Case Study - Timberland From Bootmaker to Earthkeeper PDF

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Danmeng Abby Chen Case Study – Timberland – From bootmaker to Earthkeeper Course: BOH4M

QUESTIONS 1. Explain how Jeffrey Schwartz has exhibited ethical behavior Jeffrey Schwartz used a strategy for exit that was ethical and not for his own benefit financially or otherwise. After the company buyout, he exited the company immediately instead of having a sweet deal for himself in place whereby he would gain financially for life after Timberland. In the entire case study, Jeffrey Schwarz exhibits several ethical behaviors by making ethical decisions for the benefit of the company. He also exhibits ethical behavior through the production model adopted by Timberland whereby all many Timberland boots are made with green rubber soles made from almost 50% recycled material. This makes the company to be responsible socially by opting not to use the cheapest materials at the cost of the environment. Jeffrey Schwarz also exhibited social goodness and awareness by ensuring employees are paid for 40 hours to volunteer in their society and also funding social events such as Serv-a-palooza and Earth Day. 2. Describe Timberland’s “Boots, Brand, and Belief” strategy.

This strategy is aimed at making the company’s message true and also maintaining its roots that have been developed over the years. The Boot part stands for Timberland’s roots in the Abington Shoe Company which was bought by Jeffrey Schwartz’s grandfather in 1955. This company only made strong boots and in 1979, they started making shoes. The Brand part stands for the way the company made its way to its level today. In 1986, after Jeffrey’s father took over the company, he incorporated clothing, women and children’s shoes and also accessories to the company’s lineup of products. And finally, the belief attribute was introduced by Jeffrey when he took over in 1998. He believed in environmental stability, social justice and corporate social responsibility. And thus with all the three aspects, Timberland company will always maintain high morals. 3. What social responsibility strategy is Timberland using? Explain. Community Development is one example of social responsibility strategy used by Timberland. The company has taken up this strategy by sponsoring Earth Day events and using recycled bottles of plastic to make some parts of their shoes which have made the world and the environment a better place to work and live in. 4. What competitive advantage does Timberland’s focus on environmental sustainability give the company? State three examples. There are several ways through which the Timberland can gain competitive advantage. In the past years, Timberland used their passion to a sustainable environment to have a competitive edge over their competitors in many ways. One way is to have the advantage is through learning from customers and competitors. Several competitors of Timberland such as Adidas and Nike are continuously being grilled over the poor working conditions of their factories based overseas. Timberland has managed to dodge this factor by planting over a million trees in the past 10 years

in countries where their overseas factories are based and this has improved the quality of air, water and land in the environment where these factories are based. Also, Timberland maintained a competitive edge by keeping themselves close to the current fad. This implies that they invested heavily in environmental sustainability and thus consumers have taken notice of their trend which means they are getting favored over their competitors because they treat the environment better when compared to other competitors.

5. Has the Earth keeping strategy been successful? Why or why not? Yes, it has been successful. Several companies are now aware that they have to be ethical in creation and growing of their brands so as to have success in the long term. Several consumers are also now aware of companies who are sustainable to the environment. The VF Company dominates the industry by owning twenty eight different companies who are top brands in the same sector. Also, Timberland has enjoyed massive success by contributing 20% of all of VF’s revenue in the past quarter. 6. Like many other American manufacturers, Timberland is heavily reliant on offshore production facilities. Provide some examples of the environmental uncertainty Timberland exposes itself to by sending work overseas. Timberland has for long stayed a premier company in using offshore facilities in the name of factories. The company has almost three hundred factories in over thirty eight countries thus making them vulnerable in the topic of environmental uncertainty. Their tact of owning facilities all over the world makes them be in a less risky position because every company has their own

environmental, political and financial position. Thus Timberland are not putting themselves at risk by having all their facilities together. 7. FURTHER RESEARCH VF Corporation being an American corporation that sells work wear, jean wear and underwear. The company owns Fruit of Loom, North Face, Wrangler Jeans and many more brands of clothing which have made revenue amounting to eleven billion dollars in 2013. On their webpage, they say they are focused at making the environment a safer place for future generation in terms of water and air, good climate and healthy forests. VF Corporation ensure their associates are focused in creating sustainable products as well as maintaining social and environmental responsibility in their claim for innovation. If all this information by VF Corporation is true, then I know for sure that the merger with Timberland will help them improve socially and thus they will continue maintaining their Earth keeping strategy. Up to today, VF is using the Earth keeping strategy inherited for Timberland....