Project Frog: Sustainability and Innovation in Building Design

Abstract

A sustainable-building manufacturer is transitioning from startup to the next phase of growth just as the 2008–09 economic recession brought virtually all U.S. building construction to a halt. Suitable for MBA and undergraduate students in such courses on sustainability, branding, marketing strategy, the case presents a broad range of issues. Market conditions forced the company to rethink strategy, conserve cash, and further refine its product and its processes. Venture capital funding and investor exit expectations required rapid ramping up of projects in the short run. With an aggressive target of triple revenue and profitability by 2011, only five years after startup, it looked to geographic expansion and entrance into new market segments, possibly government, retail, and health care. Its kits provided customers with an affordable way to construct greener, healthier, more energy-efficient buildings.

Excerpt

UVA-ENT-0158

Rev. Oct. 4, 2010

Project FROG:

Sustainability and Innovation in Building Design

Introduction

Project FROG was an innovative designer of kits to rapidly build energy-efficient, greener, healthier, and affordable buildings. The company was transitioning from startup to the next phase of growth just as the 2008–09 economic recession brought virtually all new building construction to a halt across the United States. Conditions forced the company to rethink strategy, conserve cash, and further refine its product and its processes. The company's Crissy Field project, completed in early 2010, provided a critically important demonstration of the company's designs, and as the economy began to turn around in 2010, geographic expansion and new markets segments, possibly government, retail and health care, were planned. Architect, designer, and founder Mark Miller, President Adam Tibbs, and new CEO Ann Hand also hoped to meet more aggressive targets for margins that would enable the company to triple revenue and be profitable early in 2011, only five years after startup. Venture capital funding and investor exit expectations required rapid ramping up of projects in the short run. Miller summarized the overlap of Project FROG's products and lead venture capital investor's interests: “Their vision for energy and resource efficiency and innovative products is perfectly aligned with the Project FROG approach: to be better, greener, faster and cheaper.”

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Keywords: construction overcrowding temporary structure green building renewable