mim 511/ba 548 winter 2011 scott marshall strategy and sustainability
Post on 19-Dec-2015
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Shareholder ValueInternal External
Today
Tomorrow
Strategy and sustainability
Drivers:Disruption
Clean TechnologyFootprint
Drivers:Population
PovertyInequity
Drivers:Pollution
ConsumptionWaste
Drivers:Civil Society
TransparencyConnectivity
Sources of Creative Tension on Each
Axis
Innovation & Repositioning
Growth Path & Trajectory
Cost & Risk Reduction
Reputation & Legitimacy
Minimize waste and
emissions from operations
Integrate stakeholders into business
processes
Develop new sustainable
competencies
Create shared roadmap for
meeting unmet needs
From Hart & Milstein, 2003
Strategy and sustainability
Environmental
Economic
Social
Strategic IssuesOperational Issues
Strategic IssuesOperational Issues
Strategic IssuesOperational Issues
BuildingStrengths andAmelioratingWeaknesses
• Health care• Gender
equity• Poverty
• Emissions and Effluents
reductions• Toxics reductions
• End of Life • Natural
resource dependencies
• Ecosystem Services and
Health
The Triple Botto
m Line
Strategy and sustainability
The Natural Step – Four System Conditions
In a sustainable society, nature is not subject to systematically increasing:
1. concentrations of substances extracted from the earth's crust;
2. concentrations of substances produced by society;
3. degradation by physical means and, in that society. . .
4. human needs are met worldwide.
Strategy and sustainability
“Coevolutionary theory argues that the concurrent operating of adaptation and selection explains the processes of [organizational] change and renewal.”(Flier, Van Den Bosch and Volberda, 2003, p. 2164)
Competitive success depends on External situation analysis Strategic planning Core competency focus Innovation and Organizational Change Resource efficiency And, Luck!
Know what to adapt to…
Figure how to adapt…
Adapt based on strengths…
Change products, processes, systems, structures, etc.…
Do it well.…
So, hope for some luck along the way.…
Strategy and sustainability
Global100 – Most Sustainable Corporations in the World
First, let’s find out about some background. Who’s conducting the benchmark study? For what purpose?
Link – http://www.global100.org
Strategy and sustainability
Global100 – Most Sustainable Corporations in the World
Second, let’s investigate the methodology… Methodology Overview Criteria and Weights
Strategy and sustainability
Global100 – Most Sustainable Corporations in the World
Third, let’s take a close look at the Global 100 Lists 2005, 2008 and 2010…
Strategy and sustainability
Global100 – Most Sustainable Corporations in the World
Next, let’s explore the sustainability-related strategies of some of the companies (in the food and beverage industry) that consistently make the Global100 Benchmark – in particular, stakeholder engagement and transparency. Groupe Danone Sainsbury Plc. Coca Cola Company
Food and beverage
Organic and Fair TradeAsia Pacific Consumers -lead the world when it comes to intention to purchase organics, 47% compared to global average of 40%
- who buy organics, do so because they view organics as healthier, 82% vs. global average of 76%) and more nutritious (57% vs. 51%)
- who will not go organic are most likely to cite higher costs and taste preferences.
Availability of fair trade products at grocery store was important to 40%, the highest of any region.
North American Consumer- most likely to buy organics to avoid toxins (71%), promote environmentally-friendly organic farms (59%), help small farmers (58%), avoid genetically-modified products (45%), do the right thing (38%) and vote against modern farming methods (23%).
Food and beverage
Organic and Fair Trade
FairTrade Network of Asian Producers Let’s explore the producers, importers,
exporters…that is, the product and trade flow
Food and beverage
Sustainable Food Security in AsiaThree Dimensions of Sustainable Food Security
Source: Regional and Sustainable Development Department-Agriculture,Rural Development and Food SecurityUnit
Food and beverage
Strategy and sustainability - Food and beverage/Organic and Fair Trade/Asia
There’s pressure to adopt different practices… Palm oil and Indonesia and Nestle Fish Farming in China and Trade
Food and beverage
Strategy and sustainability - Food and beverage/Organic and Fair Trade/Asia
Fair Trade Tea Organic World Congress in South Korea
Exercise Discussion: Nestle and Sustainable Value Framework
Split into four large teams.I’ll assign one of the four quadrants from the
Sustainable Value Framework to each team.Work as a large team to complete one
quadrant – share all ideas, discover what you may not have seen before, make it comprehensive.
One representative from each team will write the answers on the board and share with the entire class.
Strategy and sustainability
Summary of Today Strategy and sustainability
External pressures are increasing Internal dynamics and tensions create opportunities for
innovation Competitive advantage is being achieved but isn’t always
easy Food and beverage
Major issues – hunger and malnutrition Issues will likely be heightened by climate change and
urbanization Solutions are being developed
Nestle and Sustainable Value Framework ???