In an effort to reduce its ecological footprint, interface America, a leading manufacturer of commercial carpet tiles, started Evergreen Services Agreement (ESA) - the lease, which provides buyers with a comprehensive carpet floor covering services (color, texture, warmth, beauty, acoustics and safety). In the ESA, the interface retains ownership of all the carpets material, thus ensuring proper disposal. Despite the increased media attention and a lot of phone calls from interested buyers, the interface is having difficulty selling ESA. The Director-General Dan Hendricks is at a crossroads and must decide whether to continue to support ESA or to focus on other initiatives. This case is based in unsuccessful negotiations with the University of Texas, Houston, details of the difficulties of structuring a long-term lease agreement, what the new proposal the cost of services for clients, and develop a sustainable business model for products related services. "Hide
by Rogelio Oliva, James Quinn Source: Harvard Business School 20 pages. Publication Date: February 25, 2003. Prod. #: 603112-PDF-ENG
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