Sustainable Business Strategy

Sustainable Business Strategy Response Report

 SUSTAINABLE BUSINESS STRATEGY

Business Case for Change

Business Case for Change

1.0 Course Introduction
1.0.2 Welcome to Sustainable Business Strategy

M1_Shared_Introduce Yourself

Question

First, get to know everyone in your cohort better by sharing a little about yourself. Why are you taking this
course? What are you hoping to learn?

Your Response

Hello everyone, I'm Alan. Just like most of you, I have a primary objective to sign up for this course.
I want to dive deeper into the business world to familiarize myself with some business-related concepts
and I feel this chain of courses provided by HBS Online would help me in doing that to a certain extent.

Submitted February 02, 2022 at 11:51 AM ET

M1_Team_Keeps You Up at 4am

Question

Take a moment to reflect and answer the following questions with your team: What problems keep you up
at 4 AM? Is there anything you are currently doing, or wish you could do to help solve these problems?

(Note: these answers will only be shared with your team members)

Your Response

There's only one problem that keeps me up past the midnight hour and a rather personal one. I like
stargazing and looking up certain facts/theories on astronomy. Whenever I see some kind of faint light(of a
star) in the night sky, I feel like looking at it a bit closer. There's always a problem of light pollution at night
which usually obscures the stars in the night sky. I wish I could possess a telescope to have a closer look

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and even take pictures. Telescopes are usually very expensive and even saving some amount of money
would take me years to actually buy one.

Submitted February 02, 2022 at 12:18 PM ET

1.1 Lipton Tea

1.1.1 Lipton & Their Commitment to Sustainable Tea

How Did Unilever Train and Certify Half a Million Farmers?

Question

It’s clear how this sustainable tea initiative would benefit Unilever and Lipton. What are the potential
benefits or downsides for smallholder farmers?

Your Response

The sustainable tea initiative would benefit if the "train the trainer" strategy is efficiently carried out. It would
lead to many incentives for the smallholder farmers, which is beneficial for either side at the end of the day.
Any miscommunication within the chain of command would reap unexpected results and thus, would lead
to downsides.

Submitted February 02, 2022 at 01:08 PM ET

1.1.2 What's the Business Model?

M1_Shared_Lipton Business Model Suggestion

Question

What should Lipton do to offset these additional costs?

Your Response

Lipton should closely monitor the prices of its competitors and try to compete. This might generate some
capital due to its assured quality to offset the additional costs to some extent. A proper business analysis
should be done before coming to any specific conclusion.

Submitted February 02, 2022 at 01:25 PM ET

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M1_Shared_What Persuades You To Buy Sustainable?

Question

Would this ad persuade you to buy Lipton’s tea over other brands? Why or why not?
Do you think these kinds of ads change people’s willingness to buy sustainable products? Do they make
you more likely to buy something that’s sustainably branded?

Your Response

Yes, I think these kinds of ads do change people's willingness to buy sustainable products. The ads
usually target emotions and that's why people are more likely to buy the product.

Submitted February 03, 2022 at 10:13 AM ET

Translating "Brand Love" to Profits

Question

Why was Unilever so reluctant to raise prices? What were the risks inherent in doing so?

Your Response

This could have led to a slight decrease in the consumers based on the prices of other products in the
market. Besides, sustainable products do not have to cost more and the risks involved are quite high
based on the company's reputation.
Submitted February 03, 2022 at 10:25 AM ET

1.2 Business Models

1.2.1 Walmart

M1_Shared_Walmart Response to Criticism

Question

If you were Doug, receiving this criticism, how would you respond? What would you do?

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Your Response

I would analyse the problem and draw a suitable conclusion based on that. In this way, I would be open to
criticisms and also understand the problem in a better way.

Submitted February 04, 2022 at 10:08 AM ET

1.2.2 Greening Walmart - The Business Case

M1_Shared_Walmart Business Case for Sustainability

Question

Walmart’s goals would clearly require a significant investment of time and money. What were its leaders
trying to do? What was the underlying business case for their actions?

Your Response

I think what Walmart did was set a goal that would be seen as a long term investment in a sense. Getting
customer loyalty would usually depend on how a company acts in certain situations. Making a commitment
like reducing its greenhouse gas emissions would mean that a company would have to think sustainably.

Submitted February 04, 2022 at 10:50 AM ET

1.2.3 The Current Energy System

M1_Numeric_Electric Bill WTP

Question

The average monthly retail electricity bill in Massachusetts is $94. If that were the amount you were paying
each month, how much more (in dollars) would you be willing to pay to ensure that you were buying
“green” or fossil fuel free energy? (Enter the additional amount you would be willing to pay.)

Answer

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Results
Bin Minimum Bin Maximum Bin Total

None 10 167

10 20 73

20 40 58

40 60 34

60 80 5

80 100 61

100 None 34

1.2.4 Transatomic: Bringing Nuclear Power to the Forefront

M1_Shared_Transatomic Business Model

Question

It’s clear that a viable nuclear energy business could be highly profitable. How should we think about its
case in terms of the “business model” diagrams we have been developing? What is its business model?

Your Response

According to the previous article, the nuclear energy business would be considered as a "Shared Value
Opportunity" which would focus on solving social and environmental problems as well as making money
in an efficient way. This can also be included in previous examples of companies trying to go for
sustainable business.

Submitted February 05, 2022 at 06:49 AM ET

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1.3 Jumping the S Curve and Dealing with Uncertainty

1.3.1 Business Lifecycles

An Industry Disrupted

Question

Why do you think it’s so hard for well-established firms to grasp that the world is changing? What gets in
the way of doing new things? 

Your Response

I think it's just because of the conventional ways that some well-established firms started making a lot of
money. They feel that it's the only profitable way. The world and the market are changing rapidly and one
item will replace another in the near future. So, it's very important to keep up with the new market trends
and adapt accordingly.

Submitted February 07, 2022 at 12:48 AM ET

1.3.2 Sources of Uncertainty

M1_Shared_CLP Scenario Analysis

Question

Why do you think CLP might have made this decision? What major uncertainties might it have been
hedging against?

Your Response

CLP might have made this decision by looking at the environmental effects it was causing and committed
to cut it down in the following years. It might have been hedging against some uncertainties like reduced
coal generation, power station failure, calamities, etc.

Submitted February 07, 2022 at 02:04 AM ET

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1.3.3 Investing in Uncertainty

M1_Shared_Uncertainties of Unilever Sustainability Commitment

Question

What were the major uncertainties that Paul was betting against when he made this commitment? (Another
way of thinking about this question is to ask yourself: What would have to change in the world for Paul’s
strategy to be a smash hit success?)

Your Response

The major uncertainties would consist of a "saturation point" where the adverse effects of the
functionalities of the company wouldn't hold any longer. This is in reference to the environmental footprint
left by the products after their production or disposal. When this happens, the company would have to
minimise their production which would slowly lead to its downfall. Thus, in my opinion, what Mr Paul
Polman did was wise.

Submitted February 07, 2022 at 03:01 AM ET

Revisiting Lipton Tea

Question

Given the scenario analysis above, why might it be the case that Lipton Tea’s commitment to sustainability
proved to be successful in the long run?

Your Response

Lipton Tea made a thoughtful commitment to switch to sustainability and invest a lot of money and effort.
The main job was to make the consumers aware of what the company was doing. That's where marketing
came in. Great choice of marketing advertisements and good quality products earned them a big portion of
share price in the market. This proved to be successful in the long run.

Submitted February 07, 2022 at 07:44 AM ET

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Driving Change at Scale

Driving Change at Scale

2.1 Infectious Change
2.1.1 Purpose

M2_Elevator Pitch

Question

You have just concluded your final interview for a leading decision-making role. This is your dream job, as
you would be working to help the company transition to more sustainable business practices. You and your
interviewer have stepped into the elevator. You have 30 seconds to the ground floor. This is your final
opportunity to make a lasting impression. Unleash your elevator pitch:

How will purpose help you to succeed in the role and how will company-wide purpose enable the
organization to succeed in its efforts?

Your Response

I would suggest some ideas on sustainability and how the company would benefit in the process and also
having me in the team would count as an asset. Purpose basically insinuates character and it will be
reflected to the interviewer.

Submitted February 10, 2022 at 09:18 AM ET

2.1.2 How Far Can Single Firms Acting Alone Take Us?

M2_Reflection_Shared_Indiv Firms Impact

Question

Individual firms acting alone can have an enormous impact on their customers, employees, and
communities. But can they have an impact beyond their own particular worlds? If so, how?

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Your Response

Yes, I believe that some individual firms can have an impact beyond their domain. The stuff that they
basically do, influences some other domain in an indirect way.

Submitted February 10, 2022 at 09:42 AM ET

2.1.4 Making Concentrated Detergent a Reality

M2_What Should Walmart Do

Question

What should Walmart do?

Answer

Marketing and Promotions: Put some marketing muscle behind all® Small & Mighty® (e.g. place the
product at the end of the aisle, encourage Unilever to come up with some exciting in-store promotions)

Results
Marketing and Promotions: Put some marketing muscle behind all® Small & Mighty® (e.g. place the
product at the end of the aisle, encourage Unilever to come up with some exciting in-store promotions): 53
%
Few Markets: Let Unilever put all® Small & Mighty® on the shelf in a few markets to see how consumers
respond to it: 38 %
Entire Industry Switch: Find a way to persuade all the detergent makers to launch concentrated detergent
products, building an entirely new category: 17 %
Unilever Brands Switch: Persuade Unilever to switch all its laundry detergent to the compact format: 13 %

M2_Team_What Should Walmart Do

Question

Why should Walmart go this route?

Your Response

I feel Walmart should let Unilever put the product on the shelf in a few markets. This should be done to
assess the behavioural choices of customers and sales. There might be some prejudice at first but this
new product comes with a risk.

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Submitted February 10, 2022 at 10:54 AM ET

M2_Shared_Why Walmart Agent of Change

Question

The laundry detergent industry had had the technology to move to a concentrated formula for a while. Why
was it Walmart that finally enabled the industry to switch?

Your Response

Walmart proposed a plan for the laundry detergent industry in order to improve efficiency and to grow the
industry together. By decreasing the size of the product, it'd not only reduce the shelf space but also
motivate Walmart to sell the products using a new marketing strategy.

Submitted February 10, 2022 at 11:23 AM ET

2.2 Public Goods Problems

2.2.1 Let's Play a Game! The Aquifer Simulation

M2_Shared_Why Did You Empty Aquifer

Question

Why did the aquifer run dry? Could it have been prevented?

Your Response

Yes, it could have been prevented by imposing a certain limit to which the pumps can be operated.

Submitted February 11, 2022 at 11:46 AM ET

2.2.2 Solving Public Goods Problems

M2_Shared_Who is Responsible for Public Goods Problems

Question

Whose responsibility is it to address public goods problems, or to focus on “us” and “later”?

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Your Response

I think it's the responsibility of society as a whole or just individuals with a shared ideology.

Submitted February 12, 2022 at 01:01 AM ET

2.2.4 The Prisoner's Dilemma

The Dilemma

Question

Why do people trust each other in these kinds of situations? In reality, what allows fishers (and prisoners!)
to cooperate?

Your Response

It depends if one wants to trust the other person. It usually comes down to intuition whether the other
individual would betray the trust of the first one.

Submitted February 12, 2022 at 02:41 AM ET

M2_Shared_Personal Example of Cooperation

Question

What’s an example from your own life where a group you’ve been part of (e.g. your family, a sports team, a
team of co-workers) has been able to solve a common problem by persuading everyone to work together?
Briefly describe the situation and then reflect on why it was successful.

Your Response

I was a part of a group where we had to present a specific topic before a given deadline and we already
had many assignments piled up. We had to cooperate by working on it till late at night before starting the
assignments. Sleep was compromised for that specific week but we successfully completed all the work
that was assigned to us. I would say that this turned out to be a success only because of cooperation
among the team members.

Submitted February 12, 2022 at 03:05 AM ET

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2.3 Cooperation in the Real Economy

2.3.2 The Business Case for Sustainable Palm Oil

Unilever's Ambitious Palm Oil Commitment

Question

You are the CEO of one of Unilever’s major competitors. What would persuade you to commit to using
sustainable palm oil?

Your Response

Keeping the high demand for palm oil in mind, I'd prefer using sustainable palm oil to lessen the burden
which would have adversely affected our environment.

Submitted February 12, 2022 at 04:57 AM ET

2.3.3 Cooperating with External Stakeholders - in the Supply Chain and Beyond

M2_Shared_Why Cooperation with All Stakeholders

Question

What problems would the members of the Consumer Goods Forum have encountered if they had
attempted to move the palm oil industry towards sustainability without this group’s involvement? List one
or two potential problems.

Your Response

It would have created some kind of a conflict which would have resulted in further disagreements.

Submitted February 12, 2022 at 05:26 AM ET

2.3.5 Why Might Purpose Help with Cooperation?

M2_Shared_Importance of Purpose in Cooperation

Question

In your opinion, how important is purpose in forging cooperation?

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Answer

Reflection Question

Why did you choose that value on the scale? How might cooperation help or hurt?

Reflection Response

Purpose develops a sense of responsibility and it's a very important factor in forging cooperation.

Submitted February 12, 2022 at 10:20 AM ET

Results
Bin Minimum Bin Maximum Bin Total

None 1 2

1 2 4

2 3 8

3 4 5

4 5 18

5 6 12

6 7 16

7 8 12

8 9 10

9 None 8

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2.4 Expanding on Purpose

2.4.2 KAF Continued: The Business Model

M2_Shared_KAF’s Mission B Model

Question

How does KAF translate its mission into a profitable business model? How would you guess that KAF
leverages its strong culture?

Your Response

KAF has a strong culture that mostly relies on human values to provide a healthy and amicable
environment to its employees. This is strongly reflected in its profitable business over the years.

Submitted February 12, 2022 at 10:56 AM ET

2.4.4 What Does The Research Say?

M2_Shared_Purpose helping response to Lipton or Katrina

Question

Thinking back to some of the examples we’ve seen in the course so far, how would you say that purpose
helps firms respond to the challenge of sustainability? 

If it's helpful, consider framing your answer around either the Lipton or the Walmart cases that we’ve
already seen.

• How did purpose help Lipton embrace sustainable tea?

• How did purpose shape Walmart’s actions after Hurricane Katrina? 

Your Response

I believe the purpose of shared value in "doing good" and "doing well" really helped Lipton embrace its
aim of sustainable tea.

Submitted February 12, 2022 at 12:04 PM ET

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2.4.5 Is it Legal to Adopt a Purpose?

M2_Shared_Returns vs. Purpose

Question

As we’ve seen, a shared purpose can have enormously powerful effects. But why, then, does talk of
purpose make many managers nervous?

Should it be legal for firms to sacrifice economic returns for purpose? 

Answer

Yes

Reflection Question

Why does being genuinely purpose driven require firms to sacrifice economic returns from time to time?

Reflection Response

Being purpose-driven develops a sense of responsibility to attain a certain goal. This increases
productivity. This might sometimes require the firms to sacrifice economic returns.

Submitted February 12, 2022 at 12:15 PM ET

Results
Yes: 100 %
No: 55 %

2.4.7 How Far Will This Take Us?

Module 2 Reflection

Question

How far will cooperation take us? If a reasonable percentage of the world’s largest companies joined
forces to support sustainable practices, would we solve all the world’s problems? Or is there something
missing?

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Your Response

Cooperation would certainly take us far than it we'd expect. If a reasonable percentage of the world's
largest companies joined forces to support sustainable practices, we would be able to solve most of the
problems. There's always going to be a problem that'll pop out of nowhere. So, I believe that's it's nearly
impossible for us to solve all problems even after cooperation.

Submitted February 12, 2022 at 01:25 PM ET

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