A Case for Analysis: Catastrophe or Opportunity?
Originally developed for theInterdisciplinary Ed.D. Program in Leadership,
A case study in strategic thinking and planning is presented. The case is based on the actual situation created by the catastrophic fire at Malden Mills in 1995 and the subsequent problems faced by its management and ownership. While used widely as case study in business ethics, the author presents the situation as a case in the strategic process. Therefore the actual Malden Mills case has been adapted by the author to this purpose using a fictitious enterprise, persons and locale based on the Malden Mills story. Learners will be presented with an urgent business problem. Decisions will be required in both the strategic and operational modes; plans will have to be formulated. The expected outcome is a viable strategy for the future of the company. Learners will be expected to apply knowledge of strategic planning models, decision processes and an understanding of the business environment.
The work is presented as an actual case study that can be incorporated into academic courses or training programs teaching strategic thinking and plan development. A brief sample of a learner generated case analysis is provided.

Case for Analysis: Catastrophe or Opportunity?

Table of Contents
I) Overview of the Case
II) Main Characters
III) The Disaster
IV) Your Role
V) A Guide to the case for the Learner/Analyst
VI) Suggested Readings and Resources
VII) Sample Case Analysis & Suggestions

I. Overview of the Case:
As we enter the winter months, Family Fabrics Corporation occupies an enviable position. Owned and operated by the Farnsworth family, the company has developed and marketed a unique product, made exclusively of recycled materials that have been made into an outstanding fabric for cold weather gear. The product is known as “ArcticCloth”. The fabric is warm, lightweight and available in an infinite variety of colors. The product has proven so successful that major outdoor clothing manufacturers and designer houses have purchased the product and demand is sky high. This is a high point in the history of Family Fabrics. The company is based in Farnsworth, Massachusetts, an old “mill town” in New England where it has been a pillar of the local economy for over one hundred years. In fact, without the resurgence of the business being driven by the new product, it’s likely that the town itself would be a ghost town. Many similar towns in the region have suffered as the textile industry declined due to technological advances, foreign competition and a variety of economic factors. As those towns struggle to fill vacant factories and provide basic services to the remaining residents, the success of Family Fabrics sustains the town of Farnsworth. Family is far and away the largest employer in town, engaging close to two-thousand employees, over ten percent of the population of the town. The Farnsworth family is seen by some as being the personification of the town itself. In fact, it might be said that “as family Fabrics goes, so goes the town.” With success of ArcticCloth, things are going rather well for Family Fabrics, the town of Farnsworth and the Farnsworth family. It’s been a long road back, but it looks like the town will evade the fate of its neighbors.

II. Main Characters:
With all the good things happening, there are still some problems for Family Fabrics. Jacob Farnsworth (known in the community simply as “Jake”) has been heading up the family business for close to thirty years. Keeping the company alive during the tough times of the textile industry has given him a real education in all facets of business. He is a clever financier and has arranged and maintained excellent relationships with bankers and other lenders, managing to keep the business “in the family.” He has also masterminded the development of ArcticCloth, knowing that a product like that could give Family Fabrics a distinct competitive advantage in the textile marketplace. He also knows that while Family holds a patent on ArcticCloth, his competitors will be seeking to develop their own versions of his wildly successful product and chip away at that advantage.
As the Farnsworth family legacy goes back to the founding of the town in colonial times, Jake is keenly aware of his and his family’s position. Farnsworths have served as the First Selectman of Farnsworth on several occasions. Jake himself is almost always consulted by the Town Council on important municipal matters. He understands the town’s dependence on the ongoing success of the company. He is also aware of the intense competitive pressures of the textile industry. He knows that standing still and resting on his company’s current success does not ensure the future. He’s thinking of the next move. He’s decided to hire a consultant to help develop a strategy for the future and after a lengthy and careful search he has decided to hire you. You’ve arrived in Farnsworth to meet with Jake and his management team to begin the framework of the plan.

III. The Disaster:
As you sit in your hotel room preparing for tomorrow’s meeting, you hear quite a commotion outdoors. Sirens and alarms are blaring and you go to the window. It’s nighttime yet the sky has a bright orange glow and you see thick clouds of smoke. Clearly there’s a major fire and it appears close by. You venture out and follow the noise and it leads to the factory of Family Fabrics, about two blocks away from your hotel. The entire factory is ablaze, nothing can save the nearly century-old building or its contents. Amongst the crowd the crowd of stunned onlookers, you notice the one person you know…Jake Farnsworth. You know your first contact with him at this horrible moment is going to be awkward, perhaps even painful. Yet suddenly in the mass of people milling about, you find yourself next to him. Before you can even say anything Jake turns to you and says “We’re still meeting tomorrow…it’s more important than ever. This is NOT the end.”
IV. Your role:
The preceding facts and scenario provide a base for developing strategy for Family Fabrics. Your role as a consultant is to guide Jake Farnsworth and his management team as they attempt to deal with this situation. You are expected to assist in providing a framework for developing an effective strategic plan. Use your knowledge of strategic thinking processes and tools from the your experience and academic work to create:
• A plan for planning
• An analysis of key stakeholders in this scenario
• A recommendation for immediate action
• A high level strategic plan for the future of Family Fabrics
• A plan of viable business options for Family Fabrics
• A summation of expected results
N.B., Your analysis is to be completed as though you were approaching the problem “live”, that is using business conditions and knowledge as those conditions exist today. Although the case is adapted from historical events, the learner should approach it in “real time.”
V. A guide to the case for the learner:
In this case you are asked to be playing a lead role in the development and execution of a strategic thinking process. In order to be successful in that role you will have to consider several things. The situation calls for an immediate response to the catastrophic event. Look for ways to suggest methods to respond to and stabilize the situation. Consider the main players and the roles in the case. What actions can you recommend immediately?
Next, the longer term considerations will come into play. Now you should shift your focus to the bigger picture; where can the company go from here? How about the town? How about the Farnsworth family? How about Jake? Your role will be to guide Jake and his colleagues through a process of strategic thinking that begins to answer these questions. Paying particular attention to questions of stakeholder identification, internal and external analysis of the organization, and understanding the ultimate goals of all concerned, can you help create a plan to begin the “journey to recovery” in whatever form that may take? Readings and resources are suggested in the list to follow to help you with methods for creating items vision and mission statements, core principles, etc.
Finally, the results of the two efforts above will guide you in the development of the operational plans necessary to achieve the “big picture.” Here you’ll concentrate on issues such as core competencies, competitive advantage, creating of critical goals and directing action plans. Once again, readings and resources are suggested to guide you through this process. Suggested Readings and Resources (Arranged by topic)

I. Your role:
The preceding facts and scenario provide a base for developing strategy for Family Fabrics. Your role as a consultant is to guide Jake Farnsworth and his management team as they attempt to deal with this situation. You are expected to assist in providing a framework for developing an effective strategic plan. Use your knowledge of strategic thinking processes and tools from the your experience and academic work to create:
• A plan for planning
• An analysis of key stakeholders in this scenario
• A recommendation for immediate action
• A high level strategic plan for the future of Family Fabrics
• A plan of viable business options for Family Fabrics
• A summation of expected results
N.B., Your analysis is to be completed as though you were approaching the problem “live”, that is using business conditions and knowledge as those conditions exist today. Although the case is adapted from historical events, the learner should approach it in “real time.”