Wk5 DQ1

Discussion Question 1 (CLOs covered: 1, 4) 

Which of the 3 foundations of sustainability (Economic, Environmental, and Social) more important
than the other? Does it depend on the type of organization, or are they all equally important? Please
explain.

Ans:

The three foundations of sustainability are a powerful tool for defining the complete sustainability
problem. This consists of at least the economic, social, and environmental foundations. If any of these
foundations are weak then the system as a whole is unsustainable. Here are a few points as to explain
what these foundations are concerned about :

1.Social: Social foundations mostly focus on the current need and demand of the people
and produce accordingly. It basically is about helping the community that the business
exists in and maintain their work environment. This foundation is concerned with
helping the business be more socially responsible (Schnebel & Bienert, 2004).

2.Environmental: This is more concerned with the business to be environmental friendly

by proper management of resources and complying the environmental laws stated by
the government (Sverke, 2009).

3.Economic: This dimension is concerned with both the business motive as well as public.
It is about making the business more profitable by producing the goods people want
and need as well as supports the communities by paying taxes and participating in
local activities (Glavas, 2012).

Most national and international problem solving efforts focus on only one pillar at a time. Every NGOs
and INGOs over the world has been focusing on environment lately because of the fact of its fast
degradation and long term damage to every people living all over the world. No powerful international
organization is working on the sustainability problem including all three foundations. However, as the
Great Recession of 2008 demonstrated, weakness in the other pillars can directly weaken the
environmental foundation. Many nations and states are cutting back or postponing stricter
environmental laws or investment, since their budgets are running deficits. Many environmental NGOs
are seeing their income fall. If the Great Recession grew substantially worse and morphed into another
Great Depression, we would find the environmental foundation getting less attention, since eating
would be a priority over saving the environment.

The social pillar is critical too. Once a war breaks out environmental sustainability has zero priority. If
a nation lives in dire poverty, the environment is pillaged with little thought for the future. Therefore
for a business to become sustainable it is very important for it to make each of these foundations
sustainable.

References
Glavas, A. (2012). Employee Engagement and Sustainability: A Model for Implementing Meaningfulness at
and in Work. The journal of Corporate Citizenship, 13-29.

Schnebel, E., & Bienert, M. A. (2004). Implementing Ethics in Business Organizations. Journal of Business
Ethics, 53, 203-211.

Sverke, M. (2009, July). The importance of the psychosocial work environment for employee well-being and
work motivation. Scandinavian Journal of Work, Environment & Health, 35, 241-243. Retrieved from
http://www.jstor.org/stable/40967784
Ans:

The three foundations of sustainability of any business are economic, environment, and social.
These are considered as the very powerful tools of maintaining sustainability in a business
(Thompson, Margaret, Gamble, & Strickland, 2016). They are often called as the three pillars of
sustainability. All these three foundations are equally as important as one another. The weakness
in one foundation causes the whole system to be unsustainable.
In many of the cases, businesses give more priorities to one specific foundation and less to the
others. It sometimes depends upon the type of organization and sometimes on the priority basis.
Organizations such as UNICEF gives more emphasis to education and UNEP gives more priority
to environment. Sometimes, the urgency and fluctuations also cause the business to give priority
to a particular foundation. For instance, if a company is facing reduction in sales, the company
gives more priority to economic sector, and less to the other foundations.
Problem occurs when the above mentioned situations occur. When companies give more priority
to one particular foundation and less to other foundations, there will be imbalance in the whole
system (thwink.org, 2014). It is stated that weakness in one foundation occurs weakness in other
foundations too.  Let's clarify it with an example. Let us suppose that the economic foundation
gets weaker. For fixing this weakness, company will try to do certain things such as increase the
sales, increase production, etc. In this situation there is a huge chance that they will things which
will affect social and environmental foundations. In the name of minimizing costs they might
apply child labor for cheap labor cost, they might exploit the natural resources, etc. This will
then create problem in the whole foundations of sustainability.
Thus, it is equally important to focus on every foundation if weakness occurs in one. All the
three foundations are equally important.

References
Thompson, A. A., Margaret, A. P., Gamble, J. E., & Strickland, A. J. (2016). Crafting and Executing
Strategy. New York : McGraw Hill Education.

thwink.org. (2014). The Three Pillars of Sustainability. Retrieved from

http://www.thwink.org/sustain/glossary/ThreePillarsOfSustainability.htm

Ans:

The concept of sustainability revolves around the process where companies manage their, social,

economic and environmental risks. In order to continue the operation and competitive advantage, it is

important for the companies to make the use of best use of resources to generate the more

opportunities today without encompassing the future needs, to provide value tomorrow. For this, it

needs to work on the three foundations which are economic, environmental, and social.

Firstly, economic sustainability focuses on the best allocation of resources. Since the resources are

limited so, the need for economic sustainability, through the market allocation of resources, has
become today's necessity. The concept of economic sustainability enlarges the development concern

with monetary capital to consider natural, social and human capital (Šlaus & Jacobs, 2011). Moreover,

it concentrates on producing economies of scale to decrease the unit cost of production. For instance,

Walmart economic sustainability is to reduce the cost by purchasing in bulk so that they can provide

the goods at the lowest price possible.  

Similarly, social sustainability revolves around the thought of encompassing the notions of equity,

cultural identity, and institutional constancy (Basiago, 1998). The customer today prefers to use

socially sustainable products. If the local company or the company that has outsourced, can provide

the workers with the safer working conditions, legal living wages, and the certain percentage of job

security, the supply chain model will be more secure and will have positive reflections on the final

product. Many years back, most of the carpet companies had to shut down the operation because of

the protest against child labour. So, the company should also give the employee the reason to care

regarding the health and safety needs along with training and higher pay so that both the company

and employee can benefit.

Likewise, environmental sustainability focuses on safeguarding the environment for the future needs

(Thompson, Strickland, Gamble, & Strickland III, 2016). Today, the movement towards 3R, reduce,

reuse and recycle has helped to reduce the carbon footprints and environmental pollution. Companies

like Bhatbhateni has banned the use of plastic bags. Also, Walmart buys goods from green and yellow

factories. Further, Unilever has is highly working on its sustainable living plan, launched in 2011 to

double the sales by cutting its environmental footprints in half by 2020.

Therefore, I think the triple bottom line very interrelated with each other. A business can't only focus

on economic sustainability without looking the social and environmental aspects. For instance, in order

to increase the production efficiency, the resources need to be properly allocated so that employees

that are motivated and trained can perform well with the use of environmentally friendly resources.

References
Basiago, A. D. (1998). Economic, social, and environmental sustainability in development theory and

urban planning practice. Environmentalist, 19(2), 145-161.

Šlaus, I., & Jacobs, G. (2011). Human capital and sustainability. Sustainability, 3(1), 97-154.

Thompson, A. A., Strickland, A. J., Gamble, J. E., & Strickland III, A. J. (2016). Crafting and executing

strategy: The quest for competitive advantage: Concepts and cases. (Twelfth ed.). New York:

McGraw-Hill.
Ans:

Sustainability refers to the need to develop the sustainable models necessary for both the

human race and planet earth to survive. There are three pillars of sustainability: economic,

environmental and social (Thompson, Strickland, Gamble, & Strickland III, 2008). They are considered

as the three pillars of sustainability. Application of these strategies is also known as triple bottom line

strategy.

Economic development: It can be defined as the economic activities that meet the needs of the

present without compromising the ability of future generations to meet their own needs. It focuses on

the social welfare and protection of natural resources as well. It helps to analyze needs and resources

and thus guide the economy. It also looks on making short-run economic growth into long-term
sustainability. The organizations that mostly focus on the economic growth are: World Trade

Organization (WTO) and the Organization for Economic Cooperation and Development (OECD).

Environmental sustainability: A business achieves environmental sustainability when its system,

operations, and activities reduce the impact on the environment and natural resources. For instance,

Walmart promotes environmental sustainability taking different initiatives such as buying goods from

green and yellow factories, a goal of zero waste, plastic bag reduction and others (LLC, 2013). This

has helped Walmart become not just one of the world top convenience store but has also made them

environmental friendly business.

Social sustainability: Social sustainability refers to the process which includes the ability of social

systems, such as a country, family, or organization, to function a defined level of social well-being and

harmony indefinitely. Social sustainability helps to create love, harmony, and co-operation within the

people and end the disputes, war, poverty, injustice and other problems that harm a society. It

focuses on the living standard of people and problems of them (Hicks, Levine & Agrawal, 2016).

Among these all, I think the most important measure of performance is economic

sustainability. However, considering that a business operates in an environment and among people

and society, it is equally important that a business is sustainable environmentally as well as socially.

Without practicing measures that assures environmental and social sustainability, the business will

simply face various issues that ultimately hinders the business's economic performance. Thus, all

three factors are inter-related to one another and must be looked for by business in an equal

proportion.

References
Hicks, C. C., Levine, A., & Agrawal, A. (2016). Engage key social concepts for sustainability. Scientific

Journal .

LLC, F. H. (2013, September 25). THE THREE PILLARS OF SUSTAINABILITY. Retrieved from

http://www.frontstream.com/:http://www.frontstream.com/the-three-pillars-of-sustainability/

Thompson, A. A., Strickland, A. J., Gamble, J. E., & Strickland III, A. J. (2008). Crafting and executing
strategy: The quest for competitive advantage: Concepts and cases. New York: McGraw Hill
Companies .

Wk5 DQ2
Discussion Question 2 - CLA2 Preparation & Course Learning Outcomes 

Welcome to week 5 of your course. This discussion question will help you prepare for your CLA2 paper
and final CLA2 PPP. Read the CLA2 assignment listed in week 8 of the course. Then, please provide an
outline that itemizes the concepts that you will include in your CLA2 paper and final PPP. Please be
sure to include concepts learned in the course and any information from your CLA1 paper if applicable.
Provide some brief details for each item that is outlined. Please keep in mind that you should have
placeholders for material not yet covered in lecture from week's 6 and 7.

Ans:

Management has a bigger role in the execution and implementation of the strategy

(Thompson, Strickland, Gamble, & Strickland III, 2016). Since I have already designed the strategy

(CLA1), I will be using as a director to strengthen the company's competitive position, I will now

further now create the team to assign their roles in achieving that goal. Also, the company has

focused on the low-cost leadership production and this will require the high-end technologies to

operate.

To achieve this, the skills and resources of a company needs to leverage. So, I have thought

of providing employee will with on-the-job and off-the-job training to achieve the production

efficiency. Also, while hiring and recruiting the employees, certain consideration will be looked after.

The traits of the employee such as (leadership qualities, action-oriented, culturally fit) will be assessed

with their earlier work experiences and knowledge.

Similarly, for the resources and equipment's, the options will be widened with the strategic

alliance, outsourcing and other factors. Moreover, the process of innovation, differentiation and

technological advancement with the mix of offensive, defensive would continue to leverage the brand

value and market share to gain competitive advantage.

 References
Thompson, A. A., Strickland, A. J., Gamble, J. E., & Strickland III, A. J. (2016). Crafting and executing

strategy: The quest for competitive advantage: Concepts and cases. (Twelfth ed.). New York:

McGraw-Hill.

Ans:

In the first CLA, I was asked to discuss the strategy for an electro-
mechanical company that works in two geography area, the east coast and
the west coast, where we took an example of Stryker India, an electro-
mechanical company in India that had a significant growth and success in
previous years but is facing a market share decrease and operation expense
because of the slumbering economy. To address the issue, I have presented
defensive and offensive strategies along with other procedures the company
needs to follow were discussed in CLA 1.
Once the strategies are set, now in CLA 2, we need to identify the
procedures on how to implement the company's strategy. The
implementation of the strategy is crucial as it puts the company's strategy
into actions with the aim of accomplishing the company's strategic goals and
objectives (Thompson, Strickland, & Gamble, 2007). For instance: I talked
about the offensive marketing strategy on the eastern coast of India. Here, I
would like to make a strategic alliance with dealers and suppliers of medical
electro-mechanical product and sign a long-term agreement to ensure
effective marketing and supply chain. Similarly, I would also conduct
research and feasible study of the new market on the eastern coast, and
cash in the opportunity to increase the market share of the region.
Marketing and supply chain in the new market can be economical and
efficient in the geographical territories where there is a minimum threat of
competition for the company. The new market can bring new opportunities
for the company with potentials to improve the business growth and
diversify product offerings (Pearce, 2012). It can also be a good tool for
advertising the company's product and territorial diversifications.
A successful implementation of the strategy is only possible when the
strategy is adaptive and applicable in the particular region, hence feasible
study of the strategies, geographical locations and identification of the
employee who has the potential of implementing the strategy is crucial for
the company. As a director, I will ensure that the strategies are sustainable
and adaptive along with the identification and training for all the employees
who are responsible to implement the strategy in different locations.
 References
Thompson, A. A., Strickland, A. J., & Gamble, J. E. (2007). Crafting and
executing strategy." The quest for competitive advantage. Concepts and
cases. New York: McGraw-Hill.
Pearce, J. A. (2012). Strategic Management (12th ed.). (M. Ablassmeir,
Ed.). New York: McGraw-Hill Irwin Publications.

Ans:

In the final CLA, we will look how we can implement the strategy of going into the new

market. The first things will be to look at the execution level which can be done through the process of

strategic alliance with a local company in the new market. Since, the managers have found the

country where we can expand to and the strategic partner in that country we will now look into how to

implement the final strategy related to the execution of the strategy. The management will train the

staffs to work in the new market as well as co-operate with the strategic partner in order to reach the

level that we want to.

In the new market, I will look into hiring some local people which needs to be the best in the

business. For that reason, we will look into hiring some new talents from the new market that we are

supposed to enter. In order to find out if they are able to work from the organization or not we will

look into if they have the ability to provide a strong standpoint about what they are willing to do. I

would give them the case of the company subtly so that they won't think which company I am talking

about but will look into how they think they can revive the company which would make me able to

hire the proper employees.

The strategy at the beginning of the new entrance will be offensive as long as we see the

possibility to grow however, once we have grown enough I would like to use defensive strategy of

price cutting and finally working into the innovation which is the heart of any company that we would

want to operate (Thompson, Strickland, & Gamble, 2007).

So, these are the ideas that I will look into including in the final CLA.

References

Thompson, A. A., Strickland, A. J., & Gamble, J. E. (2007). Crafting and executing strategy." The

quest for competitive advantage. Concepts and cases. New York: McGraw-Hill.

Ans:
 Well, in CLA 1 I identified various strategies to strengthen company's competitive position.
And we all know that without efficient implementation, none of the strategies works. As in CLA 1,  I
talked about the offensive and defensive competitive strategy. I have also talked about the 5
competitive forces and strategic alliance too.

One point to be noted is that while implementing the new strategies, the people working in the
organization should also be considered. How? Well, everyone might not be flexible to change or
adaptability might not be so good. So, in CLA 2 I should implement the chosen strategy in such a way
that it can have that differentiation, low cost leadership, quality and also easier to adapt. As the
company already had higher market share in last years, now the work of strategy is to gain that trust
back and differentiate from the market.

In a competitive market, where you already had the market share, as a director I would think
to be more creative and innovative then to stick to the old strategy. For instance, recently Starbucks
changed their whole strategy. As, they found out that there are some problem in the employees, they
planned to train all of their employees to make their brand more valuable.

So, I think I will stay on the five competitive forces and also train the employees to make a
change in the organization. Like apple continuous innovation and good implementation of strategy can
make this organization back with the market share that they possessed.

                                                                 References:

Thompson, A.A., Strickland, A.J., Gamble, J.E., & Strickland III, A.J. (2008). Crafting and Executing
Strategy: The Quest for Competitive Advantage: Concepts and Cases. New York: McGraw Hill Inc.

Wheelen, T. L., & Hunger, J. D. (2010 ). Concepts in Strategic Management and Business Policy (12th
e.d.) . New Jersey: Prentice Hall.

Ans:

In CLA 1 I developed a strategy to counteract the decline in market share and profitability. With

continuation of CLA 1, in CLA 2 I will explain the chosen strategy i.e. defensive strategies and the

Strategic alliance. Likewise, role of management in strategy execution to strengthen the company's

competitive position will been shown. Similarly, based on strategic alliance as a key strategy, I will

discuss about the qualities or characteristics of employee that I will look for while hiring for strategy

execution.

Some of the concepts from CLA 1 paper and the concepts that I will include in final PPT and CLA 2

paper are briefly described below:

Defensive strategies

According to the case, the company has obtained a good reputation with nice market share in the old

days. But now it has not been able to perform well and has faced decrease in the market share and

resulting low profit. And, I chose both offensive and defensive strategies. Defensive strategies in

business are reactive strategies which are to be applied in order to bar attacks from competitors who

have potentials and we are in a risk that they may take over our market share. These strategies state

us to hold on what we have and use that competitive advantage keeping competitors aside and
protecting our market share. Different ways involved in defensive strategies are reducing price of

products, price offs for customer attraction, marketing programs, advertisements, etc.

  - Offensive strategies

Offensive business strategies imply taking proactive scheme for arrangement to refine competitive

position grabbing the market share distancing of rivalry (Lister, 2007). The sort of direct competition

and antagonistic step is taken when two or more than two firms offer same type of goods in less price

and attack business plan, handout different quality with one good and other. This strategy focus on

the strength of company and targets weakness of rivalry company in succession to attract markets

leading to price war.

 - Strategic Alliance

Strategic alliance means an agreement between two parties to gain mutual profit by helping each

other to use both resource and goodwill. It is same like joint venture but it is less permanent and less

involve in their business. Being the director, I would give suggestion to the company to use strategic

alliance with another company which excels in promotion of business and has good public relations for

gaining normal market and making a secure market (Thompson, Peteraf, Gamble, & Strickland III,

2012). As our company lacks back, preparing with strategic alliance will make us more knowledgeable

and widen our views, charging less amount than the competitors.

 -  Roles in executing the chosen strategy

Here I will be dealing with the way to execute my chosen strategy that I made to increase market

share at the time of recession. I will be making different ideas so that I can execute my chosen

strategy effectively and take my business one step ahead than rival company. I have mentioned in

CLA 1 that defensive strategy would be effective for my business because I can protect my company

from the attack from the rival company. Through this strategy if I became able protect my business

from competitors I can expand market share and attract many customers.

  - Role of the management team

Management can play important role to capture market. I need effective team for executing and

implementing our strategy to strengthen the company's competitive position. For organizing different

events to sell our product we need effective marketing team. I strongly believe that training and

development can play important role to execute our strategy. For this I need good management team

who can handle this. Management team can play important role in executing and implementing of our

strategy.

  - Strengthening company's competitive position

In this topic of CLA2 I will be dealing on points that will be helpful to increase my company's strategic

position. I will mention process that I will apply to strength my company's competitive position. Also, I

will explain my company's market situation. In this topic I will explain different strategy that can

strengthen the company. Firstly, I would go for defensive strategy to maintain my company position

and increase market size.  In case if thing or strategy goes wrong. I would apply offensive

strategy (Wheelen, & Hunger, 2010).I will make different plans and ideas to sustain in the markets.

So, these are the outline that I would be including in my CLA 2 and PPP. I have briefly mentioned the

way how I will be executing the strategy, management role in execution and implementation and how

I will strength my company's competitive position.

References

Thompson Jr, A. A., Williams, M. P., Gamble, J. E., & Strickland III, A. J. (2018). Crafting &
Executing Strategy: The Quest for Competitive Advantage: Concepts and
Cases. New York: McGraw-Hill Education Inc.

Wheelen, T. L., & Hunger, J. D. (2010 ). Concepts in Strategic Management and Business Policy
(12th e.d.) . New Jersey: Prentice Hall.