Deriving a Competitive Advantage from Environmental Strategies - Case Study Example

Deriving a Competitive Advantage from Environmental Strategies Results The interview section endeavours to determine from some companies based in the United Kingdom their green strategies to address the increasing environmental problem and climate change. In order to acquire first hand information on the awareness of organizations on the greenhouse effect and the strategies implemented to address environmental concerns and protection, two engineering contractors based in United Kingdom and their client were targeted for interview. These companies and the client were selected because of the accessibility of their location and the convenience. Moreover, they fit the category set forth in the selection of appropriate organisations for this study. The organisations’ (contractors and client) involvement in the industry for several years made them appropriate to the study. The engineering contractors will be denominated as Contractor A and Contractor B in this paper. Three organisations from the engineering sector were selected for this paper. The first organisation is national organisation with 17,000 employees, referred as Company A. It owns and operates a UK railway infrastructure. The other two companies are engineering contractors (railway contractors) referred to as Contractor A and Contractor B. They build railways and provide service to Company A (Company A is a client of the engineering contractors). From Company A, the Environmental Managers that handle the company’s strategies were interviewed to give the position of the firm. The Quality Safety and Environmental (QSE) Directors represented Contractor A Contractor B. Interviews in a qualitative research design are interpreted according to themes identified from the responses of the interviewees. In this study, the following general themes emerged from the respondents’ answers: Company views on global warning and green policies, Green goals, Strategy and approaches (short and long term goals), Concerns and issues, and Laws and Government. Company views on global warning and green policies Green goals Strategy and approaches (short and long term goals) Concerns and issues Budget Political strategy Pressure group and Motivations Internal structure Laws and Government SWOT Analysis Strengths The factors included in the strength are internal to organisations. These would include the characteristics, culture, personnel, structure, etc. of the organization. The companies subjected to the study all recognise the need to design and implement green strategies. This recognition is considered a strength since it is an acceptance that there is something that they must do and contribute to slow down climate change. Company A that Strength Company A has introduced a strategy aimed at mitigating the effect on climate in its projects. This can be seen in its Airdrie to Bathgate Railway Project. The strategy, while not totally eliminating the adverse effect railway operation has on the climate, it has minimised the effect while at the same time keeps the cost and operation activities viable. Moreover, Company A has included in its budgetary allocation the expenditure the impact of green house gases upon the environment. An environmental committee has been organised that would study and provide the holistic picture of the effect of the organisation’s activities upon the environment. Weaknesses Weaknesses refer to internal factors that affect an organisation’s drive to design and implement a green strategy. This includes the company’s policies, culture, structure, fiscal standing, etc. A weakness on the part of the engineering contractors is their non-prioritisation of the effect of their activities upon the climate. They have no strategy or plan that would readjust their activities and projects so that carbon emissions would be lessened. As contractors, they are merely concerned with the delivery of what is required by the client. Their current concern is addressing the needs of the client while issues on climate change can be dealt with in the future. This approach can be considered a negative precedent for other companies. The issue on climate change should be addressed now and not on an envisioned future period. The destruction on the environment has been ongoing and in effect for several decades now. The cumulative effect of human activities upon the environment can be seen and felt all around the globe. Delay in the design and implementation of strategies to counter climate change at the present would only hasten the destruction of the environment. The company policies of Contractor A and Contractor B of complying only with the required quality of engineering infrastructures to satisfy the requirements of Company A is actually a threat. This means that these companies have even started considering a plan that would reduce unhealthy emissions into the environment. What they have at present is a mere idea that the concern will be managed in the future. There is even no time frame set to begin the deliberations on the matter. They believe that implementation of the planned strategy cannot be done in a single process. Addressing the global emission problem is a huge undertaking and it cannot be resolved in a single deliberation. There is therefore imperative to take measures one at a time. The contractors should start deliberating on the issue now and adapt short-term measures that could be incorporated in their infrastructure activities. Moreover, implementation of a strategy does not mean that it is already the exact solution to the problem. There will be a trial and error process wherein several solutions can be tested to see their actual effect upon the environment. If they try to implement short-term plans now, they will be able to determine which strategies would best address the problem and incorporate them in their infrastructure activities. Opportunities Opportunities are factors external to an organisation that may affect the implementation of a green strategy. The forthcoming global climatic change conference in November 2009 to be held in Copenhagen is an opportunity for renewal of the organisations’ commitment to design and implement strategies that would alleviate the problem on global warming. A number of nations have been slowly emerging from the economic slump experienced by organisations within their territorial jurisdictions. The upcoming conference would also allow participants to thresh out new strategies and share proven approaches to combat global warming. The improved economic conditions would allow companies to spare a portion of their budgetary allocations for environmental programs. For the contractors, compulsion by Company A upon them to implement a green strategy in their engineering activities is an opportunity. While compulsion might connote a negative force, it is a positive motivating factor that would pressure the contractors to promptly act on green issues, address them, and include their strategies in the over all engineering infrastructures they are engaged in. The Climate Change Program implemented by the UK government to reduce carbon emission levels is an opportunity for the respondent companies to readjust their internal policies and programs. Through this climate program, the government provides a framework and guideline for organisations to follow. Although this program is criticised to be ineffective in significantly reducing the carbon emission levels, this a positive step on the part of the government to have recognised the problem and assuming the lead role combating climate change. The Climate Change Program may only be suggestive on what legislations to be passed. But in this light, this is a positive start-up for the government in taking an active role in providing solutions to the global problem. As the government is able to identify more details on what approach to implement based on experience and scientific studies, more legislations will be passed. The program pressures organisations to comply with the emission level but this pressure is an opportunity for them to readjust and comply with the requirements of the government. Threats Economic recession is a threat for Company A and the engineering firms. The efforts for a strategic environmental management have been pushed in the background when the economic slump takes its toll beginning 2007. The financial viability of numerous companies, banking institutions and financial firms has been greatly affected that priorities have to be realigned and corporate approaches and spending modified. Model for Strategy Planning and Implementation In designing a strategy to address climate change, the organisation has to take into consideration the government and its policies as well as the laws passed by the legislature. Consultations with stakeholders that includes the client, investors, the government, concerned entities (civil groups advocating protection of the environment), scientists and scholars should take precedence. The overall plan should consider the collective wisdom of the stakeholders. From such deliberations, the most appropriate strategies and approaches should be designed. If there are stages or phases required in the implementation of the program, a time frame should be set for each phase. Implementation of a new strategy or approach requires changes within the organisation. This may need a modification of the structure of the organisation itself such as merging of units, creation of new departments, changes in the internal policies of the company, readjustment in budgetary allocations (providing funds for the plan), hiring of new personnel, training of existing personnel on the new goals and objectives, creation of new programs and activities (daily activities within the organization geared towards the attainment of the goals), and changing the plan of the physical infrastructure (modifying the set-up of the office building or design of the engineering projects undertaken that would reduce negative impact upon the environment). The last stage in the model is the implementation of the strategy. Read More