Managing strategically for environmental sustainability lessons from china complete ppt revised 24 july 2014

Managing Strategically for
Environmental Sustainability:
Lessons from China BHAAI1018U
John Hulpke hulpke@ust.hk
Cubie Lau cubie@ust.hk
Summer 2014
Copenhagen Business School

Day 1 - June 24, 2014
Note: if material is used without attribution please let us know,
we would be glad to give credit where due. We used so many
sources in preparing this course we may have missed noting
source somewhere. Let us know!
• John Hulpke hulpke@ust.hk
• Cubie Lau cubie@ust.hk

jhu.ikl@cbs.dk
lau.cubie@gmail.com
3

room SP114 Tuesdays and Thursdays plus
Friday July 4, times: 14:25 to 17:00
John F. Hulpke
Cubie Lau

• Old idea: I taught, therefore you learned
• New idea: You learned, therefore I taught

Today:
• Form groups
• Get acquainted: HELLO sheets
• Brief intro to course: why, how
• See if your group can become a team, by a
field exercise
• Report findings to entire class

Form groups:
• Ideally one from Denmark each group
• You chose ISUP because it is “I” so mix nations
• Gender? In past world run by men, but….
• If lucky, mix of majors: acct, mkt, ops mgt, etc

Get acquainted!
• Is this a typical first day who are you sheet?
• And what is that “bucket list” about?
• Trivia questions…

WHY?
• Why did YOU take this course? Your expectations?
– Quote: Are you content with just "business as usual" or are
you someone who is interested in business in changing the
world?
– We're looking for people like you - people not content to
do things the way they've always been done, the
disrupters, innovators and visionary entrepreneurs.
Leaders who think differently and know there's a better
way to do business, and who are ready to embark on a
business education that will prepare them to live
differently, lead differently and profit differently.
• Why Environmental Sustainability?
• Why China?

HOW?
• Powerpoint but that is not key
• No text but parts of several books on LEARN
• Lots of interaction
• Not much lecture

Learning resources?
• Instructor. We have academic qualifications, experience, etc. But
think about it: for SURE each person in the class knows things the
instructor does not know. So, you will learn from…
• Classmates. You will discuss topics in class, and provide actual
business examples
• PowerPoint slides. Subject to change of course
• Daily life! Read newspapers, watch leaders at your work
• Cases! The main instructional resource in this class
1-11

PowerPoint slides great. However,
• PowerPoint? Yes, but avoid overreliance on
PowerPoint, and slides will change
• Others worry about PowerPoint too, including
the US Military
• One Wall Street Journal article had the headline
–“Death by PowerPoint”
• Another article (New York Times) had these
comments:
12

“PowerPoint makes us stupid”
Brig. Gen. H. R. McMaster, who banned
PowerPoint presentations, likened PowerPoint to
an internal threat. “It’s dangerous because it
can create the illusion of understanding and the
illusion of control,” General McMaster said.
“Some problems in the world are not bullet-
sizable.”
Elisabeth Bumiller. April 27, 2010, page A1 New York Times
13

Exam question? analyze & explain this
PowerPoint slide
14

Review, what is on today?
• Form groups
field exercise
• Report findings to entire class

LET’S EXPLORE!
Are companies or other organizations around
here doing anything? Any lessons we can learn?
LET’S EXPLORE!
WE VISITED ____________________________
(tell us which organization you will visit NOW,
before you leave, to prevent duplications. We do
not need 5 teams to look at McDonalds)

LET’S EXPLORE!
WE VISITED
______________________________________
This organization is doing some interesting things relating
to environmental sustainability, such as (SOME MAY NOT
BE DOING ANYTHING INTERESTING!)
However, we think this organization could do better. For
example,
PREPARE ONE SLIDE OR A FEW SLIDES (MAXIMUM 5
SLIDES) TO SHARE WITH CLASS

WHAT DID WE LEARN?
• WHAT DID WE LEARN?
• HOW DID WE LEARN?
• WHO WAS THE TEACHER? (WHO WERE THE
TEACHERS, PLURAL)
• in future we will also learn by reading

Learning with Cases
in a “case” you identify who needs help or
advice, you analyze, then you recommend.
to a large extent this is a CASE course. You may
want to look up “how to do cases” in Google.
OR, look at the following slides.

What Is a Case?
• A description of an actual situation, commonly
involving a decision, a challenge, an opportunity,
a problem or an issue faced by a person (or
persons) in an organization.
• Allows you to step figuratively into the position of
a particular decision maker.
• Field-based with the visit of an organization and
collects the data.
• The product of a carefully thought-out process.

Why Do We Do Cases?
• Examine real life situations
• Practice our analytical tools
• Engage in discussion of issues/answers
• Develop professional attitudes

Inventory of Skills Developed by the
Case Method
• Analytical skills
• Decision making skills
• Application skills
• Oral communication skills
• Time management skills
• Interpersonal or social skills
• Creative skills
• Written communication skills

Case analysis? What NOT to do
• Do NOT update the case
• Do NOT rehash the case, simply giving the
reader a condensed version of the case
• Do NOT go to the web. BUT if you cannot
resist, go ahead, but FOR SURE any phrase you
copy, say exactly where and put in quotes.
• Following may help in TEAM case study
23

Analyzing a company issue,
analyzing a case - 7 Steps (ONE author says)
• Defining the issue (or issues, preferably one)
• Analyzing case data with focus on causes and
effects as well as constraints and opportunities
• Generating alternatives
• Selecting decision criteria
• Analyzing and evaluating alternatives
• Selecting the preferred alternative
• Developing an action and implementation plan

25
Analyzing Data
• Causes and Effects
– To work backward to determine what may be the “root”
causes.
– Fishbone Diagram:
EffecttCause
Equipment People
Methods Materials

26
Analyzing Data (Continued)
There are MANY models, frameworks, you may use. Such as this famous
one:Structural analysis of competitive forces
– Porter’s five forces model
Potential entrants
Suppliers Buyers
Substitutes
Threat of new entrants
Bargaining
power of buyers
Threat of substitute
products or services
Bargaining
power of
suppliers Industry
competitors
Rivalry among
existing firms

27
The McKinsey 7-S Framework
STRUCTURE
SHARED
VALUES
SYSTEMS
STYLE
STAFF
SKILLS
STRATEGY

Deliverables
• Issue identification
note: Issue identification is KEY TO case analysis!
What is the main thing needing attention? If you do
not say what needs working on, your suggestions
will be hard to evaluate
• Analysis and alternatives
• Recommendations for action
– Another note: a KEY point!
• Implementation plans

Defining the Issues
• Produce a clear and comprehensive statement
of the issue(s) involved in the case.
• Clearly identified key concern(s), problem(s),
decision(s), challenge(s) or opportunity(ies).
• 3 things to be considered:
– Immediate and basic issues
– Importance
– Urgency

Generating Alternatives
• Be creative and think widely
• Consider constraints and opportunities
• Be realistic and plausible

Selecting Decision Criteria
• Provide the basis for evaluation or assessment measures
• Common decision criteria:
– Quantitative:
• profit, cost, return on investment, market share, capacity,
delivery time, risk, cash flow, inventory turn, productivity,
staff turnover, time to complete, growth rate, quantity
– Qualitative:
• competitive advantage, customer satisfaction, employee
morale corporate image, ease of implementation, synergy,
ethics, flexibility, safety, visual appeal, obsolescence, cultural
sensitivity, motivation, goodwill

Analyzing and Evaluating
Alternatives
• List the key advantages and disadvantages of
each alternative.
• Compare and contrast each alternative against
the selected criteria
• Short vs long term
• Predicting outcomes
• Quantitative vs qualitative analysis
– note: all sounds good, but a bit theoretical.

Developing an Action and
Implementation Plan
• Be specific
• Focus to produce the advantages and minimize
the disadvantages
• Planning the implementation
– Provides a schedule and milestones for the action
plan.
– Provides the measures or signals for the progress.

What next class?
• Again, teams
• Again, not exactly a normal lecture class
• Come ready to be creative

June 6 day 2 of
Lessons from China

WELCOME BACK
jhu.ikl@cbs.dk lau.cubie@gmail.com

Day 1:
• Form groups
field exercise
• Report findings to entire class - STARTED but
did not finish

Day 2, June 26:
• Report findings to entire class CONTINUED
• Then, again, teams
• Again, not exactly a normal lecture class
• Come ready to be creative
• Last segment: first look at KPMG report

We visited physically or virtually
• Copenhagen Municipality
• Pstereo (virtual visit)
• Fotex
• Radisson Hotel
• Fredericksberg Park
• CBS

We learned
We visited + and - What’s next?
Copenhagen
Municipality
Pstereo (virtual
visit)
Fotex
Radisson Hotel
Fredericksberg
Park
CBS

LAB ASSIGNMENT 26 June 2014
Two pieces of BAD NEWS!!! Humans are messing up the environment, and it’s scary. What sort of things we
humans have done to screw up our planet? Each team will find TWO news items or blog entries or ?? showing
BAD NEWS about the environment.
One BAD NEWS example should be about something in China. This can be from a source anywhere in the world
One piece of BAD NEWS, using an example from ASSIGNED REGION. This can be from any source WITHIN YOUR
ASSIGNED REGION.
You will make 2 short “bad news” reports, perhaps two or three slides each. You may follow a format such as
1.Here’s an example, a piece of BAD news about the environment in China:
Title of article or web site:
Reference, exact place where we can see this item:
A short excerpt from the article or web site to give you an idea about this topic:
Our brief (around 100 words?) reaction or comment IN OUR OWN WORDS
A PHOTO or short video illustrating bad news about environment. Photo may be related to the article above or
possibly unrelated, your choice. Again, show exact source, and give your brief reason for selecting this photo
2. Here’s an example, a piece of BAD news about the environment in ______:
Our brief reaction or comment IN OUR OWN WORDS (100 words or less)

Two pieces of GOOD NEWS
Humans are starting to wake up! At least from this example, we can see some positive actions are happening to
save the environment. We repeat the exercise from above, but look on the bright side.
One GOOD NEWS example should be about something in China. This can be from a source anywhere in the
world. One piece of GOOD NEWS, using an example from ASSIGNED REGION. This can be from any source
WITHIN YOUR ASSIGNED REGION.
3.Here’s an example, a piece of GOOD news about the environment in China:
4. Here’s an example, a piece of GOOD news about the environment in ______:

result of lab project?
Your specific news/examples should be fairly recent (2009 or newer). You
can Google the news, or look at magazines or newspapers via databases
like ProQuest or WiseNews. The news/examples will come from China (1
and 3) OR for 2 and 4 will come from the area of the world listed below:
Examples for 2 and 4 will come from
Team 1: Asia but not China
Team 2: Europe
Team 3: Africa or the Middle East
Team 4: The Americas (but not the USA. Could include the Arctic)
Team 5: Australia/Oceana. Could include Antarctica
Team 6: USA
End result? Each team will post 4 reports on LEARN. There will be a place
for BAD news from China, GOOD news from China, BAD news from the
rest of the world and GOOD news from the rest of the world.

Bad news, good news
Everywhere in the world, environment issues
China seems to have all kinds of problems
Everywhere in the world, there is good news
Even in China, there is good news

What next class? Day 2 agenda
Again, teams
Again, not exactly a normal lecture class
Come ready to be creative
Report findings to entire class CONTINUED
Then, again, teams
Again, not exactly a normal lecture class
Come ready to be creative: BAD NEWS, GOOD NEWS
Last segment: first look at KPMG report

End the day with movies
The story of stuff 21 minutes, plus a few hours to discuss
http://www.youtube.com/watch?v=gLBE5QAYXp8&feature=kp
– Anyone recall seeing this before?
And if time remains . . .
Tragedy of the commons
http://www.youtube.com/watch?v=KZDjPnzoge0

Field exercise
• Denmark – well developed country with long history of
sustainability
• How companies are doing?
– Copenhagen Municipality
– Pstereo (virtual visit)
– Fotex
– Radisson Hotel
– Fredericksberg Park
– CBS
• We see:
– Range of initiatives
– Every industry can contribute
– Importance of stakeholders

Lab assignments
• What are key environmental challenges
received most attention?
• Good news, where?
• Bad news, where?
• Optimistic or Pessimistic? WHY?

KPMG article - Let’s think…
• What is sustainability? A fad or trend?
• Drivers?
• Benefits?
• Barriers?
• Stakeholders?

KPMG: a first look
• What is this report?
• Good news from page 3?
• Is there a downside, bad news, on page 3?
• Your takeaway from page 4?
• My takeaway from page 4:
• Why would KPMG do this? Page 5 hints

Executive summary
• Look carefully at page 13
• Can you give an executive summary of this
executive summary? Can you find a sentence
or two you would want your kids to
remember?

The survey
• 2010
• 378 senior execs (“very” senior)
• Plus desk research and interviews
• The results? Pages 15 to 29

Conclusions? Seven steps
• Use scenario planning to identify potential
risks to your business—and new opportunities
to exploit
• Set ambitious targets—and lead by example
• Start measuring environmental inputs and
productivity across your business
• Tap into employee engagement—both
internally, and across business partners

Conclusions? 3 more steps
• Develop internal lessons into external
products and services
• Explore other benefits that can be derived
from action on sustainability
• Benchmark and report progress

Developed vs developing countries
• We have known something about Denmark,
and about the world
• Perhaps, we should look at one emerging
economy – China officially the People's
Republic of China (PRC)

PESTLE – a popular tool in strategy
• Political
• Economic
• Social
• Technological
• Legal
• Ecological

Peng, Mike W. et al. (2004). Ownership types and strategic groups in an emerging
economy. Journal of Management Studies, 41(7):1105-1129, esp. 1110-1114
Ralston, David A., et al (2006). Today’s state-owned enterprises of China: Are they dying
dinosaurs or dynamos? Strategic Management Journal, 27: 825-843, esp. 832-34
• Prior to China’s Open Door Policy in the late 1970s,
only two types of firms: state-owned enterprises
(SOEs) and collectively-owned enterprises (COEs) (Peng
et al., 2004).
• SOEs dominate entire sectors of China's economy, and
are frequently the recipients of favourable loans and
treatment from the government (Li, Sun, & Liu, 2006;
Riley, 2013). They are usually large and complex, with
slack resources.
• In 2012, 54 Chinese SOEs made it into the Fortune 500.

POEs
• Emerged in the 1980s due to the decentralisation policy in the 1980s
(Li & Yang, 2006).
• Usually operating in a less favourable environment. For example, they
were denied entrance to certain industries, such as petrochemical and
telecommunication, paid higher taxes, and had limited access to loans
from state banks (Ralston et al., 2006).
• Were unburdened of their previous social responsibilities, and in some
cases, became polluting and socially negligent in terms of health and
safety standards (Wang & Juslin, 2009; Young, 2002).
• POEs contribute 60 percent to China's GDP (Moody & Chen, 2013).
Many contemporary POEs are driven by affluent entrepreneurs and
some are started as collectives (Ralston et al., 2006).

MNCs
• Wholly-owned foreign companies and Sino-foreign
venture ventures have flourished in China in the late
70s.
• Eyeing China’s 1.3 billion population and its low cost
workforce, MNCs have invested mostly in the
manufacturing sector (more than 60% of the FDI
volume), followed by the real estate sector (about a
quarter of the FDI volume), and the distribution sector
(less than 6%) (China-Invest, 2009).
• Compared to domestic Chinese companies, foreign
invested enterprises are more likely to follow foreign
culture and values, and employees are more likely to
experience western management styles (Ralston et al.,
2006).

JVs
• Under joint venture partnerships, the Chinese
partners usually provide land, buildings, and local
knowledge and network (guanxi), while the
foreign partners contribute technology, know-
how, capital, management expertise, and
goodwill (Ralston et al., 2006).
• Depending on the nature of the partnership,
some JVs may be driven by short-term profit
maximisation, whereas others may be more
influenced by long-term sustainable
development.

July 1, 2014
Copenhagen Business School

July 1, 2014 AGENDA
• One more review of day 1 field exercise
• Bad news good news: findings?
• Pessimistic? Optimistic? Look at KPMG report
• How is China different?

day 1 field visits review
We visited + and - What’s next?
Copenhagen
Municipality
Pstereo (virtual
visit)
Fotex
Radisson Hotel
Fredericksberg
Park
CBS

field exercise take-aways
• Denmark – well developed country with long history of
sustainability
• How companies are doing?
– Copenhagen Municipality
– Pstereo (virtual visit)
– Fotex
– Radisson Hotel
– Fredericksberg Park
– CBS
• We see:
– Range of initiatives
– Every industry can contribute
– Importance of stakeholders

plus two pieces of GOOD NEWS
Humans are starting to wake up! We see some positive actions to save the environment. Look on the
bright side. One GOOD NEWS example should be about China. This can be from any source. One piece of
GOOD NEWS from ASSIGNED REGION. This can be from any source WITHIN YOUR ASSIGNED REGION.
3.Here’s an example, a piece of GOOD news about the environment in China:
Title of article or web site:, reference, exact place where we can see this item:
A PHOTO or short video illustrating bad news about environment. Photo may be related to the article
above or possibly unrelated, your choice. Again, show exact source, and give your brief reason for
selecting this photo
4. Here’s an example, a piece of GOOD news about the environment in ______:
Title of article or web site, reference, exact place where we can see this item:
A PHOTO or short video illustrating bad news about environment. Again, show exact source, and give
your brief reason for selecting this photo

lab project findings?
Your specific news/examples should be fairly recent (2009 or newer). You
can Google the news, or look at magazines or newspapers via databases
like ProQuest or WiseNews. The news/examples will come from China (1
and 3) OR for 2 and 4 will come from the area of the world listed below:
Examples for 2 and 4 will come from
Team 2: Europe
Team 4: The Americas (but not the USA. Could include the Arctic)
Team 6: USA
End result? Each team will post 4 reports on LEARN. There will be a place
for BAD news from China, GOOD news from China, BAD news from the
rest of the world and GOOD news from the rest of the world.

Should we show 24 reports now?
• No, but all 24 are available for your review
• Each team will present ONE of their 4 reports
Team 1: Asia but not China GOOD NEWS
Team 2: Europe BAD NEWS
Team 3: Africa or the Middle East GOOD NEWS
Team 4: China BAD NEWS
Team 5: China GOOD NEWS
Team 6: China BAD NEWS

Lab assignments
• What key environmental challenges received
most attention?
• Good news, where?
• Bad news, where?
• Optimistic or Pessimistic? WHY?

KPMG conclusions? 3 more steps
• Develop internal lessons into external
products and services
• Explore other benefits that can be derived
from action on sustainability
• Benchmark and report progress
If time permits we will look at this again later

China!
• Every country I have lived in is different
• China is DIFFERENT
• SOON WE WILL LOOK AT CHINA!
• Hong Kong: a great mix of China + the world
• Come visit!

Hong Kong University of Science and Technology

Inconvenient Truth
• You know a LOT!
• Any burning comments, things you REALLY
want to say?
• Submitted by YOUR class: https://www.youtube.com/watch?v=cjuGCJJUGsg
» Thanks Matt Leslie and group
• My favorite part: Antarctic ice, 650,000 years
• My favorite web site: www.co2now.org
• Bad news, but to shippers, good news?
– http://www.youtube.com/watch?v=b-0p7GbPJ14

Climate change: Friedman
• Award winning New York Times writer
• Best known: The World is Flat
• This book: Flat, Hot, Crowded
• Memorable sentence?

Looking ahead
• Midterm exam FRIDAY. Closed book no notes
• Makeup possible Tuesday 8 July 5 PM
• Another makeup possible 10 July 5 PM
• What to study? PPT, cases, class activities
• Future classes will involve each team making a
presentation about one firm

Your team, your company
1: Thursday 3 July - China Mobile questions led by team 6
2: Friday 4 July – Interface (no case, see Anderson, LEARN) questions led by
team 5
3: Tuesday 8 July – Walmart (case + LEARN)questions led
by team 4
4. Thursday 10 July – Hyflux questions led by team 3
5. Tuesday 15 July – Broad questions led by team 2
6. Thursday 17 July – Cosco questions led by team 1

What to prepare?
• Anybody been in a case competition?
• Team presentation, as if in a case competition
• Typically 12 to 15 minutes, never more than 20
• Followed by Q and A

Many possible formats
• But always, YOU decide where to focus
• Typically in a case competition you
– Decide who you are giving advice
– Identify a key problem going forward
– Recommend one strategic approach to that problem
– Suggest specific steps to implement your idea
• These companies represent good news, so OK to
discuss good side too, not only problems

For next class
• Be ready to discuss China Mobile
• Compare China’s business forms to your home
country (mix of private vs government, etc)
• Might or might not have time next class to
show some videos

July 3, welcome!
• Good news Bad news recap: 24 reports on web
– Worth reviewing (for learning. Maybe test too)
• Report findings to entire class - STARTED but
did not finish
• Climate change reflection papers: AMAZING!
• How is China different?
– Break
• China Mobile- Team 1 with Q led by Team 6
• Exam thoughts for Friday

Even before good news bad news :
• Remember our walk around town 24 July,
looking for sustainability examples?

Then good news bad news exercise
Each team found bad news and good news from China,
plus bad news and good news examples from the world:
Team 2: Europe
Team 4: The Americas (not US, Arctic OK)
Team 6: USA
what stands out? Any problem seen everywhere?

24 reports, 6 teams. Here are 6:
Basically Illegible but may help you remember

Reflection papers: good news bad news?
AMAZING set of papers! REALLY impressive!
The Climate Change issue: You see bad news and
good news
Bad news: climate is changing
Bad news: average person doesn’t care, or worse
Good news: Al Gore’s Inconvenient Truth woke us up

Good points in EVERY paper!
• Julia Schaller: fantastic job of…
• *Chimene: 12 experts say… published in…
• Matt: Nov ‘14 we may send to Congress:
• Hanne: Dr Rignot says…
• Josephine (and 10 others): Washington Times
says…
• Agnese: even if not yet, …
• Janina: The danger with this kind of analysis is
• Tom Hodgson: at a critical point, but 9 states…

A tipping point?
• What is a tipping point?
• a good book by Malcolm Gladwell
• a point in time when direction changes

108
http://www.youtube.com/watch?v=aKoch_iEos8

110
April 9, 2007
Time Oct 1, 2007

Where is the problem now?
Where will it be in 20 years?
America has 4% of the world’s population and consumes
24% of the resources and is the largest producer of
carbon dioxide (CO2). China was the second largest
producer of carbon dioxide and the largest producer of
sulfur dioxide (SO2) in the world. Today’s case says:
Photo and text: Richard
Welford HKU
And wikipedia.com
C)2: see
http://co2now.org/
111

When a billion Chinese jump…
• Jonathan Watts, Guardian reporter, says
http://www.youtube.com/watch?v=G0ogXO1Wyfc
And my favorite photo:
http://www.theatlantic.com/international/archive/2012/07/a-stunning-
visualization-of-chinas-air-pollution/259455/
• Back to Al Gore, former US Vice President:
What’s the worst that could happen? If China
pollutes as much per capita as the US, then?

why worry about global warming??
we’re improving! But, if too late?
• Passenger pigeon: “the most plentiful creature
ever to inhabit the earth”
• 1600: nine billion (9,000,000,000) in North
America
• 1890s: started to fix the problem (overhunting, not
pollution)
• but: TOO LATE! Last one died 1914. EXTINCT
• The point of this story: will we start to fix the NEXT
problem too late? (such as global climate change)
113

Passenger pigeon: “the
most plentiful creature
ever to inhabit the earth”
114

Or the trend may
be irreversible.
In the passenger
Pigeon case, the
result was
EXTINCTION
Don’t start fixing a problem too late!
From Nine Billion to None: American History Magazine
115

Tipping point? More reflections
• Melody: film became a turning point…
• Carl: the part I liked was at the end…
• Martin: governments CAN act: the harbor

Possible lifetime question, for YOU
• (this may also be a nice final exam question)
• How bad is the environmental situation?
– A: V V V bad especially climate change
– A: US was the worst, but China now leading!
• So, is there no hope?
– A: there IS hope! Do not quit this class now!
– A: even in China we found good news
118

PESTLE – a popular tool in strategy
• Political
• Economic
• Social
• Technological
• Legal
• Ecological
Could talk about China on each one, but…
Briefly # 3, # 1 and 2 combined

Types of firms?
• Privately owned?
• Privately owned publically traded, “listed”?
• Etc etc
• What types do we see in your home nation?
• What do we see in China?
• Might we expect one type to be more green?

China Mobile!
• Welcome team 1

Exam?
• Closed book, no notes, 30 minutes, paper and
pen, no electronics
• Answer 3 questions, briefly (only 30 minutes)
• Will have some choice (probably 3 out of 4)
• Review syllabus, things on LEARN up to 4 July

room SP114 Tuesdays and Thursdays 14:25 - 17:00 plus
Friday July 4! This is it!
John F. Hulpke
Cubie Lau

3 July - China Mobile case:
connecting China, sustainability,
and climate change

China Mobile case:
also thanks to Team 6

Think…
• What was interesting about the China Mobile
case?
• What did you learn?
• Any reflections?

That was July 3
• What should we do July 4?
• Celebrate birthdays? YES
• Look at another company? YES
• Take an exam? YES
• Next: a really unusual company

Case presentation
• Team 2 and Interface Carpets
• Reading on LEARN from book by Ray Anderson
• Who? Let’s find out!
• Q and A will be started by Team 5
• Let’s go!

Ray Anderson, Interface Carpets
like climbing a mountain with 7 (8?) faces, or sides
1: Eliminate all forms of waste, every area of business.
2: Reduce emissions by eliminating toxic substances.
3: Operate using renewable energy.
4: Redesign processes so products are not thrown out at end of
their lifecycle.
5: Transport people and products efficiently to reduce or offset
emissions.
6: Shift mindsets, make sustainability part of our culture
7: Redesign commerce to create a marketplace that
values sustainability.
137

Does the market
value
sustainability?
1. New carpet in
in Hong Kong
University
of Science and
Technology
2. Japan example
8-138

Ray Anderson, Founder, Interface.
Good example of a strategic thinking
leader
139

THANKS TEAM 2
• Thanks also team 5, thanks everybody
• Does this company relate to this course?
Managing Strategically for Environmental
Sustainability: Lessons from China
• Where did Cubie see Ray Anderson?
• Why was he there?
• Now another look at China, types of firms

• SOE slow or fast depending on
• POE slow
• FIE
– JV fast
– WOFE wofe
• Collectives COE fast if big

Peng, Mike W. et al. (2004). Ownership types and strategic groups in an emerging
economy. Journal of Management Studies, 41(7):1105-1129, esp. 1110-1114
Ralston, David A., et al (2006). Today’s state-owned enterprises of China: Are they dying
dinosaurs or dynamos? Strategic Management Journal, 27: 825-843, esp. 832-34
• Prior to China’s Open Door Policy in the late 1970s,
only two types of firms: state-owned enterprises
(SOEs) and collectively-owned enterprises (COEs) (Peng
et al., 2004).
• SOEs dominate entire sectors of China's economy, and
are frequently the recipients of favourable loans and
treatment from the government (Li, Sun, & Liu, 2006;
Riley, 2013). They are usually large and complex, with
slack resources.
• In 2012, 54 Chinese SOEs made it into the Fortune 500.
• In 2013, more than 100 Chinese firms, again mostly
SOES http://fortune.com/global500/ansteel-group-corporation-493/

Slight shift in topic:
• How does sustainability fit with strategy?
• Wheelen and Hunger pages help explain
• Will look at this Thursday July 10
• The Hart article good place to start today
• Will look at Hart Tuesday July 8

Hart et al., 2003. Academy of Management Executive.
Creatingsustainable value
“For most firms, the pursuit of enterprise
sustainability remains difficult to reconcile with the
objective of increasing shareholder value”. p.57
Is that TRUE? Remember the China Mobile Case

Hart sees problems
• Many! Invididuals, firms, societies
• Find one?
• Reflections had similar, including - - - - - - - - - -
• But Hart turns this positive (later)

Hart ends up positive
• Not everybody is optimistic
• We mentioned several videos day 1 including
The story of stuff http://www.youtube.com/watch?v=gLBE5QAYXp8&feature=kp
Tragedy of the commons http://www.youtube.com/watch?v=KZDjPnzoge0
Someday . . .

Midterm?
• no book no notes no iPads no phones
• answer 3 of 4, short essay questions
• 30 minutes so 10 minute per question
• graded pass/fail. Hopefully all pass

4 . We looked at China Mobile and
at Interface. Choose ONE of these
firms and discuss how these cases
can help us learn about strategies
for environmental sustainability.

Feedback on mid-term
• Go to different Powerpoint slide file
• From answers, we see people are LEARNING
• Very impressive, all in 30 minutes!

Feedback - mid-term evaluation
Like Suggestions
Class is very interactive and fun
Informative and interesting stories
Case method, readings and examples etc
Group projects
Class discussion
Field work
Understanding of China
Videos
Pictures
Less reading
More structure, organization
Time management
More theories
Longer breaks
More class debate or open discussion
Tips for final exam
More in-class exercises
Feedback on case presentations
Less ppt presentations
More videos
More focus on local Chinese companies

Welcome Back
Great, we survived half
way through this course :D
Managing Strategically for Environmental Sustainability:
John F. Hulpke - Cubie Lau

Case studies
• We’ve looked at two companies; China Mobile
and Interface (one more today)
• Anything in common?

Friday July 4
• Interface Carpets: team 2, q started by team 5
• Reading on LEARN from book by Ray Anderson
• Presentation slides also posted on LEARN

Agenda
a.History of Interface Inc
b.Ray C. Anderson
c.The World Today
d.Environmental Focus Interface
e.Future Improvement and Recommendations

Now Tuesday July 8:
• How does sustainability fit with strategy?
• Wheelen and Hunger pages help explain
• Will look at this Thursday July 10
• Started with Hart article July 4
• Will look at Hart again today Tuesday July 8
• Also today: Wal-Mart, Rondinelli, maybe more

Hart et al., 2003. Creating
sustainable value, Academy of Management
Executive
“For most firms, the pursuit of enterprise
sustainability remains difficult to reconcile with the
objective of increasing shareholder value”. p.57
Is that TRUE? Remember the China Mobile Case +
Interface Inc.

Hart sees problems
• Many! Invididuals, firms, societies
• Class saw similar problems, including - - - - - - - - - -
• One way to look at that challenge: Hulpke story

World Population
Big and Growing
1800: 1 billion
1950: 2.5 billion
1990: 5.3 billion
2000: 6.1 billion
2020: 7.5 billion
2050: 9.3 billion
2100: ????
http://www.census.gov/ipc/www/img/worldpop.gif
http://www.census.gov/cgi-bin/ipc/popclockw and esa.un.org
1955:
Hulpke in
High School?
World 2.5
billion
176

177
Hart sees this as big minus but maybe + too

The Sustainable Value Framework

Sustainable Value: A Huge Opportunity
• Growing Profits and Reducing Risk Through
Pollution Prevention (e.g. Chevron, 3M)
• Enhancing Reputation and Legitimacy Through
Product Stewardship (e.g. Collins & Aikman
Floorcoverings, Nike)
• Accelerating Innovation and Repositioning
Through Clean Technology (e.g. Toyota, Honda,
Dupont)
• Crystallizing the Firm's Growth Path and
Trajectory Through a Sustainability Vision (e.g.
Grameen Bank, Unilever)

Timothy F. Slaper, Ph.D. The Triple Bottom Line:
What Is It and How Does It Work?
Indiana University, Kelley School of Business
• The TBL (John Elkington) is an accounting
framework that incorporates three
dimensions of performance: social,
environmental and financial.
• Growing interest across governments, non-
profit organizations and businesses.

Environmental Measures
• represent measurements of natural resources and reflect
potential influences to its viability.
Specific examples include:
• Sulfur dioxide concentration
• Concentration of nitrogen oxides
• Selected priority pollutants
• Excessive nutrients
• Electricity consumption
• Fossil fuel consumption
• Solid waste management
• Hazardous waste management
• Change in land use/land cover

Managing stakeholders
• Who are stakeholders?
• Remember one recommendation for China
Mobile
– Change the organizational culture
– Engaging consumers
• For Interface Inc.
– Cultivating a sustainable culture by engaging
employees

If BIG, be ready for criticism
• Who makes BIG Mac? Always criticized!
• Wal-Mart? Same. Critics everywhere
• It’s the Real Thing? Water in India, etc etc
4-184

A mini-case: BEER
• The environment! VERY important to a beer
company. You have done many things to make
the manufacturing process as clean as possible,
to insure your employees know the significance
of environmental protection, and you even help
educate the public in your company museum,
part of your very very popular company tours

A mini-case: BEER
• Now your Chinese company has been purchased
by a big multinational firm, so you are part of a
global business. Now you also have to consider
global environmental ideas and standards.
• Can you think of other things you might do
related to the environment?

Stakeholders?
Who are the stakeholders of a beer company?
List 4 or 5 most important groups of
stakeholders
Are there stakeholders the company should pay
special attention to?

What you see on our factory tour
4-188
All photos
from
company
tour June
2010

We explain why this is important
4-189

We talk about more than beer!
4-190

We talk about
problems and
SOLUTIONS:
reduce, reuse,
recycle
4-191

4-192
In our beer
museum we tell
how the world
woke up to
environment,
“germination of
recycle idea”

We tell our employees why & how!
4-193
employee environmental
handbook, 2010

booklet is easy to understand
4-194

If BIG, be ready for criticism
• firm A does the following:
Require suppliers to care about chemicals, water, etc
Requires distributors to care for environment
Use waste products for bio-tech, animal feed, art
Train all employees on carbon footprint, CO2 issues
Plan for clean packaging, water based ink, recycle etc
Clean all waste water. Law says below 500, we go to 60
And we TELL THE WORLD!
4-196

Stakeholders?
You have done a great job! It was not easy, but your
beer company cleaned up production, changed the
culture, and even included “environment” in your
company museum. But now a group calling itself
“Green Choice Consumer Action” has asked your
company to hire their recommended “water testing”
company “to certify” how clean you are. It would
cost LOTS of money, and you already exceed all
governmental requirements, and much more. But
they are “stakeholders.” So you have to consider the
request. Hmmmmm…..

Green Action: what do you do?
• A
• B
• C
• D
• Let’s vote

thanks to firm, tell GA get lost?
• Hulpke idea, we SHOULD say thanks
• We should support good companies
• And if companies do good, then stakeholders
will appreciate, right?
• Answer: no
• Especially if you are big
• And good news isn’t news, BAD news is news.
So, media loves bad news. CNN?
4-199

Solution?
• Don’t let this happen!
• Rondinelli has many useful ideas
• [ran short on time here, postpone Rondinelli]

Welcome Team 3
• Wal-Mart in China
• See team presentation slides on LEARN

Welcome to Wal-Mart!
World’s biggest. World’s
worst or world’s best?
Many stakeholders!
team project today looks
at W-M and our topic,
strategies for
environmental
sustainability
202

Welcome
to
Nanjing
Wal-Mart!
203

But low prices may have …..
204

If we have time
• mid-course evaluation
• We mentioned several videos several times
including
The story of stuff http://www.youtube.com/watch?v=gLBE5QAYXp8&feature=kp
Tragedy of the commons http://www.youtube.com/watch?v=KZDjPnzoge0
Ray Anderson of Interface
http://www.ted.com/talks/ray_anderson_on_the_business_logic_of_sustainability
Someday . . .

Snowstorm case?
• Syllabus says July 8, “if we have time”
• Nope, maybe later in course, not today

And if we still have time
• Help us with our research
• This survey has been given to students in
Hong Kong, USA, Sri Lanka, Singapore, Ireland,
Germany and now Denmark
• Takes about 7 minutes
• NOT JULY 8, MAYBE LATER

What did we do, 8 July ?
• Hart et al article on creating sustainable value
– 2x2 matrix
• Who are stakeholders, especially green
stakeholders?
• Lessons from Tsingtao Beer
• Case discussion on Walmart’s sustainable
operations in China

The Sustainable Value Framework
Managing
stakeholders

Don’t ignore
one very
powerful
stakeholder

Overview of this session, 10 July
• What did we learn from Walmart’s sustainable operations
in China?
• Thoughts on case presentations
• Rondinelli and London. 2003. How corporations and
Environmental groups cooperate: Assessing cross sector
alliances and collaborations
• How to build green capabilities?
– Wheelen & Hunger chapter on resources and capabilities
• In-class exercise
• Case discussion on Hyflux
• Review mid-term exam and evaluation
• Group project discussion

Walmart China
A good lesson learned:
engaging stakeholders is
important
http://money.cnn.com/video/fortune/2010/
04/12/bsg_walmart_china.fortune/

IS WAL- MART IMPORTANT?
Wal-Mart Takes Top Spot in Fortune Global 500
July 8, 2014 10:59 am
ANNOUNCED SAME DAY AS OUR PRESENTATION!
NUMBER 1, Fortune Global 500, 2014

Big means
powerful
• Some see negatives
• Possible positive influence
everywhere
• The deodorant story

W-M: One more look
• Previous Wal-Mart CEO Lee Scott
• As team said, Scott had specific goals
• Had specific targets
• Managing strategically for environmental
sustainability, IN CHINA
– http://money.cnn.com/video/fortune/2010/04/12/bsg_walmart_china.fortune/

Remember? Sustainable Value Framework
Managing
stakeholders
Green capabilities
✔

Presentations: some thoughts
MESSAGE most important but . .
• In case competitions, presentations KEY
• This class: all teams can improve
• Can add life, interaction
• Possibly add video clips (case comp: if SHORT)
• In Q and A….
• More thots from points posted on LEARN

Preparing slides
choose top 3 or 4 points (ideally)
limit number of slides
simplify, limit number of words
avoid all capital letters
use photos, charts and graphs
make sure presentation runs on any computer

before presenting
Know your material
Rehearse
Know the room
Know the equipment
Know your presentation
Copy presentation to desktop BEFORE NEEDED
Backup: print, flash drive, email
http://presentationsoft.about.com/od/powerpointinbusiness/tp/bus_pres_ti
ps.htm

while presenting
Watch timing
Use remote control
Look at audience not at slides
Keep audience focused, interested
All team support presenter: look at presenter
Bottom line: all good, all can be better

Thoughts for “questioning team”
• Not terrible but could be much better
• Make sure each member of QUESTIONING team
knows case
• Each should think of questions BEFORE class
• If question not satisfactorily answered, probe
• This should make LEARNING better for all
– OK back to today July 10! Rondinelli Article

Dennis A. Rondinelli and Ted London 2003
How corporations and Environmental groups
cooperate: Assessing cross sector alliances and
collaborations
• How has the relationship between NPOs and
businesses changed?
• Why are corporations and NPOs collaborating
on environmental activities?
• How to manage cross-sector collaborations
effectively?

improving cross sector alliances and collaboration
• tension and mutual distrust.
• “Corporate relationships with nonprofit
organizations and corporate involvement in
public problem solving have broadened and
deepened in both content and form in recent
years” p.62
• Partnerships range from low-intensity "arm's-
length" relationships to highly interactive
collaborations

WHY collaborate?
• NPOs can be a source of knowledge and
information
• environmental responsibility is an increasingly
important issue for stakeholders
• opportunities for cost savings, plus better
– community relations, access to political and
strategic, scientific & technical information, and
environmental programs

HOW to manage cross-sector
collaborations effectively?
• identify specific projects for collaboration
• transparency of criteria for partner selection
• develop mutually acceptable procedures for
collaboration (for judging relational risk)
• measure, monitor, and review performance
throughout the partnership
• focus on a manageable set of tasks that can be
implemented quickly
• maintain confidentiality and build trust

Corporate-NPO
collaboration
decision path
Can’t read? No problem,
see text to read

What about China?
• Parts of study by Cubie Lau to be presented
August, Academy of Management, USA
• What are firms in China doing about NPOs?
• Fine print, but we will explain big picture

a HOT topic: SWOT analysis, helps in identifying
Opportunities
SWOT analysis
Analysis of an organization’s strengths,
weaknesses (internal), opportunities, and threats
(external) in order to identify a strategic niche that
the organization can exploit
SWOT overlaps EXTERNAL and INTERNAL
analysis. You will see SWOT often

The Theory Behind Internal Analysis
The Resource-Based View
• developed to answer the question: Why do some
firms achieve better economic performance
than others?
• assumes that a firm’s resources and capabilities
are the primary drivers of competitive advantage
and economic performance
• used to help firms achieve competitive advantage
and superior economic performance

Resources and Capabilities
Resources:
• tangible and intangible assets of a firm
» tangible: factories, products intangible: reputation
• used to conceive of and implement strategies
Capabilities:
• a subset of resources that enable a firm to
take full advantage of other resources
» marketing skill, cooperative relationships

Resources and Capabilities
Firm Assets:
Machinery
Collective Product Design Skill
Recruiting Skill
Engineering Skill of Individuals
Mineral Deposits
Are these resources
or capabilities?
?
?
?
?
?

Four Categories of Resources (Barney and Hesterly, 2012)
• Financial (cash, retained earnings)
• Physical (plant & equipment, geographic location)
• Human (skills & abilities of individuals)
• Organizational (reporting structures, relationships)

In-class exercise – Warby Parker
• What are some of the key capabilities of
Warby Parker?
• http://media.pearsoncmg.com/ph/streaming/
bp/2013/MGMT/Strat/Strat2012_Warby_Visio
n.html

Welcome Team 4
• Time for another presentation!
• Case: Hyflux
• Team 3, you get the FIRST questions
• But not only Team 3
• Hopefully ALL can ask at least ONE question

Feedback on mid-term
• Go to different Powerpoint slide file

Feedback on mid-term evaluation
Like Suggestions
Class is very interactive and fun Fun
Informative and interesting stories
Case method, readings and examples etc
Group projects
Class discussion
Field work
Understanding of China
Videos
Pictures
Less reading
More structure, organization
Time management
More theories
Longer breaks
More class debate or open discussion
Tips for final exam
More in-class exercises
Feedback on case presentations
Less ppt presentations
More videos
More focus on local Chinese companies

Today’s BIG job:
• Each team choose firm, preliminary outline
• Syllabus says
– Class will discuss cases in groups, and each group
will analyze environmental issues facing one
Chinese company
– Syllabus gives possible title: XYZ Corporation and
the Environment: Past, Present, and Future
 Today, choose, first come first served
 Not a firm already covered in class
 A firm IN CHINA (possible interpretation)

What to prepare for next class, 15 July
• Group project FINAL outline
• Case discussion: BROAD Group: Chinese Innovation
in the Air (very interesting company, must read)
• Article “Senge, Peter, T Smith, Brian, Nina Kruschwitz, Joe
Laur, Sara Schley, The Necessary Revolution: How Individuals
and Organizations Are Working Together to Create a
Sustainable World. (2010). Relevant section posted on LEARN
• Group presentation sequence

What we did, 10 July
• Thoughts on case presentations
• Rondinelli and London. 2003. How corporations
and environmental groups cooperate: Assessing
cross sector alliances and collaborations
• Wheelen & Hunger chapter on resources and
capabilities (Video on Warby Parker)
• Case discussion on Hyflux
• Mid-term exam and mid course evaluation
• Group project discussion

Source: The Peak,
11 April 2011, p61

Source: The Peak,
11 April 2011, p62

Hyflux's Solution to Water Scarcity -
CNBC
Think about -
Key resources
and capabilities
of Hyflux?

Group Projects
Group Company
1 Lenovo
2 Vanke
3 BYD
4 SAIC
5 CNPC (PetroChina)
6 Cathay Pacific Airways

• Vision and Leadership
• Senge, Peter, T Smith, Brian, Nina Kruschwitz, Joe
Laur, Sara Schley The Necessary Revolution: How
Individuals and Organizations Are Working
Together to Create a Sustainable World. (2010)
• Mini-case
• Case discussion on - BROAD Group: Chinese
Innovation
• Group project presentation sequence

The Sustainable Value Framework (Hart and Milstein, AME, 2003)
Managing
stakeholders
Green capabilities
✔
✔
Vision and
Leadership
Green to gold
✔

Key Take-Aways ?

Reflection?
• People see the importance of sustainability differently
• We need animateurs/leaders, they could be
– Local line managers
– Internal net-workers
– Managers of specialty functions
– Executive leaders
• “For something as big and complex as sustainability,
making the effort a team exercise is crucial”
– Search for like-mined people
– Engage your internal stakeholders first
– Build shared visions
– Continually create new ideas and engage essential players

Mini-cases – No idea??
• Vanke?
• Haier?
• Nine Dragon lady?
• Suntech
• Baosteel
• http://cloudinstitute.org/fish-game
• The Fish Game was used against this background, to
communicate the role of servant leadership in resource
mobilization and sustainability; to demonstrate the power of
unselfish leadership in economic development, and the power
of collaboration and re-union between the government and the
people of Kenya in resource mobilization, utilization and
sustainability

Maybe something like ??? A dialogue
about implementing a green initiative
• Maybe an exercise with a controversial
scenario?
• Oppositions from different employees..
• How to win their support?

Welcome Team 5
• BROAD Group: Chinese Innovation in the Air

Final thought on group project?
• Is the company interesting to YOU?
• What issues do you want to discuss?
• Can you find relevant information from
primary and/or secondary sources?
• Is your final project outline ready now?

What to prepare for next class, 17 July
• Case study: COSCO:
Implementing sustainability.
• Supplementary readings:
– Goodall, Chris. The Green
Guide for Business. One section
posted on LEARN.
– Young, Scott, and Kanwalroop
Kathy Dhanda. Sustainability:
Essentials for business. See the
pages posted on LEARN.

What we did 15 July
• Vision and Leadership
• Senge, Peter, T Smith, Brian, Nina Kruschwitz, Joe Laur, Sara Schley The
Necessary Revolution: How Individuals and
Organizations Are Working Together to Create a
Sustainable World. (2010)
• Mini-case
• Case presentation and discussion on - BROAD
Group: Chinese Innovation
• Group project presentation sequence

Broad
• The name “Broad” equals to protect life.
• Zhang Yue (CEO) wants to see changes in the
world. http://vimeo.com/23304458
– “There was a serious debate 10 years ago with
employees about producing non-electric a/c or
electric a/c. He said “there won’t be any discussion
on this, we won’t go against our company goal”
– Interesting entrepreneur, let’s look at his company

Group Projects
Group Company date
1 Lenovo Thurs 24 July #6
2 Vanke Tues 22 July #1
3 Nine Dragons Paper Tues 22 July #3
4 SAIC Tues 22 July #2
5 Midea Thurs 24 July #5
6 Nine Dragons Paper Thurs 24 July #4

Green into Gold?
In class exercise. We asked
• How can environmental problems be turned
into business opportunities?
• How can we make money and at the same
time improve the environment?
• Hopefully ideas generated here can spark
more ideas later

• Reflection paper
• Case discussion: COSCO:
Implementing sustainability
• Supplementary readings:
– Goodall, Chris. The Green Guide
for Business. One section posted
on LEARN
– Young, Scott, and Kanwalroop
Kathy Dhanda. Sustainability:
Essentials for business. See the
pages posted on LEARN

put it in perspective
• We have choices!

Personal Vision Statement
How you will integrate what you learn in this class
into your life? In a maximum of one page, reflect on
your own current and future career choices and
possible linkages between those prospects and who
you are. In other words, please develop a five and
ten year goal of where you see yourself, and then
describe the path that you might take to reach
those goals.
(excerpted and adapted from “Ethics, Values and Sustainability” syllabus by Tom Eggert, University of Wisconsin, downloaded
from caseplace.org)

personal values important
The intent of this assignment is for you to consider
potential futures for yourself. Your futures could include
things like additional school, your job, a description of
what your ideal job looks like, where you want to live,
what kind of family life would you choose, and what
responsibilities do you see yourself taking on.
Importantly, it should include a vision statement of the
kind of person you hope to be and how you intend to
lead your life, lead others, lead your organization and
lead sustainably within society. Basically, this is a plan
on where your life is going over the next 10 years.

Why are things not easy?
• Another minicase
• Learn from an old classic economics story:
the tragedy of the commons

Commons Dilemma
• Harvest from a common resource pool
• “Tragedy of the Commons”
– Open access to a common parcel of land on which herdsmen’s cattle
grazes
– Each individual herdsman has interest to keep as many cattle as possible
on the commons
– The commons is damaged as a result
– http://www.youtube.com/watch?v=MLirNeu-A8I :57 to 1:10
– http://www.youtube.com/watch?v=L8gAMFTAt2M
279

What can happen when individual self interest threatens
collective well being? A Real Example: Small Village in the Netherlands;
Population 150, Winter 1978/1979
280
photo not a small village,
but it gives you the idea,
lots of snow

SNOW! Big trouble ahead. UNLESS,
they take your advice
• In the Winter of 1978/1979 due to unusually heavy snow, a
small village in the Netherlands was completely cut off from the
rest of country: no electricity for light, heating, television, etc.
However, one of the 150 inhabitants owned a generator that
could provide sufficient electricity for all the people in this small
community if and only if they exercised restraint in their energy
use.
• Please come up with four ideas that may help the village to be
collectively better off (and not to let the generator collapse).
281

 Actual energy use in each
house:
 Burning several lights
 Heated water
 Heating to 21 degrees
 Watching TV
 Required energy use for the
generator not to collapse:
 Only one light per household
 No heated water
 Heating to 18 degrees
 Curtains closed
282
Generator collapsed. Most people used hot water, lived comfortably at
21 degrees Celsius, watched TV, and used several lights. After being
without electricity for a while citizens repaired the generator, and this
time appointed inspectors to check whether people were using more
electricity than agreed. But even then, the generator eventually
collapsed due to overuse of energy. Again, all inhabitants suffered
from the cold and lack of light, and of course, no TV.
Did they take your advice?
What happened then?

What can happen when individual self
interest damages collective well being?
A small planet, in a small solar system. We’d like to save this
planet, as (so far as is known) it is the only planet to have
chocolate, so this planet is certainly worth saving
In the long run everyone would benefit from a cleaner
environment, yet how many are prepared to voluntarily
reduce their carbon footprint by saving more energy or
driving or flying less frequently?
• But, what if things we do individually will burn out the
planet’s generator? Will we all freeze in the dark?
• Well good news! We WON’T FREEZE!
• (But we may bake). Do not forget our discussion on climate change
283

285
• the sum total of all activities and choices required for
the execution of a strategic plan
We need to think about:
• Who are the people to carry out the strategic plan?
• What must be done to align company operations in
the intended direction?
• How is everyone going to work together to do what
is needed?
• When
Strategy implementation

Eight Components
of Strategy Execution
Source: Gamble et
al., 2014

Welcome Team 6
• COSCO: Implementing sustainability

Previous reading key take-aways?
The harder you push, the
more opposition you
encounter
Ask one key question –
worst case scenario
Reflection point? Address
different perspectives
Team process – engage the
whole company

Source:
Sustainability
report 2013

Interesting points?
– Goodall, Chris. The Green Guide
for Business. One section posted
on LEARN
– Young, Scott, and Dhanda, K. K.
Sustainability: Essentials for
business. See pages posted on
LEARN

Good points
from Goodall
1 Be Ambitious
2 Know Your Stakeholders
3 Your Carbon Footprint
4 Energy Use in Buildings
5 Large Scale Building Change
6 Travel and Transport
7 Reduce Revise Recycle
8 Your Green Credentials

More Goodall points
• Let employees set light/heat/AC levels
• What if it is a favorite? NOT EASY! (Alps story)
• And…
– Good housekeeping
– Quick wins
– BIG green project
– Rethink processes
– Entirely green

Next years text:?
Many ideas in this newer book:
Young, Scott, and Dhanda, K. K. Sustainability:
Essentials for business.
Mentions people we know! Peter
Senge, Ray Anderson
What you see on LEARN is
basically an index, an intro
https://learn.cbs.dk/mod/resource/view.php?id=176808

What to prepare for 22 July
• Fun day Tuesday July 22
– Group 2, Vanke
– Group 4, SAIC (Shanghai Automotive Industry
Corporation)
– Group 3, Tsingtao Beer

What to prepare for 24 July
• Another fun day, Thursday July 24
– Group 6, Nine Dragons Paper
– Group 5, Midea
– Group 1, Lenovo

review of 17 July
Reflection: personal vision statement
Short video: We have choices
Tragedy of the Commons; snow minicase
Case: COSCO: Implementing sustainability
Supplementary readings:
– Goodall, Chris. The Green Guide for Business.
One section posted on LEARN
– Young, Scott, and Kanwalroop Kathy Dhanda.
Sustainability: Essentials for business. See the
pages posted on LEARN

Team 6
• COSCO: Implementing sustainability

Group Projects
Group Company date
1 Lenovo Thurs 24 July #6
2 Vanke Tues 22 July #1
3 Tsingtao Beer Tues 22 July #3
4 SAIC Tues 22 July #2
5 Midea Thurs 24 July #5
6 Nine Dragons Paper Thurs 24 July #4

agenda for 22 July
Tuesday July 22
– Group 2, Vanke
– Group 4, SAIC (Shanghai Automotive Industry
Corporation)
– Group 3, Tsingtao Beer

What types of firms today?
• Types of firms today?
– Vanke
– Tsingtao Beer
– SAIC
• Important drivers to go green?
– Vanke
– Tsingtao Beer
– SAIC

Coming up 24 July
• Another fun day, Thursday July 24
– Group 6, Nine Dragons Paper
– Group 5, Midea
– Group 1, Lenovo
• Last day of class
• Discuss exam (sorry, will not say “study this”)

To think about: The Story of Stuff
• http://www.youtube.com/watch?v=gLBE5QAYXp8
• What are some of the major problems discussed in the video?
 Business level
 Society level
 Individual level

The Story of Stuff: second thoughts
• QUESTION: Anything mentioned or implied in video you disagree with?
• Story of Stuff is NOT balanced, but gives things to think about
• Is “consumption” the problem?
• Remember quote, US Council of Economic Advisors: America needed to SHOP
SHOP SHOP? Annie Leonard thought that was insane. Was it? When was that
statement made?
• What is Europe saying about consumption? Should we “keep it down” or do we
rejoice when we see signs of consumers buying buying buying? Next two slides

iPhone 5 to boost US GDP 1/3 to 1/2%?
news: Michael Feroli, the chief economist at JPMorgan
Chase, estimated that the iPhone 5 could add one-quarter
to one-half of a percentage point to the annualized growth
rate of America’s gross domestic product next quarter…
sales of iPhone 5 could boost Q4 GDP by $3.2 billion, or
$12.8 billion at an annual rate. This would boost
annualized GDP growth in Q4 by 0.33%-point. Our Q4
GDP growth projection is 2.0%.
How might Annie Leonard react to this story?
How might President Obama react?
How might Hulpke’s brother Mike react?
So, is consumption, that golden arrow, the enemy?

“Sector shows strong growth potential
amid rising domestic consumption”
China Daily 12 September 2102 Li Jiabao
“Li Na, a young teacher in Changsha, Hunan province, finally got her iPad 2 recently after
making a down payment of 1,800 yuan ($283) and paying monthly installments of 416
yuan over the next year. The teacher, who doesn't have a credit card, found about the
loan - which came with a fee of 25.7 percent of the price the iPad - from a saleswoman at
a electronics store. Li is one of the 1.75 million clients of Home Credit, a Czech financial
company that has tapped China's consumer finance market. Analysts say that the market
is set to boom in the coming years supported by increasing personal incomes and the
government's efforts to expand domestic consumption.
"China is now shifting the driving force of its GDP growth from investment to
domestic consumption… “ in line with the “government's plan to stimulate
overall domestic consumption.” [End of quotes from China Daily]
yes, there are side effects of “consumption.” But if China’s economy falters, the world will
face serious economic problems. CONSUMPTION is one answer. The Story of Stuff misses
that. Next question, how to CONSUME without DESTROYING THE PLANET

The Story of Stuff and critics
• There is more to criticize, not just Golden Arrow. Video full of errors
• One critique that makes me think: http://www.youtube.com/watch?v=c5uJgG05xUY (we
will check part I, 8:45 to 10:50)
• This critique not balanced either! Neither is Glenn Beck, another critic
• The truth? Probably somewhere in the middle.
• yes, there are side effects of “consumption.” But if China’s economy falters, the
world will face serious economic problems. If the US does not recover, my
brother Mike has no job. CONSUMPTION is one answer. The Story of Stuff misses
that. Next question, how to CONSUME without DESTROYING THE PLANET.

Welcome back
• MAIN job today: Continue group presentations
• Nine Dragons Paper
• Midea
• Lenovo
• The Story of Stuff: points to consider, plus . . .
• A few more thots on the UNGC
• Preview: UN Climate Conference 2014
• Preview: exam
• Wrap up course: what could be improved?

review of 22 July Tuesday
Three company presentations:
Vanke, SAIC, Tsingtao
team
team
team

Vanke
• Interesting company
• Good company introduction and its sustainability focus
• Liked video and interaction
• Limited information in English
• Could say more on its founder as it is a POE

SAIC
• Nice presentation, slides, tables, charts
• Good summary of company
• Great small class exercise (thought-provoking question)
• Focus less on slides, more on audience
• Teamwork (looked at your teams when they present?)

Tsingtao Brewery
• Nice company background
• Goals and results, perhaps expand on “HOW”
• Highlighted pressure to go green as a MNC in China
• Limited in information
• Bigger font sizes (sorry, we violate this rule too!)
• Read slides less, focus on audience more

Topic Activities Case discussion Supplemental readings
Introduction
What is sustainability?
Why China?
Field exercise
Environmental
challenges (Global or
China)
Lab assignment
Videos: Environmental
sustainability: we have
choices,
KPMG report
Friedman, Thomas L. Flat Hot and Crowded: Why the world needs a green
revolution and how we can renew our global future. One section relating to
climate change is posted on LEARN.
How is China different?
Barriers to go green
Video excerpts: Earth
Under Water, and
Inconvenient Truth
Peng, Mike W. et al. (2004). Ownership types and strategic groups in an
emerging economy. Journal of Management Studies, 41(7):1105-1129
Ralston, David A., et al (2006). Today’s state-owned enterprises of China: Are
they dying dinosaurs or dynamos? Strategic Management Journal, 27: 825-843.
Creating competitive
edge
Video on Interface Anderson, Ray. Mid-
Course Correction.
Key chapter posted
on LEARN
Slaper, T and T. Hall, "The Triple Bottom Line: What Is It and How Does It
Work?," Indiana Business Review,
http://www.ibrc.indiana.edu/ibr/2011/spring/article2.html
Hart, Stuart L and Mark Milstein. 2003. “Creating Sustainable Value”. Academy
of Management Executive, 17(2): 56-69.
Sustainability chapter from Wheelen and Hunger, p.118-126
Creating competitive
edge (2)
University of
Michigan case:
Integrating
Environmental Goals
and Firm Strategy:
China Mobile and
Climate Change. Erb
Institute, 1-428-876.
35 pages
Rondinelli, Dennis A and Ted London. 2003. “How corporations and
environmental groups cooperate: Assessing cross sector alliances and
collaborations. Academy of Management Executive, 17(1): 61-77
Managing stakeholders Mini-case – Tsingtao Beer Ivey case: Wal-Mart
China: Sustainable
operations strategy.
9B08D009. 20 pages
Wheelen and Hunger, Ch.5
Green capabilities Asia Case center:
Hyflux Limited and
Water Sustainability
– Treading Blue
Oceans. Nanyang
case. 310-039-1. 25
pages.
Senge, Peter, T Smith, Brian, Nina Kruschwitz, Joe Laur, Sara Schley The
Necessary Revolution: How Individuals and Organizations Are Working
Together to Create a Sustainable World. (2010). Any edition OK:Crown
Business or Doubleday or Random House. Paperback. 416pages ISBN: 978-0-
385-51904-5 Senge chapter required, remainder recommended (will be
posted on LEARN near end of the course
Leadership Personal Vision
Statement
The Case Center:
BROAD
Group: Chinese
Innovation in the
Air. 311-115-1. 19
pages
Goodall, Chris. The Green Guide for Business. One section posted on LEARN.
Young, Scott, and Kanwalroop Kathy Dhanda. Sustainablity: Essentials for
business. See the pages posted on LEARN
Trends in sustainability Video: Tragedy of the
Commons,
Mini-case: Swedish
snowstorm
Harvard Business
Case: COSCO:
Implementing
sustainability. N9-
412-081. 28 pages
Group presentations The story of stuff Vanke
SAIC
Tsingtao Brewery
Group presentations
and Exam Review
Nine Dragon Papers
Midea

Review
China
Mobile
Interface Wal-Mart Hyflux Broad COSCO
Environmental
performance
Type of
ownership
Driver(s)
Stakeholder
management
Key
resources/capa
bilities
Leader
Financial
performance
Others?

Review (2)
Vanke SAIC Tsingtao Nine
Dragon
Papers
Midea Lenovo
Environmenta
l performance
Type of
ownership
Driver(s)
Stakeholder
mgt
Key resources
Leader
Financial
performance
Others?

Interesting observations
In past recruits not so concerned about a company’s environmental
record. Today interested in sustainability, esp younger generation.
Lots of job opportunities in sustainability. eg, BASF: hiring PR person
with a good understanding of sustainability, a PR manager who
understands sustainability
consulting jobs
Recruitment
Headhunters
Internal promotion
Referrals
Application letters (In recruitment process, we fill out a
questionnaire, what should steel industry head for, and have four
choices to pick to see if you share the same value as xxx etc etc.)
Networking plus cold calls

323
Summary of
interviews:
Don’t worry
abut small
font, we will
explain
No. Disguise
company
name
# of
interv
iews
# of
informa
nts
Lengths of
interviews
(mins)
Titles of informants Form of
ownership
Size Sector
1 Sparrow 1 4 73 President, quality assurance manager, system manager,
human resources manager
POE 130,000 Household
appliances
2 Roadrunner 3 5 79, 50, 135 President, executive director of quality management,
director of human resources, director of operations and
human resources
POE 10,000
3 Cardinal 2 3 68, 75 Energy general manager, corporate culture, COE 70,000
4 Heron 1 1 43 Environmental protection secretary to CEO office POE 2,000
5 Robin 1 1 50 Director of CSR POE 23,000 IT
6 Pheasant 1 1 81 Supply chain program manager WOFE 900
7 Turkey 1 3 73 General manager, assistant supervisor, administration
and personnel supervisor
POE 150 Electronics/
electrical
8 Parrot 2 2 77, 63 Managing director, quality manager WOFE 1,100
9 Partridge 1 2 64 Human resources director, corporate culture supervisor WOFE 1,000
10 Ibis 2 2 53, 52 Chairman, General manager SOE 80 Textiles
11 Dove 3 3 35, 13, 52 Founder/CEO, general manager, human resources
manager
SOE 1,200
12 Duck 1 1 59 General manager SOE 420 Hospitality
13 Swan 2 2 83, 17 Director of operational excellence, general manager WOFE 1,200
14 Mynah 1 1 71 Director of Rooms POE 200
15 Flamingo 1 2 83 General manager, chief engineer POE 300
16 Bluebird 1 1 52 Managing director WOFE 200 Metals
17 Blackbird 1 1 50 Director of operations, project manager POE 3,000
18 Pigeon 1 1 93 Section chief of EHS POE 12,000
19 Eagle 2 5 155, 101 Director of economic and management research
institute, chief of sustainable division.
Director of brand, vice director and assistant to director
of Mingde Learning Organization Institute
SOE 130,000
20 Woodpecker 2 3 45, 45 Directors, administrative and personnel assistant
manager
JV 80 Chemicals
21 Swift 3 3 56, 92, 32 Senior manager of public relations corporate
communications AP, HR/Adm general manager,
environment/authority coordination manager
JV 1,500
22 Hummingbir
d
1 1 75 Group environment manager POE 4,164 Energy
23 Bobwhite 3 3 120, 22 Investor relations director, investor relations manager,
investor relations supervisor
POE 11,000
24 Bluejay 2 2 80, 25 General manager, EHS manager WOFE 45 Pharmaceut
icals
25 Finch 3 4 36, 34, 25 Plant director, EHS director, EHS manager,
environmental engineer
JV 320
26 Peacock 1 1 59 Director of CSR POE 20,000 Constructio
n and
materials
27 Goose 1 3 105 Chairman; production manager, assistant to manager WOFE 19
28 Cuckoo 1 2 94 CEO, Greater China, senior business development
manager
WOFE 10,000 Beverages
29 Swallow 2 2 51, 63 President, director of production and operations JV 40,000
30 Falcon 2 4 100, 112 Ex-managing director, director of port development,
general manager, civil construction manager
JV 2,500 Logistics
31 Condor 1 1 98 VP of operations WOFE 1,000
32 Seagull 1 1 82 Director of sustainability WOFE 50,000 Retailing
33 Raven 1 1 45 Director of communication WOFE 13,000 Conglomer
ate
Informants:
Average company tenure:
8.9 years
Average industry tenure:
13.3 years

Think about…
• How should developing countries manage their
natural resources (i.e., air, water, rain forests,
agricultural land, etc.) in an environmentally
sustainable manner?
• Why do their behaviors matter?
• How can the developed world and their firms
help the developing world to go green?

What types of firms Tuesday? Today?
• Types of ownership? Drivers to go green?
– Vanke
– Tsingtao Beer
– SAIC
• Same questions for today?
– Nine Dragons paper
– Lenovo
– Midea

Added thots on UNGC:
A troubling observation
• We asked students, what areas most important
to you?
• Survey given in Germany, US, Hong Kong, Sri
Lanka, Singapore, Ireland and now in Denmark
• Key question was, “do interests differ globally?”
• Almost as an aside, an afterthought, we asked,
“how much do you know about UNGC?”

LEADERS OF TOMORROW: where should we put our emphasis?
What do you think? As tomorrow’s leaders, you will decide the role of business in society. The United Nations
Global Compact lists TEN areas where it says businesses should be responsible. In your own opinion, which of
these ten are MOST IMPORTANT?
Businesses should… (CIRCLE ONE OR TWO OR THREE OR FOUR)
Principle 1: support and respect human rights
Principle 2: make sure they are not complicit in human rights abuses
Principle 3: uphold freedom of association and the right to collective bargaining
Principle 4: support the elimination of all forms of forced and compulsory labour
Principle 5: support the abolition of child labour
Principle 6: support the elimination of discrimination in employment
Principle 7: support a precautionary approach to environmental challenges
Principle 8: undertake initiatives to promote greater environmental responsibility
Principle 9: encourage development and diffusion of environmentally friendly technologies
Principle 10: work against corruption in all forms, including extortion and bribery
Have you heard of this United Nations Global Compact before?
No, I do not recall ever hearing of this before
I think I have heard of it but am not familiar with it
Yes, I have heard of it and know generally what it is trying to do
I know about this United Nations Global Compact
I am VERY familiar with the United Nations Global Compact
THANX! Your opinions will be combined with others and presented at a conference. To help organize the
hundreds of surveys please tell me the following:
Your nationality (where is your passport from):
Countries where you have lived (for one month or more)….

Have you heard of this United Nations
Global Compact before?
No, I do not recall ever hearing of this before 55%
I think I have heard of it but am not familiar with it
41%
Yes, I have heard of it and know generally what
it is trying to do 1%
I know about this United Nations Global Compact 1%
I am VERY familiar with the United Nations Global
Compact 1%

to convince businesses to think
about sustainability
• Ethics?
• Law?
• Voluntary action by corporations?
– Especially “ Multi Stakeholder Initiatives” such as
the UNGC?
• Ethics? Results not impressive so far
• Law? Worse
• MSIs, the biggest of which is UNGC? Maybe,
but if nobody knows about it . . .

More topics 24 July
• Story of Stuff: takeaways, plus afterthots
• http://www.youtube.com/watch?v=gLBE5QAYXp8
• major problems discussed in video
– Business level
– Society level
– Individual level

Thursday July 24
DONE:
• MAIN learning today: 3 Chinese companies
• A few more thots on the UNGC
• The Story of Stuff: points to consider, plus . .
STILL TO DO:
• Preview: UN Climate Conference 2014
• Preview: exam
• Wrap up course: what could be improved?

United Nations New York Sep 23, 2014

Will anything happen?
• Yes
• No
• Maybe

UN Summit has potential
1. Improve building energy efficiency
2. Make climate change focus of Arctic Council
3. Reduce global poverty through climate action
4. Phase down heat-trapping HFCs under the
Montreal Protocol
Plus a big sub-agenda on use of big data!

New York
Times:
to really
learn, quit
studying,
and . . .
Jan 20, 2011

Why this class? IT CAN HELP YOU
Why exams? They motivate, and you learn
from the exam process!
Remember, LIFE IS NOT ABOUT EXAMS! Go to the
beach!
• NOW WE TALK ABOUT EXAMS
• How to take exams (ANY exams)
• How to prepare for THIS exam
• How to prepare for LIFE (well, may not really
cover this today)

Our Exam?
• Review all slides
• Review articles and cases (many fewer pages
than if we had text)
• Review all slides (again)
• Be ready to THINK, give opinions, and support
your opinions with examples
• Four hours, 3 out of 6 questions? You might
spend 30 minutes planning, three hours to
write, 30 minutes to review

Essay exam tips for ANY class
• RTDQ!!!!
• Find ONE main idea per topic, make it clear
• Use real examples! (EASY in any class. Golden Arches rule)
• Short intro OK
• Short conclusion OK
• Some have 2 or 3 supporting points (optional)
• Include YOUR IDEAS not just info from readings or cases
• If give up, Hulpke’s Famous BS rule: no idea at all? Rewrite
the question in your own words, then say something true,
close to the question. SAY SOMETHING! Then conclude.

Jail?
And of course, we send very few people to jail

Last agenda item today
• On a blank piece of paper (recycled paper
preferred) write ONE thing we could do to
improve this course

Any
questions?
Email us, we’re open for
business 24/7/365
Good Luck and Thank You!!!!
348

ciao, arrivederci
adios
dzai jen
salaam
sayonara
bye bye
au revoir
auf veder zehn
ahn yong i ka say o (annyongi kasesyo)
aloha….
hulpke@ust.hk cubie@ust.hk

Managing strategically for environmental sustainability lessons from china complete ppt revised 24 july 2014

Managing strategically for environmental sustainability lessons from china complete ppt revised 24 july 2014

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