Case Study for Final Exam Essay

color Cabs is an surroundally friendly go familiarity in impudent Zealand which was founded in recently 2007 by Callum chocolate-brown and three other triggerners. discolor Cabs instantly operates a multi-million dollar headache in three main centres of New Zealand Auckland, jackboot and Christchurch. The comp whatsoever is as surface as contemplating expanding into other beas with its distinctive bright green taxis. Callum Brown is the primary inspiration behind spirt Cabs. However, you could argue that Al dialog box provided the initial spark for Callum to start thinking nearly creation more than surroundally conscious personally.Callum is in his 30s and has spent 10 familys working(a) in information technology for various government departments and private field companies as a commercial enterprise analyst. He grew up close to temper and enjoyed activities such as surfing and tramping. All these things kept Callum close to nature. nonwithstanding his l ove affair with nature, Callum was quite sceptical of climate lurch. He explains I thought how abide you tell that t here is global warming when weve only when been taking recordings on temperature for the past whatever, how many years. Hence, it could be seen as fair surprising that Callum founded a green contrastThis personal awakening was a direct result of reflexion Al Gores documentary, An inconvenient Truth. Little did he know at this stage that a major disdain opportunity would come from his naked environmental consciousness. The impetus for the business idea came when Callum was at work. He travelled extensively for work and therefore found himself catching a stage shape of taxis. It was on one such overnight trip to Auckland that he became aw ar of the huge amount of ampere-second emissions he was generating through travel. He elaborates I sat there watching all the taxis come and drop mickle off and thought more or less the emissions and everything they were producing theres got to be a better way than this. why is there no eco-friendly option and that was the light bulb moment, and saying, ah, why non?Following this light bulb moment, Callum contacted a former colleague who was similarly a taxi driver. Together the pair set about establishing an environmentally conscious taxi service with two other partners. They struck the New Zealand taxi industry at what they called a lucky time. The government had plainly tightened legislation to make it consistent for all operators. The Land and Transport part was payive and helpful in making sure everything the emerging Green Cabs did was in line with the new legislation. The Authority too was excited by what Green Cabs was hoping to achieve. Once started, Green Cabs conveyd rapid growth and in gradient six months had approximately 85 cabs and self-employed drivers and employed 15 support staff (mostly in its 24-hour call centre).Callum never had aspirations to become an entrepreneur, nor a ny experience in business ownership, alone his extensive work background as a business analyst made him feel he was well equipped to investigate whether the Green Cabs idea would be winnerful. In fact, former to coming up with the business idea Callum felt afraid of the pretend involved in having his own business. However, once he had the idea, these risks vanished I was so passionate about Green Cabs, once I had the idea, there were no perceivable risks for me. That was how strong the drive was to do it . . . Its like Ive never doubted for a moment that Green Cabs was going to succeed. It has. Any concerns Callum had about risk were dissipated when he took on a number of business partners to share the risk. These business partners all understood and were sympathetic to the worsening acres of the environment and to Callums vision for the company.Callums vision resulted in a company which entered the taxi industry with the goal of achieving much more than a traditional taxi firm. Green Cabs wanted to force change, to preserve the environment and inform the public about climate change. This meant a all in all new way of thinking about business and the principles of the business founders were intertwined with the business model. Green Cabs offers the same basic service as any other taxi company. The name difference is that it is an environmentally conscious company. The main means of the company being environmentally friendly is that its vehicles are hybrids (Toyota Prius). There are well fewer ongoing running cost in providing the service. Green Cabs passes these savings onto consumers and is therefore able to offer considerably lower prices than its competitors. It already is forcing change in the taxi industry with many competitors rapidly switching to hybridsbecause they prat see they provide save on emissions and fuel costs.The difference in the midst of these competitors and Green Cabs is that those ever-changing due to lower running costs do non necessarily pick out environmental concerns at the forefront of their termination making as does Green Cabs. Indeed, sceptics could argue that the competition is switching because it is losing food market share to Green Cabs and is attempting to imitate the service. Therefore, Green Cabs has been successful in changing behaviour in the industry to being more environmentally friendly, and this has come at a cost to the business, as Callum explains I have had such an impact on the market that I had planned, that they (competitors) are now switching. Now, from an environmental point of view, its fantastic that I could have that impact, but from a business point of view its non good.However, competitors are still failing to offset their coulomb emissions whereas Green Cabs prides itself on being ascorbic acid neutral. To achieve this Green Cabs drives only the Toyota Prius, the car it considers to be the surmount option for lessening the impact on the environment. The remainder of its carbon emissions are paid for by providing funding for trees to be planted (predominantly in the develop world). Green Cabs donates to Trees for the Future, an organisation that has already organised the planting of 50 million trees, which retrieve approximately a million tonnes of carbon from the automated teller annually (www.greencabs.co.nz).Green Cabs also pays off its carbon debt prior to its accrual. That is, it calculates its early carbon footprint (down to the number of squares of toilet paper used) for the next year and funds the planting of sufficient trees to offset this before it emits the carbon. Although this is one of the key environmental strategies Green Cabs carries out, it actually is sceptical of buying carbon credits. This is because this carbon strategy essentially dispatches the problem to mostone else it does not help trim back the carbon in the atmosphere. As such, Green Cabs aims to both reduce carbon and offset before it accumulates.The busine ss model of Green Cabs is based on the premise that the customer has a greater connection with the yield or service. By using Green Cabs customers will feel part of a greater commitment to the environment and they will choose Green Cabs product over the competitors. As Callum notes, thebusiness model is win-win for both consumers and the environment It is cheaper, its eco-friendly, its quieter, youve got a pleasant driver, we do a whole lot of feel good stuff as well. Give me a source why you wouldnt take a Green Cab. Green Cabs mug market is the corporate sector and government departments. However, they pay tribute to the basic support they have received.This is from people who have seen what Green Cabs are doing and purge if their company has no agreement with Green Cabs, when they take a taxi they want it to be a Green Cab. Callum has also noted that jr. people are more environmentally aware and appreciate the pickaxe they are being offered in Green Cabs. One future evolut ion is for Green Cabs to install roof signs on their vehicles to promote the environment. These will not be advertising signs for businesses but to say something individuals can do for the environment. Green Cabs intend to use advertising space on their vehicles to promote the environment, not fizzy drinks or the likeFINDING BALANCE BETWEEN THE environs AND PROFITFor me anyway, its not just about turning a profit. Callum BrownFinding a balance between profit and the environment can be a difficult one. To be successful in Callums view, you have to understand and have faith that doing things and sticking about to the set of set that the company started with is what is going to bring success. Too much compromise for business then you will compromise the overall success of the business. The business might still be profitable but will not captivate the public into changing their behaviour regarding the environment. These environmental prises are held firm by Green Cabs and are an un derlying part of their distinctive business model.Callum elaborates If we compromise on those values then that localize us at risk of just being like any other taxi company out there and doesnt set us apart. Following through on their commitment to the environment loose for Green Cabs and they suggest that other should assist at the environment other than in their businesses. For example, Callum is frustrated by talk about how much it costs to offset carbon emissions. He suggests people fail to see that the whole process is a cost saving exercise. In becoming sustainable, businesses look at ways of reducingelectricity, travel and so forth. All of these areas can reduce a companys carbon footprint time also reducing their overall costs.Their commitment to the environment is one side of the equation in Green Cabs business model. The business must be sustainable and there are investors, franchisees and employees who expect returns from their insert into the business. Callum is con scious of this need to make a profit, but he has some boundaries I want to make some money but at the end of the day, I dont even need a million dollars a year to live on . . . I authentically like my life in New Zealand, I like the things that I do and the things that I do dont cost a lot of money.Callum has found that as the business has grown, more investors (such as potential drop franchisees) are becoming better aligned with his personal views on the environment. However, that is not necessarily the case for all employees of the company, as Callum notes I have people working for me who dont have necessarily the same value set. I mean theyve got good values and wouldnt be here if they didnt but to the degree where mine are no, theyre not anywhere near there.In April 2009, Green Cabs has grown to 16 employees and 104 drivers. The business has many opportunities to grow their business into other location and other work (e.g. courier services). As the business continues to grow Green Cabs are looking towards carbon neutral certification, and implementing ISO 14001 and 14064 certifications. The ongoing financial success of the company is also attracting more interest from other investors who are not necessarily focus primarily on the environment, but see Green Cabs as a solid investment opportunity.