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After reading and analyzing the case study, the students would be able to identify the main stakeholders and decision-makers and their importance and influence on the environment for a product, evaluate the value chain of the product and critical decision-makers, evaluate the various ways to avoid falling into the trap of greenwashing and examine the marketing strategy to market an environmentally friendly product.

LIKO-S is a Czech manufacturing and construction company. The company has been designing and creating intelligent solutions, such as green facades or vertical greenery systems, to save energy in building heating and cooling systems. The company launched green facades in the Czech market. However, the main obstacle was the need for supporting data to showcase the positive environmental impact of green facades. Under these circumstances, Libor Musil’s main objective was to overcome prevalent misconceptions about green facades and find a suitable market segment. The situation worried the company, as LIKO-S had heavily invested in developing and marketing the green walls. The management had to tackle this challenge as soon as possible to recover the substantial research and development and marketing investments. Furthermore, owing to lack of information, even genuinely sustainable products were seen as greenwashing. In addition, bad or wrong customer perceptions of these walls might spill over to other products, tarnishing the company’s image and threatening its survival in the domestic market. Under these circumstances, competitors might enter the Czech market, jeopardizing the company’s overall profits. Consequently, Libor was in a great dilemma about managing the financial and reputational risk of the company. Should Libor close the green walls unit, explore different markets/uses or help increase awareness among the general population about green walls by finding a suitable marketing strategy?

The case study was designed for graduate-level students in the strategic management (CSR and innovation module) courses. However, the case could also be an excellent addition to marketing courses dealing with customers’ perceptions of innovative products and strategies to improve the adoption of the product.

Teaching notes are available for educators only.

CSS 3: Entrepreneurship

This study has used public sources, interview with one of the case protagonists.

This business case portrays the problems that an energy producing company faced in Portugal, in its transition from being a public company to becoming privatized. The Portuguese Government issued EDP with generous subsidies to guarantee its future profits and privatization success, but a few years later, after EDP was fully privatized, there was great political pressure to downsize such subsidies. The case describes the main steps taken by EDP from its creation and privatization, culminating at the end of 2017, where it was heavily criticized by media and political parties due to a high value of subsidies that had been granted to the company by the Portuguese Government in the past, while it was still a public company, and the renegotiation of those same subsidies after it had been privatized. EDP’s President António Mexia was under police investigation due to having led the renegotiation talks in 2007, and it was feared that EDP’s investors could refrain from investing in the company. Should EDP campaign to clear its good name, or would it be better to let the matter fall with the passing of time? Could the share value be affected? Should EDP prepare itself for loss of revenue due to an eventual downsizing of the subsidies?

This study covers energy sector, privatization issues and government support. The relevance of this study is good for use in Business Schools and MBA courses.