Corporate Environment Strategies
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Transcript of Corporate Environment Strategies
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7/28/2019 Corporate Environment Strategies
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Green and CompetitiveEnding the stalemate
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The Dilemma
to be less competitive?
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Opposing Views
Costly
Responsibility
reven ve measures
Implementation cost
Non compliance cost
oc a ene s
Social responsibility
Sustainable growth
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Traditional Views On Going Green
Stricter regulations mean higher costrequired to achieve compliance.
Environment concerns imit irm s ree omwhen coming up with innovations.
It raises production cost and generate noprofit to the business.
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The Current Situation
traditional view?
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Survey Results
Sa reen issues have
become more importantto their organizationstrategy.
*Source: KPMG Labour Market Outlook summer 2007 survey conducted on 1,000 HR professionals
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Survey Results
prefer to work for firms witha strong green stance.
*Source: KPMG Labour Market Outlook summer 2007 survey conducted on 1,000 HR professionals
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Survey Results
environmental policy inplace.
*Source: KPMG Labour Market Outlook summer 2007 survey conducted on 1,000 HR professionals
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Green Energy Projected Growth
1.4
20.5
15.6
80.9
Fuel Cells
Biofuels Market growth from 2006 to 2016(In $US Billions)
55.4
17.9
15.6
226.5
60.8
69.3
0 50 100 150 200 250 300
Total
Wind Power
Solar Power2006
2016
Source: Clean Edge, 2007
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Change Factors: The 6 Cs
CostsCosts
CapitalCapital
ompet t onompet t on
ChinaChina
ConsumersConsumers
ClimateClimate
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The Green Advantage
Generate cost savings.
Promote innovation.
Command premium pricing.
Enhance the brand image.
Differentiate from competitors.
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Putting It Into Action
gain the green advantage?
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Competitive Environmental Strategies
Eco-EfficiencyEnvironmental Cost
LeadershipwerCosts
antage
Beyond ComplianceLeadership
Eco-Branding
Competitive Focus
Organizational Process Products and Services
Differentiation
L
Com
petitiveAd
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Strategy 1: Eco-Efficiency
Savings through eco-efficiency practices.
This strategy generates savings in virtually
every rm.
It is an internal initiative as consumers will
not pay for environmental protection.
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Strategy 1: An Example
Over 50% in savings by changing from
incandescent light bulbs to energy saving light bulbs
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Strategy 2: Beyond Compliance Leadership
Acknowledgement from public and
customers for their efforts.
u s an a nves men requ re or
certification and publicity efforts.
Beyond compliance practices can
give suppliers an edge over others.
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Strategy 3: Eco Branding
Consumers must be willing to pay for
the ecological differentiation.
Reliable information about product
environmenta per ormance must eavailable to consumers.
Differentiation should be difficult to be
imitated.
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Strategy 3: An Example
Switzerland hailed Toyota Prius as the worlds greenest
car. The Prius has sold over 1 million units worldwide
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Strategy 4: Environmental Cost Leadership
Production of cost competitive
products with environmental
attributes built-in.
Ra ica pro uct innovation suc asmaterial substitution, packaging, etc.
Better product design results in more
efficient use of resources whichtranslates to lower price.
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Strategy 4: An Example
Cost savings and waste reduction through packaging design
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Strategy Framework Review
Boundaries between the strategies
are hypothetical.
s nc on owever a ows e er
analysis and helps in finding
opportunities beyond the low lying
fruits.
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Conclusion
Change factors have increased attention
on environmental practices
Change factors have increased attention
on environmental practices
Being green can be a new competitiveadvantage.
Being green can be a new competitiveadvantage.
Firms can adopt different strategies to gainthe green advantage.Firms can adopt different strategies to gainthe green advantage.
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Questions
We do not inherit the earth from
our ances ors, we orrow rom
our children.
Unknown
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References
Ron Pernick, Clint Wilder. (2007). The clean tech revolution. New York (NY)
Lucy Phillips. (2007). Go green to gain the edge over rivals. People
Management, 9.
Michael E.Porter, Class van der Linde. (1995). Green and competitive.
. , - .
Renato J.Orsato. (2006). Competitive environmental strategies: When does
it pay to be green? California Management Review, Vol 48, 127-143.