Report 1 Waste Management Case Analysis Instructions MGMT 3000 – Hopkins (Version 8-9-2019) Course Topic Alignment: Global External Forces Situation: You have just been hired by a management consulting firm that has a consulting engagement with Waste Management, Inc. (WMI). As the newest and least experienced consultant on the project, your first assigned task is relatively narrow. Use the case and any other information. Your boss, Susan Brightspot, the VP of consulting, has tasked you to write a report to her with the following content in support of this consulting engagement with Waste Management. Organize your report into these sections: 1. Purpose: an introduction as to why (purpose) you are writing Susan Brightspot your boss, this report. 2. Environmental Analysis: Using the case…. Describe the External environment in which Waste Management operates, and how it is impacting the business. o General environment influencers economic, technological, political-legal, socio-cultural, etc… o Task environment influencers customers, suppliers, competitors, government-regulators, etc… Describe the Internal environment in which Waste Management operates, and how it is impacting the business. 3. Business Challenges & Impact: Based on your environmental analysis as well as other information you may have found, describe the business challenges faced by Waste Management’s CEO. What is the potential impact of these challenges on business results? 4. Recommendation: Based on these business challenges and potential impact on results, what recommendation would you make to the CEO? What decisions and actions should he take? ——————————————————————————————————————–Your report should use the following format: To: Susan Brightspot, VP Consulting From: (only put the last 4 digits of your student ID, no names!) Report Title: Waste Management Case Analysis 1. 2. 3. 4. Purpose Environmental Analysis Business Challenges & Impact Recommendation Waste Mgt Case Page 1 of 2 Typical report length: 2-3 single spaced pages Use the Rampant Strategy app to submit your report. Do NOT put your name on your uploaded document as the peer review process is anonymous. Upload your report as a pdf document to Rampant with the file name: Report1_last 4 digits of your ID, AND upload a copy to eLC/Tools/Assignments drop box to Report 1 by the due date and time. ——————————————————————————————————————–Report Evaluation Rubric: Your report will be evaluated by your peers using the following rubric. 5 4 Excellent Good 1. Environmental Provides Analysis: How clear and exceptionally clear Provides resonably useful is the analysis and useful clear and useful provided? analysis analysis 3 Fair 2 Poor 1 Very Poor Provides at least some analysis and clarity Provides little analysis and clairity Provides essentially no meaningful analysis or clarity 2. Business Challenges: How insightful, both breadth and depth, are the conclusions and recommendations? Provides at least some insight, and some breadth, and depth Provides little insight, breadth, and depth Provides essentially no insight, breadth, or depth 3. Overall Quality: How well written and professional is the report? Provides exceptional insight, breadth, and depth Provides resonalble insight, breadth, and depth The report is of The report is of The report is essentially exceptionally The report is of The report is of fair poor quality, of no value, due to it’s quality, very clear, reasonably quality, quality, somewhat clearity, lack of clarity, organized, and clear, organized, clear, organized, and organization, and organization, and well written. and written. written. poorly written. writing. Peer Reviewer Responsibility and Performance: Performing a Peer Reviewer Evaluation is an important skill building activity because evaluating an individual’s performance is a key component of management. Reviewing another person’s work also provides the opportunity to see another perspective of how a situation is analyzed, and to learn from it. Each student will review 4 submissions from other students. Your peer review of the other student’s submissions should provide 1) thoughtful critique, 2) be complete, and 3) be on-time. Waste Mgt Case Page 2 of 2 What Would You Do?: Waste Management Headquarters, Houston, Texas © SCOTT OLSON/GETTY IMAGES Americans generate a quarter billion tons of trash a year, or 4.5 pounds of trash per person per day. Thanks to nearly 9,000 curbside recycling programs, a third of that is recycled. But, that still leaves 3 pounds of trash per person per day to be disposed of. With 20 million customers; 273 municipal landfills; 91 recycling facilities; and 17 wasteto-energy facilities, WASTE MANAGEMENT, INC., is the largest waste-handling company in the world. It generates 75 percent of its profits from 273 landfills, which can hold 4.8 billion tons of trash. And because it collects only 110 million tons a year, it has plenty of landfill capacity for years to come. Corporations, cities, and households are greatly reducing the amount of waste they generate, and thus the amount of trash that they pay Waste Management to haul away to its landfills. Subaru of America, for instance, has a zero-landfill plant in West Lafayette, Indiana, that hasn’t sent any waste to a landfill since 2004. None! And Subaru isn’t exceptional in seeking to be a zero-landfill company. Walmart, the largest retailer in the world, has also embraced this goal, stating, “Our vision is to reach a day where there are no dumpsters behind our stores and clubs, and no landfills containing our throwaways.” Like those at Subaru and Walmart, corporate leaders worldwide are committed to reducing the waste produced by their companies. Because that represents a direct threat to Waste Management’s landfill business, what steps could it take to take advantage of the trend toward zero waste, which might allow it to continue growing company revenues? Another significant change for Waste Management is that not only are its customers reducing the waste they send to its landfills, they’re also wanting what is sent to landfills to be sorted for recycling and reuse. For instance, food waste, yard clippings, and wood—all organic materials—account for roughly one-third of the material sent to landfills. Likewise, there’s growing demand for waste companies to manage and recycle discarded TVs, computer monitors, and other electronic waste that leaks lead, mercury, and hazardous materials when improperly disposed of. However, the high cost of collecting and sorting recyclable materials means that Waste Management loses money when it recycles them. What can the company do to meet increased customer expectations on one hand, while still finding a way to earn a profit on high-cost recycled materials? Furthermore, advocacy groups, such as the Sierra Club, regularly protest Waste Management’s landfill practices, deeming them irresponsible and harmful to the environment. Everywhere that Waste Management’s top managers look, they see changes and forces outside the company that directly affect how they do business. Should they take on the company’s critics and fight back, or should they focus on business and let the results speak for themselves? Should they view environmental advocates as a threat or an opportunity for the company? Waste Management’s CEO says that one of the most important lessons he has learned is to listen, because, as he frequently tells his executive team, “This company and this industry aren’t very good at that.” His concern is that with all of the changes taking place in this industry, Waste Management won’t succeed unless it listens. But there is resistance within Waste Management to the pursuit or adoption of any real technological or business innovation. Several senior officials have expressed their opposition to any diversion of precious resources from the core business of collecting and burying waste. They argue that the core business has been and will continue to be hugely successful, with considerable room for consolidation and growth; and that taking resources away from the core business will lead to its ultimate decline. Waste Management’s company culture, indeed, the culture of the entire industry, has been built for decades around the idea of burying waste. The company’s incentive system, highly decentralized corporate structure, and assets (trucks and landfills) were configured around excelling at this business. Waste Management’s CEO has wondered aloud what kind of leadership was required to convince all the naysayers and how to deal with opposition, especially from senior officials. With Waste Management seemingly at a crossroads, its senior management team faced the difficult task of reconciling a number of competing external and internal dynamics.
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