Interclean, Inc.

SCENARIO: InterClean, Inc.

Company Overview

In the $8 billion dollar institutional and industrial cleaning and sanitation industry, success is no longer about which products best cut through the grime or kill the most germs. As the industry evolves, clients are more and more interested in not just products, but solutions and services that will streamline their cleaning efforts in the wake of more stringent requirements for environmental safety.

Health care clients, for example, are continually faced with new regulations governing the maintenance of their sterile environment. Cleaning companies can offer greater value to these clients by providing turn-key solutions that include product training for employees, regular monitoring and info-sharing of new relevant regulations and, in some cases, full cleaning service contracts. Retail customers have shown interest in similar operational solutions.

For InterClean, Inc., a major player on the sanitation scene, future profitability hinges on fulfilling this emerging need. Currently, the sales force excels at demonstrating and selling product, but under the newly proposed solutions/service model, reps will be grouped into multi-functional teams prepared to support InterClean‘s high-quality products with high-quality service. They’ll be instructed in development of full-range service packages tailored to individual accounts. They’ll be trained to engage directly with facilities managers, health care professionals, and operational executives in their customers' organizations. And this will all happen in 90 to 180 days, when a marketing blitz announces the launch of InterClean’s new service focus.

THE PLAYERS

David Spencer, President and CEO: At age 47, David inherited InterClean from his father, who was responsible for the company’s early corporate accomplishments. A successful businessman himself, David is driven to make InterClean an industry leader. He is ambitious, competitive and willing to take risks in order to grow the business and expand into new markets.

Janet Durham, Vice President of Human Resources: Janet began as a sales representative with InterClean 15 years ago, when she was 40 years old. Though she’s worked her way up to her current position, she still has strong ties to many sales force members. She is pragmatic and very interested in using technology to automate the HR function.

Tom Jennings, Vice President of Marketing: David Spencer recruited Jennings to lead this new department just a year ago, when Jennings was 62. Tom’s expertise lies in strategic systems planning and he’d like to move InterClean rapidly into strategic dominance in its industry. Tom views the current corporate restructuring as a obstacle to his goal, but a necessary evil that requires his short-term attention. It’s his desire to move quickly, so that he can continue his plans for global expansion.

Sam Waters, Chief of Compliance: Sam has been with InterClean for two years, and holds a law degree.

Carol Stanley, Internal Consultant: David has asked Carol to conduct a skills inventory in preparation for InterClean's launch of solutions-based selling. Tom Jennings recommended Carol for the assignment, and Carol will report to Janet Durham.

Sally Lindley, CEO of EnviroTech, Inc.: Forty-nine-year-old Sally is interested in developing some joint ventures with other firms in the cleaning industry in order to optimally leverage her future power. Politically active, she is well-connected to key state and national elected officials in Florida.

Eric Borden, Ving Hsu, and Terry Garcia, Senior Sales Specialists at EnviroTech, Inc.: Veteran employees with a combined 30 years at EnviroTech, Borden, Hsu and Garcia anticipate playing key roles in EnviroTech after it’s acquired by InterClean. In fact, they expect to be named the sales and marketing leadership team for the new company.

January 31, 2005

URGENT!

MEMO TO: All InterClean Employees

FROM: David Spencer

RE: Strategic Direction

As you are aware (because we‘ve been discussing it forever!) our industry has been evolving in response to changes governing environmental safety. While this has created more work for our clients, it has simultaneously created new opportunities for us. For quite a while, I’ve felt strongly that the key to expanding our company -- both domestically and worldwide -- lay with the development of full-service solutions packages. If we are among the