illustrates this flip side. Freshcoat’s greater product innovation allowed the company to create value which it could then reinvest into one ‘quick fix’ solution to HR problems-higher wages, while new Leaf did not have this option open to it, being a minor player in a heavily populated, high competitive market characterised by low margins. while Freshcoat’s principals (without any professional HR support) learnt their HR lessons the hard way, the company had the financial momentum (and slack) to be able to cope with the setbacks.