TRAE GROUP: SUSTAINABLE BUSINESS IN CHALLENGING TIMES
CASE STUDY SOLUTION
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SYNOPSIS
TRAE Group (the Group) founded in 2005, is a social enterprise focused on the production of products,
such as bottled water, sourced from sustainable sources. The company’s mission was to ensure global food
security by using its commercial activities to fund school feeding programs for underprivileged children.
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They supported the UN World Food Programme to achieve this mission. The Group received B-Corp
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certification in 2018 and operated in accordance with social and environmental standards. The business had
partnerships with leading companies such as IKEA and sold their products in Canada as well as the US,
Korea, and Europe. The social dimension was an integral part of the Group as they strived to make a positive
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impact through sustainable practices and addressing inequality. In view of the uncertainties happening in
the global markets due to COVID and geo-political tensions, the founders, needed to develop ways to
sustain the viability of their business model amidst these uncertainties. By doing so, the Group could
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navigate the challenges, expand their market presence responsibly, and continue making a positive social
impact while maintaining a sustainable business model.
OBJECTIVES
• Understand the decisions entrepreneurial firms face when trying to grow their businesses while
balancing social and economic objectives.
• Conduct a SWOT analysis.
• Do a PESTEL analysis to understand the key opportunities and challenges in the global environment.
• Explain the different strategies businesses must manage seemingly contradictory objectives especially
in times of global uncertainty.
The Case Solution Starts From page 5
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ASSIGNMENT QUESTIONS
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1. Conduct a PESTEL analysis to understand the key opportunities and challenges that the group faces.
2. Conduct a SWOT analysis of the Group. Does the Group have a sustainable competitive advantage?
3. What is the position of the Group’s products in the product life cycle?
4. What are the key challenges that the company needs to address in order to maintain its competitive
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advantage?
5. In line with the discussions in question 4, what marketing growth strategies are available to this
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business?
6. Going forward, what positioning strategy should the Group follow?
7. Based on its position in the product life cycle and the discussions on the positioning strategy (in question
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6), how should the Group use the four Ps to pursue its growth strategy while maintaining its multiple
logics?
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ANALYSIS
1. Conduct a PESTEL analysis to understand the key opportunities and challenges that the
company faces.
The key objective behind a PESTEL analysis is to understand the trends in the environment that the company
needs to consider in developing their strategies going forward. The instructor may probe students to identify
the key trends happening in the environment and then generate discussions about these trends and place then
in the dimensions of PESTEL. These trends in each of these dimensions can be discussed and classified as
opportunities or challenges (threats) that the company faces in the environment. Some of the opportunities
and challenges as trends in the environment can be placed in the following dimensions of PESTEL.
The Case Solution Starts From page 5
,Political:
Opportunities: Supportive government policies for initiatives that companies take related to sustainability
and social impact.
Economic:
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Social:
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Environmental:
Opportunities: Increasing global concern for environmental sustainability drives demand for products from
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sustainable sources.
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So
The Case Solution Starts From page 5
, EXHIBIT -1: SWOT ANALYSIS
Strengths: Opportunities:
1) B-Corp certification 1) Increasing need for clean water.
2) 2)
3) 3)
4
5) 4)
Weaknesses: Threats:
1) Limited geographic availability. 1) Competition from big water brands.
2) 2)
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3)
4)
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tio
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So
The Case Solution Starts From page 5
CASE STUDY SOLUTION
e
pl
m
Sa
SYNOPSIS
TRAE Group (the Group) founded in 2005, is a social enterprise focused on the production of products,
such as bottled water, sourced from sustainable sources. The company’s mission was to ensure global food
security by using its commercial activities to fund school feeding programs for underprivileged children.
n
They supported the UN World Food Programme to achieve this mission. The Group received B-Corp
tio
certification in 2018 and operated in accordance with social and environmental standards. The business had
partnerships with leading companies such as IKEA and sold their products in Canada as well as the US,
Korea, and Europe. The social dimension was an integral part of the Group as they strived to make a positive
lu
impact through sustainable practices and addressing inequality. In view of the uncertainties happening in
the global markets due to COVID and geo-political tensions, the founders, needed to develop ways to
sustain the viability of their business model amidst these uncertainties. By doing so, the Group could
So
navigate the challenges, expand their market presence responsibly, and continue making a positive social
impact while maintaining a sustainable business model.
OBJECTIVES
• Understand the decisions entrepreneurial firms face when trying to grow their businesses while
balancing social and economic objectives.
• Conduct a SWOT analysis.
• Do a PESTEL analysis to understand the key opportunities and challenges in the global environment.
• Explain the different strategies businesses must manage seemingly contradictory objectives especially
in times of global uncertainty.
The Case Solution Starts From page 5
, e
pl
m
ASSIGNMENT QUESTIONS
Sa
1. Conduct a PESTEL analysis to understand the key opportunities and challenges that the group faces.
2. Conduct a SWOT analysis of the Group. Does the Group have a sustainable competitive advantage?
3. What is the position of the Group’s products in the product life cycle?
4. What are the key challenges that the company needs to address in order to maintain its competitive
n
advantage?
5. In line with the discussions in question 4, what marketing growth strategies are available to this
tio
business?
6. Going forward, what positioning strategy should the Group follow?
7. Based on its position in the product life cycle and the discussions on the positioning strategy (in question
lu
6), how should the Group use the four Ps to pursue its growth strategy while maintaining its multiple
logics?
So
ANALYSIS
1. Conduct a PESTEL analysis to understand the key opportunities and challenges that the
company faces.
The key objective behind a PESTEL analysis is to understand the trends in the environment that the company
needs to consider in developing their strategies going forward. The instructor may probe students to identify
the key trends happening in the environment and then generate discussions about these trends and place then
in the dimensions of PESTEL. These trends in each of these dimensions can be discussed and classified as
opportunities or challenges (threats) that the company faces in the environment. Some of the opportunities
and challenges as trends in the environment can be placed in the following dimensions of PESTEL.
The Case Solution Starts From page 5
,Political:
Opportunities: Supportive government policies for initiatives that companies take related to sustainability
and social impact.
Economic:
e
Social:
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m
Sa
Environmental:
Opportunities: Increasing global concern for environmental sustainability drives demand for products from
n
sustainable sources.
tio
lu
So
The Case Solution Starts From page 5
, EXHIBIT -1: SWOT ANALYSIS
Strengths: Opportunities:
1) B-Corp certification 1) Increasing need for clean water.
2) 2)
3) 3)
4
5) 4)
Weaknesses: Threats:
1) Limited geographic availability. 1) Competition from big water brands.
2) 2)
e
3)
4)
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Sa
n
tio
lu
So
The Case Solution Starts From page 5
