DESSO (A) – Taking on the Sustainability Challenge Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

DESSO (A) – Taking on the Sustainability Challenge Case Solution

1. What was the difficult situation that the company found itself in the early 2000s?

Answer 1:

The company's long-term business of selling carpets, carpet tiles and the sport pitches to its all key stakeholders, which includes customer, suppliers, distributers, etc. The company was in its rapidly growing stage through mergers, especially with Esco Inc that used to produce needle-felt carpets. In the 1980s, the company expanded its production and developed new products in other various sectors such as hospitals, marine, and aviation industries.

Then a drastic change occurred that led to eliminating the name of DESSO from the stock exchange list and in the same year the DESSO was obtained by Armstrong World Industries that used to produce innovative designs of floors and ceilings. The company used to include asbestos (heat resistance fiber mineral silicate) insulation in many of its products. As, the Armstrong was facing court battles before the acquiring of the DESSO, the insulator, and other manufacturer filled the case against the Armstrong because of injury claims received from customers.

By December 2000, the financial performance of the company was diminished, and profit margin was declined, and there were limited resources for new investments in products. The company decided to sell its textile and hard flooring solution in order to raise capital.

2. What was the strategic vision Stef Kranendijk (new CEO) developed after the change in ownership?

Answer 2:

After the dramatic change, the DESSO resulted in decreasing in the sales by from 130 to 60, and also the false news spread that the Armstrong is selling its both operations. Then the one of the board member named Stef Kranendijk became the CEO of the company who helped the DESSO in its hard time. He accepted this challenge enthusiastically by establishing the strategic vision to make the DESSO as one of the leading management buy-in deal. Along with this, to hire the new, skilled and enthusiastic experienced personnel in all of its running operations. Finally, he used to develop innovation as a first strategic priority that focuses on the technology development.

3. What is the key driver of DESSO’s innovation strategy?

Answer 3:

The DESSO is trying to develop profitable, sustainable and innovative business model, which focuses on market advanced new technology and innovative strategy that benefits the customers. The key driver of DESSO's innovation is deciding to reinvest in Cradle to Cradle model that created the large portion of EBIT from 2007 to 2010 that provides complete sustainability in the use of material, energy & water and customers were highly convinced with this product. It is the biggest challenge of the corporation; the company should take reasonable steps to make the decision on the right path. The company’s innovations are creativity, functionality and Cradle to Cradle.

The company focusing on volatile organic components (VOC) that can be easily disassembled and it is developed by the DESSO Air Master carpet that is designed to catch the dust that prevents from damaging health issues such as lungs and cardiovascular system...............

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