, and a variety of economic factors. As those towns struggle to fill vacant factories and provide basic services to the remaining residents, the success of Family Fabrics sustains the town of Farnsworth. Family is far and away from the largest employer in town, engaging close to two thousand employees, over ten percent of the population of the town. The Farnsworth family is seen by some as being the personification of the town itself. In fact, it might be said that “as family Fabrics goes, so goes the town.” With the success of ArcticCloth, things are going rather well for Family Fabrics, the town of Farnsworth, and the Farnsworth family. It’s been a long road back, but it looks like the town will evade the fate of its neighbors.
With all the good things happening, there are still some problems for Family Fabrics. Jacob Farnsworth (known in the community simply as “Jake”) has been heading up the family business for close to thirty years. Keeping the company alive during the tough times of the textile industry has given him a real education in all facets of the business. He is a clever financier and has arranged and maintained excellent relationships with bankers and other lenders, managing to keep the business “in the family.” He has also masterminded the development of ArcticCloth, knowing that a product like that could give Family Fabrics a distinct competitive advantage in the textile marketplace. He also knows that while Family holds a patent on ArcticCloth, his competitors will be seeking to develop their own versions of his wildly successful product and chip away at that advantage.
As the Farnsworth family legacy goes back to the founding of the town in colonial times, Jake is keenly aware of his and his family’s position. Farnsworth’s have served as the First Selectman of Farnsworth on several occasions. Jake himself is almost always consulted by the Town Council on important municipal matters. He understands the town’s dependence on the ongoing success of the company. He is also aware of the intense competitive pressures of the textile industry. He knows that standing still and resting on his company’s current success does not ensure the future. He’s thinking of the next move. He’s decided to hire a consultant to help develop a strategy for the future and after a lengthy and careful search, he has decided to hire you. You’ve arrived in Farnsworth to meet with Jake and his management team to begin the framework of the plan.
As you sit in your hotel room preparing for tomorrow’s meeting, you hear quite a commotion outdoors. Sirens and alarms are blaring and you go to the window. It’s nighttime yet the sky has a bright orange glow and you see thick clouds of smoke. Clearly, there’s a major fire and it appears close by. You venture out and follow the noise and it leads to the factory of Family Fabrics, about two blocks away from your hotel. The entire factory is ablaze, nothing can save the nearly century-old building or its contents. Amongst the crowd of stunned onlookers, you notice the one person you know…Jake Farnsworth. You know your first contact with him at this horrible moment is going to be awkward, perhaps even painful. Yet suddenly in the mass of people milling about, you find yourself next to him. Before you can even say anything Jake turns to you and says “We’re still meeting tomorrow…it’s more important than ever. This is NOT the end.”
The preceding facts and scenario provide a base for developing a strategy for Family Fabrics. Your role as a consultant is to guide Jake Farnsworth and his management team as they attempt to deal with this situation. You are expected to assist in providing a framework for developing an effective strategic plan. Use your knowledge of strategic thinking processes and tools from your experience and academic work to create:
N.B., Your analysis is to be completed as though you were approaching the problem “live”, that is using business conditions and knowledge as those conditions exist today. Although the case is adapted from historical events, the learner should approach it in “real-time.”
In this case, you are asked to be playing a lead role in the development and execution of a strategic thinking process. In order to be successful in that role, you will have to consider several things. The situation calls for an immediate response to the catastrophic event. Look for ways to suggest methods to respond to and stabilize the situation. Consider the main players and the roles in the case. What actions can you recommend immediately?
Next, the longer-term considerations will come into play. Now you should shift your focus to the bigger picture; where can the company go from here? How about the town? How about the Farnsworth family? How about Jake? Your role will be to guide Jake and his colleagues through a process of strategic thinking that begins to answer these questions. Paying particular attention to questions of stakeholder identification, internal and external analysis of the organization, and understanding the ultimate goals of all concerned, can you help create a plan to begin the “journey to recovery” in whatever form that may take? Readings and resources are suggested in the list to follow to help you with methods for creating items vision and mission statements, core principles, etc.
Finally, the results of the two efforts above will guide you in the development of the operational plans necessary to achieve the “big picture.” Here you’ll concentrate on issues such as core competencies, competitive advantage, creating critical goals, and directing action plans. Once again, readings and resources are suggested to guide you through this process. Suggested Readings and Resources (Arranged by topic)
Formulation of a Strategic Plan and Strategic Thinking Process:
The first critical action will be the assembly of the required team that will participate in the process. Bryson (2011) in particular gives excellent guidance in understanding the constituencies that must be represented although the other recommended sources are very helpful in understanding the process of proper stakeholder analysis. However, the unique relationship that Family Fabrics has with the Town of Farnsworth brings many of Bryson’s points about non-profit coalitions into play. Jake Farnsworth is not only the patriarch of his family, he’s the head of the business and the town’s leading citizen. It is critical for him to understand his stakeholder relationships in order to make effective business decisions. Ultimately, the goal of these deliberations is to guide Jake and his colleagues to a set of core principles that will guide the actual formulation of a strategic plan for the future of Family Fabrics.
The next action will be the actual planning process itself. Guided by the principles created in the preceding actions, the planning group as finally constituted will conduct a formal strategic planning exercise, aimed at developing a vision and mission for the company that is consistent with the values as determined. By using the techniques found in Thompson, et al, (2010), Hill & Jones (2010), and Bryson (2011), we expect the company can now develop a long-term plan for recovery from the fire. It is expected that significant attention will be paid to the use of Strengths/Weakness/Opportunities/Threats/Constraints (SWOT/C) analysis in this phase. It is likely that the overwhelming success of ArticCloth is seen as definite strength in the marketplace, but also as an attractive target now that users will be forced, at least temporarily, to seek substitute products. The planning group should investigate every possibility for continuing the company’s market presence, through interim measures such as licensing, subcontract manufacturing, etc. The question of core competencies will be addressed as we look at the knowledge base of the displaced workers. Competitive advantage will be a focus as we consider responses and threats by other firms. The ultimate question to be decided will be whether to continue operations or not and if continued should such operations be in Farnsworth? Should the operations be moved? Should the process be technologically enhanced, possibly at the cost of jobs that existed before the fire? The process will be combining elements of emergency operations with answering long-term strategic questions. This is not inconsistent with the picture painted by Wells (1998) when he argues that operational planning and having “business plans” can work as a strategy, even in the absence of preceding the development of vision and values.
As stated previously, the situation, in this case, is unique and carries many implications beyond the immediate business questions. Ultimately, it illustrates the impact of the importance of clearly developed and articulated core principles in the formulation of effective strategic plans. As a consultant to Jake Farnsworth and Family Fabrics, my efforts will be directed at guiding them through the process of strategic thinking, first by helping to articulate these core principles and then building a strong business plan around them.
Read the case and as you do, understand that your role is to be the “consultant(s)” that the case refers to. You were coming to the company to work on strategic planning but now things have changed dramatically. Your job is to formulate and present a viable strategy for the company and in doing so, integrate as many business principles and methods as you feel necessary.
Explain These Please From the Case
We are the best assignment service that can satisfy student’s demands in different scientific fields. We perform tasks of any kind. Our specialists provide diverse custom assignment writing services to students from all over the world every day. You can contact us for assistance with:
The list is far from complete!
Representatives of our student assignment service are connoisseurs of the peculiarities of presentation in regards to academics. Your college assignment will never turn out an untoward surprise! Whether you need research for high school, an undergraduate program, or a Master’s or Doctoral degree, you will get exactly what you are looking for to sound smart and well-informed.
If you are pressed for time, request our experts!
We are your academic saver. It is a perfect solution for people who need academic help but has no professionals nearby to provide it. Just redirect your home tasks to us and forget about any educational issues. With us, you will get 100% plagiarism-free content delivered on time by an experienced specialist in a particular field.
When you order professional assignments here, you will get:
Original custom papers. We value your academic reputation. Just as well, we value the years of thorough work on our reputation for reliability and never compromise the originality of delivered papers. We will never endanger both. Every custom assignment is written from zero – the only possible first stage of work on the order is research. We apply the latest plagiary checking tools on the final stage, so plagiarism has no chance to emerge in your college assignment writing.
Control over the order completion. To make the process of collaboration comfortable and efficient, we offer our clients to choose the writer themselves taking into account all the requirements and the budget. For you to save nerves, having entrusted your fateful task to some qualified “stranger”, we enable communication with the assigned writer in the process of order completion.
Affordable assistance. . help with college assignments. We are eager to help you start investing in your career growth today. That is why our service is so affordable. We don’t charge to pay for the latest marketing tricks or advertisements – we choose the best experts in the labor market who write great custom papers in any area, level of complexity, and time frame. Our client’s grateful feedback is a top advertising trick.
On-time delivery. The quality of a paper is only valued when it is delivered within the determined time frame – you will get your custom assignment writing service in time and have a couple of days to revise it and ask for changes in case they are needed. And you will still have time to learn the material.
Protection. We value your trust and take all measures needed to keep your private and banking details safe. We offer only well-tested payment methods. Due to the system of encryption and protected servers, no third party can have access to your data.
Custom support 24/7. We do our best to make the process of collaboration comfortable for the customer. Our “write my assignment” help is always here for you to provide a solution to your problems, give you a prompt answer to any question, and offer clarification as to any issue related to the services. Feel free to contact us anytime!
If you feel that your dissatisfaction with student life is growing every day and you just feel exhausted, don’t hesitate to change the situation for the better today. Order your first assignment from reliable custom assignment services today to evaluate the advantages.
Having seen the difference once, you won’t want to go back to your previous lifestyle. You deserve to find fulfilment in other spheres of your life, have hobbies, spend time with close people but continue making progress. It is possible when you have a professional helper. Don’t put off your life for someday after graduation!
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more