Catching the Catch 22

Jack, let's name him that way. Jack is the guy in the business case study. Jack is, as the first law of case studies demands, looking at a painting in his corner office. Jack is a successful manager in his industry. Jack is in the hotdog business, he is delivering hotdog sandwiches to top selling food chains. Business is been running smooth, maybe even more than smooth. Jack's company has been hitting the so-called double-digit growth target consistently.

Yes, Jack knows. He knows why these numbers are achieved. It's done, as in any small margin business, by squeezing of cost edges. By pushing suppliers to drop their rates, by cutting back on services and support to a point where the customers are just above the 'start complaining' limit.

Jack's thoughts wander away, as his attention is drawn to the picture frame on his desk. In the picture, Jack is having fun with his two grandchildren, Emma and Lewis. They're playing on the beach, making sand castles. The sun burns on their skin, the salty taste of the ocean is mixed with the sweetness of the ice cream they just ate. What a sweet memory...

... With that sweet taste, some bittersweetness starts to emerge. The feeling that, he knows it too well, that he's not acting in the right way to ensure Emma and Lewis will lead a healthy life in a healthy environment. Yes, he knows that the cost cutting mantra in the hotdog business is having serious consequences. Cutting costs rarely aligns with long term sustainability, with treating the environment well. No, it goes along with things like operating on the edge of regulations and healthcare policies. To put it simple, Jack's business is offering an unhealthy product in an unhealthy and unsustainable way. Good for business it is, but Jack's mind and conscience start to suffer from the way things are going.

The well known alert sound from his mobile draws Jack back to reality. As he sees the mail from his CFO popping up on his screen, he rationalises how the business is ran. It's simply the way it is. If, in a supply chain like the hotdog business, one company changes how they operate, the costs for that one company will sky-rocket while the others are able to keep costs under control. Added to that, the market price for the end product will not change. Jack knows where this leads. It will quickly lead to a bankruptcy for his company. This should give him some peace of minds. As things turn out, Jack can't change anything about how his business is running. He just acts in good managerial fashion to the contingencies that are linked to hotdog's. But the love for his grandchildren keeps him from his peace of mind. There should be a way to change this. Jack, against knowing better, vows that he's going to do what's possible to make change happen.

To be continued...

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