Author(s):
Daniel Arenas, Maria Pradera
Description:
The case study presents the background of the Spanish courier and urgent parcel service company MRW and its financial situation in the first quarter of 2004. At that time the urgent delivery service sector was immersed in a process of growth, and there was strong competition within the sector and MRW occupied one of the leading positions. The case study places special emphasis on the social initiatives of MRW and its franchising system used as an expansion strategy. But this system entails important coordination issues, which led to the creation of a Committee of Ethics and Arbitration, as explained in the case.
The case starts when MRW central office interviewed one of the prospective candidates interested in buying over a franchise which was left free due to early retirement. The candidate appeared to be a very competent manager who would get results for the franchises in an industrial zone, which would benefit the entire network. Nevertheless, he expressed his doubts about the usefulness of MRW's social plans.
Javier Marzá (assistant general manager of MRW) and Paco Sosa (director of external relations) considered whether they should be concerned about convincing a franchise holder in particular as to the social enterprise of the company. This raised the question of the place of social enterprise in MRW's strategy and of the need to re-evaluate its impact in detail, especially during a phase of growth and renovation in the franchise network, and in the mid term, with a view to the eventual retirement and replacement of the company's founder, who had always shown clear leadership. All of this could present difficulties for the continuity of the company's culture.
Subjects Covered:
Social iniatiatives, organizational culture, strategy, franchises, Corporate Social Entrepreneurship.
Purchase English or Spanish Version:
They will be available at Harvard Business School Publishing.
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