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• 1. [Article] Burgerville: Sustainability and Sourcing in a QSR Supply Chain

  Jack Graves is considering buying chicken. More precisely, Jack is considering where to buy chicken. He needs to make a recommendation to the purchasing team soon, and the decision is complicated. Jack ...

  Citation × Citation Citation Abstract Copy Title: Burgerville: Sustainability and Sourcing in a QSR Supply Chain Author: Brown, Darrell, Berko, Phil, Dedrick, Patrick, Hilliard, Brie, Pfleeger, Joshua Year: 2011 Jack Graves is considering buying chicken. More precisely, Jack is considering where to buy chicken. He needs to make a recommendation to the purchasing team soon, and the decision is complicated. Jack is a long-time employee of the Burgerville restaurant chain, a quick-serve restaurant chain in the Northwest USA. Burgerville prides itself in being true to its long-held values while maintaining profitability and growth. Graves’ primary job at Burgerville is to assure that the company’s values are embedded in all its actions, including its relationships to its supply chain. His current concern is the dilemma of which values to promote. Burgerville sells chicken, lots of chicken. So the purchase of chicken has significant impacts on the social and environmental impacts of Burgerville’s supply chain. Should Burgerville buy local, with the inherent social and environmental benefits, while paying attention to concerns about labor issues, animal treatment, and non-organic stewardship? Or should it find a supplier with some assurance that these potential problems are eliminated, regardless of location? Jack knows that Burgerville needs to address this issue soon, as the supply of chicken that is produced to Burgerville’s high standards is small and there are sure to be competitors seeking the same products. He will have to weigh the company’s values and make a recommendation soon. As the Chief Cultural Officer of The Holland Inc., Burgerville’s parent company, Jack Graves is constantly aware of the need to align the Burgerville culture and identity throughout all units of the business, including vendor partners. The chain’s slogan: "Fresh. Local. Sustainable." proclaims its commitment to offering foods differently than other quick serve chains, with specific attention to where food is being sourced. Burgerville aims to deliver on this promise as often as possible, and has had success in the past. Over the past decade, Burgerville has made a concerted effort to ensure its purchasing supports it values. As of 2009, over 70% of Burgerville’s total spending on food products was from local suppliers, up from less than 60% in 2008. With chicken, though, Graves was faced with some difficult questions and hard choices: can Burgerville find a local supplier who can provide a sufficient quantity and quality of breaded and plain chicken breasts and chicken strips at a cost comparable to the existing national brand supplier? Is buying local the most important decision to make for Burgerville and its image? Is the issue more than simply reducing the distance the food travels from origin to the customer? Are Burgerville customers willing to pay a premium for locally sourced chicken? It makes sense to purchase from local farmers who may then become loyal customers, but what if distant farms operate more sustainably than the local farms? Is there a sustainable chicken farm that could handle Burgerville’s demand? These questions weigh on Graves’s mind as he struggles to balance the chain’s profitability with the company’s values. Title: Burgerville: Sustainability and Sourcing in a QSR Supply Chain Author: Brown, Darrell, Berko, Phil, Dedrick, Patrick, Hilliard, Brie, Pfleeger, Joshua Year: 2011 Jack Graves is considering buying chicken. More precisely, Jack is considering where to buy chicken. He needs to make a recommendation to the purchasing team soon, and the decision is complicated. Jack is a long-time employee of the Burgerville restaurant chain, a quick-serve restaurant chain in the Northwest USA. Burgerville prides itself in being true to its long-held values while maintaining profitability and growth. Graves’ primary job at Burgerville is to assure that the company’s values are embedded in all its actions, including its relationships to its supply chain. His current concern is the dilemma of which values to promote. Burgerville sells chicken, lots of chicken. So the purchase of chicken has significant impacts on the social and environmental impacts of Burgerville’s supply chain. Should Burgerville buy local, with the inherent social and environmental benefits, while paying attention to concerns about labor issues, animal treatment, and non-organic stewardship? Or should it find a supplier with some assurance that these potential problems are eliminated, regardless of location? Jack knows that Burgerville needs to address this issue soon, as the supply of chicken that is produced to Burgerville’s high standards is small and there are sure to be competitors seeking the same products. He will have to weigh the company’s values and make a recommendation soon. As the Chief Cultural Officer of The Holland Inc., Burgerville’s parent company, Jack Graves is constantly aware of the need to align the Burgerville culture and identity throughout all units of the business, including vendor partners. The chain’s slogan: "Fresh. Local. Sustainable." proclaims its commitment to offering foods differently than other quick serve chains, with specific attention to where food is being sourced. Burgerville aims to deliver on this promise as often as possible, and has had success in the past. Over the past decade, Burgerville has made a concerted effort to ensure its purchasing supports it values. As of 2009, over 70% of Burgerville’s total spending on food products was from local suppliers, up from less than 60% in 2008. With chicken, though, Graves was faced with some difficult questions and hard choices: can Burgerville find a local supplier who can provide a sufficient quantity and quality of breaded and plain chicken breasts and chicken strips at a cost comparable to the existing national brand supplier? Is buying local the most important decision to make for Burgerville and its image? Is the issue more than simply reducing the distance the food travels from origin to the customer? Are Burgerville customers willing to pay a premium for locally sourced chicken? It makes sense to purchase from local farmers who may then become loyal customers, but what if distant farms operate more sustainably than the local farms? Is there a sustainable chicken farm that could handle Burgerville’s demand? These questions weigh on Graves’s mind as he struggles to balance the chain’s profitability with the company’s values. Close

• 2. [Article] Tropical Salvage: From Recession to Expansion

  Tim O’Brien, founder of Tropical Salvage, was preparing for another warehouse clearance sale of his unique, handcrafted hardwood furniture. It had been an enormously challenging year and it was important ...

  Citation × Citation Citation Abstract Copy Title: Tropical Salvage: From Recession to Expansion Author: Marshall, Scott, Peifer, Lisa, Ferrigno, Erin Year: 2011 Tim O’Brien, founder of Tropical Salvage, was preparing for another warehouse clearance sale of his unique, handcrafted hardwood furniture. It had been an enormously challenging year and it was important to reduce inventory before the next container arrived from Indonesia. The market for fine furniture had begun to decline steadily in early 2008 following the stock market crash of the prior September. The company survived a difficult period, but not without suffering a decline in sales. O’Brien had spent ten years building a sustainable business model based on environmental stewardship, worker empowerment and unique, high quality product. As the economy recovered, O’Brien believed Tropical Salvage needed to pursue an aggressive expansion strategy. Although the warehouse clearance sale was occupying O’Brien’s mind, he was excited about the prospect of implementing a bold growth strategy for the coming years. The two most significant strategies for growth focused on diversifying product offerings beyond hardwood furniture and opening branded retail stores in the United States. Many fundamental business challenges, including brand awareness, financing and operational efficiency, had to be overcome to make these strategies effective. However, O’Brien was confident that the highly vertically integrated structure, unique product designs, cost-competitive sourcing and deeply engrained social mission of Tropical Salvage provided the leverage to overcome these challenges. As O’Brien considered how best to expand, he prepared to markdown the remaining inventory from his last shipment. Are his growth plans overly ambitious while the economy is so uncertain? Does it make sense to extend his product line beyond the hardwood furniture for which Tropical Salvage is known and has experience manufacturing? Is it financially sound to expand into branded retail at this time? Perhaps most importantly, are the trends in ‘conscientious’ consumerism significant enough to support the growth of a values-driven, sustainability-inspired business like Tropical Salvage? Title: Tropical Salvage: From Recession to Expansion Author: Marshall, Scott, Peifer, Lisa, Ferrigno, Erin Year: 2011 Tim O’Brien, founder of Tropical Salvage, was preparing for another warehouse clearance sale of his unique, handcrafted hardwood furniture. It had been an enormously challenging year and it was important to reduce inventory before the next container arrived from Indonesia. The market for fine furniture had begun to decline steadily in early 2008 following the stock market crash of the prior September. The company survived a difficult period, but not without suffering a decline in sales. O’Brien had spent ten years building a sustainable business model based on environmental stewardship, worker empowerment and unique, high quality product. As the economy recovered, O’Brien believed Tropical Salvage needed to pursue an aggressive expansion strategy. Although the warehouse clearance sale was occupying O’Brien’s mind, he was excited about the prospect of implementing a bold growth strategy for the coming years. The two most significant strategies for growth focused on diversifying product offerings beyond hardwood furniture and opening branded retail stores in the United States. Many fundamental business challenges, including brand awareness, financing and operational efficiency, had to be overcome to make these strategies effective. However, O’Brien was confident that the highly vertically integrated structure, unique product designs, cost-competitive sourcing and deeply engrained social mission of Tropical Salvage provided the leverage to overcome these challenges. As O’Brien considered how best to expand, he prepared to markdown the remaining inventory from his last shipment. Are his growth plans overly ambitious while the economy is so uncertain? Does it make sense to extend his product line beyond the hardwood furniture for which Tropical Salvage is known and has experience manufacturing? Is it financially sound to expand into branded retail at this time? Perhaps most importantly, are the trends in ‘conscientious’ consumerism significant enough to support the growth of a values-driven, sustainability-inspired business like Tropical Salvage? Close