1. TEN TREES
BUSINESS
CASE
For Vicky Roy
ABSTRACT
An analytical paper on the new start-up company
known as TenTrees and their story.
Alexander Ho
Busness Capstone

2. A Sustainable Business Model with a Social Mission
Present Sales & Strong Rate of Projected Sales Growth
TenTree’s, a socially oriented company just started, is already on track to have a million trees
planted by the end of 2013. This significant achievement showcases the level of success that the
company’s current high-cost business model enjoys. As a start-up business that is already
making profits in the early stages of its life, TenTree’s is a great example of social entrepreneurs
that employed a premium differentiation strategy and succeeded. In addition to this, TenTree’s
has accomplished putting their products onto the shelves of 300 Canadian stores; doing so
indicates the level of demand for their product in the market despite the high pricing. A last
example of this is the company’s ability to garner strong internet sales; proving their marketing
strategy’s impact in action is a force that can be relied on throughout its future.
Credibility & Sustainability
This business model isn’t an easily imitated as credibility is not easily accredited for new start-up
organizations. TenTree’s partnerships with the Canadian Wildlife Federation and WeForest build
up that credibility through third party partnerships and verification on delivered promises.
During TenTree’s audition on CBC’s Dragon’s Den, Arlene Dickenson dispelled the fear that
socially-oriented businesses were a fad when she brought up “planet profit” multiple times to
emphasize the view that sustainable companies will need to involve the planet in order to be truly
long-term. (CBC, 2013)
Not-For-Profit vs For-Profit Enterprise
Figure 1 Not-for-Profit vs For-Profit Enterprises
Not for Profit
•Much capital raisedis from donations form individuals, foundations andcorporations
•Can registerforincome-taxexemptionundersection 501(c)3
•No personal liabilityfor organizational debts
For Profit
•Easier to attarct qualityemployees withincreased salaries andequityoptions
•Abilityto raise capital throughprivate investors ina timelymanner
•Freedom to use capital as desired

3. As shown, a not-for-profit enterprise has a myriad of benefits which should be considered by
TenTree’s to maximize the successful output of their social mission. (Ingram, n.d.) The biggest
differences between not-for-profits and for-profit organizations is the source of capital, control of
spending, and tax benefits. On the not-for-profit side, capital can take a long time to raise
whereas for-profit organizations can raise capital relatively rapidly. (Chen, 2013) Secondly,
whereas for-profits usually are created to redistribute profits to shareholders (which would be the
case if TenTree’s raised capital on the Toronto Stock Exchange) not-for-profits are advantageous
in their intent to fulfill a social mission and channel their profits into that singular goal without
external pressures to do otherwise. Lastly, there are the tax benefits to consider of becoming a
not-for-profit. These benefits would lead to the conclusion that TenTree’s organization could
indeed achieve the same success if organized into a not-for-profit enterprise, as its social mission
would correspond positively with the benefits and structure that make up the not-for-profit
organizational structure.
Successful Usage of Social Media
Social media has been used very successfully by TenTree’s to connect to its specific target
market and avoid less efficient marketing costs, saving the company significant sums. While
social media is utilized by various companies, TenTree’s has used it in extraordinary fashion
which lead the company to success. A factor of what made TenTree’s more successful is the
intelligence and research they put into their social media usage. Through means such as Google
Analytics and AdSense, TenTree’s was able to pinpoint and specifically target its customer
archetype. Listed below are a few examples of such usage:
1. YouTube: TenTree’s utilized this service to include “in-stream” advertisements for those
that had visited its website. Additionally, they also used this service to create quality
videos spreading TenTree’s message effectively.
2. Facebook: This social media channel was used to share TenTree’s message and provide
attractive content and build a community. This was especially effectively done through
content being submitted from multiple sources including the company itself, TenTree’s
positive consumers, and popular content found on the internet that aligned with the
company’s values. Facebook was strongly connected to TenTree’s website and both
focused on delivering TenTree’s social mission than the products it sells.

4. 3. Instagram: TenTree’s was able to utilize Instagram test out visual content as a means to
help them decide which content was worthy to be put onto their website.
4. Twitter: The strength TenTree’s found for twitter was its ability to push out news about
the company and website.
Alternatives of apparel sourcing
China
The first pro of going to China is the decreased manufacturing costs which would greatly help
TenTree’s margins. Secondly, China would be able to handle large quantity of orders without
suffering on quality. A con of utilizing China as a supplier country though was the large shipping
distance that ultimately translated into a negative impact on the environment. A second con of
utilizing China was the higher minimum required orders which mean TenTree’s would really
have to commit to the long-term of this business.
North America
Firstly, a pro of staying with North America is that by staying within the local geographic region
they wouldn’t have to transport their products from across the seas and thus minimize their
environmental impact from burned fossil fuels. A second benefit of staying in North America
was the quality brand that was associated with goods made in the country which gave
consumers’ confidence in the products quality. A con of staying in North America was the high
costs which decreased the profit margins of the company. Secondly, North American
manufacturers were unable to fulfill large orders which barred TenTree’s benefiting from
economies of scale as they were limited to smaller volumes of production here, one again
increasing their costs.
Recommended Alternative
China
China would prove to be the stronger alternative for a few key reasons. Firstly, TenTree’s as a
company is about planting tree’s to make the planet a better place. While it is an environmental
company, its mission is not to actively decrease the fossil fuels burnt around the world. By
choosing China they would be able to create a bigger impact on their social mission of planting

5. more tree’s than they would be if they chose North America. In addition, the significantly
decreased manufacturing costs would help finance expansion and growth of the company,
leading to the increased demand it would need to satisfy large volume requirements by Chinese
manufacturers. Ultimately, the social impact they are seeking would be best realized by choosing
China.
Turning Key Success Factors into Competitive Advantages
Social Mission
The biggest factor differentiating TenTree’s from any other apparel business is their social
mission. It is through the communication and execution of their social values which created a
strong customer base for the company. By branding themselves as a social enterprise with a
mission and continuing to use their business model of planet profit, it built their resilient
competitive advantage for the company to enjoy for the long-term future.
Marketing
Marketing has been an especially strong key success factor of TenTree’s, in particular though
expertise with social media channels such as Facebook. TenTree’s strength lies in their expertise
on how to effectively use social media as a means to attract consumers to their cause. By using
each social media channel to their strengths, the businesses internet presence has become a
dominating force unlike other apparel businesses. This is particularly true as TenTree’s was the
only one from its competitors who opted to not use traditional advertising to sell a tangible
product.
Other Steps for Better Growth
As China was the recommended alternative it can also become a potential problem as it is
increasingly more difficult to monitor working conditions in foreign countries. To ensure
sustainable growth and avoid irreparable damage to the brand by having their products created in
unsafe working conditions, TenTree’s should work to ensure that the manufactures of their
products are not only paid adequately fair wages, but also are employed in safe working
conditions. This could be done either through third party unscheduled auditors checking the
factories or having only safely certified factors employed to create their products.

6. References
CBC (Director). (2013). Ten Tree on Dragons’ Den [Motion Picture].
Chen, J. (2013, February 01). Should Your Business Be Nonprofit or For-Profit? Retrieved from
Harvard Business Review: https://hbr.org/2013/02/should-your-business-be-nonpro
Ingram, D. (n.d.). Non Profit Organization Vs. Profit Organization. Retrieved from Chron:
http://smallbusiness.chron.com/non-profit-organization-vs-profit-organization-4150.html