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mark anthony peterson
Small Business Strategy For Davids
Wanting to Defeat Goliaths
Small Business Strategy
For Davids Wanting to Defeat Goliaths
Mark A. Peterson is a former strategy consultant and a serial entrepreneur. Over the
past twenty years, he has developed corporate strategies for Fortune 500 companies and
launched over a half dozen small businesses. Peterson has a B.A. from Dartmouth College
and an M.B.A. from the Amos Tuck School of Business Administration at Dartmouth.
1 Samuel 17 of the King James Bible details the battle between David,
an undersized Israeli teenager, and Goliath, a nine foot tall Philistine
warrior. As the Israeli and Philistine armies prepared for war in nearby
camps, Goliath taunted the Israeli army and challenged any man brave
enough to head-to-head battle. David, armed with slingshot and a
pouch of rocks, accepted Goliath’s challenge. As Goliath charged
with spear in hand, David released a rock from the slingshot and struck
the giant in the forehead knocking him down. David took Goliath’s
sword and removed the Philistine’s head. The sight of David holding
Goliath’s decapitated head sent the Philistine army into retreat. The
moral of the story: small players with good strategies can defeat
even the biggest giant.
“Guerrillapreneur” is a combination of the words “Guerrilla” and
“Entrepreneur,” and it is the name given by the author to enterprising,
cash, and environment-conserving small business executives who are
dedicated to defeating corporate Goliaths. David used a slingshot and
pouch of rocks to defeat Goliath. The author profiles past “Davids”
like Wal-Mart, Apple, and Turner Enterprises, and derives from their
garage-to-Goliath transformations the ultimate small business “sling-
shot” strategy and “marketfighting” tactics. Guerrillapreneur is a MUST
READ for every entrepreneur!
GUERRILLAPRENEUR
GUERRILLAPRENEUR
$19.95
i
GUERRILLAPRENEUR
ii
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GUERRILLAPRENEUR
Small Business Strategy For Davids
Wanting to Defeat Goliaths
mark anthony peterson
iv
Alpharetta, Georgia
©2012 by Mark Anthony Peterson
All rights reserved. No part of this book may be reproduced or
transmitted in any form or by any means, electronic or mechanical,
including photocopying, recording, or any information storage and
retrieval system, without permission in writing from Mark Anthony
Peterson.
ISBN: 978-1-61005-127-9
Library of Congress Control Number: 2011963412
Printed in the United States of America.
This paper meets the requirements of ANSI/NISO Z39.48-1992
(Permanence of Paper)
149
CHAPTER 9
GUERRILLAGREEN:
THE COLOR OF MONEY
Guerrillapreneurs are honorary members of the Green
Movement because of our focus on “zero waste” production
and capital conservation. Most people rightfully credit both
Henry David Thoreau (author of Maine Woods and Walden) and
Rachel Carson (author of Silent Spring) with defining and
reawakening the American Green Movement. Thoreau and
Carson called for the preservation of the world’s ecosystems
and virgin forest for altruistic reasons—launching what some
believe to be an on-going conflict between environmentalists
and American Industrialists. An environmentalist is a person
who supports the sustainable management of natural resources
through changes in public policy by supporting practices such as
not being wasteful.1
Today, the poster child for one of the
Green Movement’s antagonists, carbon emissions, is the
gasoline powered car. According to Environmental Defense,
“the total carbon burden of vehicles in the United States for the
year 2000 was 302 million metric tons (MMtc). That’s more
carbon than is emitted by all of India and three times as much
as Brazil.”2
Based on these facts, Henry Ford, the founder of the
Ford Motor Company and the man who is credited with mass
car production, would be considered among the world’s worst
environmental villains. Given what many of you know about
Ford, you might call me a lunatic if I told you that Henry Ford (a
close friend of another of my childhood heroes, George
Washington Carver) is also one of the world’s greatest
Guerrillapreneur
150
environmentalists and Eco-Guerrillapreneurs. During his time as
CEO of Ford Motor Company, Henry Ford balanced laissez-faire
capitalism and environmentalism by doing something very few
manufacturers do today. Ford committed to reusing and
recycling all waste materials from the Model-T assembly line.3
Ford’s zero-waste philosophy, what I call “Eco-Guerrilla-
preneurism,” goes one step beyond environmentalism. Ford
supported “zero-waste” practices that also made a profit. Why
is making a profit while saving the environment important?
Sustainability. If being “green” costs you more than you make,
your business will be in the “red.” From a financial perspective,
Ford’s zero-waste principle conserved cash and reduced the
cost of goods sold by utilizing all production and waste
materials. That’s great, right? How is that environmentally
conscious? Ford’s zero-waste policy benefited the environment
by his commitment to, as Ford stated in his autobiography,
“have nothing to salvage"4
and nothing to dump in landfills. In
this chapter, I use Henry Ford’s Eco-Guerrillapreneurism
framework (actions producing equal financial and environ-
mental benefit) to explore “GuerrillaGreen” practices that can
be used to reinvent how we think about several high growth
industries.
Why the GuerrillaGreen emphasis? In war, Guerrillas are
considered freedom fighting revolutionaries attacking the
status quo. In the same vein, I want Eco-Guerrillapreneurism
to embolden business leaders, small and large, to attack non-
eco-friendly practices by making Extended Producer
Responsibility (EPR) product cycle management a standard
operating practice. I want business executives to take
seriously their fiduciary duty to shareholders, stakeholders,
and our planet by asking a simple question: “How would
Henry Ford run this business?” By accepting Henry Ford’s
challenge, business leaders can agree to account for the
environmental costs of not achieving zero-waste production.
Mark Anthony Peterson
151
As stated in an ancient Native American proverb, “Treat the
earth well. It was not given to you by your parents; it was
loaned to you by your children. We do not inherit the earth
from our ancestors; we borrow it from our children.”5
Really? Some of you are reading this and thinking, “Why
are we going down this road? I thought this guy said he was a
capitalist. He sounds like a drum beating, tie dye tee-shirt
wearing hippie!” I bet you are also thinking that Americans are
already among the most efficient producers in the world.
American farmers are the lowest cost producers in the world
and American businesses produce more with fewer workers. I
will grant that, when comparing America to other developed
nations, we lead most of them in efficiency and productivity
metrics (e.g., total factor productivity). However, as my old
basketball coach Elston Turner used to say, “Just because we
are good, doesn’t mean we can’t be better.” America’s
blessings of abundant land, a stable economy, and cheap
capital have all contributed to our innovative and efficient
farms and factories; but these blessings have also had a
double-edged sword effect of conditioning Americans to
ignore non-traditional methods for reducing cost. What do I
mean? Generally, American companies are not held liable for
the proper disposal of e-waste, e-scrap, or Waste Electrical
and Electronic Equipment (WEEE) after it is sold to the public.
In fact, very few companies participate in electronic take-back
programs. Why? America has enough natural closet space
(abundant land) to dispose of toxic e-products. Because it has
taken years for our environment to see the impact of dozens
of years of disposed e-waste, few consumers have challenged
the cost or the health risk in our courts. As a result, e-waste is
essentially unregulated by the federal government (EPA) or
the courts. (Only date, twenty-five states have some sort of e-
waste legislation). Am I advocating new EPA regulations? No. I
am advocating the spread of Eco-Guerrillapreneurism which
Guerrillapreneur
152
would prompt business leaders to, like Henry Ford, commit to
zero-salvage and zero-waste because it improves business
profitability and also benefits the environment.
Why do I emphasize and reemphasize accounting for the
environmental impact in our products and production
facilities? Because American’s addiction to cheap prices has
made us more tolerant of waste. In the book The Wal-Mart
Effect, author Charles Fishman argues that, as Wal-Mart
reduced the cost of most household items, Americans
accepted waste as an annoying by-product. In fact, giving an
example of pickles, Fishman explains, “We saw consumers
who used to buy the spears and the chips in supermarkets—
where a small quart jar of Vlasic pickles cost $2.49—buying
the Wal-Mart gallons. They’d eat a quarter of a jar and throw
the thing away when they got moldy.”6
When history looks back on my generation, they will refer
to us as the “L” generation, with the “L” standing for Landfill
generation because we were the first generation to embrace
“use and dispose” consumer electronics. In 1982, I interned as
a 7th
grader with a local television repairman. I remember the
shop being littered with floor model Magnavox black & white
televisions, AM radios, and suitcase-sized VCR players.
Business was good. In 1982, the average cost of a floor model
color Sony 26” TV ranged from $1,000 to $1,4007
and the
average salary was $23,433.8
However, by 2000, the average
26” TV cost dropped below US$600 while the average salary
climbed above $42,148.9
In less than twenty years, electronics
had become as disposable as tissue paper. Today, the repair
shop is boarded up and abandoned. Life for the repairman
changed when it became clear to consumers that it was
cheaper to buy a new television, DVD player, or radio than it
was to pay to repair them. As the price of 32” TVs dropped
below $200, Americans felt comfortable dumping broken
Mark Anthony Peterson
153
models on the curb, awaiting the weekly trash pickup and
delivery to the landfill. No harm, no foul? According to an EPA
study, in 2008, 1.84 million tons of television, cell phone, and
computer products ready for end of life were disposed of in
landfills.10
America’s abundant land made it easy for
consumers, legislators, and business people to overlook the
need for product life cycle management. Instead, state and
local governments adopted liberal dumping policies that failed
to differentiate between eco-friendly trash and hazardous
waste. As a result, toxic e-waste has a near “zero” disposal
cost in dollar terms. Please realize, Eco-Guerrillapreneurism is
not a producer take-back program. Eco-Guerrillapreneurism
advocates zero-waste, not zero profits. In fact, through the
pursuit of zero-waste, Guerrillapreneurs believe that they can
reduce their costs and produce higher profits. Let’s examine a
practical example before you accuse me of being a “save-the-
planet zeitgeist”11
and burn this book.
Ted Turner, a person I consider to be a Guerrillapreneur,
launched a chain of restaurants called Ted’s Montana Grill.
Ted’s Montana Grill (TMG) has the unique value proposition of
selling high protein, naturally low-fat buffalo-meat based
dishes. TMG is widely recognized as a “Green,” eco-friendly
restaurant because nearly all of the paper, plastic, aluminum,
and glass products used in the restaurants are recycled. The
restaurant’s beverages come in recyclable glass bottles.
Consumers sip their drinks using eco-friendly paper straws and
stir their coffee with recyclable wooden stirrers. When
customers can’t finish their entire meal, they get to-go boxes
made of biodegradable corn and potato-based cups and
cutlery. Finally, TMG uses low-voltage, compact fluorescent
lighting in guest areas and those annoying low flow urinals in
the restrooms.12
Given all this, what could I possibly find
wrong with TMG? All but one of TMG’s initiatives (the low-
voltage, compact, fluorescent lighting) fail to meet Ford’s Eco-
Guerrillapreneur
154
Guerrillapreneur standard. Though admirable, TMG’s Green
initiatives represent the stale status quo—they add cost to the
bottom line. How would Henry Ford capture TMG’s Eco-
Guerrillapreneur incremental value?
I’d speculate that Henry Ford would realize that TMG’s
buffalo meat is only one source of value. Henry Ford would
seek opportunities to horizontally integrate around the buffalo
and create incremental value streams that would reduce the
restaurant’s operating cost. What would some of these
opportunities look like? First, buffalo chips (manure) can be
used for fuel. Ted Turner’s ranch has over 50,000 head of
buffalo. A herd that size could generate enough chips to
greatly offset his ranch’s energy costs. Think I am crazy? In
Pennsylvania, a dairy farm with 600 dairy cows is saving
$60,000 a year by turning 18,000 daily gallons of cow manure
into energy using an anaerobic bio-digester.13
Assuming
Turner’s buffalo are just as efficient at producing chips as
those dairy cows; his ranch would produce 1.5 million gallons
of manure per day, and generate an estimated annual energy
savings of $5 million dollars. In addition to the energy savings,
utilizing the chips as fuel would reduce methane emissions by
an estimated 2,650,000 gallons per day. Now that’s a double
dip (or double chip)!
Second, Ford would also watch those funny Jack Link’s (a
leading company with approximately 40% market share in the
dried beef industry) commercials and realize that buffalo can
be dried and sold as Buffalo Jerky, an interesting potential
branding compliment to Ted Turner’s restaurant chain. In
2009, Jack Link’s Jerky had sales that exceeded $64 million.14
Turner could launch a brand of premium Bison Jerky and use
his forty-six restaurants as the primary distribution chain.
Finally, Ford would also realize that the remaining waste, the
buffalo hide, is also extremely valuable both tanned and un-
Mark Anthony Peterson
155
tanned. Buffalo hide can be fashioned into belts, moccasins,
gun bags, and ropes. Getting the point?
TerraCycle, is a Green company started by Tom Szaky at
the age of twenty as a Princeton University freshman that has a
mission to eliminate waste. TerraCycle diverts waste from
landfills by paying individuals to collect and ship that waste to
their processing facilities where they convert it into 1,500
various products that are sold at leading retailers like Wal-Mart
and Whole Foods.15
TerraCycle, whose revenues exceeded $15
million in 2009, launched its business by producing organic
fertilizer, created by packaging liquid worm poop in used soda
bottles.16
From those beginnings, TerraCycle has morphed into
a global recycling presence by establishing collection waste
“brigades,” people who agree to collect trash. TerraCycle pays
brigade members the shipping costs in most cases and an
average of $0.02 per unit collected to the brigade’s favorite
charity.17
TerraCycle has over fourteen million collectors in
eleven countries and claims to have converted or diverted over
a billion pieces of waste material from landfills. When thinking
of TerraCycle, the phrase “one man’s trash is another man’s
treasure” is definitely an understatement.
Hopefully, TMG and TerraCycle help frame the Eco-
Guerrillapreneurism principles in a way that we can now stretch
the limits when examining the best practices for reducing costs
and waste in traditional businesses. Where do we begin? We
will start with the simple income statement (“IS”). The expense
side of the IS is made up of two types of cost: (i) expenses
related to the Cost of Goods Sold, and (ii) Non-Cost of Goods
Sold (“COGS”) Expenses, including: Non-COGS Labor, Rent
Expense, Sales Expense, and Software Expense. Please note that
Income Statements are company specific in terms of what they
spend to run the company, but I have highlighted areas that are
most common to all companies. As I did earlier, after we
Guerrillapreneur
156
examine the best practices, I will push the limits of conventional
business wisdom and ask, “How would Henry Ford run this
business?”
COST OF GOODS SOLD
The cost of goods sold (“COGS”) is defined as direct cost
used in the production of a product or service. American
Fortune 500 companies employ Supply Chain Managers to
reduce the cost of materials used in production. These
managers are given a plethora of tools with which to work,
including sophisticated procurement systems (e.g., Ariba)
designed to track purchase decisions and seek cost reductions
as purchase volume increases. The purchasing manager
understands that he or she can leverage economies of
purchasing (buying power) or purchase timing (just-in-time
purchasing) to drive down production costs (“bread and butter”
cost management). Now, let’s examine the non-traditional Eco-
Guerrillapreneur methods for reducing COGS: (i) Reverse
Supply Chain Logistics and (ii) Re-purposing COGS Scrap.
Eco-Guerrillapreneur Approach # 1—Reverse Supply Chain
Logistics
The cost management logic behind most procurement
systems (like Ariba) is purchase consolidation, i.e., making raw
materials as cheap as possible by purchasing as much as
possible from the same vendor. Nonetheless, these
procurement systems do not give consideration to what
happens after those raw ingredients are processed and/or
shipped out. What happens to waste left on the factory floor?
What happens if the product is defective? In 2002, Daniel
Guide, the Professor of Operations and Supply Chain
Management and Charles and Lillien Binder Faculty Fellow at
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157
Penn State’s SMEAL College of Business, and Luk Van
Wassenhove, the Henry Ford Chaired Professor of
Manufacturing Executive Education Programme Director,
Management in the Humanitarian Sector at Instead, published
in a Harvard Business Review article the process of using
and/or managing waste products to reduce operating costs as
“reverse supply chain.”18
Ford Motor Company (“FMC”)
started a “reverse supply chain” program in 1993 to recycle
plastic bumpers into tail light housings and new bumpers for
their cars. Each bumper produces approximately thirty tail
light housings.19
FMC uses 1.5 million pounds of the recycled
bumper material per year.20
They found that not only did the
recycled tail light housings meet safety standards, it cost them
less to produce than housings produced from virgin Xenoy
plastic. FMC estimates that it saves $1 million annually from
the bumper recycling program.21
Moreover, the FMC program
removed 125,000 bumpers per year from landfills.
Americans use an estimated 360 million ink and toner
cartridges per year. Staples is the first national chain to offer
its customers rewards for returning spent printer toner
cartridges regardless of the manufacturer. Staples recycled
twenty-two million and thirty million ink and toner cartridges
in 2008 and 2009 respectively.22
According to Staples, 70% of
cartridges used worldwide are not recycled,23
“with almost
eight cartridges tossed in the trash per second,”24
totaling a
whopping 253 million cartridges. In 2005, Staples estimated
that the company generated $289 million in revenue from re-
manufactured cartridges into the Staples brand.25
Again, here
is another instance of profit making environmentally conscious
eco-Guerrillapreneurism.
Despite these examples, few American companies factor
recycling, returns, disposed, or obsolete products into their
core operations. Instead, their business plans end after the
Guerrillapreneur
158
product rolls off the assembly line and is delivered to the
customer. In fact, many companies treat returns and obsolete
products like a proverbial “red-headed stepchild” as opposed to
fertile ground for product innovation and tremendous
operational cost savings. One can only imagine how different
the world would be if Henry Ford’s zero-waste philosophy was
applied to today’s leading business models. Let’s imagine:
Reverse Supply Chain: The World According to
Henry Ford, Part I
1. Take a Second Bite of that Apple. Apple has sold an
estimated 200 million iPods, thirty-five million iPod
Touches, and fifty million iPhones.26 Apple’s mission is
to provide its customers with cutting edge technology,
and by doing so, their tremendous success has created
a growing environmental problem, e-waste. According to
the Environmental Protection Agency (EPA), “About fifty
million cell phones are replaced worldwide a month, and
only 10% are recycled. [Moreover], one cell phone has
enough toxins –arsenic, mercury, and lead-to
contaminate 40,000 gallons of water.”27 Assuming the
EPA’s estimates are correct, we are contaminating
twenty-two trillion gallons of water per year. Finally,
Apple estimated that in 2009, its devices were
responsible for 9.6 million metric tons of greenhouse
gases.28 Is that phone call really worth it?
Apple is not unaware of these facts. Of all the electronic
companies, Apple is a leader in green manufacturing.
Apple offers its customers purchasing a new device a
10% discount if they want to return their previous
generation iPhone or iPod to their local Apple Store.29
To
Apple’s credit, the company has sought to decrease their
environmental footprint through the use of smaller
packaging and mercury-free LED backlit technology.30
Problem solved, right? No. Despite their valiant efforts,
Apple is missing the Guerrillapreneur mark by not
aggressively recycling its prior generation devices. If
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159
Ford were running Apple, he would implement a service
to reclaim and resell old devices in markets or channels
(retail outlets) where new devices aren’t being sold.
Sounds crazy? Mazuma Mobile, a recycling website,
claims to have recycled and sold over 100,000 previous
generation iPhones. Mazuma Mobile pays customers to
ship the phones to their processing centers where they
restore and sell the smart phones for prices, based on
capacity, between $150 to $300.31
I speculate that if
Apple applied Ford’s zero-waste policy to their
obsolesce problem, the computer giant would capture a
gigantic $42 billion dollars, 14% of the company’s March
2010 market capitalization, in market value! In addition
to the resale market value, reselling or reusing all old
devices would reduce the size of Apple’s toxic
brominated compounds and hazardous PVC32
footprint
in the world’s landfills.
2. Recycle that Smile. What if Henry Ford were in
charge of giving the world “a Coke and a Smile”?33
If
Ford were CEO of Coca-Cola, he would realize that one
of Coke’s main environmental problems is reclaiming its
packaging (i.e., bottles and aluminum cans). On
February 13, 2008, Coca-Cola set the internal goal of
recycling 100% of the aluminum and PET plastics it
uses. Today, Coke uses 60% recycled aluminum.34
Making cans from recycled aluminum cuts related air
pollution (for example, sulfur dioxides, which create acid
rain) by 95%.35
Additionally, recycling aluminum is
twenty times more energy-efficient than making it from
scratch.36
Despite the high price for aluminum, recycling
levels have remained relatively flat over the last five
years. The Container Recycling Institute (CRI) estimates
that thirty-six billion aluminum cans were land-filled last
year at a scrap value of more than $600 million.37
Americans throw away enough aluminum every three
months to rebuild our entire commercial air fleet.38
To
achieve the 100% target, Ford would realize that there
needs to be a paradigm shift in the way we recycle
aluminum. Today, people collect bags of cans and sell
them to recyclers by the pound. In today’s fast food
Guerrillapreneur
160
society, collecting bags of cans requires too much time
and energy. Americans demand instant gratification in
everything from instant messaging to instant coffee.
Americans do not have the time to wait to see the benefit
of their recycling efforts. To that end, Americans would
embrace vending machines that accept empty aluminum
cans and PET plastic bottles as a form of payment
(turning cans into currency) creating a closed loop
recycling network. These vending machines, which I call
Automated Recycling Machines (ARMS), would provide
consumers credits for all empty cans or bottles that are
inserted into the ARMs recycling shoot. Ford would
partner with Clynk, the South Portland, Maine recycling
startup, to develop the ARMs kiosks (remember Clynk
from Chapter One). Ford would require that the ARM be
equipped with an automated trash compacting unit that
sorts and crushes cans and bottles to maximize space.
Imagine paying for your sixteen ounce Coke with empty
cans and/or plastic bottles. Deploying these machines
wouldn’t change today’s standard practices to much.
Local bottlers, who already restock vending machines,
would restock ARMS with new beverages, and while
onsite they would also retrieve recycled aluminum cans
and bottles stored in the machine’s compression bin.
The bottlers would deliver compressed cans and bottles
to Coca-Cola’s Recycling (CCR) plants—a tightly
managed closed loop.
3. Recycle Your Emotions. If you think ARMs will work
for Coca-Cola, why not apply the same concept to
greeting cards? An estimated seven billion cards are
sold each year. Hallmark, the leading provider of
greeting cards, produces nearly half of all cards sold in
the United States. Hallmark already operates a closed
loop recycling program where recyclable paper is sent to
its plants and processed into their “Laugh Responsibly”
line of greeting cards.39
Like the Coke example, millions
of tons of product go un-recycled each year. To achieve
100% recycling, Ford would deploy ARMs similar to
those described in the Coca-Cola example. Instead of
cans and bottles, the Hallmark ARMs would accept
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161
recyclable paper as a form of payment. Imagine kiosks
that distribute new cards to consumers after providing
them credit for recycling!
4. No Thanks I brought My Own Seats. According to
Autodata, 12.3 million new cars were sold in the United
States in General Motors and Ford Motor Company in
2010, and approximately ten to eleven million cars are
taken out of service each year. Approximately 94% of
the 10-11 million cars taken out of service are returned
for recycling with approximately 75% of the vehicle being
recycled.40
Based on Davis’ research, I estimate that
25% of the materials not being recycled include fibers
and plastics from such parts as seats. If Ford were CEO
today of Ford Motor Company, he would launch a line of
low priced cars with interchangeable click-and-lock seats
and give consumers the option to save money by
providing their own seats. Don’t think it will work? During
my college days, I saved money by getting replacement
parts for my car from the local salvage yards. During one
of my frequent weekend junk yard runs, I found a car
that had a nearly new passenger side seat. I convinced
the salvage yard owner to let me exchange my butt-worn
seats for the salvaged car’s seat for US $10.00! If
consumers were given the option of installing their own
seats and floor mats, how much money could be saved
by the consumer and the car companies? How much
material could be saved?
5. Are You Going to Eat That Cup of Joe? Starbucks,
winners of the 2005 National Recycling Coalition
Recycling Works Award, serves roughly four billion cups
of coffee per year41
in cups –cups that are made of 10%
recycled paper and sleeves made of 60% post-
consumer recycled fiber.42
Though the cups are made of
recycled paper, they are not recyclable—that means four
billion cups in landfills. Moreover, Starbucks sells cold
beverages in non-recyclable plastic cups (in plastic #5,
polypropylene, PP).43
To thwart the problem, Starbucks
has a multi-tier plan, that includes: (i) in-store recycling
of all post-consumer plastic and paper cups at 7,500
Guerrillapreneur
162
company-owned stores by 2015; (ii) serving a quarter of
its beverages in re-usable cups by 2015; and (iii)working
with local governments and recyclers to develop
recycling markets for those post-consumer cups.44
As
Starbucks executes this plan, the company is
encouraging conservation by offering consumers a $0.10
discount if they bring in their own cups (this should be
advertised more significantly in their stores). Is that
enough? Sure. If Starbucks executes, they should
reduce their cost and environmental impact. Are they
missing a better opportunity? Yes. If Ford were CEO of
Starbucks, he would eliminate the paper cups and
develop edible cups. Modeled after the Taco salad bowl,
these edible cups could feature different flavors that
enhance the taste of the coffee and can be consumed
when Starbuck beverages are drank. Sounds strange?
New York-based design consultancy The Way We See
The World has developed a line of disposable cups
called Jelloware.45
These edible cups are made of agar
agar, a gelatin derived from algae and used as an
ingredient in desserts. The Jelloware cups come in
different flavors (including rosemary-beet and lemon-
basil) to complement the beverage inside. Imagine a
chocolate or cinnamon cup with your favorite Starbucks
Java. Once used, the cup can be eaten or tossed in the
front yard where the agar will fertilize the plants.46
Assuming edible cups became the industry standard,
and used in restaurants like Starbucks, McDonalds, and
Burger King, up to one-third of the total US municipal
waste stream could be eliminated47
by eating the cup.
Eco-Guerrillapreneur Approach #2: Re-purpose scrap from
COGS
Have you seen those really funny Chick-fil-A billboards
where the cows are encouraging you to “Eat More Chicken”?48
These campaigns have been extremely successful as Chick-fil-A
has grown to 1,553 stores in thirty-nine US states. Though the
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163
signs remind you to eat chicken, they do not tell you what to
do with the tons of feathers left over from the processing of
those chickens. Once you open your environmental eyes, you
will see that every aspect of our modern convenient lives
hides waste. We turn the faucet on and get clean drinkable
water. Few Americans have visited a wastewater treatment
plant to see the billions of gallons of wastewater sludge
generated to clean water. If we get a flat tire, we rarely think of
the 370 million tires that are dumped in landfills each year.
When eating burgers and fries, we rarely think of the millions of
gallons of spent cooking oil required to make those spuds taste
so good. If Americans had to foot the bill for waste disposal,
there would be greater demands for chicken processors,
restaurants, and tire manufacturers to reuse waste materials to
reduce cost. Guerrillapreneurs make a concerted effort to keep
cost low by finding creative ways to make waste profitable.
Funny? If waste was profitable, it wouldn’t be waste right?
Again, I turn to Henry Ford. Everyone likes summer Bar-B-Qs,
right? The next time you throw a few coals on the barbie, thank
Henry Ford. Why? Kingsford ChaFord was formed by Henry Ford
and E.G. Kingsford, the husband of Henry Ford’s cousin, during
the early 1920s using waste wood generated by the sawmill
from Ford Motor Company’s Model-T assembly line. The
company, originally called Ford Charcoal, was renamed in E.G.’s
honor. When producing the Model-T, Ford constructed a
chemical plant next to the factory to reclaim every ton of scrap
wood, including the charcoal briquettes. At its peak, more than
one million tons of wood scrap were reclaimed and
manufactured into briquettes. The sale of the charcoal and the
other chemicals derived from the scrap wood generated
approximately $12,000 per day in 1920 currency, “or enough to
pay 2,000 workers a rather high daily wage of six dollars.”49
When President Obama speaks of the benefits of Green
Technology, he envisions technologies that have both a
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financial and an environment benefit. If Ford had ignored the
scrap and just dumped it in a landfill, history would have still
viewed him as a very successful business man. However, as an
Eco-Guerrillapreneur, Ford measured success on a different
scale.
Getting the Eco-point? Now, how would Ford revamp
today’s most common industries?
Re-Purposing Production Scrap:
The World According to Henry Ford—Part II
Chicken Feathers to Computer Chips – The National
Chicken Council, a Washington, DC-based poultry trade
group, predicts that more than 8.5 billion chickens will be
commercially grown and processed in the United States
this year. These chickens, when processed, will leave
behind more than 2.3 – 3 billion pounds of feathers.50
Feathers may appear to be an environmental nuisance
(unless you are in the tar and feathering business) until
you examine all the potential uses for this waste scrap.
According to Pam Percy, chicken feather chips transmit
an electrical signal twice as fast as chips developed from
silicon. Chicken feather chips are cheaper to
manufacturer and easier to dispose of than the silicon
based chips.51
If chicken feathers could be fashioned into
microchips, the waste product (feathers) would become
more valuable than the chicken itself.
Chicken Feathers Can Save the Rainforest – Feathers
can also be used to make notepaper. Walter Schmidt, a
research chemist at the Beltsville, Maryland branch of the
US Department of Agriculture's Agricultural Research
Service (ARS), estimates that a year's worth of feathers
could replace approximately 25% of the wood pulp used
annually for diapers. Schmidt notes, “The environmental
impact would go beyond saving trees: feathers require
much less processing than wood pulp, and unlike paper
pulp, do not require bleaching-they start out white.” Three
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companies—Featherfiber Corporation, Maxim Systems,
and Tyson Foods—are now working to scale up
production of absorbent feather-based products including
diapers, filters, insulation, upholstery padding, paper, and
clothing.52
Chicken Feathers Can Solve the Starbuck’s Cup
Problem – Most recyclable biodegradable plastics are
developed from oil and natural gas. Reducing the number
of these plastic bottles and Styrofoam cups reduces our
dependence on foreign oil. Chicken feathers have been
positioned as an alternative to oil-based plastics, but
when chicken feather-based plastics came in contact with
water, they dissolved. This is a real problem, according to
Petz Scholtus of Science & Technology, because 1,500
plastic water bottles are consumed every second in the
United States.53
Professor Yang, a textile and biofiber
researcher at the University of Nebraska-Lincoln
developed a process of treating chicken feather based
plastic bottled with the clear chemical found in nail polish,
making them water resistant.54
Chicken Feather Hydrogen Cars – Scientists now
believe that carbonized chicken feathers could act as
highly effective hydrogen storage devices. Chicken
feathers are made of keratin, a protein that forms long,
hallow tubes. When heated, these tubes create cross-
links that strengthen the structure to the point where it
can absorb just as much hydrogen as an equal amount
of carbon nanotubes. If perfected, the carbonized
chicken feathers could dramatically reduce the cost of
developing hydrogen-based cars. A gas tank developed
from chicken feathers would cost approximately $30,000
versus $5.5 million for carbon nanotubes.55
Clean Water Green Electricity – Ever thought your
waste could generate electricity? Greg Bush runs a $22
million one megawatt facility fuel cell plant in Renton,
Washington. The plant operates off of thirty million
gallons of wastewater that generates methane and
powers 1,000 homes.56
The waste from the wastewater
is fed into digesters where bacteria eat away at it, giving
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off methane gas in the process. The methane gas is sent
to a fuel cell where the gas is broken down into
hydrogen and carbon dioxide. The carbon dioxide is re-
circulated to form carbonate. The carbonate is combined
with the hydrogen to produce electricity, water, carbon
dioxide. The key advantage of the fuel cell is that it
produces electricity more efficiently than the combustion
process. If Ford were running today’s waste water
treatment plants, he would have rebuilt his entire fleet of
Ford vehicles to run off either hydrogen fuel cells or
electricity. The waste water system would either act as a
hydrogen battery plant or part of an electric charging
network.
Recycling Tires Improves Roads – Worn tires are
among the worst trash to put in landfills because they
take up so much empty space; and even after they are
disposed, they tend to be very durable. Additionally, tires
trap methane gas, making them more buoyant and very
disastrous to landfills and surface water. According to
the Waste Reduction Task Force, one tire per American
per year is discarded in a landfill, approximately 370
million tires a year.57
Like aluminum cans, there is no
reason for tires to be discarded in landfills. Tires, like
cans and PET bottles, have a defined market. In fact,
tires can be recycled into hot melt asphalt used in
pavement and cement or just recycled into other tires.58
If Ford were back in charge of Ford Motor Company, he
would oversee a company that utilizes 6.5 million rubber
tires annually. Ford would institute a recycling program
where customers who returned worn tires to dealerships
would receive service credits and discounts off new tires.
Ford would use the returned tires to produce new tires
and even roads.
French Fries Reduce Oil Independence – McDonalds
is the second largest fast food chain serving
approximately fifty-eight million customers daily.
McDonalds generates more used deep fryer oil and
cooking oil than any other chain on the planet. Under its
“oil-to-fuel” program, McDonalds is already making
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167
efforts to convert used oil into biodiesel. In fact, 80% of
the used cooking oil from about 4,000 franchisees in
Europe is already being generated into biodiesel. In the
United States, approximately 7,500 of the 12,804
domestic franchisees participate in the oil-to-fuel
program.59
If Ford were CEO, he would make oil-to-fuel
a center piece program, just like he championed
Kingsford Charcoals during his time as the head of Ford
Motor Company. It is not un-imaginable to think that
Ford would go so far as to launch a chain of biodiesel
fueling stations using the deep fryer oil and cooking oil
from McDonalds. Sounds crazy? Sure, but these are the
type of non-traditional ideas Americans would be forced
to consider if we did not have the blessings we
referenced earlier in the chapter.
Non-COGS Expenses
Non-COGS Labor
Traditional “brick and mortar” companies have
missed the boat when it comes to tapping top talent.
These companies believe you have to hire individuals, give
them a desk, and put them in a multi-million dollar facility
in the middle of a very expensive city. These employees
get fancy houses dozens of miles away from this fancy
office, and they drive back and forth every day to their
jobs on crowded streets. The average American drives
33.4 miles per day to work and emits 1.36 tons of carbon
dioxide per day.60
Does this sound like your company?
Why do companies operate this way? Guerrillapreneur
companies understand the end product is what counts
and not the address on the letterhead. What does that
mean? It means that Guerrillapreneurs don’t build edifices
if there is not a value-creating reason to do so. It also
means that Guerrillapreneurs have evolved beyond the
traditional employer/employee relationship, opting instead
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to hire “just-in-time” virtual workers who provide services
everywhere that high-speed internet access (the beach, the
comfort of their homes, etc.) is obtainable. Leveraging virtual
workers gives Guerrillapreneurs the flexibility to tap more
resources without over investing in the business model
before the true value of the opportunity is understood. Think
I am crazy? Jet Blue is using virtual workers to run its airline.
Jet Blue, the nation’s seventh largest airline (based on
passenger volume) utilizes 1,200 virtual “Work-At-Home”
reservation agents—80% of their reservation workforce.
These “Homesourced” workers save JetBlue the expense of
purchasing and maintaining a corporate building. It is
estimated that JetBlue saves around $2,000 dollars in rent
costs per call agent per year by homesourcing its operation.61
Certainly, from a financial perspective, Jet Blue’s virtual
workforce saves money, but because these workers have to
travel less than a minute to the “office,” they are more
productive. Additionally, because these workers can be
productive from their homes, they are less likely to leave
these jobs. JetBlue has a 3.5% turnover rate compared with
an industry average of 65%. Industry analysts estimate that
airline turnover costs amount to about 30% of an employee’s
salary ($9,360 for call center reservationists). Given this
rate, JetBlue saves over $5 million annually verses its
competitors.62
To stay competitive in a slim margin
industry, Jet Blue utilizes virtual employees to generate
savings that they reinvest in their operations. Finally, from
an environmental perspective, JetBlue’s virtual employees
do not have to drive to work, reducing JetBlue’s carbon
footprint by 500 tons of carbon dioxide per person per year
(approximately 600,000 tons for JetBlue’s homesourced
employees).
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Henry Ford’s assembly lines were dependent on two
things: (i) abundant production materials; and (ii)
employees with perfect attendance. Now, fast forward to
today. Knowing the environmental benefit of virtual
workers, what are some of the other virtual resources
Henry Ford would tap into to improve the profitability of
his business?
 Call Center Based Executive Assistants (EAs)—For
years, executives have been able to open their door
and ask their EAs to draft a memo or schedule a
meeting. In the mid 1990s many large corporations
saved money by doubling up executives with a single
EA. Imagine 24/7 executive support from a virtual EA
stationed in a call center and assigned to support fifty
to a hundred executives globally. These individuals
handle everything from calendars, memos, and
presentations at a fraction of the cost and carbon
footprint as having an individual sit outside your
office. In 2006, McDonalds experimented with a
centralized call center in Los Angeles to process
orders from McDonald’s drive-thrus as far away as
Honolulu. Orders captured at the call center were
sent back to the stores via the internet,63
where they
were filled by the local staff. The benefit of this
approach is efficiency and time. The local staff only
had to focus on fulfilling orders. They were not
distracted by having to collect orders. Studies have
shown that when individuals can focus on a single
task, they become more efficient. These efficiencies
translate into minutes saved per order, and for a
company that serves over fifty-eight million orders in
the US annually,64
the saving could easily generate an
additional $14 million in labor savings (assuming a
national minimum wage rate of $7.25 per hour). In
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170
addition to the bottom line benefits, like the Jet
Blue example, these savings come with the
additional benefit of reducing McDonalds carbon
footprint. Assuming the average Crew Member
Salary of $14,520, the Jet-Blue style call center Crew
Member concept would take 967 people off the
highway, reducing McDonalds carbon emissions
footprint by almost 600,000 tons!
 Virtual Lawyers—Companies know they have
made it when they can afford to hire in-house
counsel. However, it may be time to give up in-
house counsel for a virtual counsel. India produces
80,000 lawyers annually.65
Currently, Indian lawyers
provide back-office litigation support to some of the
country’s largest and most prestigious law firms in a
practice called legal process outsourcing (LPO). In fact,
Forrester Research estimates that up to $4 billion in
legal services will be outsourced to companies like
Pangea3 in India by 2015.66
Small and mid-sized
businesses can tap into these services paying as little
as $10,000 per year for a virtual lawyer verses an
estimated $100,000 for in-house counsel. Additionally,
services like LegalZoom.com67
are commoditizing
standard documents (contracts, wills, etc) and allow
consumers to purchase them on an as-needed basis
for a flat rate.
 Virtual Human Resources—Got an in-house human
resources department? Are they responsible for
sourcing employees? Do they place ads in
newspapers or comb job sites for potential new
talent? Many Fortune 500 companies have large in-
house staffs dedicated to “feeding the hiring beast.”
Though many of these companies believe their
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companies are so unique that they need staffers to
conduct their searches, many Guerrillapreneurs are
turning to Business Process Outsourcers (BPOs) and
Screening Process Outsourcers (SPOs) to either
manage an entire function within a company or run
specific function within a company’s department.
When I was a consultant with Andersen Consulting,
we won a deal to manage BellSouth’s entire IT
department. BellSouth agreed to pay a relatively flat
fee for IT services to Andersen. Andersen Consulting
converted BellSouth employees into Andersen
employees, and made its money by providing
services to BellSouth at a cost below the annual fee.
Rent Expense
As I mentioned earlier, Guerrillapreneurs do not believe
in over-building or investing in elaborate corporate
headquarters. When there is a need for an office,
Guerrillapreneurs rent an office not by the year, but by the
day. Regis Virtual Office Solutions provides virtual offices in
most major cities around the world. Users pay monthly to
have a mailing address at the Regis Virtual Office, which
also provides the user limited use of conference rooms and
business offices when they need to entertain clients. This
Virtual Office, or “hoteling executive office” concept, makes
the rent expense a variable cost verses a more fixed cost.
How would Henry Ford use the virtual office concept
to reduce expenses and the carbon footprint? Because
Ford ran the first assembly lines, he understood one
important fact about managing labor: service labor is
perishable. When employers agree to pay an employee by
the hour, the cost becomes sunk as soon as the employee
starts the task. During my last months with Andersen
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Consulting (Accenture), the economy was taking a turn for
the worse. Leadership feared that the demand for
consulting work would not match the quantity of the
service hours they had under contract. Not having a clear
picture of future demand, leadership decided to pay
incoming consultants a flat fee stipend NOT TO WORK and
to agree not to take another job for up to three months.
This was a creative method for maintaining top talent;
however, Ford would take a Guerrillapreneur approach for
managing perishable capacity.
 Sell unused manufacturing capacity—If you run
a factory or a service company, you have
manageable capacity. What do you do if you are
not operating at 100% capacity? Many Americans
would be surprised to learn that many of today’s
leading companies, including Wal-Mart and
Kroger, outsource the manufacturing of their
private label products to the same company,
ConAgra. In fact, private label cereal
manufacturers typically have their product
manufactured by their branded competitors. Does
this approach make sense for small businesses?
Absolutely. Before a Guerrillapreneur would
purchase new equipment, even on core products,
he/she would seek out opportunities for
competitors to sell unused capacity to them.
Why? Doesn’t this put cash in your competitor’s
pocket? Sure, but it also put profits into the
Guerrillapreneur’s pocket. The Guerrillapreneur
will purchase the new equipment when demand
exceeds the combined facilities’ capacity.
 Sell Perishable Capacity to Partners—In the
past decade, we have witnessed media
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organizations (ABC, CBS, NBC, CNN, etc) that
were known for their independent news
organizations agree to share key news
personnel as a means for cutting cost. Can this
approach work for Guerrillapreneurs? Yes.
Small businesses are getting very creative with
managing their perishable capacity. If you have
idle mechanics, why not have them hand out
discounted oil change oil coupons? Chemir is a
bio-drug company that specializes in helping
companies analyze and develop new drugs.
Faced with growing capacity as a result of the
recession, Chemir began selling capacity in its
specialized equipment to small firms like Devro
and large pharmaceuticals like Merck and
Pfizer.68
When boutique firms like Chemir sell
excess capacity, they not only increase profits
through these partnerships, but their
employees have also been exposed to cutting
edge methods that may benefit the firm in the
future.
Equipment Expense
I’ve worked at several Fortune 500 companies, and
each of them maintained storage rooms filled with
outdated computers, monitors, and laptops. These devices
were victims of the standard corporate upgrade cycle. I
often wondered why my employers never refurbished the
units and sold them. Guerrillapreneurs prefer to purchase
used and/or refurbished equipment. Moreover, when a
Guerrillapreneur completes a job that requires specialized
equipment, the Guerrillapreneur will refurbish and sell the
equipment to the next Guerrillapreneur. Why let the
equipment sit on a shelf and rust? Today, corporate
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174
procurement managers have a place where they can sell
equipment: EBay.
EBay is the world’s leading auction website. USAToday
estimates that individuals sell $7 billion in used cars
annually through EBay.69
In 2003, doctors and dentists
began turning to EBay when squeezed by insurance
companies to buy used medical equipment. Despite the
dollar figure sold on EBay, most companies are still
apprehensive about re-purposing their equipment.
Software Expense
 Guerrillapreneurs do not believe in investing in-
house Information Technology (hardware, software,
or personnel) if the strategic reason does not
outweigh the downside of invested capital required
and the growing e-waste problem. I have worked for
organizations that have invested millions in a data
center and then, after an upgrade cycle, literally threw
away older, fully depreciated servers. Many
companies operate data centers, not because their
core businesses require them to, but because they
either have security concerns or in-house applications
that they believe are not portable. Guerrillapreneurs
have long believed that this line of thinking is
outdated. For years, SunMicrosystems fought an
uphill battle hoping to convince the world that in-
house servers were in-efficient and limited a
company’s ability to act virtually. Cloud Computing
now picks up where Sun Microsystem70
left off.
 Clouding Computing, defined as turn-key internet-
based computing, provides companies with shared
resources, software (such as email, development,
and data storage), and information to their
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computers and other devices on-demand, like
electricity. Several prominent companies, including
Amazon and Google, offer Cloud Computing services.
Additionally, Cloud Computing makes it easier to
take advantage of virtual employees through the
use of collaborative document, web and video
applications.
Virtual Phone Systems
 Guerrillapreneurs understand that phone-based
communication is the spinal cord for employee prod-
uctivity and customer service. As Guerrillapreneurs
grow their virtual organizations, they have to take care
to make sure that there is cohesiveness between their
departments—which usually means that employees
and customers have to have an easy way to leave
voicemails for the desired support or administrative
personnel. Virtual phone services like Grasshopper71
provide Guerrillapreneurs unlimited extensions for
departments or employees, call forwarding, toll free
and local number access, on-hold music, a name
directory, custom greeting, and call routing all for
$9.95 per month! In the past, companies invested
thousands in equipment to obtain this level of
communication flexibility. For less than $10 a month,
a Guerrillapreneur can compete with Fortune 500
companies without investing capital or emitting tons
of carbon requiring customers to drive to the office.
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Outsource R&D
 Devro, a Columbia, South Carolina-based sausage-
casing manufacturer, was getting crushed by a
larger competitor that had perfected a better
casing. Unable to match the technology in-house,
Devro paid Chemir $7,000 to reverse engineer it’s
competitor’s product to produce a competitive
offering with a longer shelf life. 72
Devro has closed
the gap between its competitors for a fraction of
the cost spent by its rivals.
* * *
I am a firm believer in the phrase “whatever is worth
doing, it is worth doing for a profit.” Today, the car is the villain
in our “save the environment” saga. Tomorrow, the villain may
very well be the iPhone or the Android. Henry Ford accepted his
role as both an industrialist and environmentalist (Eco-
Guerrillapreneur). Ford embraced the concept of “using all that
you take.” Earlier in the chapter, I quoted a Native American
proverb that requested that we “treat the earth well.” The
proverb is not demanding that we abandon our productive
lives. Instead, the proverb asks that we accept the responsibility
of maintaining a “Ying and Yang” balance between our
industrial passions and our renewable, but fragile eco-system.
Undoubtedly, the world is a better place with iPhone and
Android phones. However, for the great good that comes with
mobile phones, we have to ask ourselves if we are willing to
accept the same responsibility and “treat the earth well.”
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NOTES
1
Gottlieb, Robert. Forcing the Spring: The Transformation of the American
Environmental Movement. (2005)
2
“Environmental Defense, Carbon Emissions Fact Sheet.” Edf.org.
Environment Defense Fund, February 2002. Web 6 Nov. 2011.
3
McCarthy, Tom. “Henry Ford, industrial ecologist or industrial
conservationist? Waste reduction and recycling at the Rouge.” Business
Library, http://findarticles.com/p/articles/mi_7021/is_2_27/ai_n28126788/,
2001
4
Levison, William. “Green Manufacturing Jobs Should Be Self-Creating.”
Associatecontent.com. Associate Content, n.d. Web. 6 Nov. 2011.
5
“Native American Quotes.” Sapphyr.net. Sapphyr, n.d. Web. 6 Nov. 2011.
6
Fishman, Charles. The Wal-Mart Effect. New York, Penguin Books, 2006, p
81. Print.
7
“Television History—The First 75 Years.”Tvhisotry.com. TV History, n.d.
Web. 6 Nov. 2011.
8
Welniak, Edward and Mary Henson.. “Money Income of Households,
Families and Person in the United States: 1982.,” Current Population
Reports. Census, Series P-60, February1984. Web. 6 Nov. 2011.
9
Cleveland, Robert, Carmen Denavas-Walt, and Marc Roemer. “Money
Income of Households, Families and Person in the United States: 2000.,”
Current Population Reports. Census, Series P-60-213, September, 2001.
Web. 6 Nov. 2011.
10
“Electronics Waste Management in the United States.” Epa.com.
Environmental Protection Agency, July 2008. Web. 6 Nov. 2011.
11
Italie, Leanne.. “Diaper debate still rages on.,” The Atlanta Journal-
Constitution, April 13, 2011, D5. Print.
12
http://www.prweb.com/releases/2009/03/prweb2213034.htm
13
Bogo, Jennifer “Cows to Kilowatts: US Farms Save Big Turning Manure to
Energy.” Popularmechanics.com. Popular Mechanics, 1 February 2009. Web.
6 Nov. 2011.
Guerrillapreneur
178
14
“Information Resources, Inc.” agmrc.org
http://www.agmrc.org/commodities__products/livestock/beef/dried_beef_
industry_profile.cfm
15
“About Us.” Terracycle.net. Terracycle, n.d. Web. 6 Nov. 2011.
16
Ibid.
17
Ibid.
18
Reverse Supply Chain Logistics. “System, model, type, company, business,
system, Closed loop supply chain, Responsive vs. efficient”
http://www.referenceforbusiness.com/management/Pr-Sa/Reverse-Supply-
Chain-Logistics.html#ixzz1EvXWPt2c
19
Davis, Gary. “Automotive Take-Back and Recycling Programs.”
P2pays.org.http://www.p2pays.org/ref/09/08872/eprn5-8.pdf Chapter 5,p.7
20
“End-of-Life Vehicle Management: Bumper Take Back Projects in the
United States.” Edf.org. Environmental Defense Fund, August 2009. Web. 6
Nov. 2011. .
21
Davis, Gary. “Automotive Take-Back and Recycling Programs,”
http://www.p2pays.org/ref/09/08872/eprn5-8.pdf Chapter 5, p.8
22
Schwartz, Aaron.. “Staples to Reward Customers for Recycling Ink and
Toner Cartridges.” Greenbiz.com. Greenbiz, 25 January 2009. Web. 6 Nov.
2011.
23
Berry, Jennifer. “Staples’ Ink Cartridge Recycling Puts ‘Rewards’ in Your
Wallet.”Earth911.Com,. Earth911, 26 January 2009. Web. 6 Nov. 2011
24
Berry, Jennifer. “Staples’ Ink Cartridge Recycling Puts ‘Rewards’ in Your
Wallet.”Earth911.Com,. Earth911, 26 January 2009. Web. 6 Nov. 2011
25
http://www.staples.com/sbd/cre/marketing/staples_soul/environment.ht
ml
26
Ritchie, Rene. “50 million iPhones sold + 35 million iPod touches = 85
million iPhone OS devices.” Tipb.com. Tips, 10 April 2010. Web. 6 Nov. 2011.
http://www.tipb.com/2010/04/08/50-million-iphones-sold-35-million-ipod-
touches-85-million-iphone-os-devices/. April 10, 2010.
27
“E-Cycle Declares April Recycle Your Mobil Phone Month.” Blog.e-
cycle.com. e-Cycle. 5 April 2011. Web. 6 December 2011.
Mark Anthony Peterson
179
28
“Apple and the Enviornment.” Apple.com. Apple, n.d. Web. 6 December
2011.
29
“Apple’s Recycling Program: iPad and Mobile Phone Recycling Program.”
Apple.com. Apple, n.d. Web. 6 December 2011.
30
“Apple and the Environment: Environmental Progress.” Apple.com. Apple,
n.d. Web. 6 December 2011.
31
“Thousands of UK Consumers Rush to Mazuma Mobile to Plan iPhone
Upgrade.” Free-press-release.com. Free Press Release, 31 October 2011.
Web. 6 Nov. 2011.
32
“Missed call: the iPhone's hazardous chemicals.” Greenpeace.com.
Greenpeace USA, 15 October, 2011. Web. 6 Nov. 2011.
33
“Have a Coke and Smile.,” coca-cola.com. Coca-Cola, 1981, Web. 6 Nov.
2011.
34
“Coca-Cola sets aluminum recycling goal.”Bizjournals.com. Atlanta
Business Chronicle, 13 February 2008. Web. 6 Nov. 2011.
35
“Coca-Cola sets aluminum recycling goal.”Bizjournals.com. Atlanta
Business Chronicle, 13 February 2008. Web. 6 Nov. 2011.
36
“Coca Cola recycles the past into a precious metal.”
Thecocacolacompany.com. Coca-Cola, n.d. Web. 6 Nov. 2011.
37
“10 Fast Facts On Recycling.,” Epa.gov. US Environmental Protection
Agency, 7 October 2011. Web. 6 Nov. 2011.
38
“Aluminum Recycling.” Green-networld.com. Aluminum Association
(Washington, D.C.), n.d. Web. 6 Nov. 2011.
39
“Corporate Citizenship: Closed Loop Recycling.” Hallmark.com. Hallmark,
n.d. Web 6 Nov. 2011.
40
Davis, Gary. Automotive Take-back and Recycling Programs, University of
Tennessee, Tennessee, 1994.
41
Ali Ahmed. http://www.quora.com/Starbucks-Coffee-How-many-cups-of-
coffee-does-Starbucks-sell-each-year January 17, 2011.
Guerrillapreneur
180
42
Allison, Melissa (14 May 2008). "Starbucks struggles with reducing
environmental impacts." Seattletimes.newsource.com.The Seattle Times. 14
May 2008. Web. 18 Mar. 2009.
43
Kamenetz, Anya. “The Starbucks Cup Dilemma.” Fastcompany.com. Fast
Company, 10 October 2010. Web. 6 Nov. 2011.
44
MacKerron, Conrad. “Pressing Starbucks to Follow Through on its recycling
Commitments.” Triplepundit.com. Triplepundit, 21 March 2011. Web. 6 Nov.
2011.
46
“Jelloware: Disposable, Edible Cups That Can Help Plants Grow.” Psfk.com.
PSFK, n.d. Wed. 6 Nov. 2011.
47
“Jelloware: Disposable, Edible Cups That Can Help Plants Grow.” Psfk.com.
PSFK, n.d. Wed. 6 Nov. 2011. .
48
“Company Highlight & Awards.” Chick-fil-A.com. Chick-fil-A, n.d. Web. 6
Nov. 2011.
49
William Levison, William. “Green Manufacturing Jobs Should Be Self-
Creating.”
http://www.associatedcontent.com/article/1591324/green_manufacturing_
jobs_should_be.html?cat=15
50
“Poultry Power: How Chicken feathers can be used to ease the energy
crisis.” Istenergy.com. Istenergy, 4 April 2011. Web. 6 Nov. 2011.
http://www.istenergy.com/?p=226&option=com_wordpress&Itemid=116,
April 4, 2011.
51
Percy, Pam. “Field Guide to Chickens.”
http://books.google.com/books?id=m2YXUOJEMeIC&pg=PA50&lpg=PA50&
dq=chicken+feathers+and+reuse&source
52
McGovern,Victoria. “Recycling Poultry Feathers: More Bang for the Cluck.”
Greenbiz.com, Green Biz, 31 March 2002. Web 6 Nov. 2011.
53
Scholtus, Petz. “The US Consumes 1500 Plastic water bottles every
second, a fact by Watershed.” Science & Technology, October 15, 2009.
54
IST Energy, “Poultry Power: How Chicken feathers may ease the energy
crisis.” Istenergy.com. IST Energy, 4 April 2011. Web. 6 Nov. 2011.
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55
“Chicken Feathers Increase Hydrogen Storage
Capacity.,”energybusinessreport.com. Energy Business Reports, n.d. Web. 6
Nov. 2011.
56
Lianos, Miguel.“Poop Power, Sewage Turned into Electricity.”MSNBC.com.
MSNBC, 19 July 2004. Web. 6 Nov. 2011.
57
http://www.tennessee.gov/environment/swm/pdf/BPProblemWastes.pdf
58
Nehdi M, Khan A.. “Cementitious Composites Containing Recycled Tire
Rubber: An Overview of Engineering Properties and Potential Applications.”
Cement, Concrete, and Aggregates. (2001).
59
McDonalds.Com, Oil Opportunity,
http://www.aboutmcdonalds.com/content/mcd/students/serving_our_com
munities/oil_opportunity.html
60
Stanton, Elizabeth; Frank Ackerman; and Kristen Sheeran. “Greenhouse
Gases and the American Lifestyle: Understanding Interstate Differences in
Emissions.” e3network.org. Stockhom Environment Institute, May 2009.
Web. 6 Nov. 2011.
61
Keating, Matt. The Guardian, http://www.guardian-
co.uk/money/2005/oct/15/workandcareers.careers., October 15, 2005.
62
Keating, Matt. The Guardian, http://www.guardian-
co.uk/money/2005/oct/15/workandcareers.careers., October 15, 2005.
63
Richtell, Matt. “The Long-Distance Journey of a Fast-Food Order.,”
Newyorktimes.com. New York Times, 11 April, 2006. Web. 6 Nov. 2011.
64
“McDonald's posts sizzling 80% profit rise in 2008." Breitbart.com.
Breitbart, 26 January 2006. Web. 27 Aug. 2010.
65
Bangaloreattorneys.blogspot.com
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Lin, Anthony. “Legal Outsourcing to India Still Growing, but Still Confronts
Fundamental Issues.”New York Law Journal, 23 January 2008. Print.
67
“About Us.” Legalzoom.com. Legal Zoom, n.d. Web. 6 Nov. 2011.
68
Mount, Ian. “Good Chemistry.” FSB, September, 2009. p.19. Print.
69
Maney, Kevin. “The Economy According to EBay.,” usatoday.com. USA
Today, 29 December 2003.Web. 6 Nov. 2011.
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"Sun Microsystems Expands Cloud Computing Offerings with Acquisition
of Q-layer." . Sun.com. Sun Microsystems, Inc., 6 January 2009. Web. 6
January 2009.
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eChapter - Chapter 9 - Guerrillapreneur

  • 1. mark anthony peterson Small Business Strategy For Davids Wanting to Defeat Goliaths Small Business Strategy For Davids Wanting to Defeat Goliaths Mark A. Peterson is a former strategy consultant and a serial entrepreneur. Over the past twenty years, he has developed corporate strategies for Fortune 500 companies and launched over a half dozen small businesses. Peterson has a B.A. from Dartmouth College and an M.B.A. from the Amos Tuck School of Business Administration at Dartmouth. 1 Samuel 17 of the King James Bible details the battle between David, an undersized Israeli teenager, and Goliath, a nine foot tall Philistine warrior. As the Israeli and Philistine armies prepared for war in nearby camps, Goliath taunted the Israeli army and challenged any man brave enough to head-to-head battle. David, armed with slingshot and a pouch of rocks, accepted Goliath’s challenge. As Goliath charged with spear in hand, David released a rock from the slingshot and struck the giant in the forehead knocking him down. David took Goliath’s sword and removed the Philistine’s head. The sight of David holding Goliath’s decapitated head sent the Philistine army into retreat. The moral of the story: small players with good strategies can defeat even the biggest giant. “Guerrillapreneur” is a combination of the words “Guerrilla” and “Entrepreneur,” and it is the name given by the author to enterprising, cash, and environment-conserving small business executives who are dedicated to defeating corporate Goliaths. David used a slingshot and pouch of rocks to defeat Goliath. The author profiles past “Davids” like Wal-Mart, Apple, and Turner Enterprises, and derives from their garage-to-Goliath transformations the ultimate small business “sling- shot” strategy and “marketfighting” tactics. Guerrillapreneur is a MUST READ for every entrepreneur! GUERRILLAPRENEUR GUERRILLAPRENEUR $19.95
  • 2.
  • 4. ii
  • 5. iii GUERRILLAPRENEUR Small Business Strategy For Davids Wanting to Defeat Goliaths mark anthony peterson
  • 6. iv Alpharetta, Georgia ©2012 by Mark Anthony Peterson All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or any information storage and retrieval system, without permission in writing from Mark Anthony Peterson. ISBN: 978-1-61005-127-9 Library of Congress Control Number: 2011963412 Printed in the United States of America. This paper meets the requirements of ANSI/NISO Z39.48-1992 (Permanence of Paper)
  • 7. 149 CHAPTER 9 GUERRILLAGREEN: THE COLOR OF MONEY Guerrillapreneurs are honorary members of the Green Movement because of our focus on “zero waste” production and capital conservation. Most people rightfully credit both Henry David Thoreau (author of Maine Woods and Walden) and Rachel Carson (author of Silent Spring) with defining and reawakening the American Green Movement. Thoreau and Carson called for the preservation of the world’s ecosystems and virgin forest for altruistic reasons—launching what some believe to be an on-going conflict between environmentalists and American Industrialists. An environmentalist is a person who supports the sustainable management of natural resources through changes in public policy by supporting practices such as not being wasteful.1 Today, the poster child for one of the Green Movement’s antagonists, carbon emissions, is the gasoline powered car. According to Environmental Defense, “the total carbon burden of vehicles in the United States for the year 2000 was 302 million metric tons (MMtc). That’s more carbon than is emitted by all of India and three times as much as Brazil.”2 Based on these facts, Henry Ford, the founder of the Ford Motor Company and the man who is credited with mass car production, would be considered among the world’s worst environmental villains. Given what many of you know about Ford, you might call me a lunatic if I told you that Henry Ford (a close friend of another of my childhood heroes, George Washington Carver) is also one of the world’s greatest
  • 8. Guerrillapreneur 150 environmentalists and Eco-Guerrillapreneurs. During his time as CEO of Ford Motor Company, Henry Ford balanced laissez-faire capitalism and environmentalism by doing something very few manufacturers do today. Ford committed to reusing and recycling all waste materials from the Model-T assembly line.3 Ford’s zero-waste philosophy, what I call “Eco-Guerrilla- preneurism,” goes one step beyond environmentalism. Ford supported “zero-waste” practices that also made a profit. Why is making a profit while saving the environment important? Sustainability. If being “green” costs you more than you make, your business will be in the “red.” From a financial perspective, Ford’s zero-waste principle conserved cash and reduced the cost of goods sold by utilizing all production and waste materials. That’s great, right? How is that environmentally conscious? Ford’s zero-waste policy benefited the environment by his commitment to, as Ford stated in his autobiography, “have nothing to salvage"4 and nothing to dump in landfills. In this chapter, I use Henry Ford’s Eco-Guerrillapreneurism framework (actions producing equal financial and environ- mental benefit) to explore “GuerrillaGreen” practices that can be used to reinvent how we think about several high growth industries. Why the GuerrillaGreen emphasis? In war, Guerrillas are considered freedom fighting revolutionaries attacking the status quo. In the same vein, I want Eco-Guerrillapreneurism to embolden business leaders, small and large, to attack non- eco-friendly practices by making Extended Producer Responsibility (EPR) product cycle management a standard operating practice. I want business executives to take seriously their fiduciary duty to shareholders, stakeholders, and our planet by asking a simple question: “How would Henry Ford run this business?” By accepting Henry Ford’s challenge, business leaders can agree to account for the environmental costs of not achieving zero-waste production.
  • 9. Mark Anthony Peterson 151 As stated in an ancient Native American proverb, “Treat the earth well. It was not given to you by your parents; it was loaned to you by your children. We do not inherit the earth from our ancestors; we borrow it from our children.”5 Really? Some of you are reading this and thinking, “Why are we going down this road? I thought this guy said he was a capitalist. He sounds like a drum beating, tie dye tee-shirt wearing hippie!” I bet you are also thinking that Americans are already among the most efficient producers in the world. American farmers are the lowest cost producers in the world and American businesses produce more with fewer workers. I will grant that, when comparing America to other developed nations, we lead most of them in efficiency and productivity metrics (e.g., total factor productivity). However, as my old basketball coach Elston Turner used to say, “Just because we are good, doesn’t mean we can’t be better.” America’s blessings of abundant land, a stable economy, and cheap capital have all contributed to our innovative and efficient farms and factories; but these blessings have also had a double-edged sword effect of conditioning Americans to ignore non-traditional methods for reducing cost. What do I mean? Generally, American companies are not held liable for the proper disposal of e-waste, e-scrap, or Waste Electrical and Electronic Equipment (WEEE) after it is sold to the public. In fact, very few companies participate in electronic take-back programs. Why? America has enough natural closet space (abundant land) to dispose of toxic e-products. Because it has taken years for our environment to see the impact of dozens of years of disposed e-waste, few consumers have challenged the cost or the health risk in our courts. As a result, e-waste is essentially unregulated by the federal government (EPA) or the courts. (Only date, twenty-five states have some sort of e- waste legislation). Am I advocating new EPA regulations? No. I am advocating the spread of Eco-Guerrillapreneurism which
  • 10. Guerrillapreneur 152 would prompt business leaders to, like Henry Ford, commit to zero-salvage and zero-waste because it improves business profitability and also benefits the environment. Why do I emphasize and reemphasize accounting for the environmental impact in our products and production facilities? Because American’s addiction to cheap prices has made us more tolerant of waste. In the book The Wal-Mart Effect, author Charles Fishman argues that, as Wal-Mart reduced the cost of most household items, Americans accepted waste as an annoying by-product. In fact, giving an example of pickles, Fishman explains, “We saw consumers who used to buy the spears and the chips in supermarkets— where a small quart jar of Vlasic pickles cost $2.49—buying the Wal-Mart gallons. They’d eat a quarter of a jar and throw the thing away when they got moldy.”6 When history looks back on my generation, they will refer to us as the “L” generation, with the “L” standing for Landfill generation because we were the first generation to embrace “use and dispose” consumer electronics. In 1982, I interned as a 7th grader with a local television repairman. I remember the shop being littered with floor model Magnavox black & white televisions, AM radios, and suitcase-sized VCR players. Business was good. In 1982, the average cost of a floor model color Sony 26” TV ranged from $1,000 to $1,4007 and the average salary was $23,433.8 However, by 2000, the average 26” TV cost dropped below US$600 while the average salary climbed above $42,148.9 In less than twenty years, electronics had become as disposable as tissue paper. Today, the repair shop is boarded up and abandoned. Life for the repairman changed when it became clear to consumers that it was cheaper to buy a new television, DVD player, or radio than it was to pay to repair them. As the price of 32” TVs dropped below $200, Americans felt comfortable dumping broken
  • 11. Mark Anthony Peterson 153 models on the curb, awaiting the weekly trash pickup and delivery to the landfill. No harm, no foul? According to an EPA study, in 2008, 1.84 million tons of television, cell phone, and computer products ready for end of life were disposed of in landfills.10 America’s abundant land made it easy for consumers, legislators, and business people to overlook the need for product life cycle management. Instead, state and local governments adopted liberal dumping policies that failed to differentiate between eco-friendly trash and hazardous waste. As a result, toxic e-waste has a near “zero” disposal cost in dollar terms. Please realize, Eco-Guerrillapreneurism is not a producer take-back program. Eco-Guerrillapreneurism advocates zero-waste, not zero profits. In fact, through the pursuit of zero-waste, Guerrillapreneurs believe that they can reduce their costs and produce higher profits. Let’s examine a practical example before you accuse me of being a “save-the- planet zeitgeist”11 and burn this book. Ted Turner, a person I consider to be a Guerrillapreneur, launched a chain of restaurants called Ted’s Montana Grill. Ted’s Montana Grill (TMG) has the unique value proposition of selling high protein, naturally low-fat buffalo-meat based dishes. TMG is widely recognized as a “Green,” eco-friendly restaurant because nearly all of the paper, plastic, aluminum, and glass products used in the restaurants are recycled. The restaurant’s beverages come in recyclable glass bottles. Consumers sip their drinks using eco-friendly paper straws and stir their coffee with recyclable wooden stirrers. When customers can’t finish their entire meal, they get to-go boxes made of biodegradable corn and potato-based cups and cutlery. Finally, TMG uses low-voltage, compact fluorescent lighting in guest areas and those annoying low flow urinals in the restrooms.12 Given all this, what could I possibly find wrong with TMG? All but one of TMG’s initiatives (the low- voltage, compact, fluorescent lighting) fail to meet Ford’s Eco-
  • 12. Guerrillapreneur 154 Guerrillapreneur standard. Though admirable, TMG’s Green initiatives represent the stale status quo—they add cost to the bottom line. How would Henry Ford capture TMG’s Eco- Guerrillapreneur incremental value? I’d speculate that Henry Ford would realize that TMG’s buffalo meat is only one source of value. Henry Ford would seek opportunities to horizontally integrate around the buffalo and create incremental value streams that would reduce the restaurant’s operating cost. What would some of these opportunities look like? First, buffalo chips (manure) can be used for fuel. Ted Turner’s ranch has over 50,000 head of buffalo. A herd that size could generate enough chips to greatly offset his ranch’s energy costs. Think I am crazy? In Pennsylvania, a dairy farm with 600 dairy cows is saving $60,000 a year by turning 18,000 daily gallons of cow manure into energy using an anaerobic bio-digester.13 Assuming Turner’s buffalo are just as efficient at producing chips as those dairy cows; his ranch would produce 1.5 million gallons of manure per day, and generate an estimated annual energy savings of $5 million dollars. In addition to the energy savings, utilizing the chips as fuel would reduce methane emissions by an estimated 2,650,000 gallons per day. Now that’s a double dip (or double chip)! Second, Ford would also watch those funny Jack Link’s (a leading company with approximately 40% market share in the dried beef industry) commercials and realize that buffalo can be dried and sold as Buffalo Jerky, an interesting potential branding compliment to Ted Turner’s restaurant chain. In 2009, Jack Link’s Jerky had sales that exceeded $64 million.14 Turner could launch a brand of premium Bison Jerky and use his forty-six restaurants as the primary distribution chain. Finally, Ford would also realize that the remaining waste, the buffalo hide, is also extremely valuable both tanned and un-
  • 13. Mark Anthony Peterson 155 tanned. Buffalo hide can be fashioned into belts, moccasins, gun bags, and ropes. Getting the point? TerraCycle, is a Green company started by Tom Szaky at the age of twenty as a Princeton University freshman that has a mission to eliminate waste. TerraCycle diverts waste from landfills by paying individuals to collect and ship that waste to their processing facilities where they convert it into 1,500 various products that are sold at leading retailers like Wal-Mart and Whole Foods.15 TerraCycle, whose revenues exceeded $15 million in 2009, launched its business by producing organic fertilizer, created by packaging liquid worm poop in used soda bottles.16 From those beginnings, TerraCycle has morphed into a global recycling presence by establishing collection waste “brigades,” people who agree to collect trash. TerraCycle pays brigade members the shipping costs in most cases and an average of $0.02 per unit collected to the brigade’s favorite charity.17 TerraCycle has over fourteen million collectors in eleven countries and claims to have converted or diverted over a billion pieces of waste material from landfills. When thinking of TerraCycle, the phrase “one man’s trash is another man’s treasure” is definitely an understatement. Hopefully, TMG and TerraCycle help frame the Eco- Guerrillapreneurism principles in a way that we can now stretch the limits when examining the best practices for reducing costs and waste in traditional businesses. Where do we begin? We will start with the simple income statement (“IS”). The expense side of the IS is made up of two types of cost: (i) expenses related to the Cost of Goods Sold, and (ii) Non-Cost of Goods Sold (“COGS”) Expenses, including: Non-COGS Labor, Rent Expense, Sales Expense, and Software Expense. Please note that Income Statements are company specific in terms of what they spend to run the company, but I have highlighted areas that are most common to all companies. As I did earlier, after we
  • 14. Guerrillapreneur 156 examine the best practices, I will push the limits of conventional business wisdom and ask, “How would Henry Ford run this business?” COST OF GOODS SOLD The cost of goods sold (“COGS”) is defined as direct cost used in the production of a product or service. American Fortune 500 companies employ Supply Chain Managers to reduce the cost of materials used in production. These managers are given a plethora of tools with which to work, including sophisticated procurement systems (e.g., Ariba) designed to track purchase decisions and seek cost reductions as purchase volume increases. The purchasing manager understands that he or she can leverage economies of purchasing (buying power) or purchase timing (just-in-time purchasing) to drive down production costs (“bread and butter” cost management). Now, let’s examine the non-traditional Eco- Guerrillapreneur methods for reducing COGS: (i) Reverse Supply Chain Logistics and (ii) Re-purposing COGS Scrap. Eco-Guerrillapreneur Approach # 1—Reverse Supply Chain Logistics The cost management logic behind most procurement systems (like Ariba) is purchase consolidation, i.e., making raw materials as cheap as possible by purchasing as much as possible from the same vendor. Nonetheless, these procurement systems do not give consideration to what happens after those raw ingredients are processed and/or shipped out. What happens to waste left on the factory floor? What happens if the product is defective? In 2002, Daniel Guide, the Professor of Operations and Supply Chain Management and Charles and Lillien Binder Faculty Fellow at
  • 15. Mark Anthony Peterson 157 Penn State’s SMEAL College of Business, and Luk Van Wassenhove, the Henry Ford Chaired Professor of Manufacturing Executive Education Programme Director, Management in the Humanitarian Sector at Instead, published in a Harvard Business Review article the process of using and/or managing waste products to reduce operating costs as “reverse supply chain.”18 Ford Motor Company (“FMC”) started a “reverse supply chain” program in 1993 to recycle plastic bumpers into tail light housings and new bumpers for their cars. Each bumper produces approximately thirty tail light housings.19 FMC uses 1.5 million pounds of the recycled bumper material per year.20 They found that not only did the recycled tail light housings meet safety standards, it cost them less to produce than housings produced from virgin Xenoy plastic. FMC estimates that it saves $1 million annually from the bumper recycling program.21 Moreover, the FMC program removed 125,000 bumpers per year from landfills. Americans use an estimated 360 million ink and toner cartridges per year. Staples is the first national chain to offer its customers rewards for returning spent printer toner cartridges regardless of the manufacturer. Staples recycled twenty-two million and thirty million ink and toner cartridges in 2008 and 2009 respectively.22 According to Staples, 70% of cartridges used worldwide are not recycled,23 “with almost eight cartridges tossed in the trash per second,”24 totaling a whopping 253 million cartridges. In 2005, Staples estimated that the company generated $289 million in revenue from re- manufactured cartridges into the Staples brand.25 Again, here is another instance of profit making environmentally conscious eco-Guerrillapreneurism. Despite these examples, few American companies factor recycling, returns, disposed, or obsolete products into their core operations. Instead, their business plans end after the
  • 16. Guerrillapreneur 158 product rolls off the assembly line and is delivered to the customer. In fact, many companies treat returns and obsolete products like a proverbial “red-headed stepchild” as opposed to fertile ground for product innovation and tremendous operational cost savings. One can only imagine how different the world would be if Henry Ford’s zero-waste philosophy was applied to today’s leading business models. Let’s imagine: Reverse Supply Chain: The World According to Henry Ford, Part I 1. Take a Second Bite of that Apple. Apple has sold an estimated 200 million iPods, thirty-five million iPod Touches, and fifty million iPhones.26 Apple’s mission is to provide its customers with cutting edge technology, and by doing so, their tremendous success has created a growing environmental problem, e-waste. According to the Environmental Protection Agency (EPA), “About fifty million cell phones are replaced worldwide a month, and only 10% are recycled. [Moreover], one cell phone has enough toxins –arsenic, mercury, and lead-to contaminate 40,000 gallons of water.”27 Assuming the EPA’s estimates are correct, we are contaminating twenty-two trillion gallons of water per year. Finally, Apple estimated that in 2009, its devices were responsible for 9.6 million metric tons of greenhouse gases.28 Is that phone call really worth it? Apple is not unaware of these facts. Of all the electronic companies, Apple is a leader in green manufacturing. Apple offers its customers purchasing a new device a 10% discount if they want to return their previous generation iPhone or iPod to their local Apple Store.29 To Apple’s credit, the company has sought to decrease their environmental footprint through the use of smaller packaging and mercury-free LED backlit technology.30 Problem solved, right? No. Despite their valiant efforts, Apple is missing the Guerrillapreneur mark by not aggressively recycling its prior generation devices. If
  • 17. Mark Anthony Peterson 159 Ford were running Apple, he would implement a service to reclaim and resell old devices in markets or channels (retail outlets) where new devices aren’t being sold. Sounds crazy? Mazuma Mobile, a recycling website, claims to have recycled and sold over 100,000 previous generation iPhones. Mazuma Mobile pays customers to ship the phones to their processing centers where they restore and sell the smart phones for prices, based on capacity, between $150 to $300.31 I speculate that if Apple applied Ford’s zero-waste policy to their obsolesce problem, the computer giant would capture a gigantic $42 billion dollars, 14% of the company’s March 2010 market capitalization, in market value! In addition to the resale market value, reselling or reusing all old devices would reduce the size of Apple’s toxic brominated compounds and hazardous PVC32 footprint in the world’s landfills. 2. Recycle that Smile. What if Henry Ford were in charge of giving the world “a Coke and a Smile”?33 If Ford were CEO of Coca-Cola, he would realize that one of Coke’s main environmental problems is reclaiming its packaging (i.e., bottles and aluminum cans). On February 13, 2008, Coca-Cola set the internal goal of recycling 100% of the aluminum and PET plastics it uses. Today, Coke uses 60% recycled aluminum.34 Making cans from recycled aluminum cuts related air pollution (for example, sulfur dioxides, which create acid rain) by 95%.35 Additionally, recycling aluminum is twenty times more energy-efficient than making it from scratch.36 Despite the high price for aluminum, recycling levels have remained relatively flat over the last five years. The Container Recycling Institute (CRI) estimates that thirty-six billion aluminum cans were land-filled last year at a scrap value of more than $600 million.37 Americans throw away enough aluminum every three months to rebuild our entire commercial air fleet.38 To achieve the 100% target, Ford would realize that there needs to be a paradigm shift in the way we recycle aluminum. Today, people collect bags of cans and sell them to recyclers by the pound. In today’s fast food
  • 18. Guerrillapreneur 160 society, collecting bags of cans requires too much time and energy. Americans demand instant gratification in everything from instant messaging to instant coffee. Americans do not have the time to wait to see the benefit of their recycling efforts. To that end, Americans would embrace vending machines that accept empty aluminum cans and PET plastic bottles as a form of payment (turning cans into currency) creating a closed loop recycling network. These vending machines, which I call Automated Recycling Machines (ARMS), would provide consumers credits for all empty cans or bottles that are inserted into the ARMs recycling shoot. Ford would partner with Clynk, the South Portland, Maine recycling startup, to develop the ARMs kiosks (remember Clynk from Chapter One). Ford would require that the ARM be equipped with an automated trash compacting unit that sorts and crushes cans and bottles to maximize space. Imagine paying for your sixteen ounce Coke with empty cans and/or plastic bottles. Deploying these machines wouldn’t change today’s standard practices to much. Local bottlers, who already restock vending machines, would restock ARMS with new beverages, and while onsite they would also retrieve recycled aluminum cans and bottles stored in the machine’s compression bin. The bottlers would deliver compressed cans and bottles to Coca-Cola’s Recycling (CCR) plants—a tightly managed closed loop. 3. Recycle Your Emotions. If you think ARMs will work for Coca-Cola, why not apply the same concept to greeting cards? An estimated seven billion cards are sold each year. Hallmark, the leading provider of greeting cards, produces nearly half of all cards sold in the United States. Hallmark already operates a closed loop recycling program where recyclable paper is sent to its plants and processed into their “Laugh Responsibly” line of greeting cards.39 Like the Coke example, millions of tons of product go un-recycled each year. To achieve 100% recycling, Ford would deploy ARMs similar to those described in the Coca-Cola example. Instead of cans and bottles, the Hallmark ARMs would accept
  • 19. Mark Anthony Peterson 161 recyclable paper as a form of payment. Imagine kiosks that distribute new cards to consumers after providing them credit for recycling! 4. No Thanks I brought My Own Seats. According to Autodata, 12.3 million new cars were sold in the United States in General Motors and Ford Motor Company in 2010, and approximately ten to eleven million cars are taken out of service each year. Approximately 94% of the 10-11 million cars taken out of service are returned for recycling with approximately 75% of the vehicle being recycled.40 Based on Davis’ research, I estimate that 25% of the materials not being recycled include fibers and plastics from such parts as seats. If Ford were CEO today of Ford Motor Company, he would launch a line of low priced cars with interchangeable click-and-lock seats and give consumers the option to save money by providing their own seats. Don’t think it will work? During my college days, I saved money by getting replacement parts for my car from the local salvage yards. During one of my frequent weekend junk yard runs, I found a car that had a nearly new passenger side seat. I convinced the salvage yard owner to let me exchange my butt-worn seats for the salvaged car’s seat for US $10.00! If consumers were given the option of installing their own seats and floor mats, how much money could be saved by the consumer and the car companies? How much material could be saved? 5. Are You Going to Eat That Cup of Joe? Starbucks, winners of the 2005 National Recycling Coalition Recycling Works Award, serves roughly four billion cups of coffee per year41 in cups –cups that are made of 10% recycled paper and sleeves made of 60% post- consumer recycled fiber.42 Though the cups are made of recycled paper, they are not recyclable—that means four billion cups in landfills. Moreover, Starbucks sells cold beverages in non-recyclable plastic cups (in plastic #5, polypropylene, PP).43 To thwart the problem, Starbucks has a multi-tier plan, that includes: (i) in-store recycling of all post-consumer plastic and paper cups at 7,500
  • 20. Guerrillapreneur 162 company-owned stores by 2015; (ii) serving a quarter of its beverages in re-usable cups by 2015; and (iii)working with local governments and recyclers to develop recycling markets for those post-consumer cups.44 As Starbucks executes this plan, the company is encouraging conservation by offering consumers a $0.10 discount if they bring in their own cups (this should be advertised more significantly in their stores). Is that enough? Sure. If Starbucks executes, they should reduce their cost and environmental impact. Are they missing a better opportunity? Yes. If Ford were CEO of Starbucks, he would eliminate the paper cups and develop edible cups. Modeled after the Taco salad bowl, these edible cups could feature different flavors that enhance the taste of the coffee and can be consumed when Starbuck beverages are drank. Sounds strange? New York-based design consultancy The Way We See The World has developed a line of disposable cups called Jelloware.45 These edible cups are made of agar agar, a gelatin derived from algae and used as an ingredient in desserts. The Jelloware cups come in different flavors (including rosemary-beet and lemon- basil) to complement the beverage inside. Imagine a chocolate or cinnamon cup with your favorite Starbucks Java. Once used, the cup can be eaten or tossed in the front yard where the agar will fertilize the plants.46 Assuming edible cups became the industry standard, and used in restaurants like Starbucks, McDonalds, and Burger King, up to one-third of the total US municipal waste stream could be eliminated47 by eating the cup. Eco-Guerrillapreneur Approach #2: Re-purpose scrap from COGS Have you seen those really funny Chick-fil-A billboards where the cows are encouraging you to “Eat More Chicken”?48 These campaigns have been extremely successful as Chick-fil-A has grown to 1,553 stores in thirty-nine US states. Though the
  • 21. Mark Anthony Peterson 163 signs remind you to eat chicken, they do not tell you what to do with the tons of feathers left over from the processing of those chickens. Once you open your environmental eyes, you will see that every aspect of our modern convenient lives hides waste. We turn the faucet on and get clean drinkable water. Few Americans have visited a wastewater treatment plant to see the billions of gallons of wastewater sludge generated to clean water. If we get a flat tire, we rarely think of the 370 million tires that are dumped in landfills each year. When eating burgers and fries, we rarely think of the millions of gallons of spent cooking oil required to make those spuds taste so good. If Americans had to foot the bill for waste disposal, there would be greater demands for chicken processors, restaurants, and tire manufacturers to reuse waste materials to reduce cost. Guerrillapreneurs make a concerted effort to keep cost low by finding creative ways to make waste profitable. Funny? If waste was profitable, it wouldn’t be waste right? Again, I turn to Henry Ford. Everyone likes summer Bar-B-Qs, right? The next time you throw a few coals on the barbie, thank Henry Ford. Why? Kingsford ChaFord was formed by Henry Ford and E.G. Kingsford, the husband of Henry Ford’s cousin, during the early 1920s using waste wood generated by the sawmill from Ford Motor Company’s Model-T assembly line. The company, originally called Ford Charcoal, was renamed in E.G.’s honor. When producing the Model-T, Ford constructed a chemical plant next to the factory to reclaim every ton of scrap wood, including the charcoal briquettes. At its peak, more than one million tons of wood scrap were reclaimed and manufactured into briquettes. The sale of the charcoal and the other chemicals derived from the scrap wood generated approximately $12,000 per day in 1920 currency, “or enough to pay 2,000 workers a rather high daily wage of six dollars.”49 When President Obama speaks of the benefits of Green Technology, he envisions technologies that have both a
  • 22. Guerrillapreneur 164 financial and an environment benefit. If Ford had ignored the scrap and just dumped it in a landfill, history would have still viewed him as a very successful business man. However, as an Eco-Guerrillapreneur, Ford measured success on a different scale. Getting the Eco-point? Now, how would Ford revamp today’s most common industries? Re-Purposing Production Scrap: The World According to Henry Ford—Part II Chicken Feathers to Computer Chips – The National Chicken Council, a Washington, DC-based poultry trade group, predicts that more than 8.5 billion chickens will be commercially grown and processed in the United States this year. These chickens, when processed, will leave behind more than 2.3 – 3 billion pounds of feathers.50 Feathers may appear to be an environmental nuisance (unless you are in the tar and feathering business) until you examine all the potential uses for this waste scrap. According to Pam Percy, chicken feather chips transmit an electrical signal twice as fast as chips developed from silicon. Chicken feather chips are cheaper to manufacturer and easier to dispose of than the silicon based chips.51 If chicken feathers could be fashioned into microchips, the waste product (feathers) would become more valuable than the chicken itself. Chicken Feathers Can Save the Rainforest – Feathers can also be used to make notepaper. Walter Schmidt, a research chemist at the Beltsville, Maryland branch of the US Department of Agriculture's Agricultural Research Service (ARS), estimates that a year's worth of feathers could replace approximately 25% of the wood pulp used annually for diapers. Schmidt notes, “The environmental impact would go beyond saving trees: feathers require much less processing than wood pulp, and unlike paper pulp, do not require bleaching-they start out white.” Three
  • 23. Mark Anthony Peterson 165 companies—Featherfiber Corporation, Maxim Systems, and Tyson Foods—are now working to scale up production of absorbent feather-based products including diapers, filters, insulation, upholstery padding, paper, and clothing.52 Chicken Feathers Can Solve the Starbuck’s Cup Problem – Most recyclable biodegradable plastics are developed from oil and natural gas. Reducing the number of these plastic bottles and Styrofoam cups reduces our dependence on foreign oil. Chicken feathers have been positioned as an alternative to oil-based plastics, but when chicken feather-based plastics came in contact with water, they dissolved. This is a real problem, according to Petz Scholtus of Science & Technology, because 1,500 plastic water bottles are consumed every second in the United States.53 Professor Yang, a textile and biofiber researcher at the University of Nebraska-Lincoln developed a process of treating chicken feather based plastic bottled with the clear chemical found in nail polish, making them water resistant.54 Chicken Feather Hydrogen Cars – Scientists now believe that carbonized chicken feathers could act as highly effective hydrogen storage devices. Chicken feathers are made of keratin, a protein that forms long, hallow tubes. When heated, these tubes create cross- links that strengthen the structure to the point where it can absorb just as much hydrogen as an equal amount of carbon nanotubes. If perfected, the carbonized chicken feathers could dramatically reduce the cost of developing hydrogen-based cars. A gas tank developed from chicken feathers would cost approximately $30,000 versus $5.5 million for carbon nanotubes.55 Clean Water Green Electricity – Ever thought your waste could generate electricity? Greg Bush runs a $22 million one megawatt facility fuel cell plant in Renton, Washington. The plant operates off of thirty million gallons of wastewater that generates methane and powers 1,000 homes.56 The waste from the wastewater is fed into digesters where bacteria eat away at it, giving
  • 24. Guerrillapreneur 166 off methane gas in the process. The methane gas is sent to a fuel cell where the gas is broken down into hydrogen and carbon dioxide. The carbon dioxide is re- circulated to form carbonate. The carbonate is combined with the hydrogen to produce electricity, water, carbon dioxide. The key advantage of the fuel cell is that it produces electricity more efficiently than the combustion process. If Ford were running today’s waste water treatment plants, he would have rebuilt his entire fleet of Ford vehicles to run off either hydrogen fuel cells or electricity. The waste water system would either act as a hydrogen battery plant or part of an electric charging network. Recycling Tires Improves Roads – Worn tires are among the worst trash to put in landfills because they take up so much empty space; and even after they are disposed, they tend to be very durable. Additionally, tires trap methane gas, making them more buoyant and very disastrous to landfills and surface water. According to the Waste Reduction Task Force, one tire per American per year is discarded in a landfill, approximately 370 million tires a year.57 Like aluminum cans, there is no reason for tires to be discarded in landfills. Tires, like cans and PET bottles, have a defined market. In fact, tires can be recycled into hot melt asphalt used in pavement and cement or just recycled into other tires.58 If Ford were back in charge of Ford Motor Company, he would oversee a company that utilizes 6.5 million rubber tires annually. Ford would institute a recycling program where customers who returned worn tires to dealerships would receive service credits and discounts off new tires. Ford would use the returned tires to produce new tires and even roads. French Fries Reduce Oil Independence – McDonalds is the second largest fast food chain serving approximately fifty-eight million customers daily. McDonalds generates more used deep fryer oil and cooking oil than any other chain on the planet. Under its “oil-to-fuel” program, McDonalds is already making
  • 25. Mark Anthony Peterson 167 efforts to convert used oil into biodiesel. In fact, 80% of the used cooking oil from about 4,000 franchisees in Europe is already being generated into biodiesel. In the United States, approximately 7,500 of the 12,804 domestic franchisees participate in the oil-to-fuel program.59 If Ford were CEO, he would make oil-to-fuel a center piece program, just like he championed Kingsford Charcoals during his time as the head of Ford Motor Company. It is not un-imaginable to think that Ford would go so far as to launch a chain of biodiesel fueling stations using the deep fryer oil and cooking oil from McDonalds. Sounds crazy? Sure, but these are the type of non-traditional ideas Americans would be forced to consider if we did not have the blessings we referenced earlier in the chapter. Non-COGS Expenses Non-COGS Labor Traditional “brick and mortar” companies have missed the boat when it comes to tapping top talent. These companies believe you have to hire individuals, give them a desk, and put them in a multi-million dollar facility in the middle of a very expensive city. These employees get fancy houses dozens of miles away from this fancy office, and they drive back and forth every day to their jobs on crowded streets. The average American drives 33.4 miles per day to work and emits 1.36 tons of carbon dioxide per day.60 Does this sound like your company? Why do companies operate this way? Guerrillapreneur companies understand the end product is what counts and not the address on the letterhead. What does that mean? It means that Guerrillapreneurs don’t build edifices if there is not a value-creating reason to do so. It also means that Guerrillapreneurs have evolved beyond the traditional employer/employee relationship, opting instead
  • 26. Guerrillapreneur 168 to hire “just-in-time” virtual workers who provide services everywhere that high-speed internet access (the beach, the comfort of their homes, etc.) is obtainable. Leveraging virtual workers gives Guerrillapreneurs the flexibility to tap more resources without over investing in the business model before the true value of the opportunity is understood. Think I am crazy? Jet Blue is using virtual workers to run its airline. Jet Blue, the nation’s seventh largest airline (based on passenger volume) utilizes 1,200 virtual “Work-At-Home” reservation agents—80% of their reservation workforce. These “Homesourced” workers save JetBlue the expense of purchasing and maintaining a corporate building. It is estimated that JetBlue saves around $2,000 dollars in rent costs per call agent per year by homesourcing its operation.61 Certainly, from a financial perspective, Jet Blue’s virtual workforce saves money, but because these workers have to travel less than a minute to the “office,” they are more productive. Additionally, because these workers can be productive from their homes, they are less likely to leave these jobs. JetBlue has a 3.5% turnover rate compared with an industry average of 65%. Industry analysts estimate that airline turnover costs amount to about 30% of an employee’s salary ($9,360 for call center reservationists). Given this rate, JetBlue saves over $5 million annually verses its competitors.62 To stay competitive in a slim margin industry, Jet Blue utilizes virtual employees to generate savings that they reinvest in their operations. Finally, from an environmental perspective, JetBlue’s virtual employees do not have to drive to work, reducing JetBlue’s carbon footprint by 500 tons of carbon dioxide per person per year (approximately 600,000 tons for JetBlue’s homesourced employees).
  • 27. Mark Anthony Peterson 169 Henry Ford’s assembly lines were dependent on two things: (i) abundant production materials; and (ii) employees with perfect attendance. Now, fast forward to today. Knowing the environmental benefit of virtual workers, what are some of the other virtual resources Henry Ford would tap into to improve the profitability of his business?  Call Center Based Executive Assistants (EAs)—For years, executives have been able to open their door and ask their EAs to draft a memo or schedule a meeting. In the mid 1990s many large corporations saved money by doubling up executives with a single EA. Imagine 24/7 executive support from a virtual EA stationed in a call center and assigned to support fifty to a hundred executives globally. These individuals handle everything from calendars, memos, and presentations at a fraction of the cost and carbon footprint as having an individual sit outside your office. In 2006, McDonalds experimented with a centralized call center in Los Angeles to process orders from McDonald’s drive-thrus as far away as Honolulu. Orders captured at the call center were sent back to the stores via the internet,63 where they were filled by the local staff. The benefit of this approach is efficiency and time. The local staff only had to focus on fulfilling orders. They were not distracted by having to collect orders. Studies have shown that when individuals can focus on a single task, they become more efficient. These efficiencies translate into minutes saved per order, and for a company that serves over fifty-eight million orders in the US annually,64 the saving could easily generate an additional $14 million in labor savings (assuming a national minimum wage rate of $7.25 per hour). In
  • 28. Guerrillapreneur 170 addition to the bottom line benefits, like the Jet Blue example, these savings come with the additional benefit of reducing McDonalds carbon footprint. Assuming the average Crew Member Salary of $14,520, the Jet-Blue style call center Crew Member concept would take 967 people off the highway, reducing McDonalds carbon emissions footprint by almost 600,000 tons!  Virtual Lawyers—Companies know they have made it when they can afford to hire in-house counsel. However, it may be time to give up in- house counsel for a virtual counsel. India produces 80,000 lawyers annually.65 Currently, Indian lawyers provide back-office litigation support to some of the country’s largest and most prestigious law firms in a practice called legal process outsourcing (LPO). In fact, Forrester Research estimates that up to $4 billion in legal services will be outsourced to companies like Pangea3 in India by 2015.66 Small and mid-sized businesses can tap into these services paying as little as $10,000 per year for a virtual lawyer verses an estimated $100,000 for in-house counsel. Additionally, services like LegalZoom.com67 are commoditizing standard documents (contracts, wills, etc) and allow consumers to purchase them on an as-needed basis for a flat rate.  Virtual Human Resources—Got an in-house human resources department? Are they responsible for sourcing employees? Do they place ads in newspapers or comb job sites for potential new talent? Many Fortune 500 companies have large in- house staffs dedicated to “feeding the hiring beast.” Though many of these companies believe their
  • 29. Mark Anthony Peterson 171 companies are so unique that they need staffers to conduct their searches, many Guerrillapreneurs are turning to Business Process Outsourcers (BPOs) and Screening Process Outsourcers (SPOs) to either manage an entire function within a company or run specific function within a company’s department. When I was a consultant with Andersen Consulting, we won a deal to manage BellSouth’s entire IT department. BellSouth agreed to pay a relatively flat fee for IT services to Andersen. Andersen Consulting converted BellSouth employees into Andersen employees, and made its money by providing services to BellSouth at a cost below the annual fee. Rent Expense As I mentioned earlier, Guerrillapreneurs do not believe in over-building or investing in elaborate corporate headquarters. When there is a need for an office, Guerrillapreneurs rent an office not by the year, but by the day. Regis Virtual Office Solutions provides virtual offices in most major cities around the world. Users pay monthly to have a mailing address at the Regis Virtual Office, which also provides the user limited use of conference rooms and business offices when they need to entertain clients. This Virtual Office, or “hoteling executive office” concept, makes the rent expense a variable cost verses a more fixed cost. How would Henry Ford use the virtual office concept to reduce expenses and the carbon footprint? Because Ford ran the first assembly lines, he understood one important fact about managing labor: service labor is perishable. When employers agree to pay an employee by the hour, the cost becomes sunk as soon as the employee starts the task. During my last months with Andersen
  • 30. Guerrillapreneur 172 Consulting (Accenture), the economy was taking a turn for the worse. Leadership feared that the demand for consulting work would not match the quantity of the service hours they had under contract. Not having a clear picture of future demand, leadership decided to pay incoming consultants a flat fee stipend NOT TO WORK and to agree not to take another job for up to three months. This was a creative method for maintaining top talent; however, Ford would take a Guerrillapreneur approach for managing perishable capacity.  Sell unused manufacturing capacity—If you run a factory or a service company, you have manageable capacity. What do you do if you are not operating at 100% capacity? Many Americans would be surprised to learn that many of today’s leading companies, including Wal-Mart and Kroger, outsource the manufacturing of their private label products to the same company, ConAgra. In fact, private label cereal manufacturers typically have their product manufactured by their branded competitors. Does this approach make sense for small businesses? Absolutely. Before a Guerrillapreneur would purchase new equipment, even on core products, he/she would seek out opportunities for competitors to sell unused capacity to them. Why? Doesn’t this put cash in your competitor’s pocket? Sure, but it also put profits into the Guerrillapreneur’s pocket. The Guerrillapreneur will purchase the new equipment when demand exceeds the combined facilities’ capacity.  Sell Perishable Capacity to Partners—In the past decade, we have witnessed media
  • 31. Mark Anthony Peterson 173 organizations (ABC, CBS, NBC, CNN, etc) that were known for their independent news organizations agree to share key news personnel as a means for cutting cost. Can this approach work for Guerrillapreneurs? Yes. Small businesses are getting very creative with managing their perishable capacity. If you have idle mechanics, why not have them hand out discounted oil change oil coupons? Chemir is a bio-drug company that specializes in helping companies analyze and develop new drugs. Faced with growing capacity as a result of the recession, Chemir began selling capacity in its specialized equipment to small firms like Devro and large pharmaceuticals like Merck and Pfizer.68 When boutique firms like Chemir sell excess capacity, they not only increase profits through these partnerships, but their employees have also been exposed to cutting edge methods that may benefit the firm in the future. Equipment Expense I’ve worked at several Fortune 500 companies, and each of them maintained storage rooms filled with outdated computers, monitors, and laptops. These devices were victims of the standard corporate upgrade cycle. I often wondered why my employers never refurbished the units and sold them. Guerrillapreneurs prefer to purchase used and/or refurbished equipment. Moreover, when a Guerrillapreneur completes a job that requires specialized equipment, the Guerrillapreneur will refurbish and sell the equipment to the next Guerrillapreneur. Why let the equipment sit on a shelf and rust? Today, corporate
  • 32. Guerrillapreneur 174 procurement managers have a place where they can sell equipment: EBay. EBay is the world’s leading auction website. USAToday estimates that individuals sell $7 billion in used cars annually through EBay.69 In 2003, doctors and dentists began turning to EBay when squeezed by insurance companies to buy used medical equipment. Despite the dollar figure sold on EBay, most companies are still apprehensive about re-purposing their equipment. Software Expense  Guerrillapreneurs do not believe in investing in- house Information Technology (hardware, software, or personnel) if the strategic reason does not outweigh the downside of invested capital required and the growing e-waste problem. I have worked for organizations that have invested millions in a data center and then, after an upgrade cycle, literally threw away older, fully depreciated servers. Many companies operate data centers, not because their core businesses require them to, but because they either have security concerns or in-house applications that they believe are not portable. Guerrillapreneurs have long believed that this line of thinking is outdated. For years, SunMicrosystems fought an uphill battle hoping to convince the world that in- house servers were in-efficient and limited a company’s ability to act virtually. Cloud Computing now picks up where Sun Microsystem70 left off.  Clouding Computing, defined as turn-key internet- based computing, provides companies with shared resources, software (such as email, development, and data storage), and information to their
  • 33. Mark Anthony Peterson 175 computers and other devices on-demand, like electricity. Several prominent companies, including Amazon and Google, offer Cloud Computing services. Additionally, Cloud Computing makes it easier to take advantage of virtual employees through the use of collaborative document, web and video applications. Virtual Phone Systems  Guerrillapreneurs understand that phone-based communication is the spinal cord for employee prod- uctivity and customer service. As Guerrillapreneurs grow their virtual organizations, they have to take care to make sure that there is cohesiveness between their departments—which usually means that employees and customers have to have an easy way to leave voicemails for the desired support or administrative personnel. Virtual phone services like Grasshopper71 provide Guerrillapreneurs unlimited extensions for departments or employees, call forwarding, toll free and local number access, on-hold music, a name directory, custom greeting, and call routing all for $9.95 per month! In the past, companies invested thousands in equipment to obtain this level of communication flexibility. For less than $10 a month, a Guerrillapreneur can compete with Fortune 500 companies without investing capital or emitting tons of carbon requiring customers to drive to the office.
  • 34. Guerrillapreneur 176 Outsource R&D  Devro, a Columbia, South Carolina-based sausage- casing manufacturer, was getting crushed by a larger competitor that had perfected a better casing. Unable to match the technology in-house, Devro paid Chemir $7,000 to reverse engineer it’s competitor’s product to produce a competitive offering with a longer shelf life. 72 Devro has closed the gap between its competitors for a fraction of the cost spent by its rivals. * * * I am a firm believer in the phrase “whatever is worth doing, it is worth doing for a profit.” Today, the car is the villain in our “save the environment” saga. Tomorrow, the villain may very well be the iPhone or the Android. Henry Ford accepted his role as both an industrialist and environmentalist (Eco- Guerrillapreneur). Ford embraced the concept of “using all that you take.” Earlier in the chapter, I quoted a Native American proverb that requested that we “treat the earth well.” The proverb is not demanding that we abandon our productive lives. Instead, the proverb asks that we accept the responsibility of maintaining a “Ying and Yang” balance between our industrial passions and our renewable, but fragile eco-system. Undoubtedly, the world is a better place with iPhone and Android phones. However, for the great good that comes with mobile phones, we have to ask ourselves if we are willing to accept the same responsibility and “treat the earth well.”
  • 35. Mark Anthony Peterson 177 NOTES 1 Gottlieb, Robert. Forcing the Spring: The Transformation of the American Environmental Movement. (2005) 2 “Environmental Defense, Carbon Emissions Fact Sheet.” Edf.org. Environment Defense Fund, February 2002. Web 6 Nov. 2011. 3 McCarthy, Tom. “Henry Ford, industrial ecologist or industrial conservationist? Waste reduction and recycling at the Rouge.” Business Library, http://findarticles.com/p/articles/mi_7021/is_2_27/ai_n28126788/, 2001 4 Levison, William. “Green Manufacturing Jobs Should Be Self-Creating.” Associatecontent.com. Associate Content, n.d. Web. 6 Nov. 2011. 5 “Native American Quotes.” Sapphyr.net. Sapphyr, n.d. Web. 6 Nov. 2011. 6 Fishman, Charles. The Wal-Mart Effect. New York, Penguin Books, 2006, p 81. Print. 7 “Television History—The First 75 Years.”Tvhisotry.com. TV History, n.d. Web. 6 Nov. 2011. 8 Welniak, Edward and Mary Henson.. “Money Income of Households, Families and Person in the United States: 1982.,” Current Population Reports. Census, Series P-60, February1984. Web. 6 Nov. 2011. 9 Cleveland, Robert, Carmen Denavas-Walt, and Marc Roemer. “Money Income of Households, Families and Person in the United States: 2000.,” Current Population Reports. Census, Series P-60-213, September, 2001. Web. 6 Nov. 2011. 10 “Electronics Waste Management in the United States.” Epa.com. Environmental Protection Agency, July 2008. Web. 6 Nov. 2011. 11 Italie, Leanne.. “Diaper debate still rages on.,” The Atlanta Journal- Constitution, April 13, 2011, D5. Print. 12 http://www.prweb.com/releases/2009/03/prweb2213034.htm 13 Bogo, Jennifer “Cows to Kilowatts: US Farms Save Big Turning Manure to Energy.” Popularmechanics.com. Popular Mechanics, 1 February 2009. Web. 6 Nov. 2011.
  • 36. Guerrillapreneur 178 14 “Information Resources, Inc.” agmrc.org http://www.agmrc.org/commodities__products/livestock/beef/dried_beef_ industry_profile.cfm 15 “About Us.” Terracycle.net. Terracycle, n.d. Web. 6 Nov. 2011. 16 Ibid. 17 Ibid. 18 Reverse Supply Chain Logistics. “System, model, type, company, business, system, Closed loop supply chain, Responsive vs. efficient” http://www.referenceforbusiness.com/management/Pr-Sa/Reverse-Supply- Chain-Logistics.html#ixzz1EvXWPt2c 19 Davis, Gary. “Automotive Take-Back and Recycling Programs.” P2pays.org.http://www.p2pays.org/ref/09/08872/eprn5-8.pdf Chapter 5,p.7 20 “End-of-Life Vehicle Management: Bumper Take Back Projects in the United States.” Edf.org. Environmental Defense Fund, August 2009. Web. 6 Nov. 2011. . 21 Davis, Gary. “Automotive Take-Back and Recycling Programs,” http://www.p2pays.org/ref/09/08872/eprn5-8.pdf Chapter 5, p.8 22 Schwartz, Aaron.. “Staples to Reward Customers for Recycling Ink and Toner Cartridges.” Greenbiz.com. Greenbiz, 25 January 2009. Web. 6 Nov. 2011. 23 Berry, Jennifer. “Staples’ Ink Cartridge Recycling Puts ‘Rewards’ in Your Wallet.”Earth911.Com,. Earth911, 26 January 2009. Web. 6 Nov. 2011 24 Berry, Jennifer. “Staples’ Ink Cartridge Recycling Puts ‘Rewards’ in Your Wallet.”Earth911.Com,. Earth911, 26 January 2009. Web. 6 Nov. 2011 25 http://www.staples.com/sbd/cre/marketing/staples_soul/environment.ht ml 26 Ritchie, Rene. “50 million iPhones sold + 35 million iPod touches = 85 million iPhone OS devices.” Tipb.com. Tips, 10 April 2010. Web. 6 Nov. 2011. http://www.tipb.com/2010/04/08/50-million-iphones-sold-35-million-ipod- touches-85-million-iphone-os-devices/. April 10, 2010. 27 “E-Cycle Declares April Recycle Your Mobil Phone Month.” Blog.e- cycle.com. e-Cycle. 5 April 2011. Web. 6 December 2011.
  • 37. Mark Anthony Peterson 179 28 “Apple and the Enviornment.” Apple.com. Apple, n.d. Web. 6 December 2011. 29 “Apple’s Recycling Program: iPad and Mobile Phone Recycling Program.” Apple.com. Apple, n.d. Web. 6 December 2011. 30 “Apple and the Environment: Environmental Progress.” Apple.com. Apple, n.d. Web. 6 December 2011. 31 “Thousands of UK Consumers Rush to Mazuma Mobile to Plan iPhone Upgrade.” Free-press-release.com. Free Press Release, 31 October 2011. Web. 6 Nov. 2011. 32 “Missed call: the iPhone's hazardous chemicals.” Greenpeace.com. Greenpeace USA, 15 October, 2011. Web. 6 Nov. 2011. 33 “Have a Coke and Smile.,” coca-cola.com. Coca-Cola, 1981, Web. 6 Nov. 2011. 34 “Coca-Cola sets aluminum recycling goal.”Bizjournals.com. Atlanta Business Chronicle, 13 February 2008. Web. 6 Nov. 2011. 35 “Coca-Cola sets aluminum recycling goal.”Bizjournals.com. Atlanta Business Chronicle, 13 February 2008. Web. 6 Nov. 2011. 36 “Coca Cola recycles the past into a precious metal.” Thecocacolacompany.com. Coca-Cola, n.d. Web. 6 Nov. 2011. 37 “10 Fast Facts On Recycling.,” Epa.gov. US Environmental Protection Agency, 7 October 2011. Web. 6 Nov. 2011. 38 “Aluminum Recycling.” Green-networld.com. Aluminum Association (Washington, D.C.), n.d. Web. 6 Nov. 2011. 39 “Corporate Citizenship: Closed Loop Recycling.” Hallmark.com. Hallmark, n.d. Web 6 Nov. 2011. 40 Davis, Gary. Automotive Take-back and Recycling Programs, University of Tennessee, Tennessee, 1994. 41 Ali Ahmed. http://www.quora.com/Starbucks-Coffee-How-many-cups-of- coffee-does-Starbucks-sell-each-year January 17, 2011.
  • 38. Guerrillapreneur 180 42 Allison, Melissa (14 May 2008). "Starbucks struggles with reducing environmental impacts." Seattletimes.newsource.com.The Seattle Times. 14 May 2008. Web. 18 Mar. 2009. 43 Kamenetz, Anya. “The Starbucks Cup Dilemma.” Fastcompany.com. Fast Company, 10 October 2010. Web. 6 Nov. 2011. 44 MacKerron, Conrad. “Pressing Starbucks to Follow Through on its recycling Commitments.” Triplepundit.com. Triplepundit, 21 March 2011. Web. 6 Nov. 2011. 46 “Jelloware: Disposable, Edible Cups That Can Help Plants Grow.” Psfk.com. PSFK, n.d. Wed. 6 Nov. 2011. 47 “Jelloware: Disposable, Edible Cups That Can Help Plants Grow.” Psfk.com. PSFK, n.d. Wed. 6 Nov. 2011. . 48 “Company Highlight & Awards.” Chick-fil-A.com. Chick-fil-A, n.d. Web. 6 Nov. 2011. 49 William Levison, William. “Green Manufacturing Jobs Should Be Self- Creating.” http://www.associatedcontent.com/article/1591324/green_manufacturing_ jobs_should_be.html?cat=15 50 “Poultry Power: How Chicken feathers can be used to ease the energy crisis.” Istenergy.com. Istenergy, 4 April 2011. Web. 6 Nov. 2011. http://www.istenergy.com/?p=226&option=com_wordpress&Itemid=116, April 4, 2011. 51 Percy, Pam. “Field Guide to Chickens.” http://books.google.com/books?id=m2YXUOJEMeIC&pg=PA50&lpg=PA50& dq=chicken+feathers+and+reuse&source 52 McGovern,Victoria. “Recycling Poultry Feathers: More Bang for the Cluck.” Greenbiz.com, Green Biz, 31 March 2002. Web 6 Nov. 2011. 53 Scholtus, Petz. “The US Consumes 1500 Plastic water bottles every second, a fact by Watershed.” Science & Technology, October 15, 2009. 54 IST Energy, “Poultry Power: How Chicken feathers may ease the energy crisis.” Istenergy.com. IST Energy, 4 April 2011. Web. 6 Nov. 2011.
  • 39. Mark Anthony Peterson 181 55 “Chicken Feathers Increase Hydrogen Storage Capacity.,”energybusinessreport.com. Energy Business Reports, n.d. Web. 6 Nov. 2011. 56 Lianos, Miguel.“Poop Power, Sewage Turned into Electricity.”MSNBC.com. MSNBC, 19 July 2004. Web. 6 Nov. 2011. 57 http://www.tennessee.gov/environment/swm/pdf/BPProblemWastes.pdf 58 Nehdi M, Khan A.. “Cementitious Composites Containing Recycled Tire Rubber: An Overview of Engineering Properties and Potential Applications.” Cement, Concrete, and Aggregates. (2001). 59 McDonalds.Com, Oil Opportunity, http://www.aboutmcdonalds.com/content/mcd/students/serving_our_com munities/oil_opportunity.html 60 Stanton, Elizabeth; Frank Ackerman; and Kristen Sheeran. “Greenhouse Gases and the American Lifestyle: Understanding Interstate Differences in Emissions.” e3network.org. Stockhom Environment Institute, May 2009. Web. 6 Nov. 2011. 61 Keating, Matt. The Guardian, http://www.guardian- co.uk/money/2005/oct/15/workandcareers.careers., October 15, 2005. 62 Keating, Matt. The Guardian, http://www.guardian- co.uk/money/2005/oct/15/workandcareers.careers., October 15, 2005. 63 Richtell, Matt. “The Long-Distance Journey of a Fast-Food Order.,” Newyorktimes.com. New York Times, 11 April, 2006. Web. 6 Nov. 2011. 64 “McDonald's posts sizzling 80% profit rise in 2008." Breitbart.com. Breitbart, 26 January 2006. Web. 27 Aug. 2010. 65 Bangaloreattorneys.blogspot.com 66 Lin, Anthony. “Legal Outsourcing to India Still Growing, but Still Confronts Fundamental Issues.”New York Law Journal, 23 January 2008. Print. 67 “About Us.” Legalzoom.com. Legal Zoom, n.d. Web. 6 Nov. 2011. 68 Mount, Ian. “Good Chemistry.” FSB, September, 2009. p.19. Print. 69 Maney, Kevin. “The Economy According to EBay.,” usatoday.com. USA Today, 29 December 2003.Web. 6 Nov. 2011.
  • 40. Guerrillapreneur 182 70 "Sun Microsystems Expands Cloud Computing Offerings with Acquisition of Q-layer." . Sun.com. Sun Microsystems, Inc., 6 January 2009. Web. 6 January 2009. 71 www.grasshopper.com 72 Carlson, Dane. “Good Chemistry.” Business-opportunities.biz. Business Opportunities Weblog Network, 12 August 2009. Web. 6 Nov. 2011.