Case Study 1: CSR and Sustainability at GreenFoot Shoes (GFS)
GreenFoot Shoes (GFS) is a shoe manufacturing company that started in 2010, producing eco-friendly
footwear using sustainable materials like recycled rubber and organic cotton. The company has built
its reputation by focusing on corporate social responsibility (CSR) and sustainability. GFS operates in a
highly competitive market where other brands are also offering eco-friendly products.
The company's mission is to reduce environmental impact while providing high-quality shoes. To
achieve this, GFS has committed to using only recycled or sustainably sourced materials in its
production process by 2025. It also partners with environmental NGOs to plant trees for every pair of
shoes sold.
However, despite its CSR efforts, GFS is facing challenges with higher production costs due to
sustainable sourcing and a slower manufacturing process. The company is also dealing with
increased competition from larger brands with more aggressive marketing strategies. GFS's
Marketing Manager has suggested that adopting customer relationship management (CRM)
strategies could enhance customer loyalty and improve sales, but the company has not yet fully
embraced these practices.
Data about GFS:
Year Revenue ($m) Profit ($m) Number of Employees Number of Shoes Sold (m)
2021 5.0 0.8 120 0.4
2022 4.8 0.6 115 0.35
2023 4.5 0.4 110 0.3
Key Topics:
• CSR and Sustainability: GFS is heavily focused on eco-friendly initiatives, but this has raised
production costs.
• CRM/Marketing Mix: GFS has room to improve its marketing mix by adopting a stronger
CRM strategy to increase customer retention.
Discussion Questions:
(a) (i) Identify one element of the marketing mix. [1]
(ii) Explain the term CSR (Corporate Social Responsibility). [3]
(b) (i) Refer to the data above. Calculate the percentage decrease in revenue between 2021 and
2023. [3]
(ii) Explain one benefit of adopting CRM for GFS. [3]
(c) Analyse two potential advantages of adopting a more aggressive marketing mix to enhance GFS's
sustainability-driven business model. [8]
(d) Evaluate the impact of GFS's focus on sustainability on its long-term profitability and market
position. [12]
Case Study 2: Production Methods and Capacity Utilisation at TechWare Manufacturing (TWM)
TechWare Manufacturing (TWM) produces electronic gadgets and accessories such as headphones,
smartwatches, and portable chargers. The company is known for its cutting-edge technology but
faces challenges in meeting market demand due to inefficient production methods and low capacity
utilisation.
TWM’s factory operates at 60% capacity, mainly due to outdated machinery and inconsistent
production schedules. To address this, the Production Manager has proposed outsourcing part of the
manufacturing process to third-party contractors. The idea is to increase capacity utilisation and
reduce lead times, but some employees fear that outsourcing could lead to job losses.
Additionally, TWM is reviewing its motivation and rewards system to boost employee morale and
productivity. Currently, workers are paid a flat salary, but there is growing support for introducing
performance-based bonuses to incentivize higher productivity.
Data about TWM:
Revenue Profit Capacity Number of Production Output (m
Year
($m) ($m) Utilisation Employees units)
2021 12.0 3.0 70% 200 1.0
2022 11.5 2.5 65% 195 0.9
2023 10.5 2.0 60% 190 0.85
Key Topics:
• Production Methods/Capacity Utilisation: TWM struggles with low capacity utilisation,
leading to inefficient operations.
• Outsourcing/Motivation and Rewards: Outsourcing is proposed as a solution, but employee
motivation and rewards systems need attention to prevent dissatisfaction.
Discussion Questions:
(a) (i) Identify one production method used by manufacturing companies. [1]
(ii) Explain the term capacity utilisation. [3]
(b) (i) Refer to the data above. Calculate the percentage drop in production output between 2021
and 2023. [3]
(ii) Explain one potential downside of outsourcing part of TWM's production. [3]
(c) Analyse two benefits TWM could gain from improving its motivation and rewards system to
increase productivity. [8]
(d) Evaluate whether outsourcing or improving internal production methods would be more effective
in increasing TWM's capacity utilisation and profitability. [12]