TideRise Swim Schools (TRS) is a privately held company operating six swimming schools in coastal towns. TRS’s vision statement is “a generation of children who are confident and safe in the water”. Its mission statement is “to provide affordable swimming lessons through qualified instructors and partnerships with local schools”.

TRS’s founder is retiring and a new managing director, Lina, has been appointed. Lina wants TRS to set a new strategic objective: open four premium swim centres in wealthy suburbs within three years. These centres would charge higher prices and are forecast to improve profit margins. Some shareholders support Lina because they want higher dividends after several years of low profit.

However, several instructors argue that the proposed growth objective conflicts with TRS’s mission. They want TRS to set an ethical objective instead: provide subsidized swimming lessons for children in lower-income coastal areas. This would strengthen TRS’s reputation and may attract a government grant, but the grant is not guaranteed and the scheme would require hiring more instructors. TRS has limited retained profit and its current centres need maintenance.

PulseFest (PF) organizes three large outdoor music festivals each year. PF’s aim is to become the leading youth music events business in its region. Its main objective for the last five years has been profit growth. PF has achieved this by selling more tickets, increasing food stall fees and using low-cost disposable cups, plates and wristbands.

After PF’s most recent festival, videos of overflowing waste bins and plastic litter in a nearby river were widely shared on social media. Two sponsors have warned that they may withdraw support unless PF improves its environmental behaviour. PF’s chief executive officer, Omar, has proposed a new corporate social responsibility objective: reduce festival waste by 80 percent within three years. The plan includes reusable cup deposits, composting, local suppliers and a circular system in which stage materials are reused at future events.

The operations manager supports the CSR objective but says it will increase planning complexity. The finance manager estimates that ticket prices may need to rise. Some customers say they would pay more for a responsible festival, while others say PF’s events are already expensive.

BrightPath Tutoring (BPT) is a privately held company with eight shareholders. It operates after-school tutoring centres for students aged 11 to 16. BPT’s vision statement is “a city where every young person can succeed in science and mathematics”. Its mission statement is “to provide affordable, high-quality tutoring for families with limited access to private education”.

BPT has built a strong reputation with schools and local charities. However, some shareholders believe that BPT’s prices are too low and that its mission is limiting profit. The chief executive officer (CEO) is considering changing BPT’s main objective from affordable access to a profit objective by offering premium examination courses at higher prices and reducing the number of subsidized places.

Selected data for BPT:

Coastline Refill (CR) sells household cleaning products through refill stations. CR’s strategic objective is to grow while reducing plastic packaging waste. Its directors are considering a new strategy: installing refill kiosks inside supermarkets. Middle managers have set tactical objectives to install kiosks quickly, train supermarket staff and maintain customer service quality.

CR’s operations manager supports the kiosk strategy because it would make refills more convenient for customers. The finance manager is concerned that rapid growth could reduce profit and increase borrowing. Some employees are worried that supermarket staff will not explain the refill system properly, damaging CR’s reputation for sustainability.

Selected data for CR:

TerraLens Analytics (TLA) is a privately held technology business that uses satellite images to provide soil and crop data to farms. TLA’s mission is “to help food producers make better decisions with reliable environmental data”. For its first six years, TLA’s strategic growth strategy was market penetration in its home market. Sales have now stopped growing because most large farms in the home market already use TLA or a competitor.

TLA’s directors have reviewed a SWOT analysis. Its strengths include accurate data, experienced software engineers and a trusted brand among farmers. Its weaknesses include limited cash reserves and a sales team with little experience outside agriculture. Opportunities include rising demand for climate-risk information from insurers and local governments. Threats include new competitors offering cheaper farm-data subscriptions and new data-protection rules in foreign markets.

The board is considering two possible strategic growth strategies for the next three years.

Option A: market development. TLA would sell its existing farm-data service in two neighbouring countries. This fits TLA’s current product and farming expertise, but it would require translation, new sales agents and compliance with foreign data rules.

Option B: diversification. TLA would develop a new climate-risk dashboard for local governments and insurers. This market may grow quickly, but TLA has no established customers in it and software engineers would need to adapt the product. The finance director prefers Option A because it appears less risky. The chief executive officer prefers Option B because it may reduce dependence on farming customers.

LumaSleep (LS) is a publicly held company that manufactures mattresses. LS’s mission statement is “to improve sleep through durable products made with fewer wasted materials”. Its board wants to protect shareholder value after two years of slow share price growth.

LS is considering two strategic options based on Porter’s generic strategies. Option 1 is a cost leadership strategy: produce a lower-priced mattress for the mass market. Option 2 is a focused differentiation strategy: produce premium mattresses for environmentally conscious customers, with a collection and recycling service for old mattresses.

Selected forecast data for next year:

BrightBridge Learning (BBL) – a social enterprise providing after-school education

Read the resources and answer the questions that follow.

Resource 1 — Background

BrightBridge Learning (BBL) is a social enterprise that operates low-cost after-school learning centres for children from low-income families. BBL charges parents a small fee and uses donations from local employers to subsidize places for students who cannot pay. Its founder, Lina, says: “No child in our city should lose confidence in learning because their family income is too low.”

BBL’s current mission statement is: “We provide affordable after-school tutoring and mentoring through trained local educators.” Its draft vision statement is: “A city where every young person has the skills and confidence to shape their future.”

Resource 2 — BBL’s objectives for the next three years

Resource 3 — Selected information

BBL has a waiting list of 430 students. However, two recently opened centres have lower parent satisfaction because local educators were hired quickly and received limited training. Donations represented 36% of revenue last year and are not guaranteed. Rent for learning spaces is expected to increase in two districts.

Resource 4 — Quotation from a corporate donor

“We will continue supporting BBL only if it can show clear social impact and professional financial planning.”

CleanCycle Kitchens (CCK) – a social enterprise reducing food-service waste

Read the resources and answer the questions that follow.

Resource 1 — Background

CleanCycle Kitchens (CCK) is a social enterprise that supplies reusable food containers to small restaurants and street-food vendors. Customers return used containers to collection points; CCK washes, repairs and redistributes them. CCK’s aim is to reduce single-use packaging waste while creating paid work for people who have been long-term unemployed.

CCK’s senior managers set a strategic objective last year: “Enter three new districts within two years.” Department managers then set tactical objectives for marketing, collection logistics and recruitment. The original plan assumed low fuel prices and strong local-government support.

Resource 2 — Selected operating data

Resource 3 — Changes in the external and internal environment

A new city by-law will require food vendors to reduce single-use packaging within 18 months. However, fuel costs have increased and one washing facility is close to full capacity. Two private competitors have started offering cheaper compostable packaging. CCK’s social-media page has 26 000 followers, and a recent post about “zero-waste lunches” was shared 8 400 times.

Resource 4 — Quotation from CCK’s operations manager

“Our objective to enter three new districts may still be right, but our tactics no longer match our capacity.”

FairGlow Energy (FGE) – a social enterprise installing solar lighting

Read the resources and answer the questions that follow.

Resource 1 — Background

FairGlow Energy (FGE) is a privately held social enterprise that designs and installs small solar-lighting systems for rural clinics and schools. FGE has social-impact investors who own shares, but dividends are capped so that most surplus can be reinvested in affordable installations and technician training. FGE’s mission statement is: “To provide reliable clean lighting for essential community services at a price communities can afford.”

FGE is considering adopting a new corporate social responsibility (CSR) objective: “By 2028, all battery suppliers must meet certified labour and recycling standards.” The CEO believes this objective is ethically necessary and would strengthen FGE’s reputation. The finance director is concerned about profitability and protecting shareholder value.

Resource 2 — Selected forecast information for next year

Resource 3 — Stakeholder views

A clinic manager said: “Affordable lighting matters more to us than certification labels.” An impact investor said: “If FGE ignores battery labour conditions, its mission will look incomplete.” A technician said that certified batteries may last longer and create fewer maintenance visits.

Resource 4 — Social-media statistic

After a local newspaper reported unsafe battery recycling in the industry, FGE’s online post promising “clean energy must also be fair energy” received 14 600 views and 1 900 positive reactions in 48 hours.