9B21C018
CLARKE BUILDING AND SUPPLIES LIMITED: NAVIGATING
CULTURE, CONTROL, AND CHANGE
Authorized for use only by Moumin Mirza in MGAD40 at University of Toronto at Scarborough from 5/1/2025 to 9/1/2025.
Ryan Stack and Bertrand Malsch wrote this case solely to provide material for class discussion. The authors do not intend to illustrate
either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying
information to protect confidentiality.
This publication may not be transmitted, photocopied, digitized, or otherwise reproduced in any form or by any means without the
permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights
organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western
University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) ; www.iveycases.com. Our goal is to publish
materials of the highest quality; submit any errata to . i1v2e5y5pubs
Copyright © 2021, Ivey Business School Foundation Version: 2021-05-26
Use outside these parameters is a copyright violation.
In March 2019, Dan Clarke looked over the latest year-end reports for his family business, Clarke Building
and Supplies Limited (CBSL), and felt a sense of dread. With the death of his father—the founder, former
chief executive officer (CEO), and chair of the board of CBSL—about six months ago, it was now up to
Dan to fill the business’s leading role. Although he had worked for the organization in his youth and knew
it remained a profitable venture, Dan’s involvement with the company had, up until the past year, been
limited. Although he recognized some potential issues in the structure and operations of the company, he
did not have the business background and training to fully articulate them, much less deal with them.
CBSL was a family-run business headquartered in the city of Corner Brook in the Canadian province of
Newfoundland and Labrador (Newfoundland), with additional locations across the province in Springdale,
Gander, and Grand Falls-Windsor (see Exhibit 1). The business currently included four retail stores as well as
the home construction and renovation (HCR) operation. In total, CBSL employed more than 110 people and
saw revenues of over CA$12 million1 for the 2018 fiscal year. The company also benefited from being free of
long-term debt and from owning the land and buildings on which its retail stores operated (see Exhibit 2).
Although the business had been good for the Clarke family and for the communities in which it operated, Dan
wondered about the company’s future direction and ability to continue as a family business. Although the
region had been relatively free of larger competitors, Dan had heard rumours of some of the national building
supply chains showing an interest in entering the western Newfoundland market. Dan was especially
concerned about the performance of some of CBSL’s retail operations, as well as the company’s difficulties
in tracking inventory and monitoring costs and collections on the construction side of the business. While he
could see plenty of issues in the organization, he was not sure if he knew any solutions; worse, he was not
sure he could achieve buy-in from the managers to implement whatever solutions he devised.
The business’s two revenue streams and different locations made it difficult for Dan to know what was
going on at individual locations; it seemed that store managers each had divergent standards and methods
of operating. He also had serious concerns about the warehouse operation, which seemed to operate by its
own rules entirely. According to Dan,
1
All currency amounts are in CA$ unless otherwise specified.
, Page 2 9B21C018
The stores are all very far apart. It makes it difficult to see what’s really going on there. And the
managers and VP [vice-president] [of] retail have been slow with getting me budgets and results
reports for stores. We’ve also got our home construction division, which is involved in jobs instead
of direct sales. I don’t know how to measure the builders against the stores, or the stores against
one another. I don’t know if it would even be fair to do it.
Dan was especially dissatisfied with the lack of budgets and projections from store managers. None of the
store managers seemed to have a good idea of how much their store should be making or what costs it should
Authorized for use only by Moumin Mirza in MGAD40 at University of Toronto at Scarborough from 5/1/2025 to 9/1/2025.
have over a year. Regular reports on store performance were also difficult for Dan to obtain. This information
was eventually sorted out each year by the company’s accounting firm, which provided the information with
the year-end financial statements, usually about four months into the new year (see Exhibit 3). On a weekly
or even monthly basis, it was difficult to evaluate trends in performance for each store. Accounting and
administrative software might track these transactions, but managers were not compiling them promptly.
BACKGROUND: THE HISTORY AND CULTURE OF NEWFOUNDLAND
Use outside these parameters is a copyright violation.
Newfoundland’s unique history, harsh geography, and chronically poor economy all contributed to a culture
that was distinct from that of mainland Canada. The newest of Canada’s provinces, Newfoundland was
brought into Confederation in 1949. Underlying Newfoundland culture was a lasting sense of separateness
from the rest of Canada and even North America. Newfoundland had always been geographically isolated
from the rest of North America, far removed from any centres of population and wealth.2
The island’s historical isolation and hardship forged a close-knit community with a unique language and
perspective. Newfoundland had its own recognized dialect of English, including many archaic words and phrases.3
The area’s relatively poor farmland stunted early settlement, as Europeans sought the more fertile shores of
the Maritimes, Quebec, or Ontario—places that offered the stability of a sedentary farming life. Life in early
Newfoundland was tied inexorably to the sea, with small and often isolated fishing communities developing
along the coast.4 The fishing system functioned based on family labour rather than wage labour, with all
members of the family taking part in the process.5 Far from primary thoroughfares and without liquid
resources, the people of Newfoundland relied upon one another for survival. Neighbours traded with each
other to meet their basic needs. Merchants paid for a product based on credit that was valid only in their shop.6
Following near bankruptcy brought on by the Great Depression and disastrous government
mismanagement, Newfoundland’s democracy was suspended in 1934, reverting to colonial status, to be
administered by an English governor. This status ended in 1949 when, by a slim margin and too much
controversy, Newfoundlanders voted to become part of Canada, exchanging any hope of renewed
2
Gwynne Dyer, "The Strategic Importance of Newfoundland and Labrador to Canada," Royal Commission on Renewing and
Strengthening our Place in Canada, March 2003, accessed July 5, 2020, www.gov.nl.ca/publicat/royalcomm/research/Dyer.pdf.
3
Philip Tocque, Newfoundland: As It Was and as It Is in 1877 (Toronto, ON: J. B. Magurn, 1878); George Patterson, “Notes
on the Dialect of the People of Newfoundland,” Journal of American Folklore 8, no. 28 (January–March 1895): 27; “A Far
Country: Nationalist Sentiment without a State,” The Economist, October 12, 2007, accessed February 15, 2020,
www.economist.com/news/2007/10/12/a-far-country.
4
Victor L. Young, Elizabeth Davis, and James Igloliorte, "Our Place in Canada," Royal Commission on Renewing and Strengthening
Our Place in Canada, June 30, 2003, accessed May 3, 2020, www.exec.gov.nl.ca/royalcomm/finalreport/pdf/Final.pdf.
5
Sean T. Cadigan, Hope and Deception in Conception Bay: Merchant-Settler Relations in Newfoundland, 1785–1855
(Toronto: University of Toronto Press, 1995).
6
James Overton, “Academic Populists, the Informal Economy and Those Benevolent Merchants: Politics and Income Security
Reform in Newfoundland,” Journal of Peasant Studies 28, no. 1 (2000): 1–54.
CLARKE BUILDING AND SUPPLIES LIMITED: NAVIGATING
CULTURE, CONTROL, AND CHANGE
Authorized for use only by Moumin Mirza in MGAD40 at University of Toronto at Scarborough from 5/1/2025 to 9/1/2025.
Ryan Stack and Bertrand Malsch wrote this case solely to provide material for class discussion. The authors do not intend to illustrate
either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying
information to protect confidentiality.
This publication may not be transmitted, photocopied, digitized, or otherwise reproduced in any form or by any means without the
permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights
organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western
University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) ; www.iveycases.com. Our goal is to publish
materials of the highest quality; submit any errata to . i1v2e5y5pubs
Copyright © 2021, Ivey Business School Foundation Version: 2021-05-26
Use outside these parameters is a copyright violation.
In March 2019, Dan Clarke looked over the latest year-end reports for his family business, Clarke Building
and Supplies Limited (CBSL), and felt a sense of dread. With the death of his father—the founder, former
chief executive officer (CEO), and chair of the board of CBSL—about six months ago, it was now up to
Dan to fill the business’s leading role. Although he had worked for the organization in his youth and knew
it remained a profitable venture, Dan’s involvement with the company had, up until the past year, been
limited. Although he recognized some potential issues in the structure and operations of the company, he
did not have the business background and training to fully articulate them, much less deal with them.
CBSL was a family-run business headquartered in the city of Corner Brook in the Canadian province of
Newfoundland and Labrador (Newfoundland), with additional locations across the province in Springdale,
Gander, and Grand Falls-Windsor (see Exhibit 1). The business currently included four retail stores as well as
the home construction and renovation (HCR) operation. In total, CBSL employed more than 110 people and
saw revenues of over CA$12 million1 for the 2018 fiscal year. The company also benefited from being free of
long-term debt and from owning the land and buildings on which its retail stores operated (see Exhibit 2).
Although the business had been good for the Clarke family and for the communities in which it operated, Dan
wondered about the company’s future direction and ability to continue as a family business. Although the
region had been relatively free of larger competitors, Dan had heard rumours of some of the national building
supply chains showing an interest in entering the western Newfoundland market. Dan was especially
concerned about the performance of some of CBSL’s retail operations, as well as the company’s difficulties
in tracking inventory and monitoring costs and collections on the construction side of the business. While he
could see plenty of issues in the organization, he was not sure if he knew any solutions; worse, he was not
sure he could achieve buy-in from the managers to implement whatever solutions he devised.
The business’s two revenue streams and different locations made it difficult for Dan to know what was
going on at individual locations; it seemed that store managers each had divergent standards and methods
of operating. He also had serious concerns about the warehouse operation, which seemed to operate by its
own rules entirely. According to Dan,
1
All currency amounts are in CA$ unless otherwise specified.
, Page 2 9B21C018
The stores are all very far apart. It makes it difficult to see what’s really going on there. And the
managers and VP [vice-president] [of] retail have been slow with getting me budgets and results
reports for stores. We’ve also got our home construction division, which is involved in jobs instead
of direct sales. I don’t know how to measure the builders against the stores, or the stores against
one another. I don’t know if it would even be fair to do it.
Dan was especially dissatisfied with the lack of budgets and projections from store managers. None of the
store managers seemed to have a good idea of how much their store should be making or what costs it should
Authorized for use only by Moumin Mirza in MGAD40 at University of Toronto at Scarborough from 5/1/2025 to 9/1/2025.
have over a year. Regular reports on store performance were also difficult for Dan to obtain. This information
was eventually sorted out each year by the company’s accounting firm, which provided the information with
the year-end financial statements, usually about four months into the new year (see Exhibit 3). On a weekly
or even monthly basis, it was difficult to evaluate trends in performance for each store. Accounting and
administrative software might track these transactions, but managers were not compiling them promptly.
BACKGROUND: THE HISTORY AND CULTURE OF NEWFOUNDLAND
Use outside these parameters is a copyright violation.
Newfoundland’s unique history, harsh geography, and chronically poor economy all contributed to a culture
that was distinct from that of mainland Canada. The newest of Canada’s provinces, Newfoundland was
brought into Confederation in 1949. Underlying Newfoundland culture was a lasting sense of separateness
from the rest of Canada and even North America. Newfoundland had always been geographically isolated
from the rest of North America, far removed from any centres of population and wealth.2
The island’s historical isolation and hardship forged a close-knit community with a unique language and
perspective. Newfoundland had its own recognized dialect of English, including many archaic words and phrases.3
The area’s relatively poor farmland stunted early settlement, as Europeans sought the more fertile shores of
the Maritimes, Quebec, or Ontario—places that offered the stability of a sedentary farming life. Life in early
Newfoundland was tied inexorably to the sea, with small and often isolated fishing communities developing
along the coast.4 The fishing system functioned based on family labour rather than wage labour, with all
members of the family taking part in the process.5 Far from primary thoroughfares and without liquid
resources, the people of Newfoundland relied upon one another for survival. Neighbours traded with each
other to meet their basic needs. Merchants paid for a product based on credit that was valid only in their shop.6
Following near bankruptcy brought on by the Great Depression and disastrous government
mismanagement, Newfoundland’s democracy was suspended in 1934, reverting to colonial status, to be
administered by an English governor. This status ended in 1949 when, by a slim margin and too much
controversy, Newfoundlanders voted to become part of Canada, exchanging any hope of renewed
2
Gwynne Dyer, "The Strategic Importance of Newfoundland and Labrador to Canada," Royal Commission on Renewing and
Strengthening our Place in Canada, March 2003, accessed July 5, 2020, www.gov.nl.ca/publicat/royalcomm/research/Dyer.pdf.
3
Philip Tocque, Newfoundland: As It Was and as It Is in 1877 (Toronto, ON: J. B. Magurn, 1878); George Patterson, “Notes
on the Dialect of the People of Newfoundland,” Journal of American Folklore 8, no. 28 (January–March 1895): 27; “A Far
Country: Nationalist Sentiment without a State,” The Economist, October 12, 2007, accessed February 15, 2020,
www.economist.com/news/2007/10/12/a-far-country.
4
Victor L. Young, Elizabeth Davis, and James Igloliorte, "Our Place in Canada," Royal Commission on Renewing and Strengthening
Our Place in Canada, June 30, 2003, accessed May 3, 2020, www.exec.gov.nl.ca/royalcomm/finalreport/pdf/Final.pdf.
5
Sean T. Cadigan, Hope and Deception in Conception Bay: Merchant-Settler Relations in Newfoundland, 1785–1855
(Toronto: University of Toronto Press, 1995).
6
James Overton, “Academic Populists, the Informal Economy and Those Benevolent Merchants: Politics and Income Security
Reform in Newfoundland,” Journal of Peasant Studies 28, no. 1 (2000): 1–54.
