Green Space

Hotels, shops and offices are increasingly using plants and foliage as forms of interior decoration. The aim is to make pleasant welcoming atmosphere for customers and an enhanced working environment for staff. Green Space operates in this market providing a wide range of plants and related services to businesses on a sale or contract hire basis.

Green Space's expertise in horticulture dates back thirty years, when the main focus of the business was on external landscaping. During the early 1970s the company pioneered the concept of creating interior landscapes in offices using plants and foliage. Over the last twenty-five years companies and organizations of all kinds large and small have become increasingly aware of the benefits of enhancing their working environment. Drab, purely functional internal decoration for commercial premises and public places is increasingly seen as unacceptable. This trend is reflected in recent market research which indicated that:

Over 80 per cent of the population believe indoor plants in offices increase staff productivity.

Over 90 per cent regard indoor plants as adding warmth to premises.

Over 95 per cent feel indoor plants in reception areas make welcoming atmosphere.

As a result of these attitudes the interior landscaping market has grown into a substantial business segment worth around 150 million per annum in the UK.

Green Space has continued to be an innovator in this market by introducing new varieties and developing plant care techniques that help maintain a healthy cultivated appearance.

The Green Space product range offers a large choice of attractive living plants and foliage comprising specimens of all sizes, carefully selected for indoor environments. Access to supplies of plant materials from widespread locations in Europe, Africa and the USA has helped them achieve this broad product range.

In order to accommodate the needs and preferences of individual customers a wide choice of plant configurations is also offered, from the option of a single plant to sophisticated combinations comprising many different plants. Customers have the option of rental contracts or outright purchase.

Most plants require regular attention to keep them in the best possible condition. Therefore Green Space offers a maintenance service that ensures every item is professionally cared for on a regular basis. This on-going service is available to all customers whether they rent or buy the plants and is automatically included in rental contracts.

Green Space has placed strong emphasis on quality and is accredited under the UK government's Investors in People initiative as well as achieving the ISO 9002 quality standard.

By the middle of the 1990s Green Space was the market leader in its own region of the UK. The company felt that there were clear opportunities for geographical expansion. In order to exploit this opportunity the company, obviously needed to establish more branches in other parts of the UK. However, being a family-run operation, now in its second generation, was one of the reasons for the success of the business. The proprietors were physically on site to personally ensure customer satisfaction.

Green Space's strong belief in the advantages of proprietor-run business led to a decision to grow the business by offering franchising arrangements. The aim was that enterprising individuals would run their own local operation using the Green Space format.

Green Space franchisees are the proprietors of their own business, licensing the rights to run the business in a local area. Franchisees tend to operate from low-cost premises, typically a small unit on a business park or industrial estate. Basic facilities are required - office and, more crucially, plant storage space with adequate heating and ventilation.

Local franchise operations involve a varied range of operational tasks such as sales, servicing, local marketing, purchasing and administration. At the beginning of the franchise Green Space provides the franchisee with a comprehensive structured training package, which includes not only tuition in plant care but also in sales, marketing and operations. The training is undertaken in the company's headquarters and is followed up by on-going support.

A key area of support is national marketing, which aims to build Green Space as a national brand name targeting large organizations with multiple sites or outlets. The aim is to achieve and then sustain the position of market leadership in the UK.

(This mini case study has been prepared from secondary sources.)

Discussion questions

1Outline and evaluate the advantages and disadvantages of using franchising as a method for expanding a business.

2 Discuss the issues the company has to address in attempting to develop Green Space into a national brand.