Environmental_Tools_-_Servicizing

Memo To: From: Date: 10 April 2011 Re: Proposal to undertake a new business initiative Message: Dear Sir/Madam We are a group of MBA students whom came up with an innovation that may contribute significantly to maintain the leadership of your firm in the medium and far future. The Waxman Company is renowned for its quality production and importing of mid to high end office furniture to the Israeli market. The traditional ways of supply are entering an era of major and revolutionary changes. The current markets are realizing slowly that an endless process of consumption of goods that end their lives in landfills is not sustainable. Thus, methods have to be conceived to re-use, recycle and reduce the burden on the depleting natural resources available. Office furniture are currently sold as items with a lifespan ranging from short periods of temporary office needs (months to a couple of years) and up to 6 to 10 years as long term use before they are dumped and replaced with newly produced furniture. In our recent studies, we have learnt that one of the most successful methodologies to induce the re-use and/or recycling of goods is to change the way manufacturers conduct their sales. Companies that developed a way to convert their sales into servicing their clients have gained large new market share and longevity whilst at the same time becoming an icon for saving the environment. The principle we would like to propose for Waxman is to start a service of maintaining furnished office spaces instead of the traditional sale of items currently popular. Identifying new trends and responding to them is the key to a successful business. The transition from selling office furniture towards providing a long term service will provide the customer a better solution for his needs and will expand the relationship with him, resulting in a more committed customer in the long run. Moreover, providing a service will reduce raw material consumption which will cut back the expenses. The methodology suggested below is a combination of fixed price and “per use” price ensuring the inters of both the supplier and the customer to minimize fixing or replacement of furniture in order to minimize environmental impact. The methodology proposed: 1. Offer the following services: a. Interior design for offices b. Monthly fee for square meter of office space furnishing of several levels (maybe also divide into type of room – meeting, manager, station etc.) c. In the above fee supply the full service of maintaining the appropriate furniture including replacement every 2 years, general maintenance, replacement of broken items (an arrangement for extra payment can be entered) and transport in and out of the office. 2. Provide for the following internal changes: d. The service instead of supply will allow a major internal change in the consumption of raw materials. All the furniture could be i. refurbished or ii. reused with slight fixing or iii. recycled into raw materials again. e. The designs will take into consideration: iv. Parts are easily interchangeable between products v. Easy to replace fabrics and other relatively shorter life parts vi. High quality materials should be chosen to allow for resale/reuse for many years We are in anticipation to hear from you at your earliest convenience