MGTS F211: PRINCIPLES OF MANAGEMENT

A Case Study on Trojan Technologies

Submitted by:
P. V. Ravi Kiran
K. Venkata Subba Reddy
V. Rohit Reddy
K. S. Vishal
P. Manoj Prabhakar
T. Lakshmi Sai Ram
J. Lakshmi Saradhi Reddy
M. Santhosh Kumar
K. Harikishan Reddy
Submission Date:

31st March 2014

Instructor:

Ch.V.V.S.N.V. Prasad

Case study on Trojan Technologies

2011A4PS232G
2012A4PS044G
2012A3PS052G
2012A7PS062G
2012A3PS067G
2012A8PS359G
2012A1PS426G
2012C6PS597G
2012A7PS668G

ACKNOWLEDGEMENTS
We would like to express our sincere gratitude to DR.Ch V V S N V Prasad for giving this
opportunity to do a case study on Trojan Technologies Inc., without whose support, motivation
and invaluable guidance this study would have been a distant reality. We would also like to
thank our mentor Rahul Mishra for extending his support in completing this study.

Case study on Trojan Technologies

ABSTRACT
This study focuses on Trojan technologies Group of Businesses which enables to improve
water quality by providing eco-efficient solutions that reduce and recover costs, energy,
resources and space. They deliver low-risk, innovative technologies that offer sustainable
results thereby ensuring greater water confidence and environmental stewardship for people,
industries and municipalities.
We begin with a brief history of the company. We discuss the changes in its organizational
structure & its strategic planning, management in the following years during which it emerges
as one of the global leaders in UV disinfection technology.
We also try to study the company use the following techniques
SWOT analysis
Porters five forces analysis
PESTLE analysis
Further, we discuss their involvement in Corporate Social Responsibility & conclude the report
by making a comprehensive set of recommendations to various problems faced by the
organization.

Case study on Trojan Technologies

Table of Contents:
Index

Topic

Page.no

Introduction

Strategic Management

SWOT Analysis

10

Porters Five Forces Analysis

12

PESTLE Analysis

14

Organization Structure

17

Corporate Social Responsibility

19

Conclusion & Recommendation

21

References

23

Case study on Trojan Technologies

INTRODUCTION
Trojan technologies was started in 1976, by Hank Vander Laan along with his partners in
London, Ontorio. They are specialized in UV light applications for disinfecting water and waste
water. Trojans UV technology had proven to be an environmentally safe and cost-effective
alternative to chlorination and thus gained wider recognition and acceptance.

Growth process during 1990s:

Company began to grow due to various environmental factors, it launched its first UV
disinfection system (system UV2000 TM) in 1981, followed by UV3000TM in 1991 and
UV4000TM .And in 1993, Trojan Technologies was honored to be referred to as one of the
world leaders in UV disinfection technology. The companys growth led to vast expansion in its
facilities and requirements, various branches were started in different places like California in
1995 and there staff increased to 190.By 1997, 93 percent of Trojans sales were of
wastewater products and remaining 7 percent were clean water products for municipal and
residential drinking water and industrial process applications.
Due to significant growth in organization and in customer needs interaction with customers
was taken place at different levels
The main points of customer interaction included

1. Quote/bid Process :
Marketing department took the lead role in assembling the appropriate bid and pricing.
Customers occasionally spoke directly to this department regarding technical issues.

2. Configuration of project structure:

Involves working with the detailed specifications for the project and applying appropriate
Trojan Systems in a configuration that would meet the customers needs. The project
engineering department took the lead role in this work.

3. Project Shipment and system installation:

On the completion when the customer was ready to integrate the UV system into their
waste water facility, the service department the installation and start-up of the unit.

4. Technical support and warranty claims:

Dealing with phone calls, site visits and warranty claims by the service department

Case study on Trojan Technologies

Parts order processing:

This was handled at Trojan call center at Trojan head office in London that was separate from
the other departments.
Customers have to deal with four different department during their contract with Trojan
technology. As there is a gradual growth in organization, so did the number of departments
increased. Due to this communications became internal among departments.
When engineers were hired into this group, there was no formal training or apprenticeship
program in place, the new person got hired would simply follow along the current specialist in
that department. This type of training was strained by the demand for project engineering
services brought on by Trojans growth. Regarding customer service there was a fundamental
structuring conflict within the service area on how to best serve the customer, due to division of
work among different departments .Different training issues also arose in the organization, due
to rapid expansion of the company, informal introduction of new employees to the company
and its process became insufficient.

Case study on Trojan Technologies

STRATEGIC MANAGEMENT IN TROJAN

TECHNOLOGIES
Strategic management is a comprehensive collection of the activities and processes that
involve formulation and implementation of major goals and initiatives taken by a companys top
management on behalf of the owners to coordinate and align resources and actions with
mission, vision and strategy throughout the organization.
Strategies are mainly plans for the future regarding how they will do business, survive the
competition and satisfy their customers successfully.
Importance of Strategic Management:
1. It is critical to the development and expansion of all organizations as it formulates shortterm and long-term initiatives for optimal achievement of their objectives.
2. Its helps Organizations that are vast and complex through best utilization of resources.
3. It helps to deal with unanticipated situations in the continuously changing market.
Right since its birth in 1977, Trojan Technologies had various approaches towards Strategic
Management to structure their business effectively. Its main agenda had always been
customer satisfaction through strong customer service.

Need for Strategic Management:

The company started in 1977 with three employees and specialized in UV light
applications for disinfecting water and municipal water and generated revenues through
sale of small residential and industrial UV water disinfecting systems.
As it started with very few employees the company was fast, flexible and inexpensive
due to its simple structure.
After four years of its work on a viable way of disinfection system, its first product UV
2000 was installed in Tillsonburg, Ontario in 1981 after which, it got the regulatory
approval of the governments of US and Canada to use their technology for municipal
waste water treatment.
During these initial days, Functional Departmentalization was present in structure and
effective communication was absent between staff of the company.
Hence, the company started to grow and so did its need for strategic management. As
the growth continued, a staff of 50 was placed in 1992 and in 1993 another branch was
established in Hague, Netherlands thereby increasing its influence over the Atlantic.
In 1994, the UV 4000 was released and a new head office was established. In 1995,
a branch office was setup in California to meet the enormous growing markets needs.

Case study on Trojan Technologies

Due to fact that the company became complex and rigid it became virtually impossible
for everyone to know about all the projects going on in the company which made it more
Mechanistic in its structure.
By 2003, the companys headcount had almost quadrupled to almost 1000 employees
and increase in demand for its products required the company to evolve a strategic
flexibility i.e. to form a strategy that is suited best to the situation as the time demands.

CUSTOMER STRATEGY:
It is the main strategy of Trojan Technologies. During the initial stages of the company,
when there were small amount of projects and bids, a few of the employees who were
experienced in bidding personally led them and also supervised the projects. As the
company grew in size it became rather difficult for one experienced person to look over
only one project at a time. So, to improve the customer service the company introduced the
method of division of labor. Customers queries were dealt by 1 st available representative
manner. Therefore, customer may have to deal with different representatives each time
they had a query which might lead to dissatisfaction among the customer base owing to the
redundancy of information he has to provide every time. To tackle such issues, there was
need to change the organizational structure. They introduced Telephone support and
remote troubleshooting. The over-the-phone assistance was provided from their Technical
Assistance Center (TAC) in London and Ontario. TAC is also equipped with capabilities to
connect to its installations in order to monitor, upload programs, and troubleshoot systems
remotely. Hence, this quick, convenient and in most cases cheap service call method is
being used to attract the customers.

CUSTOMER INTERACTION:
The key points of customer interaction and waste water management product line includes:
1.
2.
3.
4.
5.

Quote/Bid Process
Configuration of product structure
Project shipment and system installation
Technical support and warranty claim
Parts order processing

The quote/bid process was undertaken by marketing department along with the help of
project engineering department. Marketing department led the bid with project engineering
department providing with the technical details of the project to their customers.
Configuration of product structure was done by project engineering department. Project
shipment and system installation was handled by Operations department.

Case study on Trojan Technologies

Technical support and warranty claim was handled by service department. Another Service
department was established for Parts order processing. It was separated from other
departments and is just only to calls for replacement parts.

Case study on Trojan Technologies

SWOT Analysis:
SWOT Analysis is a structured planning method used to analyze the internal resources of the
company and external factors that would affect the companys growth.
It basically includes:

Strengths: Positive points in internal resources

Weaknesses: Negative points in internal resources
Opportunities: Positive trends in external environment
Threats: Negative trends in internal environment

Strengths:
Innovation: Trojans are the first to design the disinfection systems using UV technology.
They had a strong research team which is the greatest strength for the present companys
position.

Strong financial position: The managers in the company were able to invest huge amounts
in the beginning which gave a boost to the companys initial success.

Unique product: Trojans product was a very different product from the other water
purification products. This is another major strength for the company.

Customer base: As the company started growing, it even started acquiring companies all
over the world. So this increased the customer base across the world.

Weaknesses:
Poor co-ordination between departments: As the company started growing, the
departments started increasing. But there was no co-ordination between the departments. So
this turned out to be a major drawback for the company, even it is growing.

Poor customer service: After the product installation, there was no single representative to
address a single customers issue. So this made customer feel uncomfortable.

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Weak management system: Even the management system failed to develop co-ordination
between the departments. Absence of decentralization is also a reason for this.

Opportunities:
Emerging markets: As there is a positive response from the customers to the technology,
the company has got a chance to expand its market in many parts of the world.

Impact on customers: UV technology is environment friendly when compared to its

competitors. So this created a huge positive impact on customers.

Expansion abroad: Trojan technologies has huge resources to acquire many other
companies across the world. It has acquired some companies and succeeded in many of
them.

Threats:
Product substitution: There are many other cheaper technology products such as reverse
osmosis, activated carbon and ozone treatment which may create a threat to the company.

Competition: Though the company was the first to use UV technology, later other companies
like Siemens Water Technologies, 3M Purification Inc. started using UV technology. This was
another major threat to the company.

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PORTERS FIVE FORCES ANALYSIS

Threat of New Entrants: Moderate

Capital investment is smaller than chemical disinfection industry and has lower life-cycle
cost negative for Trojan.
Existence of barriers to entry is too high as Trojan has more number of patents which is an
advantage for Trojan.
Trojan Technologies is existing market leader in UV technology

Threat of Substitutes: low

RO (Reverse Osmosis):
Method of forcing water through semi-permeable membrane. Ineffective in removing Chlorine
and Volatile Organic chemicals.

Distillation:

Demineralizes water and make it unhealthy to drink.

Expensive.
Takes a lot of time and energy to heat water.

Ozone Treatment:
Effective in destroying bacteria and other unhealthy micro-organisms.
Not effective in reducing chemical contaminants.

Intensity of competitive Rivalry: Moderate

Calgon-Carbon Corporation:
Global leader in activated carbon, ballast wastewater treatment and advanced ion-exchange
technologies in treatment of drinking water, which are not as effective as UV methods.

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Siemens Water Technologies Corp:

Well known for its service to municipal, industrial and institutional clients with more than 20,000
installations across several continents, 900 water products and technologies.

3M Purification Inc. Company:

Looks at liquids and gasses through rose colored filters, makes a full line of filtration products
for healthcare, fluid processing and potable-water markets which doesnt go for a wide scope
of covering municipalities, wastewater treatment as Trojan.

Bargaining Power of Suppliers: High

Suppliers product is an important input to the buyers business.

Number of suppliers are low.
Supplier to buyer ratio is low.

Bargaining Power of Buyers: Low

Custom specified products by Trojan Technologies.

Switching cost is very high.

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PESTLE ANALYSIS
Political:

Government instability, Government influenced economy e.g. new tax policies,

duties and trade tariffs. Trojan Technologies Inc. is a wholly-owned subsidiary of Danaher
Corporation of Washington, D.C. With over 5800 municipal facilities in more than 80 countries
using its technology, Trojan has the largest installed base of UV systems in the world.
Headquartered in London, Ontario, Canada, the company also has offices in the U.K.,
Germany, Netherlands, Spain, and the U.S. Being one of the top companies in Toronto Stock
Exchange, Canada, it is vital that Trojan tech Inc. have a good relationship with their
government in Canada, as any political instability such as change in government or coalition
may result in new laws being implemented which will affect Trojan a lot.

Economic: Economys performance, for example rising inflation rate affecting price of
products, interest rates, foreign exchange, economic growth patterns. Trojan will also have to
be aware of the changes in exchange rates, as they operate on global scale and drastic
changes in rates can have devastating effects on the financial operation of the company.

Social: Trojan has the largest installed base of UV systems in the world. Headquartered in
London, Ontario, Canada, the company also has offices in the U.K., Germany, Netherlands,
Spain, and the U.S .The firm's emphasis in marketing has been placed on the development of
a professional network of manufacturers' representatives. Trojan's network of over 90
representatives in the USA, Canada, and overseas is of the highest quality. This network of
local professionals enables the firm to respond quickly and efficiently to its customers' needs.
Trojan Technologies Inc. looks for sales representative companies which have strong
engineering capabilities, proven expertise in wastewater treatment applications, compatible
technologies for wastewater treatment, and strong commitment to engage in an aggressive
and comprehensive marketing effort. With approximately 77% market share in the global
wastewater UV disinfection market, Trojan is strategically positioned to offer strong support to
interested parties.

Technology: The research and development department of Trojan technologies was very
strong. They utilized highly innovative technology and introduced one product after another in
a short span of time. Trojan mainly specializes in UV light application for disinfecting water and
waste water. Trojan products kill micro-organisms using high Intensity UV lamps. Their
products were very different from the water purifying products of other companies. They were
one of the first companies to utilize the UV light technology. Its first UV disinfection system
(System UV 2000) was installed in Tillsonburg, Ontario in 1981. After it got regulatory
approval from government of US and Canada to market technology for municipal waste water
treatment, it experienced tremendous growth throughout the 1980s and 90s, especially in the
Case study on Trojan Technologies

14

municipal wastewater sector. By 1991 the company had sales in excess by $10 million and
had introduced its second generation technology in the System UV 3000. In 1993, Trojan
Technologies was honored to be referred to as one of the world leaders in UV disinfection
technology. In 1997 Trojan was majorly catering to the demands of small to very large
wastewater treatment plants and more complex wastewater treatment applications with varying
degrees of effluent treatment. The remaining of its sales were clean water products (primarily
the System UV 8000 and Aqua UV) for municipal and residential drinking water and industrial
process applications. In 1994, Trojan technology launched SYSTEM UV 4000. The TrojanUV
Solo Lamp Technology combines the best features of both medium and low-pressure lamp
technology. On the basis of technology, it has a threat from competitors like 3M Purification
INC. Calgon Carbon Corporation etc. which are using UV disinfection technology and chemical
treatment and Solid Phase Extraction technology respectively. As the company has great
resources as well as technology, it has an opportunity to enter untapped markets.

Legal:

Trojan initiated a patent infringement action in the U.S. against Calgon in 1999. This
action alleges that the two Calgon companies and the City of Hinesville have infringed Trojan's
U.S. Patent No. 5,590,390 which was issued to Trojan for a fluid purification device comprised
in its System UV 4000 technology. Calgon Carbon Corporation was established in 1967. It
used activated carbon for water purification. It was only in 1998 started using UV disinfection
technology. Wartsila Corporation and Trojan Technologies signed an exclusive agreement to
jointly develop, market, and distribute a ballast water treatment product for ships. With more
than 250 patents granted or pending, their track record for innovation sets them apart.

Environmental:

Due to TOC reduction, chlorine destruction, disinfection, and ozone

reduction UV systems have earned a reputation for technology that customers can trust.
Trojan have proved to be an environmentally safe and cost effective alternate and has gained
wider recognition and acceptance. Specialization in High Intensity UV Lamps channeled at
various speeds to acquire the desired kill rate, Environmental safety and cost-effective
alternative to chlorination and activated carbon that has created a niche market. Near the end
of 2004, Trojan technologies joined Danaher Corporation. Danaher is a Fortune 200, global
science and technology leader. Now, Trojan are part of their environmental segment and water
quality group. In 2004, US Peroxide was acquired. This company is North Americas largest
direct supplier of hydrogen Peroxide (H2O2) for environmental service applications. Some of
the Cities had been disinfecting with gaseous chlorine and dechlorinating with sulfur dioxide
which is not eco-friendly. We will achieve these environmental protection goals through:
Meeting or exceeding all applicable environmental rules and regulations.
Setting goals for maximizing energy efficiency and minimizing the waste streams of our
operations and products, taking action and monitoring our progress against those goals.

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Designing products that minimize resource consumption and improve the environmental
impact of our customers.
Achieving optimal carbon footprint and waste reduction throughout our value chains.
Minimizing or eliminating the use of hazardous substances in our operations and
products.

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Organizational structure
An organizational structure consists of activities such as task allocation, coordination and
supervision, which are directed towards the achievement of organizational aims.
Organizational structure refers to both the formal and informal frameworks that shape how a
business is operated. An organizational structure determines how employees are grouped
together and plays a large role in a firm's success. Just as human beings have skeletons that
define their parameters, organizations have structures that define-theirs. It is like the
architectural plan of a building. Just as the architect considers various factors like cost, space,
special features needed etc. while designing a good structure, the managers too must look into
factors like benefits of specialization, communication problems, problems in creating authority
levels etc., before designing the organization structure.
Trojan technologies organized each of its divisions according to process departmentalization
based on the customer flow. The customer is interacted with mainly four departments of which
their functions are as follows:

Initially project engineering department along with marketing department quotes bid to the
customer.
Then Operations department will lead through the product manufacturing according to the
design.
Once bid is confirmed, project configuration department will finalize the design of the project
according to the customer needs and Trojans specifications
Service department takes its initiative from delivering the product to customer, installing it and
clarifying their doubts

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 Call centers have been established to help customers by help line service, taking orders for
replacement parts etc...
The head office call center was created to ensure a reliable response to calls for assistance
from customers in response to the constant travel required of service employees which
presented a risk of burnout. Service technicians who were at risk for burnout were now able to
respond to many customer situations over the phone.
The technology supplements the organizational structure because it enables the service
employees to respond immediately to customer calls and to be able to monitor the UV
installment that would normally require one to be present at the site.
Initially there was smooth flow of communication between departments, stated as Immediate
connectivity by Marvin DeVries. There is high level of co- ordination among employees
through mutual adjustment which is based on informal communication. Lateral Communication
and the All-Channel System of Communication were prominent and instrumental. But as time
goes on the company strength increased and high level of formalization came into picture. The
communication between departments was highly affected. Growth made it difficult to maintain
service levels to the end-customer. So, the organizational design also has been drastically
changed from organic to mechanistic in this process.

Case study on Trojan Technologies

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Corporate Social Responsibility

Corporate social responsibility policy functions as a built-in, self-regulating mechanism
whereby a business monitors and ensures its active compliance with the spirit of the law,
ethical standards, and international norms. Aims at embracing responsibility for the company's
actions and encourage a positive impact through its activities on the environment, consumers,
employees, communities, stakeholders and public.
The company mainly focuses on two social responsibility policies Environmental policy and
Providing Goods and Services to People with Disabilities. Trojan Technologies is committed to
improving the health of our global environment by minimizing the carbon footprint and waste
streams of its business activities. Ultraviolet (UV) disinfection does not result in any chemical
by-products or toxins being added to the water. Converting from chemical-based disinfection to
UV replaces up to three steps (chlorination, dechlorination, and re-aeration) with a single,

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environmentally-friendly process.
Initiatives in which Trojan technologies invest and support are fallowing:

LUV Your Water

TrojanUV is committed to reducing water stress and maximizing this invaluable resource,
water for current and future generations. LUV Your Water mainly focuses on enlightening and
advising people about water conservation tactics that people generally do not consider
seriously.

Quenching Kenya's Thirst:

Tanzania is one of the largest countries in Africa. Typically, women and children spend over
two hours a day collecting water, and in remote, rural areas collecting water can take up to
seven hours a day. 300 water points built which collectively provide clean water to over 60,000
people every day. 99% of employees are Tanzanian.

Water for People:

Water for People exists for one purpose, and its as simple as its name, it aims that all people
have safe, continuous water, water for everyone, forever and when they do, its job will be
done.

Bust a Move:
One in nine women will be affected, St. Josephs Hospital in London, Ontario is developing one
of the most innovative Breast Care Centers in Canada. Bust a Move is an event to help
support this important development, and Trojan had a team of committed members taking part
and raised over $14,000.

Children's Water Festival:

An event designed to help students from Grades 2 - 5 learn about water resources. The
festival provides approximately 4,000 children with hands-on opportunities to better understand
water protection, water conservation, water science and water technology.

Veterans Memorial Parkway Community Program:

The Veterans Memorial Parkway Community Project is a partnership between government,
business and the community to build a lasting tribute to its servicemen and women along the
Veterans Memorial Parkway in London, Ontario. Trojan Technologies is a key partner in it.

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Conclusion:

In the initial days, as there were less projects, every member In the company was able
to know the details of every project the company has undertaken and the customer
service went on very effective.
From the start, the company believed that customer service was key to its success and
focused on that aspect.
But as the staff in the company started increasing, the work division started between the
departments and due to this any member has no clear idea about the project
undertaken by the company.
Moreover, there were no sort of training programs to the newly recruited employees.

Recommendations:
So we would like to propose the following matrix structure which would solve some of the
above mentioned problems:

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21

As per the above structure, every project signed by the company has a project
manager. And a specific set of people from every department would be assigned to that
project. Only these people would deal with the issues during installation and other services
after installation
Also, there should be a human resource division, which would take care about the
training and orientation of newly recruited employees, so that they would have knowledge
about the work before they start doing a project

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References:
http://www.trojantechnologies.com/
http://trojanuv.com/
http://hbr.org/product/trojan-technologies-inc-organizational-structuring/
http://www.ukessays.com/essays/environmental-sciences/
Management (10th Edition) Stephen P. Robbins, Mary Coulter.

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