Treasure From Trash
1-800-GOT-JUNK? based in Vancouver, British Columbia has a vision of creating the ‘FedEx’ of junk removal. By the end of 2008, however, the company had over 340 franchises in the United States, Canada, and Australia, and system-wide revenues of over $125 million. Scudamore’s company has been described as a “curious hybrid” that blends the old and new economies. Although its product—hauling trash—has been done for hundreds of years, it relies heavily on sophisticated information technology and has the kind of organizational culture that most people associate with high-tech start-ups.
In addition, the company’s culture is a unique blend of fun and seriousness. There’s a quote posted in the head office that says “It’s all about people.”
Discussion Questions 1. Do you think 1-800-GOT-JUNK? faces more of a calm waters or white-water rapids environment? Explain.
Answer: This company has created a calm waters environment amidst a very competitive industry. They have created a new business with a unique strategy maximizing information technology and valuing people.
Additional companies entering the field could quickly change the field to include a white-water environment. 2. What external and internal forces might create the need for the company to change? Be specific in describing these.
Answer: These answers may vary. External change will be driven by the competition and technological advantage usually doesn't last more than 18 months. Therefore, the environment could see white water coming soon. Internal forces like structure need to be dynamic to adapt to change and people can make or break your business. 3. Using Exhibit 7-5, how could Brian Scudamore stimulate and nurture innovation at headquarters and with company franchisees?
Answer: The variables are structural, cultural, and human resource variables. Students will discuss the business using these 3 areas to generate innovation for the headquarters.