1. The rationale for “licensing products of service,” came from a book The Ecology of Commerce by Paul Hawken. The book proposed that rather than providing a manufactured product, a company should develop long-term service licenses with customers (pg 6). In general, the logic supporting this reasoning results from the service provided by a product, rather than the product itself. Furthermore, rather than selling carpets to customers, Interface would be able to provide a service.

2. Anderson’s vision was motivated by a desire to pursue sustainability, while developing a company that would continually grow and succeed. He sought to make lasting contributions to the environment, by avoiding doing harm to the earth, yet still maintaining a prospering bottom line. Additionally, his vision consisted of becoming the world’s first sustainable corporation and restorative company (pg.3), through development of a new functional business model. The Evergreen Services Agreement (ESA) was designed to provide sustainable development, while keeping used carpet materials out of landfills. Furthermore, the ESA would provide an entirely new market of carpet services, which involved replacing and reclaiming worn or used tiles. This would reduce costs, increase …show more content…
It goes above and beyond mere regulatory compliance, by creating a new standard and a unique market. Nevertheless, such a bold move provided many complications and involved many adjustments, including becoming compliant under FASB 13, as an operating lease. Other initiative included developing a maintenance and service aspect, as well as internal financing, and an expanded warranty. Interface went through extensive adjustments in order to pursue and adapt the initiative, fully committing themselves towards more sustainable methods, while also remaining competitive and continually