Talismark

Richard S. Ruback; Royce  Yudkoff; Ahron  Rosenfeld

Teaching Note | HBS Case Collection | May 2020

Talismark

by Richard S. Ruback, Royce Yudkoff and Ahron Rosenfeld

Abstract

Teaching Note for HBS Case No. 211-097. Talismark negotiated waste hauling contracts for small and medium size companies. Its owners, Charles Muszynski and Marshall Staiman, were able to grow the business by more than 30% per year since it was founded, but believed that further growth and improved profitability were limited by the company’s approach to sales and its information infrastructure. They were considering reengineering its sales process, operational structure and information technology. These changes involved $1 million in estimated out-of-pocket costs. Beyond those costs, the decision presented considerable risks as Talismark would need to interrupt is sales efforts, replace its sales team and launch new approaches to sale and operations. The reengineering plan would transform Talismark into a new more efficient operation, but its owners were not sure whether the benefits of the plan would exceed its costs and were worried about the inherent risks.

Keywords: small business; small business administration; infrastructure;

Language: English

Format: Print

15 pages

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Citation:

Ruback, Richard S., Royce Yudkoff, and Ahron Rosenfeld. "Talismark." Harvard Business School Teaching Note 220-092, May 2020.

In January of 2019, Joe Heieck (HBS '14), CEO of gWorks, was deciding whether to proceed with his acquisition of Data Tech, that was a business roughly the same size of gWorks. gWorks, which provided geospatial software to small city and rural county governments, was acquired by Heieck in January 2015 after a 6 month search. While there were potential synergies between gWorks and Data Tech, the acquisition also presented some significant risks including its relatively high price and concerns about the need to modernize its product offerings.

Teaching Note for HBS Case No. 217-001. Robin Kovitz (MBA 2007) acquired Baskits, a Canadian gift basket company, in October of 2014. The business was highly seasonal with two-thirds of its sales occurring in November and December. Baskits dealt with its seasonality by renting additional space at a different location and hiring part time employees in the peak season while operating in a smaller space and with fewer full time employees in the off peak season.

Kovitz experienced firsthand the inefficiencies resulting from operating in two locations, inefficiencies that were exacerbated by the lack of an information technology system. She realized that operating from a single larger location year-round would resolve these inefficiencies. She also viewed an ERP system as critical to control costs through better management of purchase orders and inventories. Kovitz had to decide whether, and how quickly, to implement these changes.

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Talismark

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