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Vianca Ronnin P. Morales February 27, 2019

DecSci 22 Section C Case Analysis

An Analysis of Preserve Company

Introduction and Background of the Case

Founded by Eric Hudson, Preserve is a sustainable consumer goods company that

primarily aims to produce products that are good for both its customers and the environment.

The company upholds this goal by recycling #5 Polypropylene Plastic, which is the most

common type of plastic used in the United States, but with only less than 2% of it recycled by its

users. Given this, preserve has been relatively successful in terms of living up to its mission and

main goal. However, it can be argued that there are still certain points for improvement that can

be worked on in order to maximize the reach of the company. These include improvements in

the company’s relations with its partners, customers, and its market. To improve upon this, the

company should consider operating under a CSV (Creating Shared Value) framework, in order

to develop its future market while simultaneously improving upon its relations to its community

while still upholding its main goal of sustainability.

To effectively assess Preserve and its strengths and areas for improvement, a SWOT

Analysis Framework will be utilized, centering around the questions that have been provided.

Definition of Terms

A ​SWOT Analysis Framework could be divided into its two main components, the

internal and external analysis, represented by ​SW (​ Strengths and Weaknesses) and ​OT

(Opportunities and Threats), respectively. It is a common framework used by businesses in

order to better consider strategic goals1. The ​CSV (Creating Shared Value) Framework is

1
​SWOT Analysis: Framework for Strategic Marketing & Business Goals | Entrepreneur's Toolkit. ​MaRS.
[Link]
. Accessed Feb 2019.
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defined as a management strategy in which companies primarily focus on finding business in

social problems, and could be divided into the 3 ways into which a company can create shared

value, namely: ​Reconceiving products and markets, Redefining productivity in the value chain,

and improving the local and regional business environment2. A ​circular economy is

characterized as a regenerative economy, which aims to create a system that allows for the

optimal reuse, recycling and remanufacturing of products3. ​Systems Thinking is a method or an

approach that is based on the belief that the various parts of a system interconnect and

interrelate with each other, and how each system works within the context of a larger system4.

Certified B Corporations are defined as businesses that balance purpose and profit, and are

legally required to consider the effects of its decision on its environment and all its stakeholders5

Case Evaluation

Strengths

Since its establishment, Preserve has effectively upheld its five founding principles. This

is made apparent by its success in producing and manufacturing environment-friendly products,

such as toothbrushes, razor handles, cutlery, and the like. It has effectively developed a means

by which the company can involve its consumers in the recycling process using the Gimme 5

program, in which Preserve and participating retail locations set up bins inside their stores to

serve as a drop off point for consumers. With this program, Preserve takes part in its place in

2
​Harvard Business School. ​Institute For Strategy & Competitiveness. T
​ he Five Forces.
[Link] Accessed Feb
2019.
3
​ ircular Economy: A Definition and Most Important Aspects. ​Kenniskaarten - Het Groene Brein.
C
[Link]
y/​. Accessed Feb 2019.

4
​What Is Systems Thinking?-Definition from [Link].
SearchCIO.​[Link] Accessed Feb 2019.
5
​Vote Every Day. Vote B Corp. ​ Certified B Corporation. ​[Link] Accessed Feb 2019.
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the circular economy, by manufacturing products that are primarily “made to be made again.”

Furthermore, the company’s mission and goal is further reinforced by the fact that it is certified

as a B Corporation, and thus it is obliged to meet environmental and social standards​—​which it

does, as is visible from Preserves’ operating model. With all these being said, one can conclude

that Preserve’s strengths lie in its vision of being a company that uses Earth’s resources

effectively, efficiently, and sustainably. It is the company’s defining character and it is what sets

it apart from other organizations, and thus, Preserve must continue upholding its mission, with

growth and profit as a mere secondary goal.

Another strength of Preserve can actually be found in one of CSV’s facets, which is to

redefine productivity in the value chain. One can see that Preserve as a company does its best

to maximize efficiency in procurement of resources and in manufacturing of products, and

makes sure that they create as much positive impact to the environment as possible. Also, upon

further research, one can see that employees of Preserve are made up of very diverse

individuals who share the same vision and common goal6. As also mentioned in the article

provided, Preserve does its best to provide good benefits and take good care of its employees.

Weaknesses

It was aforementioned that all of Preserve products are recycled from #5 plastic

(polypropylene), and it can be seen that most (if not all) of their products are made into

household items such as toothbrushes, razor handles, food bowls, cutlery, etc. This is actually a

very limited scope that Preserve is working under, knowing that #5 plastic can be recycled into

a wider variety of products such as ​signal lights, battery cables, brooms, auto battery cases,

landscape borders, bicycle racks, etc.7 These products will certainly attract a bigger market,

6
​Working at Preserve. P
​ reserve. ​[Link] Accessed Feb 2019.

7
​What Plastic Recycling Codes Mean. G
​ ood
​ ccessed Feb 2019.
Housekeeping.​[Link] A
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while at the same time continue to uphold Preserve’s primary mission of sustainability, since

these could also be recycled from #5 plastic. If Preserve wishes to expand their market and

manage their growth, it should consider widening the scope of their products in order to attract

more customers who may or may not come from different backgrounds and contexts. While

Preserve has been fairly successful in what it does now, the lack of variety of their products is

definitely an area for improvement.

Opportunities

In order to improve upon Preserve’s relations with its partners, strengthen its connection

to consumers, broaden its market, and propagate its growth, Preserve should consider working

under a CSV (Creating Shared Value) Framework. This could be done in 3 possible ways:

​ hich has already

been elaborated upon)​, improving the local and regional business environment.

In order to reconceive products and markets, a company must first take into

consideration whether their products still fit its consumers’ needs, and what can be done in

order to appeal to the consumer groups who are currently not buying their products8. For

Preserve, their product range of mere household goods cater to only a small percentage of

consumers. The weakness that was above mentioned can then be made into an opportunity for

growth, by considering innovation of new products that they can offer to the market. One such

example is a possible production of signal lights, battery cables, and auto battery cases.

Production of such would appeal to the automobile industry, and would significantly increase the

reach of Preserve while still upholding its mission. As for improving the local business

environment, Preserve can focus on partnering with local and small-scale businesses in

8
​Forget Corporate Social Responsibility, Focus on Creating Shared Value. ​Euromonitor International Blog.
[Link] Accessed Feb
2019.
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procurement of their resources and in the production of what they sell. With this, Preserve does

not only improve it local business environment, but also forms new partnerships with various

businesses. For example, there is an organization called Waltham Local First, which is an

organization of all the local businesses in Waltham, Massachusetts, where Preserve has its

headquarters. Among these local businesses are restaurants and salons, and Preserve can

consider partnering with these establishments for a constant and steady customer base.

Threats

One threat to Preserve’s business is the fact that the only thing that distinguishes them

from other companies is their primary focus on sustainability and environmental impact. Their

products on its own are not that remarkable, and considering the fact that more and more

corporations are heeding the call for sustainability in their business, there may come a time

when Preserve’s most distinguishing characteristic may not be so unique anymore. What with

the rapid and ever-changing landscape of business and economy, Preserve must continue

innovating and perform measures in order to make sure that they would be able to keep up and

withstand the test of time and change.

Conclusion

In conclusion, Preserve is a company that is at the present already doing well in living up

to its vision and mission. However, in order for it to continue being an effective environmental

solutions company while at the same time maintaining its growth, it must consider innovating

and taking up the framework of Creating Shared Value, to make sure that it could uphold its

status as a B Corporation and maintain its place in the circular economy. With the concept of

systems thinking, we can view Preserve and its place in a balancing loop, with growth and

innovation as the desired goal or objective. For Preserve to achieve its goal of growing as a

corporation, it must take certain actions to do so.

Reference/s:

"SWOT Analysis: Framework for Strategic Marketing & Business Goals | Entrepreneur's
Toolkit."

MaRS. Accessed February 25, 2019.

[Link]
arketing-and-business-goals/​.

"Institute For Strategy & Competitiveness." The Five Forces - Institute For Strategy And

Competitiveness - Harvard Business School. Accessed February 25, 2019.

[Link]
[Link]​.

"Circular Economy: A Definition and Most Important Aspects." Kenniskaarten - Het Groene

Brein. Accessed February 25, 2019.

[Link]
-definition-a-circular-economy/​.

"What Is Systems Thinking? - Definition from [Link]." SearchCIO. Accessed February 26,

2019. ​[Link]

"Vote Every Day. Vote B Corp." Mark Leibowitz Photography Inc. | Certified B Corporation.

Accessed February 26, 2019. ​[Link]

"Working at Preserve." Preserve. Accessed February 27, 2019.

[Link]

"What Plastic Recycling Codes Mean." Good Housekeeping. March 21, 2018. Accessed

February 25, 2019.

[Link]
e=5​.

"Forget Corporate Social Responsibility, Focus on Creating Shared Value." Euromonitor

International Blog. February 22, 2018. Accessed February 25, 2019.

[Link]
red-value/​.