Timberland - Timberland: Commerce and Justice Case Study...

Timberland: Commerce and Justice Case Study Analysis
Overview
The Timberland case study documents the company’s path towards incorporating service to community into
their business strategy and overall infrastructure. Under the leadership and vision of Jeff Schwartz,
Timberland began this undertaking almost immediately after the company went public in 1987.
Using “doing well and doing good” as a mantra for their dual commitment to the enrichment of business
and community, Timberland forged relationships with regional based organizations like City Year and Skills
USA. With these organizations, Timberland formed strategic and interdependent alliances that were
mutually beneficial to the continuing growth of Timberland’s business and service operations and the
organizations they served (X).
Building on the positive momentum Timberland gained through the fore mentioned relationships,
Timberland went on to develop their own company based community service initiative called Path to
Service. Through PTS, Timberland afforded company employees allotted leave hours that could be used to
serve surrounding communities, whether they were company sponsored events or personal service
commitments. In 1998, Timberland introduced the program Serv-A-Palooza (the largest day of service) as
their cornerstone service initiative, making a commitment to surpass previous service hour standards to
reach 40,000 hours by 2000. (Mention Social Enterprise Dept)
While Timberland’s sales reached a record $196 million in 1990, the company experienced thinning profit
margins by the mid 1990’s. To combat this, Jeff Schwartz and Timberland’s operations team rationalized
the product line by significantly reducing the number of products offered and reducing order fulfillment
times (1). This tactic allowed Timberland to respond more quickly to growing international demand.
In the midst of their financial crisis, rumors regarding a hostile take over and a possible acquisition by Nike
or Reebok surfaced. In addition, sources within the company questioned the company’s continued
commitment to company wide service, despite financial issues. Timberland soon recovered to eventually
report steady revenue growth, while not compromising service principles.
SWOT Analysis:
Strengths | Weaknesses |

* Established relationships with NGO’s * Transparency in reporting * Service to community and
environment established as part of Timberland’s operating infrastructure * Ability to recover amid financial
crisis * 4 Core values to guide company behavior and decision making * Global labor standards | *
Management of product expansion * Slow progress to expand environmental protection policy |
Opportunities | Threats |
* Establish brand and social mission internationally * Increase diversity and team building initiatives/base *
Increase business and social practice synergy * Direct sales from strategic partnership events | *
Apprehensive of employees regarding expanding scope of CS mission * Thinning sales and declining profit