IMD-2-0117 © 2005
Steger, Ulrich; Salzmann, Oliver; Ionescu-Somers, Aileen
This really is the abridged version of case IMD-2-0095. It's all about Cycle, a Belgian metal recycling group, who chiefly focus on the recycling of zinc recuperated from production and processing operations (process scrap) in Western Europe. An environmental event and fiscal functionality that is stagnating result in a revolution in the top management. The case illustrate how the original CEO Vernier initiate a major reformation plan to cut cost and enhance environmental management.
Vernier realizes the fiscal turnaround in a tightening European zinc recycling marketplace. In the annual meeting, he has to defend its decision to expand geographically (i.e. extend Cycle's activities to the recycling of process scrap in the US) instead of expanding the present business model to the recycling of post-consumer scrap (i.e. deciding an additional waste flow) in an advantageous European business environment.
Subjects: Metal recycling; Investment decision; Geographic expansion vs new business; Corporate strategy; Sustainable business models Settings: Europe; United States ; Metal recycling ; 800 employees ; May 2001
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