Escapes Outdoor Living Designs Harvard Case Solution & Analysis


Grant Harrison started his new venture of landscaping and construction, Escapes Outdoor Living Designs. The company has done well in the past and has generated a good number of sales but still, it has not been able to make a sustainable growth in the past five years. The company has had its share of work in a number of different areas in the landscape and construction industry such as construction (wood, sand and stone), snow removal, designing and ice rink. Harrison felt that one reason why the company has not made sustainable growth is because of the lack of focus. Other than this, the company also faced problems regarding employee retention. The owner of the company needs to develop a strategy regarding the domain of the business and improvement of the employee retention rate.


Question No. 1

Analyzing the current situation of the company and the different markets in the construction industry that it has tapped into, it is recommended that the company should solely focus on its landscaping construction segment. The reason behind this recommendation is that the economy is expected to grow, which would result in increasing the PPP (Purchasing Power Parity) because of the overall increase in average income. And, as we know that landscaping construction is taken as a luxury and people find it attractive only when the economy is doing great and people are being paid high incomes, thus, this would increase the attractiveness of Escapes as well. Thus, analyzing the whole forecast, it can be seen that the construction segment holds various opportunities for the company to grow in the near future and to improve its revenues and overall profitability. Working in the construction segment would help the company to sustain in the long run in the industry by growing at a sustainable rate and with the help of effective marketing programs. Other than this, as mentioned in the case study, the company already has a loyal customer base, it can further increase it by going for long-term contracts and by providing quality service.

Escapes Outdoor Living Designs Harvard Case Solution & Analysis

Question No. 2

Analyzing the historical financial statements of the company, it can be analyzed that the company has gradually increased its net sales and profitability over the years. Though initially, it worked only in wood construction, but it can be seen that it realized greater sales in stone and garden projects, thus, creating an opportunity for the company in these areas are well.

Additionally, it can be noted that the company is spending a lot on its advertising, and in order to sustain in the market in the long run, it needs to decrease its cost wherever possible. Thus, it is recommended that the company should cut down its advertising expenses and should focus on 70 percent of advertisements using its social media platforms. The rest of 30 percent can be done via print media.

Other than this, the salary expense can be decreased initially by hiring two permanent employees (these employees should be offered a good competitive salary) and interns (interns can be provided with low wages)..........

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