PASCO UK Ltd - A Case Study

Patrick Tinker is the director of one of North Wales’ largest independently owned distribution and collection companies, PASCO UK Ltd. The company was initially established after Mr Tinker gained a contract with Denbighshire County Council to oversee and coordinate the distribution of refuse sacks within the county, which Mr Tinker used to personally carry out whilst in the Armed Forces. After a lengthy term of service with the Armed Forces, Mr Tinker decided to leave and focus on developing PAT Services. Over the past 18 months, Mr Tinker has applied many entrepreneurial skills to the business and it has recently developed from being a family run partnership (PAT Services) to a limited company (PASCO UK Ltd).

Currently the firm employs four full time employees and hopes to have six full time employees within a year and eighteen in five years. The firm has four distinct products/services and has a revenue mix between the sale of products and the sale of services. 80% of the firm’s sales come from selling directly to consumers, with the remaining 20% of sales being sold to governments.

According to Mr Tinker, when the firm needs to obtain information about and from customers, the firm will identify its target market and conduct market research in the form of an Internet study. The firm also approaches individuals in companies to discover information about the company’s preferred methods. Mr Tinker explained that the firm identifies what a company requires, discovers how it has been achieved in the past and whether or not the method has been successful and then develops a method to improve upon the service in order to compete with their competitors by creating a unique selling proposition.

Mr Tinker believes the time he spent in the Military has had a great impact on the marketing decisions he takes. Whilst in the Army, he learnt a lot about how to gather information from individuals and how to promote organisations. He ensures everything is carried out to the highest standard, including marketing activities. His energy and enthusiasm has clearly had a positive effect on both employees and customers alike.

The main challenges Mr Tinker has faced over the years since his company launched have been: the maintenance of staff, establishing the company in a field with many competitors and maintaining the smart appearance of the company. Mr Tinker has attempted to address these challenges in the following ways: he has successfully lowered staff turnover by offering bonus schemes and the utilisation of many staff motivation techniques. He has overcome the challenge of establishing the company in a competitive market by creating a very distinctive logo and by completing small contracts to a very high standard – in order to prove the abilities of the company. Furthermore, in order to maintain the smart appearance of the company, Mr Tinker has implemented a clause into the contract of employment stating that if any negligence of the company’s assets occurs, the cost of the damages will be directly deducted from the offending employee’s wage.

Mr Tinker believes he has learnt numerous lessons from overcoming these initial challenges and believes acting upon his instincts and his military training will enable the company to rapidly grow.

Discussion Questions

• How important do you think Mr Tinker’s military training was? Do you think it has aided in him becoming a successful entrepreneur?
  Consider: - The leadership training he will have encountered and evidence in the case study to demonstrate how he has used this training in his entrepreneurial venture.
• Why do you think PASCO’s mission to bespoke their service is successful? Is this going to be easy to sustain if the company grows?
  Consider: - How PASCO carries out market research for each individual customer and subsequently creates a bespoke service. Consider what they would need to do in order to continue providing such a personal service after substantial business growth.
• How well do you think the initial challenges of the company were addressed?
  Consider: - The moves Mr Tinker took to eradicate employee negligence etc. How do you think the employees reacted to this clause? Was it a ‘good’ move?
• How important was Mr Tinker’s personal motivation to the success of his venture?
  Consider: - Mr Tinker’s previous career – how do you think this enhanced his desire to succeed independently?