Mountain Equipment Co-Op Strategic Plan

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Table of Contents

Executive Summary
Background
Situation Analysis
Strengths
Weaknesses
Opportunities
Threats
Analysis of Alternatives
Recommendation
Implementation

Executive Summary

Mountain Equipment Co-Op can be regarded as one of the best illustrations of an environmentally responsible company. In the late 1990 the company worked out new strategic plan which focused on increase of buildings’ energy efficiency. At the same time the company revealed its environmental responsibility.

This is, undoubtedly, a winning strategy which can be applicable in the contemporary business world as now people are more and more concerned with environmental issues. Though the strategy has certain flaws, the company will benefit from it. The company will only need to collaborate with likeminded companies and organizations. It should also launch a project to encourage talented designers to create new winning designs.

Background

Mountain Equipment Co-Op founded in 1971 acknowledged the importance of environmental sustainability. In 1990s the company’s executives realized that MEC retail stores negatively affected environment. Notably, 1990 was the time when people started paying particular attention to environment issues.

Therefore, the executives decided to increase energy efficiency of its retail stores and decrease harmful emissions. One of the first buildings to be changed was the store in Toronto. The work had already started and the building was modified in terms of energy sufficiency. The project proved to be successful as the building was 35% more efficient than other buildings at that time. The company inspired by this successful project started constructing energy efficient buildings.

Situation Analysis

Admittedly, contemporary society pays much attention to environmental issues. More so, companies that reveal their responsibility gain favorable image and additional publicity. Thus, when in 1990s people started being preoccupied with such environmental issue as emission of ozone-depleting substances, MEC responded to these concerns.

The company was committed to reduce the amount of such emissions produced by their buildings’ cooling systems. This was the right decision as people welcomed such changes and the company became one of the leaders of the movement. More and more companies started responding to the problem but MEC was still the first one to gain considerable success. Thus, the company gained a favorable image.

Strengths

As has been mentioned above, the decision the company made was a winning one. The company obtained publicity. It also created a favorable image. The company attracted many consumers who appreciated the company’s environmental responsibility. MEC increased energy efficiency of its buildings. The company was among leaders of the movement which later involved many other companies and organizations.

Weaknesses

Nonetheless, there are certain weaknesses in this strategy. For instance, though the company increased energy efficiency of its buildings, it was not always cost efficient. Thus, some projects would take years or even a decade to realize paybacks.

Opportunities

However, there are quite many opportunities for the company. MEC will also attract many new customers as more and more people tend to purchase products from socially and environmentally responsible retailers. Besides, the company can co-operate with likeminded companies and organizations to work out new ways, e.g. ways to improve efficiency.

Threats

However, there are certain threats. For instance, the company cannot focus on environmental issues only. It is essential to allocate funds reasonably. Thus, extra expenditures can negatively affect business. Remarkably, recent financial crises also limited companies’ ability to fund various environmental projects. Therefore, it is important to take into account various financial constraints as well.

Analysis of Alternatives

Admittedly, the company should continue working on its environmental projects and continue constructing energy efficient buildings. However, it can be also effective to collaborate with other organizations and companies to work out new environmental projects. This will help the company to save considerable sums of money, and, at the same time, to remain in the mainstream of the environmental movement.

Of course, there is another option for the company. It can give up financing such projects as constructing new ‘sustainable’ buildings. Nonetheless, this will be the step backwards as the company will lag behind the companies which already reveal their commitment in the sphere of sustainable technology. This will negatively influence MEC’s image. This can lead to loss of customers, too.

Recommendation

Therefore, the company should continue working on its environmental projects. It should go on constructing ‘environmentally-friendly’ buildings. However, the company should not stop developing new ways and strategies. Thus, MEC should try new (more efficient) designs. As has been mentioned above, the company will be able to save funds when collaborating with other companies and organizations. Thus, sharing experiences can positively affect the development of business.

Implementation

First, the company can negotiate with other construction companies, other retailers and organizations concerned with environmental issues. The company can start a project which will be beneficial for the companies involved. This will reduce costs of technological development.

Besides, the company can launch the following campaign. It can encourage designers to come up with ideas concerning construction. The company can choose the most winning projects and offer the most successful designers a job in the company.

Finally, the company should analyze its own experience and other company’s experience in the field. This will help to work out new strategies and projects. Of course, the company’s executives should take into account the changes which are taking place in the contemporary society.

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