Assessment 3 Case Study – DeGrandis Sporting Goods
1. Project A – DeGrandis Running Shoes
Project A introduced the DeGrandis private label running shoe to the company’s product range.
Although the project ran over budget, the project team successfully developed a new sole cushioning
technology and delivered a brand-new shoe within the project timeframe. Customers love the new
shoes – they are outselling rival international brands – and sales have increased company revenues
by over $5 million. The editor of online running shoe reviewer Shoe News has given the running
shoes a 5 out of 5-star rating.
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But not everybody is so thrilled with the project’s outcomes. The board of directors is unhappy that
the project team did not consult them about the Chinese organisation selected to manufacture and
supply the shoes. Had the directors known that the Chinese supplier uses child labour in their factory
they would not have approved the supply agreement because engaging partners that rely on child
labour is prohibited under the company’s Code of Conduct. The consultants are managed by
regional managers in each city.
2. Project B – Australian Olympic Committee (AOC) Partnership
The primary objective of Project B was for DeGrandis Sporting Goods to become an official supplier
of sporting equipment to the Australian Olympic Team. At the outset all key stakeholders were
identified and consulted and a comprehensive list of project requirements was developed based on
stakeholder needs. Apart from the project running six months over the scheduled project timeframe,
every other project requirement was successfully met. The new partnership was established and
sales are estimated to have increased by over $3 million.
The project was considered a resounding success until it emerged that the project sponsor, a
member of the DeGrandis senior executive team, had paid a high-ranking AOC official an incentive
payment to approve the partnership. The press learned of the bribe and the incident became a
public scandal. DeGrandis Sporting Goods suffered reputational damage as the company’s Code of
Conduct expressly prohibits the payment of bribes to generate business. An extensive marketing
campaign originally developed to promote the partnership has been cancelled because it would only
draw more attention to the bribery scandal.
3. Project C – Ladybird Sporting Apparel
Project C successfully introduced the environmentally friendly and internationally known Ladybird
brand of sporting apparel to the DeGrandis Sporting Goods product range. Although fundamental
project requirements such as project timeframe and budget were met, the new line of clothing was
not properly market tested prior to the product line launch. It turns out that customers consider the
Ladybird clothing range to be inferior in quality and customer complaints have increased as a result.
DeGrandis Sporting Goods have ceased ordering new stock from Ladybird due to poor sales and
increasing customer dissatisfaction.