Product details

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Abstract

The case is about Plastecowood, a company that turns plastic packaging waste into assembly products and sustainable lumber. It was founded by John Northcott in 2012 with the vision of taking a global issue - waste from plastic packaging - and turning it into a business. Two years later, when Plastecowood was struggling with ineffective production and lack of profitability, Henning von Spreckelsen came to the rescue and invested in the company. With his approach to radically rationalizing the production process and focusing on gross margin, he succeeded in pulling the company into profit. The company received orders from a number of large respectable clients and finally was able to make to stock rather than to order, which opened the door to larger volumes than ever before. Although the first COVID-19 phase caused disruption, Plastecowood quickly recovered with record sales. Today, with the company building up speed, it has several strategic options. Should the company enter new markets or expand in existing ones? Should it develop new, higher margin products? Will organic growth suffice, or should it consider acquisitions? Finally, might new business models, such as licensing the technology, bear fruit? Henning needs to present a clear strategy on where to take the company next.

Time period

The events covered by this case took place in 2012-2021.

Geographical setting

Country:
United Kingdom

Featured company

Plastecowood
Employees:
11-50
Turnover:
EUR 2.3 million
Industry:
Lumber and wood products

About

Abstract

The case is about Plastecowood, a company that turns plastic packaging waste into assembly products and sustainable lumber. It was founded by John Northcott in 2012 with the vision of taking a global issue - waste from plastic packaging - and turning it into a business. Two years later, when Plastecowood was struggling with ineffective production and lack of profitability, Henning von Spreckelsen came to the rescue and invested in the company. With his approach to radically rationalizing the production process and focusing on gross margin, he succeeded in pulling the company into profit. The company received orders from a number of large respectable clients and finally was able to make to stock rather than to order, which opened the door to larger volumes than ever before. Although the first COVID-19 phase caused disruption, Plastecowood quickly recovered with record sales. Today, with the company building up speed, it has several strategic options. Should the company enter new markets or expand in existing ones? Should it develop new, higher margin products? Will organic growth suffice, or should it consider acquisitions? Finally, might new business models, such as licensing the technology, bear fruit? Henning needs to present a clear strategy on where to take the company next.

Settings

Time period

The events covered by this case took place in 2012-2021.

Geographical setting

Country:
United Kingdom

Featured company

Plastecowood
Employees:
11-50
Turnover:
EUR 2.3 million
Industry:
Lumber and wood products

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