Turning green killed the Bakery?

It was less than two years ago that Primula, the Finnish Bakery Product Company decided to to change their business model and look for sustainable competitive advantage by building a zero carbon footprint bakery. The balance sheet and the state of the company were solid and the financiers agreed that the new strategy aiming at the lowest possible environmental impact was an excellent idea. However, due to the unfortunate and unexpected changes in the consumption patterns of bread, which lead to a marked drop in the demand, the company went bankrupt soon after.

  I was reminded of this story in our last lecture where we pondered on the need of the company ideology to be in alignment with the surrounding society. If the consumption patterns hadn´t changed, the investment could have paid off.  IF. The company did end up  having a zero carbon footprint by going out of business, but that was not exactly what they aimed for. I think Primula is a good reminder that sometimes doing good for the environment can turn out to be very bad for the company. It seems that the early adopter´s don´t always catch the worm of financial benefits. Hmfp!


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